6292 CONGRESSIONAL RECORD-HOUSE MAY 2!! place 1n the saga of the Senate and in the annals of the Claude H. Hall, Jr., of Maryland. Illinois which he loved and by which he was loved. Heyward G. Hill, of Louisiana. This, then, is the man I have been designated to succeed Phil H. Hubbard, of Vermont. 1n the Senate. Truly do I recognize the magnitude of the Paul C. Hutton, of North Carolina. task I have been given. Earnestly do I hope and pray that J. Wesley J·ones, of Iowa. I may represent my State and Nation as faithfully as did he. Stephen E. C. Kendrick, of Rhode Island. The PRESIDING OFFICER. The question is on agreeing Nathaniel Lancaster, Jr., of . to the resolution. · John J. Macdonald, of Missouri. The resolution

Percentage table

Average Works Percent General Number Percent spent for Percent of Progress of Works Works unem- Percent of Ad minis- relief, by of general Progress Progress played as States popula- number, trationem- State and relief cases shown in Apr. 2, ployees, local funds, by State Admin is- Admin is- tion 1928 tration ex· tration and 1937unem- · Mar. 11, in 1938 and local penditures local and ployment 1939 State census

Alabama..... ______. __ . __ ~ ______.. ______• ______2. 2 1. 47 1. 9 $0.059 0.15 $1.14 $0.92 2.4 Arizona .. ______. . ____ . ______. ______. ______.. ______------. ______.4 . 35 . 34 .108 . 21 . 36 . 312 .28 Arkansas._._._. ______-----______. ___ . __ ._------______1.5 1.44 1. 78 . 055 . 22 .97 . 7964 1. 61 California ______._. ______.------______. __ . ____ . ______. 4. 6 3. 857 3. 9 8. 5 7. 06 4. 25 4.966 4.46 Colorado ______---.. ------.. __ ------. ____ . __ ._. ______. ______.8 1.12 .9 .43 .77 .102 . 91 .86 Connecticut______. ______._. _____ .. ______. 1. 3 .9 .87 1.4 1. 31 .113 1.198 1.13 Delaware .... _.. _.... ______. _____ ------___ ._.-----. ______. ______. __ __ . 2 .122 .12 . 091 .14 .112 .1086 .14 District of Columbia______. ____ . ______. __ . _____ . ______.. .4 . 3285 .4 .128 .09 . 372 . 3245 .6 Florida .. ------1.2 1. 29 1.7 . 139 .44 1. 03 . 946 1. 36 Georgia .. ------______. ______. ______. ______. ______2. 4 1. 7 2. 2 .117 . 41 1. 22 1.00 2.13 ldabo ... ------.4 . 473 .4 .104 . 13 • 354 . 301 . 33 Dlinoi s .. ______---_-.-_- _. _____ - ___ - ______-_--.. -.------.-----_----- 6. 2 8.07 7. 90 10.18 10.76 8. 22 8. 608 5. 89 Indiana.. _---______--__ --______. ____ . _____ . ______. Iowa ______.: ______2. 6 3. 00 3. 08 1. 99 . 36 3. 25 3. 032 2. 38 2 1. 25 1. 01 1. 21 1. 9 1. 08 1.126 1. 09 Kansas. ___ ------______.------.------.. 1. 5 1.46 1. 15 . 576 1. 27 1. 08 . 9837 1. 27 2.1 2.05 2.10 .112 .45 1.64 1. 34 2. 53 E;~~~~~~:::~~~~::::::::::::::::::::::::::::::::::::::::::::::::::::::: 1.7 1.28 1. 70 .25 • 47 1.13 .964 1.66 1939 CONGRESSIONAL RECORD-HOUSE 6297

Percentage table-Continued

Works Average Percent Progress General Number Percent spent for unem- Percent of Percent of Adminis- relief, by of general of Works Works ployed as States popula- number, trationem- State and relief cases Progress Progress shown in tion Apr. 2, ployees, localfunds, by State Adminis- Admin is- 1937unem- 1938 Mar. 11, tration ex- trationand ployment in 1938 and local penditures local and 1939 State census

Maine ______~- ______--______--_--_---- .6 . 31 • 33 $0.661 • 7 $0.29 $0.368 .5G Maryland _____ ------______------1.3 . 48 . 52 . 5 . 65 0 41 0 472 • 91 3. 5 4. 3 4. 3 5. 03 4.15 4. 77 4.82 4.18 3. 9 5.1 4. 7 5. 68 4. 34 5. 73 5. 722 8.18 ; ~~t~~~~:~======2.1 2. 36 2.18 2. 56 2.14 2.47 2. 49 1. 84 1.6 1. 26 1. 56 . 01 . 07 .85 .687 1. 52 3. 0 3. 52 3. 49 1. 4 2.1 3.09 2.692 3. 3 Montana______------______------______: g~~y~~~~:======Nebraska______.4 . 74 0 63 0 25 .45 . 78 0 685 .62 1.1 1.15 1.03 . 26 .66 1. 001 .856 . 91 Nevada______.1 .1 . 08 .02 .03 .09 .077 . .06

• N ew Hampshire ______------.4 0 35 0 32 . 59 • 51 0 32 0 381 .41 1 1'-Tew Jersey ______------___ -----_----- ____ ---____ ------3. 3 3. 36 3.09 4. 54 4.4 3. 92 4. 0446 8.66 New Mexico ______.3 .4 .4 .03 .1 .38 0 3176 .39 New York. ______------______10. 3 8.46 8. 22 26.3 16.9 11.69 14. 613 12.39 North Carolina. ______------______2. 6 1. 29 1. 67 .087 . 34 . 91 . 752 1. 61

.6 .6 .48 .25 . 38 0 5 . 451 . 58 I 5.4 8 8. 3 4. 5 5. 4 9. 28 8. 34 5. 24 2.0 2. 49 2.18 .38 1. 2 1. 59 1. 358 2. 21 1 Oregon. ____ ------======"= =------======.8 . 68 0 62 .46 . 78 0 67 .632 .93 ;1 8Pennsylvania ~r~~-=~~~~= __ ------______7. 8 9.1 S.2 16.2 14.7 10.23 11.3557 9.59 .6 . 35 . .5 .67 .64 .67 0 6733 . 75 i ~o~t~e 6~(o~~-a: ~ ~= :::::::::: ======: ::::: ====: ======:::::::::::: 1.4 1. 25 1.6 .07 .15 .89 0 73 1.32 • South Dakota._------.6 . 7 . 53 .17 .33 .54 .475 .64 Tennessee._----·------·-- ______------~-- 2.1 1. 27 1. 78 .69 .3 .93 0 763 1. 9 Texas.------4.7 3.18 3. 59 .28 .81 2.04 1.7 3.9 Utah ______------__ ------______------______. 4 .43 .44 .19 .23 .4 .35 .38 . 3 .2 .2 .17 .2 .19 .19 .18

2.0 • 0 93 1.00 • 255 .5 .63 0 56 1.44 Washington~r:-;r~i~~ ·:=- __==== ------== = == ::______======------======______======------======______======_= 1.3 1.88 1.56 1.05 1.8 1. 75 1. 61 1. 55 1. 4 1. 67 1.66 .43 1. 2 1. 34 1.18 1. 55 Wyoming~r;'~o~!f~~i~-:~ ______~=: ::::::::::::::::::::::::::::::::::::::::::::::::::::______• ______2.4 2.69 2. 5 2.13 2. 9 2. 75 2.64 2.03 .2 .18 .15 .07 .15 .15 .13 .14

EXTENSION OF REMARKS of age, and while gaining departmental experience he gradu- 1 Mr. BUCK. Mr. Speaker, I ask unanimous consent to extend ated from the National Law University. Immediately upon my own remarks in the RECORD and to include therein an arti­ his graduation he returned to Hudson, Wis., where he was cle which appeared in of May 25, 1939. elected city attorney in 1894. He became district attorney · The SPEAKER. Is there objection to the request of the of St. Croix County, Wis., in 1897. He continued therein gentleman from California [Mr. BucK]? until 1901. He was elected to the Wisconsin Assembly in There was no objection. 1902, and later to the Wisconsin State Senate in 1904. In Mr. SMITH of Washington. Mr. Speaker, I ask unani­ 1907 he was elected Secretary of State of the State of Wis­ mous consent to extend my own remarks in the RECORD and consin, in which capacity he served 6 years. In 1914 he to include therein quotations from certain writers and was elected as a Progressive-Republican to the Sixty-third speeches by the Honorable James Hamilton Lewis, late a Congress, and served in each consecutive Congress until 1934, Senator from Illinois. when he voluntarily retired. The SPEAKER. Is there objection to the request of the Since his retirement from Congress he has been engaged gentleman from Washington [Mr. SMITH]? in the practice of law in the city of Washington. A man of There was no objection. high ideals, strict integrity, and great ability, Mr. Frear's Mr. BURDICK. Mr. Speaker, I ask unanimous consent to long career in the public service was characterized by faith­ extend my own remarks in .the RECORD and to include therein ful service to his State and to his country. · He was widely quotations from a letter and resolution received from the known and was highly esteemed by all who knew him. American Indian Federation and also to extend my own Mr. Frear leaves his wife, Mrs. Harriet Frear, a son Philip remarks in the RECORD on the plight of the American fam­ A. Frear, and a daughter, Mrs. Allen Johnson, all residents ilies of this country. of the city of Washington. The SPEAKER. Is there objection to the request of the EXTENSION OF REMARKS gentleman from North Dakota [Mr. BURDICK]? Mr. SHEPPARD. Mr. Speaker, I ask unanimous consent There was no objection. to extend my own remarks in the RECORD. I have received Mr. CRAWFORD. Mr. Speaker, I ask unanimous consent an estimate from the Public Printer, which states that the to proceed for 25 minutes in order to discuss the sugar situa­ additional cost to extend these remarks will be $90. I ask tion, but before propounding the unanimous-consent request unanimous consent to extend these remarks in the RECORD, I would like to have these gentlemen propound their unani­ notwithstanding the estimate of the Public Printer. mous-consent requests to extend their own remarks in the The SPEAKER. Is there objection to the request of the . REcORD so that they will not have to wait. gentleman from California [Mr. SHEPPARD]? The SPEAKER. The Chair will recognize the gentleman There was no objection. later to propound his unanimous-consent request. THE LATE JAMES A. FREAR THE EFFICIENCY AND LOYALTY OF THE UNITED STATES NAVY Mr. HULL. Mr. Speaker, I ask unanimous consent to pro­ Mr. THORKELSON. Mr. Speaker, I ask unanimous con-

ceed for 2 minutes. sent to extend my own remarks at this point in the RECORD 1 The· SPEAKER. Is there objection to the request of the and to include therein a discussion of the various topics in gentleman from Wisconsin [Mr. HULL]? the newspapers of today. ! There was no objection. The SPEAKER. Is there objection to the request of the ' Mr. HULL. Mr. Speaker, I regret to announce that James• gentleman from Montana [Mr. THORKELSoNJ? A. Frear, a member of this body for 22 years, passed away There was no objection. on Sunday morning, May 28, 1939, at the age of 78 years. Mr. THORKELSON. Mr. Speaker, the United States Navy : Mr. Frear was born at Hudson, Wis., in October 1861. He carries on in its traditional efficiency and loyalty to the came to Washington with his parents when he was 18 years Nation, to the people, to the service, and to the men who i LXXXIV--398 . 6298 CONGRESSIONAL RECORD-HOUSE MAY 29. serve in the Navy. This was clearly shown in the recent dis­ that there is a new document in the beautiful marble struc­ aster of the U.s. S. Squalus. Let us be loyal to those alive by ture on Capitol Hill. keeping faith with those who died. Congress may keep faith I also realize that someone may take exception to this by providing for their dependents and for education of the presumption on my part, but if they believe I am wrong, I children whose dads sleep in the aft compartment of the invite them to read the United States Constitution and jus­ Squalus. tify their legislation upon it. As we read the log of the survivors we are again impressed I want to say at this point that I expect to be called a. with the discipline of the crew, for they said: "No one was Nazi or Fascist, because I honor my obligation to preserve, excited. We waited for help from our shipmates. We were protect, and defend the Constitution and the people's rights. quiet, so as to conserve oxygen." And this is the spirit in I even expect to be ridiculed or smeared, if you please, by the which the NaVY meets its problems. Asiatic Communist and invisible government's press because So these 33 members of the crew waited in the forward hold of my convictions. Be that as it may, I shall not abandon of the Squalus, under 240 feet of water, on the bottom of the the fundamental principles of our Nation for a "mess of Atlantic Ocean. In my mind's eye I pictured the methodical pottage." manner in which each and every one stepped forward to res­ The afore-mentioned group of 2,500 attorneys employed cue, with one thought in mind-to help those In the stricken in the Federal Government are distributed among the many ship. I can also understand the feeling of the imprisoned departments and bureaus, and it is this group that drafts crew when they heard the first signal tapped on the deck of legislation for all the Federal departments and bureaus. The the ship. They had already heard the propeller of the sister people should understand that such legislation is drafted ship, the U.S. S. Nautilus. A happy moment, certainly, when solely for the benefit of those departments and bureaus, they heard the signal of the diver. · and not for the people. It follows, therefore, when such It is difficult for us to understand the hazards of this rescue legislation is passed by Congress, the people's rights are grad­ work, not only after locating the marker buoy but also after ually restricted until they become enslaved in a legal struc­ having anchored in position. When my colleagues can imag­ ture, which is in reality the beginning of all despotic gov­ ine the diving bell swung over and lowered from a derrick 240 ernments. feet into the semidarkness of the Atlantic and the divers We have much evidence of this today. I have in my directing the bell squarely over the rescue hatch, the magni­ possession 16 Senate and House bills for regulation of radio tude of this work is only partly appreciated. broadcasting alone. If these bills are enacted into legisla­ To the NaVY it is all in a day's work; it is a duty to which tion, no one but the Federal Government and its agents will they have obligated themselves. The Navy is loyal to this be permitted to broadcast and tell bedtime stories to the obligation and carries on with perfect discipline. The only people. That is practically what such legislation means. compensation the crew receives is "Well done," and the ship In other words, I, speaking as I do in this address, would be an "E" rating. barred from the use of the broadcasting stations, and the I suppose a few of my seagoing colleagues have seen rescue people who own recording machines would be prevented work at sea, and I am not addressing myself to them, but from using' them for recording; yet the Federal Government rather to those unfamiliar with such work. I recall in April itself would have the right to all broadcasting and recording ·1936, when .the fleet received orders to spot three land planes privileges in the fullest extent. That in itself is sufficient afloat in the shark-infested Pacific, south of Central America. evidence of usurpation of rights and destruction of free As we swung ahead full speed to the rescue of these planes, I speech, the beginning American ogpu. recalled having seen the same day two 8-foot hammerhead A few examples of these bills areS. 1520, S. 517, and H. R. sharks ofi the starboard bow. Thinking of this, I wondered 5791, and there are many more, which I shall not discuss at if the empty gas tanks would keep the planes afloat and the this time. It is my intention, however, to inform the public crew safe from these aquatic monsters. The only disappoint­ that the greater number of this pending legislation is for no ment registered by our crew was in not being first to find the other purpose than to keep facts from the people. It is now planes. up to the public to express themselves in opposition to this The Navy is efficient, and I look forward to the day when censorship of free speech. Broadcasting is about the only Congress will also be efficient, so that an "E" may face the chance left by which truth may be imparted to the people, flag over the Speaker's rostrum, instead of the cloek now for many of the papers are now closed to those who expound hung there, making wasted time. Congress must again take constitutional government. charge, and the best time to begin is now. The invisible gov­ One of these bills, H. R. 2981, introduced by the gentle­ ernment and the "White House Congress" has been in charge man from New York [Mr. CELLER], is entitled to special too long for the general welfare of the country. These con­ mention, because its purpose is to protect squibs, clothed in stitutional saboteurs have by their own acts classified them­ obscurity but with a definite purpose,· in which the authors selves as incompetent, and a national menace. are expert. This bill, if enacted, will protect the sponsors and However, I want to compliment the legal staffs in the the owners of the stations from liability when they allow White House Congress and other Federal departments for striped quadrupeds to contaminate the air with personal in­ the legislation they draw. It is voluminous and most· of it nuendoes. The F. C. C. is now a drag on the taxpayers, and is in conflict with the Constitution or clearly unconstitu­ should be cut in numbers to reduce the administrative cost tional. The legislation drafted by a portion of the 2,500 of this Bureau. This can be done if Congress conveniently or more attorneys in the Federal employ is for one purpose, forgets to appropriate money to sustain subversive legislation. and that is to build complete Federal control by legisla­ Subversive legislation is that which in reality is written tion. In other words, these 2,500 attorneys, who are sup­ under the direction of the invisible government and sent down ported by the taxpayers, enmesh these taxpayers in legis­ through its agents until it reaches some Member of Con­ lation destructive to them, and to the Nation as well. I gress, who becomes its dupe in the introduction of such legis­ realize, of course, that a great majority of these 2,500 lation. In other words, such Member unknowingly becomes an attorneys are sincerely loyal to the people, and although agent of the invisible government by introducing legislation falling over each other, they are still carrying on. I am favorable to it. If the bills are studied carefully, the Mem­ not speaking of them. I refer to the new clan of lawyers, bers will find that there is no actual necessity for such who, in 4 years, have learned to write legislation so obscure legislation, but in the passing of it truth is restricted and that it fools the majority in Congress. To those who glibly facts are prevented from being broadcast. It does not, how­ say "That should not be hard," let me reply. We have about ever, restrict broadcasting of subversive propaganda by under­ 240 lawyers in the House who would "spot" this new "hot cover agents of the invisible government, for they have con­ dog" legislation if they could understand it, and understand­ venient and servile contacts. ing of it has been tried, but those who have relied on the There is another broadcasting infant in the offing-H. R. Constitution for a premise find there is no justification for 2721-introduced by the gentleman from New York [Mr. CEL­ this new legislation, so it is passed, I suppose, in the belief LER]. It is a high-powered naval broadcasting station at 1939 CONGRESSIONAL RECORD-HOUSE 6299 Arlington, Va., to be called PAZ, which means "peace" in They are found in the ran.k.s of business and in the radical Portuguese. There is no provision for the Government's ranks of labor. They are the underground workers for the propaganda bureau to build such broadcasting station, so invisible government, but are themselves in many instances the Navy is used as an excuse for this appropriation. The unaware of the purpose they serve to the higher-ups. station is to cost $700,000, with an additional operating cost The next group is the murder squad of the invisible gov­ of $100,000 per year. This will be charged to the taxpayers. ernment, those who for a price, or by the drawing of a straw, The sole purpose of this station is to" spend more money on a killed Huey Long and others. This activity is generally bigger and better publicity bureau for the New Deal, or the known today and would, if repeated, be unhealthful for. invisible government. This station is presumably constructed those responsible for such un-American activity. If at• to promote friendship with South American republics, and tempted again, it no doubt would start a number of this the irony of it is that American industries have already been subversive gentry walking, and not having anyone to wave kicked out of Mexico, Venezuela, and, I read in the Evening the staff and part the Atlantic and Pacific Oceans to provide Star of May 27, 1939: escape, they might be forced to entrench themselves in Gov­ SANTIAGO, CHILE, May 27.-United States and British .oil com­ ernment-owned parks or else march to MeXico as guests of panies in Chile were authoritatively reported tonight to have been Papa Trotsky. notified officially that the Government would establish shortly a my state monopoly for the sale and distribution of petroleum products. This I would not like to see, and it is reason for sug­ The foreign companies were said to have been advised to liquidate gesting that we now return to a republican form of govern.., their organizations within 3 months. ment, restore State rights, take the government out of In , May 28, appeared the following: business, and restore constitutional rights to industry, com­ In March 1938, Mexico appropriated properties of American and merce, business, and labor including all earning groups, as British companies which the latter valued at $400,000,000, and 2 provided for in the Constitution of the United States. In years ago Bolivia canceled concessions of the Standard Oil Co. returning to sound government, each and every one will be These are examples of central South American good-neigh­ adequately protected, because in common unity each will bor policy, and it makes the United States an international respect the rights of the other. laughing stock. The Army and Navy should have been sent The taxpayers of the United States set aside $100,000 to to audit the books of the first nation that "pulled this the Dies committee on un-American activities, and these shenanigan." taxpayers want the committee to find the "wolves in sheep's It is well to bear in mind that all South American nations clothing." owe money to the United States, and our private capital has The invisible government and those who own and control developed mines and oil industries in these countries, just gold, money, and credit can squeeze the banks, if helping as was done in Mexico. V/e have millions upon millions of the community is not for. the better interest of the invisible dollars invested south of us, and it was only recently that government. It is a power which has laid the country low Brazil borrowed one hundred and twenty millions from the many times, and it is the power in control today, of course United States, while Nicaraugua has asked for $2,000,000. in a different manner than before, because they now own This should be of considerable interest to the taxpayers in and control all of the gold in the United States. the United States. Before leaving the subject I want to say that "pinks," It will be seen by those who read this, that I am one af the "reds," Socialists, Bundists, FaEcists, and Communists would so-called "common" or "middle class." We are composed not dare to utter a word about their particular destructive of patriotic members of American labor, industry, business, activities, if the Government intelligence service had orders and professions. We total better than 90 percent of the to clean them up. There is not one of these activities that population. It is this group alone which now can set the could exist for any length of time if the Governmen chose Nation right. \Ve are sandwiched between the invisible gov­ to close down on them. The Constitution itself, in article ernment, the money powers, and "rubber stamp" politicians, III, section 3, classifies all unconstitutional activities as "trea­ those who do the bidding of the invisible government's agents. sonable" and those engaged in them "enemies of the United I do not believe this group, which is less than 10 percent · States." In view of this, it would be interesting to know of the population, can intimidate us, even though they might what insults we shall tolerate before the Government takes try to Eieprive us of arms and armed protection. I under­ it upon itself to drive these enemies of the people into the~r stand that legislation is now contemplated which will d£:ny holes. the people a right which they have always had, that is the The Dies committee received $100,000 to investigate these right to own arms without permission of the Federal Gov­ activities, but have instead spent much of the time investi­ ernment. The purpose of such legislation is to disarm the gating those who believe in a republican form of government American public, so that they will be in no better po3ition and who have taken upon themselves the responsibility to than were the Ethiopians. They fought with clubs :::.tnd form shock units against the "red" invasion, after the Gov­ spears, and we will be protecting ourselves with conversation; ernment has failed in doing its duty. but, mind you, criminals or agents of the invisible govern­ We have today in our midst many so-called antiforeign ment do as they please, and those who are anxious for this country societies, which go so far as to classify especially legislation close their eyes to that group, while law-abiding, selected nations as enemies of the United States. The ques­ patriotic citizens are disarmed. In making this statement, tion now arises, What right has any group or society to I am not unmindful of the havoc wrought by a small Japa­ classify· any foreign nation as an enemy of all the United nese force against 400,000,000 unarmed and defenseless States? And what further right have they to say: "Do not Chinese. But be that as it may, let us now analyze this trade with this nation"? Such attitude is not only provoca­ invisible government. tive to war, but it is extremely silly from a commercial stand­ The invisible government is far reaching, and in it we point, because we shall need all the foreign trade we can get will find the gentlemen who control gold, money, and credit. in such commodities as are not raised or produced in the In this group we also find the so-called "gypsy" or "roam­ United States. ing ambassadors," such as the late Colonel House, whose The Dies committee should now call each and every mem­ philosophy is set forth in Philip Dru, Administrator, and ber of these 700 "antiforeign nation" societies and ask them Gabriel Over the White House. We also find important why they consider their particular pet aversion an enemy of individuals with a proper and at all times convenient entree the United States. It would be interesting to know their to the Government, for the Government's tolerance is neces­ reason for such antagonism and hatreds, and I am sure in the sar.y to protect these un-American activities. discovery of that the Dies committee would be well on the This system reaches a little further, because it includes trail of the Communist. the so-called "liberals," a group which is composed of the The Dies committee may be helped in its investigation of "pink," the "red," the "ists," and "isms." These will be found communism and un-American activities from an opmwn widely distributed throughout the whole subversive category._ expressed in a nqte, and an excerpt from an article that 6300 CONGRESSIONAL RECORD-HOUSE MAY 29 appeared in the Daily Worker, New York, Friday, May 19, on the road to recovery. We have a duty to those who come 1939, both of which I now quote: after us. Let us in common decency leave their hands untied DEAR SIR: I wish to call your attention to this article which I am so that they may enjoy the blessing of liberty and the free­ enclosing, Forward-the C. I. 0. dom that we have had under a government which was given If I say the Communists aid and assist and more or less control to us by patriots who understood sound government better ·the c. I. 0., then I am a ''red baiter"; if you make any such state­ me.nt, you are a Fascist; but it must be so and 0. K. to everybody than we understand it today. when the chairman of the party says the Communists have par­ EXTENSION OF REMARKS ticipated and actively supported the C. I. 0. in all their attempts to destroy our democracy. Mr. KING. Mr. Speaker, I ask unanimous consent to You might keep this on record or get it on record that the extend my own remarks in the REcORD. Communists themselves say they play an active part in C. I. 0. The SPEAKER. Is there objection to the request of the organizations. It's their own story, not mine or yours. Delegate from Hawaii [Mr. KING]? From the Daily Worker: There was no objection. On all these fronts against the capitalist offensive--the fight to OLD-AGE ASSISTANCE prevent Martin and Gorman from splitting the auto and textile unions, the campaign to build up the steel union, the strikes of Mr. REES of Kansas. Mr. Speaker, I ask unanimous the miners and seamen, the organizing work in packing, agricultural consent to proceed for 2 minutes. implement, and fur, and the battle in defense of the Wagner Act--the Communists have actively participated and have loyally The SPEAKER. Is there objection to the request of the supported the C. I. O.'s efforts to build up a militant and powerful gentleman from Kansas [Mr. REES] ? labor movement. There was no objection. This information should be a revelation to the Dies com­ Mr. REES of Ka.nsas. Mr. Speaker, I have requested per­ mittee, because communistic aid has been acknowledged by mission to address the House during the limited time al­ the C. I. 0. and Mr. William Z. Foster, who, I believe, is the lowed me, to call attention to a matter in which all the secretary of that organization. Members of the House, as well as the people of this country, In these examinations before the Dies committee the wit­ are interested. nesses should not be compelled to face a battery of moving­ The Ways and Means Committee has passed to the House picture machines or three or four cameras immediately in without recommendation a bill known ~s H. R. 6466, being front of them, which is for no other purpose except a childish a measure, according to its terms, which provides for a attempt at third-degree methods. These examinations are variable tax of from one-half percent to 2 percent on gross · not supposed to be of the character of an inquisition. Til.at incomes, so that assistance may be rendered to the older age is no more. The investigation is to discover those engaged people of this country. in un-American activities, and it .is not for the purpose of Mr. Speaker, I have always been given to understand intimidating those who testify to those activities. It strikes that we have a right to depend, to a great extent, upon the me that the committee has the "cart before the horse," and wise adjustment and experience of the important Ways and the examinations will finally terminate in finding out who Means Committee, which I have understood, is the greatest the patriots are instead of discovering the enemies harbored committee in Congress. This committee, under the control in our midst. If the witness must have his picture taken, I of the majority party, is the most powerful committee of am sure he would be glad to furnish the committee, as well the House. It has been in session most of the time during as the newspapers, with one of his photographs. I am also the past 5 months. They say they have given 3 months of reasonably sure that none of those whom I have heard testi­ that time to consideration of amendments to the Social fying would refuse to submit to fingerprinting. That might Security Act. They have held long hearings and taken a be very interesting, because we could in some instances dis­ great deal of testimony covering various phases of this sub­ cover those with criminal records. No doubt many of those ject. Now they bring to the floor of the House, without rec­ engaged in un-American activities belong to the criminal ommendation, a bill which was in their hands for not more category and do have such records. than 48 hours, and without having given it one iota of con­ The Dies committee may further endeavor to find out why sideration. I am also informed by those of wide experience the F. B. I. is used for tracing down subscribers to magazines in Congress that bills of this nature, not bearing the recom­ which can be bought at newsstands and subscribed to by mendation of the Ways and Means Committee rarely are every member of that Service. I often feel that someone passed by the House. believes that un-American activities are so widely distributed This House is entitled to the judgment and consideration that our Intelligence Service is better employed to discover of the Ways and Means Committee. Why that committee if there is anyone left who believes in a republican form of has not held hearings on this particular measure, I do not government. know. Furthermore, they have not told us. I have observed After reading an account of Ambassador Bullitt's speech in from reading the newspapers that the bill is referred to as a the Times-Herald of May 29, and many other articles advo­ "political hot potato." cating war, I am rather inclined to favor a. bill which will It seems to me that it is only fair to the membership of draft each and every one who speaks for war, whether through this House and to the people interested in the measure-that the press, magazines, or in any Government office, as shock the Ways and Means Committee should have held hearings troops in the first conflict. It would not hurt the Nation to on the bill and been ready to give the Members the benefit of get rid of them in an honorable manner. When we have those hearings. Certainly the membership of the House reached the point where our own Ambassador speaks about should have a right to offer amendments if they see fit to the enslavement of the Nation, pretending that such enslave­ do so. Above all things, they should not call it a "hot potato" ment will come from abroad, we no longer have an intelligent and tell us we must either vote it up or down in order to get Ambassador. As a matter of fact, he does not know what it rid of it. is all about. Enslavement of the American people will come Mr. Speaker, after the 5 months this Congress has been in from within, through the invisible government itself, and session, this is the only legislation which the Ways and many of those who advocate war are agents of the invisible Means Committee has submitted to this House on the gen­ government. eral question of Social Security. The Members of that com­ In closing, I want everyone to know that I hold no animosity mittee should be prepared to answer some of the questions to anyone, no matter of what faith, creed, or race he .may be. the Members of this House would like to ask them with refer­ Everyone has a right to live and to share all happiness he can ence to this bill when it comes to the floor of the House next acquire legally, but no one has the right to deprive others Wednesday. of the rights he expects himself. Under a republican form The bill, comprising 29 pages, was introduced last Tues­ of government, and particularly if we repeal the seventeenth day, May 23. On Thursday, the Ways and Means Commit­ amendment, our Nation will go on, stanch and safe. Let us tee sends it to the House without recommendation. Then all put our shoulders to the wheel and help our Nation back it goes before the Rules Committee, and today, we find that 1939 _CONGRESSIONAL RECORD-HOUSE 6301 ·on next Wednesday, May 31, this bill which i,nvolves the This is a bill which perhaps should be identified as a bill to great question of Social Security-a problem in which prac­ create the position of Under Secretary in the Department of tically everybody is interested-is to be considered. It is to Commerce. The members of the committee, as far as I be given only 4 hours of debate for the 435 Members of the have consulted with them, do not object to this request, but House. They tell us further that no Member will have a it should be distinctly understood that they do object to the chance to offer amendments of any kind-but must either passage of the bill and desire adequate time to discuss the vote it up or down. I say to you that such action on the part merits of the measure when it is called up. of the Ways and Means Committee of this House is almost Mr. RAYBURN. I may say to the gentleman that I will unprecedented, and in my judgment, is unfair to the sponsors agree to any time the gentleman and the gentleman from of this measure as well as to the Members of Congress and California [Mr. LEA] decide on. the people they represent. Mr. MAPES. Granting this request in no way commits [Here the gavel fell.] anybody in regard to the merits of the legislation. EXTENSION OF REMARKS Mr. RAYBURN. Not at all; that is not expected, of course. Mr. DOUGLAS. Mr. Speaker, I ·ask unanimous consent Mr. HOLMES. Reserving the right to object, Mr. Speaker, to extend my own remarks in the RECORD and to include the gentleman does not anticipate taking the bill up for therein a recent editorial which appeared in the magazine consideration this week, anyway? Field and Stream. Mr. RAYBURN. I may say to the gentleman that it is the The SPEAKER. Is there objection to the request of the hope that at the completion of the consideration of the gentleman from New York [Mr. DouGLAs]? so-called Townsend plan the Committee on Ways and Means There was no objection. will be ready to present the amendments to the Social : Mr. OLIVER. Mr. Speaker, I ask unanimous consent to Security Act. If the committee have the amendments ready extend my own remarks in the RECORD and to include therein for presentation at that time, of course, we will go along a copy of a broadcast recently made by me · over a radio with them. If they are not ready, then it would be the pur­ broadcasting station of Portland, Maine. pose of the gentleman from California to call this matter up · The SPEAKER. Is there objection to the request of the on either Thursday or Friday. This bill, let me say to the gentleman from Maine [Mr. OLIVER]? House, as the gentleman from Michigan has stated, is a bill There was no objection. providing for the creation of the position of Under Secretary Mr. LANDIS ;:tsked and was given permission to extend his in the Department of Commerce. own remarks in the RECORD. Mr. WARREN. Reserving the right to object, Mr. Speaker, Mr. FISH. Mr. Speaker, I ask unanimous consent to ex­ I wish to call this situation to the attention of the majority tend my own remarks in the RECORD and to include therein leader. The Select Committee on Government Reorganiza­ a radio speech by myself. tion hope to have a resolution reported Wednesday. I am The SPEAKER. Is there objection to the request of the sure it will be something to which there will be no objection gentleman from New York [Mr. FisH]? whatever and its consideration may require 25 or 30 minutes. There was no objection. I am sure the minority will agree to it. We consider it very · Mr. ANGELL. Mr. Speaker, I ask unanimous consent to necessary and vital that this resolution be brought up for extend my own remarks in the RECORD and to include therein consideration as soon as the Townsend measure is disposed an article by Mr. Harlan B. Holmes, aquatic biologist, and Mr. of. I hope the majority leader will take that into considera­ Frederick G. Morton, inspector, Fishways Operations, with tion before definitely saying that another bill will be taken reference to the Bonneville Dam in the Columbia River. up at that time. The SPEAKER. Is there objection to the request of the Mr. RAYBURN. I may say to the gentleman from North gentleman from Oregon [Mr. ANGELL]? Carolina that this is the first I have heard that that com­ There was no objection. mittee may want to report any sort of a resolution this week. Mr. McCORMACK. Mr. Speaker, I ask unanimous con­ I have discussed the program with the chairman of the sent to extend my own remarks in the RECORD and include Committee on Ways and Means. In making up the pro­ therein excerpts from a speech recently made by Dr. Joseph gram, of course, I cannot consider matters that have not F. Thorning with regard to the Honorable Joseph B. Ken­ been called to my attention. nedy, United States Ambassador to Great Britain. · · Mr. WARREN. The only reason it was not called to the The SPEAKER. Is there objection to the request of the · attention of the gentleman is that we did not know until gentleman from Massachusetts? today, but I do not believe the consideration of the resolution There was no objection. will require more than 30 minutes. Mr. RAYBURN. I may say to the gentleman that that is PERMISSION TO ADDRESS THE HOUSE very appealing, but I will have to talk to these other gentle­ Mr. MAPES. Mr. Speaker, I ask unanimous consent that men before I make any agreement. the gentleman from Michigan [Mr. ENGEL] may have permis­ Mr. HOLMES. Mr. Speaker, for the moment I object. sion to address the House for 30 minutes on Thursday, June The SPEAKER. Did the Chair understand the gentleman 1, at the conclusion of the legislative business of the day from Massachusetts to object? and following any special orders which may have heretofore Mr. HOLMES. I object, Mr. Speaker, until there is some been entered. understanding as to the time the bill will be called up. The SPEAKER. Is there objection to the request of the PERMISSION TO ADDRESS THE HOUSE gentleman from Michigan? There was no objection. Mr. HOBBS. Mr. Speaker, I ask unanimous consent that today, at the conclusion of the business on the Speaker's POSITION OF UNDER SECRETARY IN THE DEPARTMENT OF COMMERCE table and following the special order for which the gentleman Mr. RAYBURN. Mr. Speaker, after consultation with the from Michigan [Mr. CRAWFORD] will submit a request in a gentleman from Michigan [Mr. MAPES], who is the ranld.ng moment, I may be permitted to address the House for 20 member of the Committee on Interstate and Foreign Com­ minutes. · merce-and as I understand the gentleman in turn has con­ The SPEAKER. Is there objection to the request of the sulted with his colleagues of the minority on that committee­ gentleman from Alabama? ! ask unanimous consent that it may be in order to consider There was no objection. the bill S. 2314 at any time under the general rules of the House. LEAVE OF ABSENCE Mr. MAPES. Reserving the right to object, Mr. Speaker, By unanimous consent, leave of absence was granted as as the gentleman from Texas says, I have consulted with a follows: number of the Republican members of the Committee on To Mr. FITZPATRICK, for an indefinite period, on account I Interstate and Foreign Commerce with regard to this request. of illness. 6302 CONGRESSIONAL RECORD-HOUSE MAY 29.

To Mr. MAciEJEWSKI, for an indefinite period, on account sugar industry of the United States. This figure of $350,000,­ of. illness. COO, which purports to represent the cost of what the Ameri­ To Mr. AsHBROOK, for the remainder of the week, on ac­ can consumer pays for the protection given the domestic t count of important business. sugar industry, was originally based upon the difference be­ FEDERAL SUGAR POLICY tween the price in the United States market during 1936 and The SPEAKER. Does the gentleman from Michigan re­ the price at which a very small part of the world sugar new his request for permission to address the House? supply, which sells under extremely distressed conditions, moved in the free market. Moreover, this figure was com­ Mr. CRAWFORD. Mr. Speaker, I ask unanimous ·consent puted at a time when the domestic prices exceeded the free­ to address the House for 25 minutes. market prices by a very much larger amount than at present. The SPEAKER. Is there objection to the request of the In fact, if the same method of computing were used for gentleman from Michigan? determining the difference between domestic prices and free­ There was no objection. market prices during 1937 and 1938, the result for each year Mr. CRAWFORD. Mr. Speaker, on last Monday, May 22, would be far less than $350,000,000. But in no case would the majority leader, the Honorable SAMUEL RAYBURN, of the total figure represent the actual costs or even possible Texas, asked me several questions with respect to the Federal costs. sugar policy. He particularly requested me to explain what I shall show that the method used in arriving at this tre­ is the cost of the domestic sugar industry to the consumers mendous figure---which is obviously intended to scare the of the United States. consumer-is based upon exaggerated imagination and repre­ The Sugar Act and future sugar legislation have been cur­ sents a result which is impossible to occur as a matter of rently very live subjects in both branches of Congress. I practice. As I stated before, it is a purely hypothetical com­ am pleased to note that the majority leader is sufficiently in­ putation which becomes an intellectually dishonest presen­ terested to ask questions about the policies that are now being tation of the facts. applied by the United States Government in regard to sugar. Let us take the figure for 1938, which would be derived by In response to the request of the gentleman from Texas, I subtracting the consumption and domestic prices, including have prepared as complete and comprehensive a statement on the tax on sugar, from the free-market prices-after multi­ the facts as I am able to do within a limited space and t ime. plying each by the tonnage of sugar consumed in 1938-as At the outset I want to repeat the answer which I gave to follows: the gentleman from Texas on Monday when he asked how 6,666,694 tons, at $62.72 per ton equals______$458, 000, 000 much sugar should be produced by the southern cane- and 6,666,694 tons at $22.80 per ton equals______152,000,000 the beet-sugar producing States. I claim that the American sugar-beet growers and the American sugarcane growers, in­ Difference------306,000,000 cluding the growers of Hawaii and Puerto Rico and the Virgin But the figure $306,000,000 is entirely meaningless, because Islands, should first be allowed to grow all of the sugar that none of the producers who pr€sently supply the United States they can supply to our market. Whatever balance is left market with sugar could long sell sugar on the basis of $22.80 and needed to supply our consumptive demands should go to per ton, as that is less than their cost of production. Cuba and the Philippine Islands. I further stated, and here I use the term "free market" instead of "world market," repeat, that as long as our own farmers can grow sugar beets because the latter term is a complete misnomer. The free and sugarcane so that the cost of sugar at retail to the market is where the price of sugar does not include a tariff consumers in the United States will not exceed the going duty or tax. Members of Congress naturally believe that average retail price of sugar paid in all of the countries of the "world price" means the price paid by consumers for the world, they should be permitted to do so, and I advocate sugar all over the world, but every sugar statistician or that they be encouraged to do so as a matter of good national economist or person engaged in producing or marketing economy. sugar knows that this so-called "world price" is actually the Bdore I discuss the cost of supporting the domestic sugar free-market price on raw sugar and the so-called "world industry, let me say to the Members of the House of Repre­ market" is where a very small part of the world supply of sentatives that the payments which are being made to grow­ raw sugar is dumped. For instance, Cuba sells almost one­ ers of sugar beets and sugarcane are financed by the sugar third of its sugar on the free market. Now any Cuban sugar industry itself. The tax which the producers of sugar pay producer will admit that he is losing money on such sales, has been entirely absorbed by the sugar industry. I make but he makes up for those losses by the fact that Cuba sells that statement for the reason that the average prices paid annually to the United States 2,000,000 tons or more of at retail for sugar in the United States during the years 1935, sugar, for which the Cubans receive a very much better price 1936, and 1937 were one-half cent higher than the price as a result of the preference in tariff which Cuba enjoys. which is now being paid by the consumers of sugar, despite There is one point which should be made plain to every the fact that a tax of one-half cent per pound was placed man and woman who really want to Understand the sugar upon sugar in September 1937. At the time that this tax problem from the standpoint of the interest of the consumer. was placed upon sugar the American consumer was paying It appears to be the preference of those who seek to inflame an average of 5.6 cents per pound, where in 1939 he is paying the consumer regarding the alleged cost of the domestic 5.1 cents per pound. If the consumers were being charged sugar industry, to use as the basis of discussion what they the same price for sugar as they paid in 1935, 1936, and 1937, call the "world price." First, let me say that this price is plus the tax, the price of sugar today would average over not paid by any consumer in any country. This price is not 6 cents instead of 5.1 cents. Now, this price is not mere what anyone pays for the white sugar which is consumed at chance, because the Secretary of Agriculture is applying a the dining-room table or in the kitchen of the consumer. throttling control upon the price of sugar which is causing This so-called "world price" is a price paid for raw sugar distress in every area which sells sugar in the United States which has to be refined before it is fit for direct human con­ market, including Cuba. sumption. Furthermore, this so-called "world price" is not On several occasions during the past 2 or 3 years prominent the price paid for all raw sugar throughout the world, but officials of the national administration have repeated the it is a price paid in the tariff-free markets of the world, statement, "American consumers are obliged to pay more where less than 10 percent of the world supply of sugar is than $350,000,000 per annum.in excess of the value at world sold. Manifestly, any computation cannot be accurate prices for · their annual sugar supply." These statements which seeks to demo:g.strate the cost of sugar to the United appear in the official record of public hearings and congres­ States consumer by taking as its basis a market where less sional deliberations. One important Government official than 10 percent of the sugar is sold, and where even that ' called it a "rake-off" for the domestic sugar industry. Last sugar is distressed and is the subject of export dumping. Monday the majority leader asked me whether this figure is As a matter of fact, the figures of the United States De­ correct; and if not, what is the actual cost of protecting the partment of Commerce officially issued show that the average CONGRESSIONAL RECORD-HOUSE 6303 ~. price paid for sugar in all of the countries of the world as TABLE 6.-Retail price, taxes, and ratio of taxe! to retail price j of refined sugar in selected countries (on or nearest May 1, ; of May 1938, is much higher than the price paid by con­ 1938)-Continued sumers at retail in the United States. The price paid for ------.-----.,------.----•) sugar at retail in each of the principal countries of the 0 world is much higher than the price paid in the United Country Retail price d~~e~ !!d f:X~~ tO: States. Stated differently, all of the countries that have ptt ponnd ''""" ""'" "'~" P''"' ·I large populations are paying more for their sugar at retail R uruPRINCIPALLY ania. ______SELF-SUPPORTING~Ontinued _ U. S. cents U. S. cents Percent than is being paid in the United States by consumers. The lQ. 62 -{), OQ 4'f I Sweden _____ ----______only exception is England where the bounties paid to the 5. 60 ------'l'urkey ___ ------9.44 ]. 4!) 16 sugar producers come out of the Treasury to which the con­ Yugoslavia. __ ----______------___ _ 14. 23 9. 46 66 sumers contribute in the form of taxes other than a tax on IMPORTING! sugar. Chile______------______4.28 1. 31 31 The United States Department of Commerce has very IIonduras. _------4.90 1. 56 32 3.14 1.60 51 recently issued a booklet entitled "Sugar Retail Prices in ghy~~~?'.~:::::::::~:::::::::::::::::::::: 5. 65 3. 01 53 . 43 Countries." The information therein contained has been Finland.------8. 39 3. 79 45 Ireland __ ------_____ ---__ ------6. 75 3. 64 54 compiled in the Foodstuffs Division of the Bureau of Foreign Norway_------__ 7.16 3. 75 52 and Domestic Commerce from reports submitted from the .Portug:~l. ___ ------9.10 3. 24 36 ::!\'! itzerland ____ ------4. 39 2.09 48 Foreign Service offices of the Departments of State and of 4. 67 2.60 56 g~~~ega lf~~-g-~~~-6:::::::::::::::::::::::::::: 5. 90 2.89 49 Commerce. Therefore it is authentic and official. 8 United States ------5.40 2. 52 47 , Two statements contained in this document, when taken ------1 together, have a peculiar significance for us just at the 4 Includes both import duties and excise taxes. i present time: 6 The countries included in this table are those which Import the major part of their sugar reQuirements. Excise taxes are included in the table when applicable and are Although the average world price of raw sugar during the month explained in the notes. For uniformity the rates of duty cited in the above table are of April 1936, 1937, and 1938, respectively, averaged approximately in each case the highest rate payable, although a considerable portion of imports into 1.06, 1.36, and 1.05 cents per pound, the price remained unchanged. some of these countries are derived from sugar-producing areas which stand in special In 34 out of a total of 43 countries the retail price either remained relation to them and enjoy reduced rates of duty on sugar, viz: the same or increased as cf May 1, 1938, compared to May 1, 1937. Import duty on refined sugar as of May 1, 1938, in United States cents per pound United States: Cuban rate------0. 954 These statements, officially made, demonstrate better than United Kingdom: any argument I could possibly advance the fallacy of using Dominion preference and Southern Rhodesia ______1. 286 or 0. 625 d. i Certified colonial (colonial possessions, protectorates, and ! the so-called world price of raw sugar as the basis of discuss­ mandates)------. 527 or • 256 d. I ing the consumer angle of the sugar business. The world Canada: British preference·------L 09 price of raw sugar fell 23 percent, or from an average of 1.36 eAt Montreal. cents per pound during April 1937 to 1.05 cents in April 1938, Mr. CRAWFORD. Mr. Speaker, analyzing further, I find ! and yet the retail price paid by consumers in 34 out of 43 that only such exporting countries as Brazil, Cuba, Peru, countries either remained the same or actually increased. Philippine Islands, Netherlands Indies, self-supplying Costa I ask to have printed as part of my remarks the complete Rica, Ecuador, Guatemala, and India have lower cost to the table 6 of the report of the United States Department of consumer. Taken collectively, these countries do not have a . Commerce in order to present the full picture to the Members population comparable to the larger nations of the world. 1 of Congress. By contrast, Italians pay 15.73 cents, Germans pay 13.67 cents, , The SPEAKER pro tempore (Mr. HARE). Is there objec­ the French pay 7.16 cents, and even the Chinese pay 5.65 ' tion to the request of the gentleman from Michigan? cents. There was no objection. As this compilation was made as of date May 1, 1938, the , The table referred to follows: retail price in the United States appears as 5.40 cents. But TABLE 6.-Retail price, taxes, and ratio of taxes to retail price of since that time the retail price of sugar in the United States refined sugar in selected countries (on or nearest May 1, 1938) went down until it had reached an average of 5.10 cents in [Compiled in the Foodstuffs Division of the Bureau of Foreign and Domestic Com­ March 1939, which is the latest official published report. Ir.erce from reports submitted by the Foreign Service officers of the Departments of State and Commerce] The following questions must be answered in order to get an intelligent understanding of the problem of sugar pro­ Retail price ~port Ratio of tection: Country per pound edxuctlS.Iesetaaxneds taxes to _ retail price First. How representative of the price at which the United - States could obtain its sugar supply on a free-market basis are the prices now prevailing in the free market? EXPORTING I U.S. cents U. S. ce11t11 Percent BraziL_------3.09 0.14 Second. How much is the domestic sugar supply now cost­ British Guiana ______------____ ------.---- 10.37 Cuba ______. ______3. 50 ------1:59------45 ing in excess of what it could be bought in the free market? Dominican Republic ______6.00 2. 75 46 Third. To what extEnt does this excess amount now go to Peru ___ ------3. 02 .65 22 Czechoslovakia ______-- 9. 47 3. 45 36 increase the income to the producers of domestic sugar crops, H angary __ ------12.66 4. 49 35 and to what extent does it go to further other national ____ ------____ ------8. 49 3. 39 40 Australia ______------____ ------__ . 6.62 .33 5 policies? Philippine Islands __ ------2 2. 88 Fourth. To what extent do other considerations offset the Netherlands Indies ___ ------____ ------__ 3. 03 . 50 17 Union of South Africa ______6. 69 .25 4 domestic consumer's burden from protection to domestic PRINCIPALLY SELF-S1TPPLYING3 producers? Fifth. To what extent is the income of domestic sugar pro­ Argentina._------· ___ _ 5. 71 .80 14 Costa Rica. ______------3. 09 ducers increased by this protection? ------~04.------2 Ecuador------___ ------2. 54 Sixth. What uses are made of the protection? 3.94 Guatemala. __ ------~25- Panama. ______----______--__ 7. 50 ------3 1. A TREMENDOUS RISE IN FREE-MARKET PRICES WOULD RESULT IF THB j Venezuela______--_--____ --__ -- India ______10.67 UNITED STATES ATTEMPTED TO BUY ITS SUGAR IN THE FREE MARKET · 4. 66 . 67 14 Japan. _____ ------5. 72 l. 92 34 The assumption upon which the $306,000,000 figure is based 1 Egypt______------5. 45 1. 70 31 ______------______12.95 7. 89 61 is that, without any restrictions upon sugar entering the i Danzig __ ------­ 9. 41 2. 83 30 United States, this country could obtain its entire sugar sup- • France __ ------7.16 1. 48 21 Germany______------______-_ 13.67 4. 26 31" ply at a price of approximately 1 cent per pound. The reason NetherItaly ______bnds. .------______15.73 9. 05 53 that this extremely low price prevails in the free sugar mar-· 12.24 8. 35 68 ket to the extent that it does is that certain areas over­ t Only excise taxes included for countries in this group. (See table 3.) 2 Wholesale price. Retail price not available. expanded their production in the 1920's, and this is the play a Although import duties form a var:ying but, in many instance, important part of economic factors necessary to return them to their normal of retail price. only excise duties are included for the countries classified as self-sup· plying. Import duties shown in footnote, table •. level of output. ' ·, 6304 CONGRESSIONAL RECORD-HOUSE : In fact, though on a greatly restricted basis, the cost of of similar origin goes to the Philippine Islands to enable those production in Cuba, our principal source of sugar outside of islands to adjust their economy to conditions subsequent to domestic areas, is about 2 cents per pound. Cuba is also the independence. Thus, $56,000,000 of the probable $125,000,000 largest seller in the world market. Cuba can sell some sugar cost of our sugar supply over and above the value at which at the present free-market price because she is able to obtain it could be bought in free markets goes to support the general a much higher price for her sugar sold in the United States cost of the Government or to promote national policies which market, and consequently can take a loss on the sugar sold in are in no way to the interest of domestic sugar producers. the free market and still average out at a price which enables Though the $69,000,000 arising from the difference between her to stay in production. domestic and probable free market prices on the quantity Less than 10 percent of the world sugar output sells in the of sugar consumed from domestic areas goes to the domestic free market, and most of this is from areas that sell part of producer, the $56,000,000 that goes to support other national their output at higher prices, as does Cuba. policies cannot be charged as a benefit to the producer. In The quantity of sugar now sold by all world areas in the fact, this $56,000,000 is a burden on the sugar consumer in free market is less than one-half of the United States annual the same sense that a tax on cigarets is a burden on the consumption. Even allowing a reasonable period for the cigaret consumer, but is no more a benefit to the sugar pro­ adjustment of economic factors, this quantity of sugar would ducer than the tax on cigarets is a benefit to the tobacco not be trebled unless prices were substantially in excess of producer. The truth is that, if the sole purpose was to. present free-market levels. protect the domestic sugar producer, this $56,000,000, or pos­ The price at which the United States could obtain its entire sibly more, could be saved for the consumer, and the producer sugar supply if bought in the free market would be from two still receive the same protection he now receives. to three times the price level now prevailing. For the United 4. CONSUMER DOES NOT LOSE BUT GAINS FROM $69,000,000 DOMESTIC States to buy its entire requirements in the free market would PRODUCERS RECEIVE IN PROTECTION mean that production in the areas supplying such market Now, using the formula of $125,000,000 difference between would have to again reach or exceed the all-t!me record high the value of our domestic sugar supply at 2.5 cents and the level of production in such areas which was reached in the dcmestic price, and with $56,000,000 of this amount going to late 1920's after a decade in which free-market prices for raw further other national policies, we must conclude the cost to sugar were as high as 19 cents per pound, and averaged 4.1 the consumer of protection to domestic producers is only cents, as compared to 1.14 cents for 1938. $69,000,000. Furthermore, however, the consumer receives 2. DIFFERENCE BETWEEN VALUE OF UNITED STATES SUGAR REQUIREMENTS other benefits which offset a large part, if not all, of this AT DOMESTIC PRICE AND AT PRICE AT WHICH THIS SUGAR COULD BE $69,000,000 burden. In most cases the consumer gets his BOUGHT IN FREE MARKET NEAR $125,000,000 purchasing power by engaging in some productive activity. Even if all domestic sugar requirements could be obtained To the extent that the outlet for the gcods he produces is in the free market at a price as low as 2.5 cents per pound, increased, the consumer receives offsetting benefits from the which is substantially less than the prices wh!ch last brought $69,000,000 burden. forth the level of production in the areas in such market nec­ The record of · domestic sugar producers as a market for essary to supply present free-market and United States re­ goods produced by other sections of the Nation shows that quirements combined, the cost to the consumer of restrictive for each 100 pounds of sugar they sell, with prices as they measures upon sugar is about $125,000,000, and nowhere near were in 1938, they buy in return about $3.20 in domestic goods. the figure of $350,000,000 frequently used. On the other hand, the market records of foreign areas sup­ This $125,000,000 figure is based upon the quantity of sugar plying this market large quantities of sugar indicates that, consumed in 1938, domestic prices, including the tax, and the with a price of $2.50 per hundred pounds of sugar, they would lowest price at which the domestic supply most likely could buy in return only $1.83 of goods. Bearing in mind that the be bought in the free market. The quantity of sugar con­ domestic-sugar consumer gets his purchasing power from sumed in the United States in 1938, by sources, and the some productive activity, the consumer, therefore, obtains a amount this sugar cost the consumer over and above the price market for approximately $100,000,000 more goods by reason at which it probably could have been bought for in the free of his $69,000,000 burden than he would enjoy if our entire market, are as follows: domestic sugar requirements were bought from foreign producers. The consumer, therefore, gains instead of loses Quantity Value at do- Value at lowest from the protection accorded domestic sugar producers. I consumed mastic price, price at which Difference be- from stated including tbe supply probably tween value3 wish to say to Mr. RAYBURN this is a categorical answer to could be bought at dome:~tic Source of sugar sources in tax of 0.5 cent your question. 1938, short (3.44 cents per in free market and probable {2.5 cents per frce-mi\rket 5. SIXTY-NINE MIT.LION DOLLARS PROTECTION RECEIVED BY DOMESTIC PRO­ tons, raw pound, raw pound, raw price3 value value) value) DUCERS INCREASES FARM INC~ME MORE THAN $200,000,000 - The $69,000,000 protection accorded to the domestic sugar Domestic areas _____ 3, 691,865 $254, 000, 000 $185, 000, 000 $69, 000, 000 producer enables him to produce a much larger volume of Philippine Islands_ 958,851 66,000,000 48,000,000 18,000,000 Foreign areas ______sugar crops than he would be able to produce without such 2,015, 978 138, 000, 000 100, 000, 00i) 38,000,000 protection. It is variously estimated that domestic-sugar TotaL ______6, 666,694 458, 000, 000 333, 000, 000 125, 000, 000 producers would produce only about 1,000,000 tons of sugar if the price were 2.5 cents per pound. The domestic farmer A careful and scientific statistical analysis of both domestic receives a net gain of $204,000,000 in income resulting from and world supply and demand conditions indicates that 2.5 the $69,000,000 burden to the domestic sugar consumer. cents per pound is the lowest price at which the United States This $204,000,000 figure is obtained from the quantity of could expect to buy its sugar supply in the free market. sugar consumed from domestic areas in 1938 with the prices, 3. LARGE PART OF $125,000,000 BURDEN ON CONSUMER GOES TO FURTHER including the tax, that prevailed and from the quantity of OTHER NATIONAL POLICIES AND NOT TO INCREASE INCOME OF SUGAR sugar domestic areas probably would produce with a price at PRODUCERS 2.5 cents per pound. It is derived as follows: A large part of this probable $125,000,000, representing the 3,691,865 tons, at $68.72 per ton ______$254, 000, 000 difference between the values of United States sugar require­ 1,000,000 tons, at $50 per ton______50, 000, 000 ments at domestic prices and at the price at which our sugar supply could prcbably be obtained in the free market, goes to Difference------204,000,000 further other poEcies of our National Government, and does Mr. WOODRUFF of Michigan. Mr. Speaker, will the gen­ not go to the sugar producers. In the first place, the tleman yield? $38,000,000, representing the difference in the value of foreign Mr. CRAWFORD. I yield to the gentleman from Michigan. sugar consumed in this country at 2.5 cents and at domestic Mr. WOODRUFF of Michigan. Unfortunately, I have not prices, goes to the Federal Treasury to help. cover general heard all of the gentleman's remarks, but I hope somewhere Treasury operations. In the second place, the $18,000,000 in his remarks he has incorporated the cost to the American 1939 CONGRESSIONAL RECORD-HOUSE 6305 consumer which has always appeared whenever there bas not attest our gratitude and the value we place on thus making been enough of the domestic sugar on the market to consti­ available to the thinkers of earth the riches of their wisdom. tute genuine competition with the foreign sugar. Yet one memorial remains to complete this meed of grati­ Mr. CRAWFORD. Yes. tude and praise which already adorns the annals of our 6. PROTECTION ENABLES DOMESTIC PRODUCERS TO PAY AMERICAN WAGES country-a just and appropriate memorial in honor of Ed­ AND TAXES AND TO MAINTAIN THEIR SOIL FERTILITY mund Burke, whose resplendent genius and world-wide fame The protection received by domestic sugar producers en­ achieved supreme glory in his defense of the American ables them to pay higher wages and taxes than do the for­ Colonies during their contest with the mother country for eign producers that sell in the free market. The most recent English rights and equal justice under law. In praise of data in this connection are those compiled by the United Edmund Burke's writings on America, Lord Morley says with States Tariff Commission for the years 1929-30 to 1931-32, insight and truth: inclusive. These data show that the wages paid in growing If ever in the fullness of time-and surely the fates of men and and harvesting cane averaged $2.14 per ton of cane in Lou­ literature cannot have it otherwise-Burke becomes one of the isiana, Puerto Rico, and Hawaii, but only 89 cents in Cuba. half dozen names of established and universal currency in edu­ cation and in common books, rising above the waywardness of The amount paid in taxes averaged 27 cents per ton in the literary caprice or intellectual fashions, as Shakespeare and Milton three domestic areas but only 2 cents per ton in Cuba. and Bacon rise above it, it will be the mastery, the elevation, the Under the system of production followed for the most part wisdom of these far-shining discourses in which the world will in Cuba, the soil is used for cane until it is exhausted, and in an especial degree recognize the combination of sovereign gifts then it is abandoned. In domestic areas good farming prac­ with beneficent uses. tices, the use of fertilizer and the like are followed to con­ After more than 150 years the fullness of time is come; serve and maintain the soil. The Tariff Commission found and the name of Edmund Burke is securely written with that the three domestic areas used 64 cents worth of fer­ the names of Shakespeare, Milton, and Bacon-with the tilizer per ton of cane but that Cuba used none. These name of our Washington. George Washington and Edmund three items of cost alone more than take up the real pro­ Burke were one in spirit and in truth. Edmund Burke tection enjoyed by domestic producers. fought for human freedom on the battlefields of the human By way of summary, we conclude the burden on the con­ spirit. George Washington fought the same good fight on sumer of sugar for the benefit of the domestic grower of the sacred soil which Almighty God had given to the chosen sugar crops is only about $69,000,000 and not $306,000,000 or sons of England. They were beautiful in their lives and in the $350,000,000 frequently stated. The grower, while re­ their death they are not divided. They share together an ceiving only $69,000,000 in actual protection-that is, pro­ immortality of fame. It was Edmund Burke who foretold tection over and above the price at which our domestic the fame of Washington, prophesying that his character supply might be obtained in the free market-is given an would be transmitted to posterity among the first of heroes increase of about $204,000,000 in income. This increase and patriots. It is the reasoned verdict of history, that in income goes not to a few persons but to thousands of without Edmund Burke in Parliament and George Wash­ farmers, factory and other laborers to support the Govern­ ington at Valley Forge and Yorktown, and thereafter in ment, to cover expenses incurred in conserving and main­ councils as potent, there would be no United States of taining the fertility of the soil in order that our posterity America. England has finely honored George Washington. may make a living thereon, and to pay for other items Shall not cur America in like spirit honor Edmund Burke? needed by sugar producers and laborers, the price of which Now, therefore, let the spirit of Washington speak to this is increased by other protective measures. Seventy-sixth Congress of the United States with a moving It is difficult to see, therefore, how it can be contrary to appeal to create an Edmund Burke memorial commission, any sound national policy or would not be in the interest of with an appropriation adequate to perpetuate Burke's shin­ national welfare to exchange $69,000,000 for $204,000,000. ing fame and commensurate with his services to the Ameri­ It is even more difficult to see why this should not be done can Colonies and to this great Nation, established by the when it is considered that the purchasing power of the con­ wisdom of Edmund Burke and the leadership of George sumer is increased by reason of larger domestic purchases Washington. Such a memorial of gratitude and good will a~ of goods made in this country by an amount greater than this critical and auspicious time in the history of English­ the burden which is placed upon such consumer. speaking peoples, who seek to preserve human freedom on earth, is now proposed in a petition to the President and the EXTENSION OF REMARKS Congress of the United States by more than 150 leaders of Mr. McCORMACK. Mr. Speaker, I ask unanimous con­ American thought, whose names appear in the preamble of a sent to extend my own remarks in the Record and to include resolution I have introduced today. therein a statement made by Secretary Morgenthau last Dr. Hopson Owen Murfee, of Alabama, is the distinguished Saturday before the Ways and Means Committee. scholar and educator who conceived the idea of such a memo­ The SPEAKER pro tempore. Is there objection to the re­ rial, and is leading the effort to make his dream a reality. quest of the gentleman from Massachusetts? The American memorial edition of the complete writings of There was no objection. Edmund Burke would preserve and make available to Ameri­ TO CREATE AN EDMUND BURKE MEMORIAL COMMISSION can States and legislatures, to American colleges and univer­ The SPEAKER pro tempore. Under the previous order sities, and to the English-speaking peoples throughout the of the House the gentleman ·from Alabama [Mr. HoBBS] is world a definite edition of the complete writings of the recognized for 15 minutes. greatest of English statesmen and the most justly famous Mr. HOBBS. Mr. Speaker, it is a historic saying that Englishman of letters who, with truth, is praised by compe­ democracies are ungrateful. Ingratitude-one of the basest tent judges as the Shakespeare of English prose, the Sir of base vices-cannot be laid to the charge of our American Isaiac Newton of English politics, the George Washington democracy, which is the exception to that rule. The United among English statesmen. Ireland, England, India, France, States, with ennobling spirit and exquisite art, has honored and the entire Christian world are beneficiaries with America the benefactors and saviors of human freedom. Witness our of the genius and wisdom of Edmund Burke, dedicated to the Washington Monument, our Lincoln Memorial, the Thomas cause of representative constitutional government, human Jefferson Memorial now being erected. ·witness the me­ freedom, religious liberty, Christian morals, and equal justice morial decreed by an act of the Congress to preserve in under law. Such an act of Congress would unite more grateful memory the services of Lafayette to our Nation securely our English-speaking peoples, would advance the when coming to birth. Witness the statues in honor of cause of representative constitutional government, safeguard William Pitt; erected by the New York Colony and by the human freedom, religious liberty, and peace and justice South Carolina Colony, after the repeal of the Stamp Act, among men and nations. and to hundreds of others worthy of honor. The publication Of course, we know that there have been 35 "collections" of of the writings of Washington, Jefferso~ and Madison, also - the works of Edmund Burke. Some are quite inclusive and 6306 CONGRESSIONAL RECORD-HOUSE of great value. But it is thought that none of them are more." Or again, In resisting the reactionary tendencies which would have carried the rule of George ill back to the standard of definitive. The fullness of his genius can only be seen and Charles I: "The people of England were then, as they are now, made usable by such an edition as is now proposed. called upon to make gove:mment strong. They thought it a great Let us now highly resolve that by the adoption {)f this deal better to make it wise and honest." Or, to take a final ex­ resolution we shall in this auspicious year .of the visit of the a~ple, what could better expose the imbecility of the proposal to treat privateering as piracy, and service 1n the Colonial Army as King and Queen of Great Britain to the nation so dearly ~ treason, and to enforce against both, where opportunity offered cherished and so nobly served by Edmund Burke achieve a the penalties .ln the statute of Henry Vlll, than his scornful phrase: memorial commensurate with the vision of the American "Th~y think the defeats in America can be compensated by the Ambassador to Great Britain, Whitelaw Reid, in his eloquent triumphs of Tyburn." If illuminating flashes like these a-re a fault in polittca1 discus­ eulogy, Our Foremost Friend in Great Britain, delivered at sion, they are at least a fault not too common among the pub­ the unveiling of a tablet in memory of Edmund Burke at lic men of our day. Would that more debates were "too omate and Bath, England, October 22, 1908. The words of our American rhetorical" after this convincing fashion-! will not say 1n your Parliament, for it would be unbecoming in me to express any opin­ Ambassador are in part these: ion about that; but perhaps I may venture to say, would that The occasion which you are honoring with your presence tooay is there were more of them in our Houses of Congress. of a kind long since familiar to you. What a story of the great Mr. Burk€ illustr.ated conspicuously in this very neighborhood Georgian and Victorian times might in fact be reconstructed from another quality not too common among our public men--howe:1.·er, the tablets in memory of former residents, which you have already it may be with yours. He scorned to pander to the prejudices set up In the streets of Bath! Your town has been a haunt of of his constituents, or bow to every gust of changing .opinion in great men; the very air is tilled yet with the shadows of the mighty. order to hold their votes. Even when 1kst a candidate in .Bristol Foremost in your civic record comes naturally your old metnber, he took pains to make it clear that he would not recognire their the masterful Chatham, and hard after his yet more masterful son. instructions as always binding his action. "Your representative Then you have commemorated the stay among you of Britain's owes you," he exclaimed, "not his industry 'Only, but his Judgment; greatest sailor, Lord Nelson, and of British soldiers who won im­ and he betrays, instead of serving you. lf be sacr11lces that to your perishable renown in two remote continents, Lord Clive in Asia, opinion." Later, when his attitude had excited diseontent, he told General Wolfe 1n Am~riea. You have -cherished, likewise, the them 1f they did not permit their member to act upon a very en­ memories of residents of gentler fame. Here on this very North larged view of things, they would at length infallibly degrade their Parade, as your tablets show, -dwelt Goldsmith, whom to this day all national.represelltation lnto a confl18€d and scu11ling bustle of local men love, and Wordsworth, whom all admire. On the South Parade agency. He knew efforts had been made ro injure him in their 1s seen your tribute to the best novelist Britain had to that time eyes, but "the use of -character is to be a shield against -calumny." produced. Sir Walter Scott, and there is a place for an<>ther to one ''I could not have served you as I have done," he proudly added of the greatest men of letters she ever .Produced, Samuel Johnson. to the electors, "and oourt you, too. I canvassed you through your Y:our other novelists range from Henry Fielding and Jane Austin a:tfa.irs and not your persons. You must look to the whole tenor to Charles Dicken-e; and your poets from George Crabbe to Thomas of your member's conduct." Moore and Walter Savage .Landor; while, with impartial hands, you It proved in the end too much to hope for, evem in a city like have placed tablets also to Gainsborough, the artist; Quin, the Bristol and wlth a man like Burke. Yet Bristol may well be aetor; and Herschell, the astronomer. pr.oud of the wisdom that chose Burke as its representative dUTing And yet, gentlemen of Bath, in all this brilliant .galaxy you nave t~t. part of his puhl~ -ser:vice which time has most thoroughly left the greatest to the last. He was more nearly your own, too, vmdicated, and can Jam With us in admiring the fine and