I

6104 .CONG.RESSION AL RECORD-SENATE. AUGUST '17,

RECESS. {From the Gr.aham Guardian, Aug. 10. 1917.1 GOVERNMENT SHOULD ACT, 1\fr. SIMMONS. I ~noYe that the Senate take a recess until The I. W. W. menace might be easily handled and put out of existence to-morrow at 11 o'clo-ck. if the Federal Government would get busy and place the arch enemy , The motion was agreed to; and (at 15 o'clock and 35 minutes of an governments, WilHam Haywood, behind the bars on a charge ot p.m., Thm· day, Augu t 16, 1917) the Senate took a recess until treason in the time of war~ Along with Haywood shouid go every member of the L W. W., a to-morrow, Friday, August 17, 1917, at 11 o'clock a. ~· special ell'ort bemg made to get the big leaders first. No sympathizer of the I. W. W. propaganda should enjoy the liberty of this country only long enough to place him in jail to watt his trial for treason. There is no room in this country for people like Haywood, Berkman, SENATE. and the female species represented by Emma Goldman. No form of government suit& them, because they do not believe in governments. FRIDAY, Augws.'t 17, 1917. As evidence of the total depra-vity of the followers of Haywood the following verse from the I. W. W. songbook is given: (Legislative day of Wednesday, Aug1.1.8t 15, 1911.) " Onward Christian soldier, rip and tear and smite; "Let the g~ntle Jesus bless your dynamite; The Senate reassembled at 11 o'clock a. m., on the expiration " ~mash the doors of every home, pretty maidens seize; of the recess. " Use your might and sacred right to treat her as you please." . Mr. ASHURST. Mr. President-· - This_particular verse e:i.empllfies to the fullest degree just what the I. W. W. :u-e, what they believe in, and what they would do if the1 . Mr. McCUMBER. Before the Senator proceeds, I suggest ever got in power in this or any other country. - the absence of a quorum. The PRESIDENT pro tempore. The Secretary will calL the W A.R REVENUE. roll. The Senate, as in Committee of the Whole, re~umed the con~ The Secretary called the roll, and the follomng Senators an- sid('ration of the bill (H. R. 4280) to provide revenue to defray swered to their names : . · war exi>ellS(>s, and for other purposes. Ashurst Hardwick Martin Sherman Mr. CURTIS. l\Ir. President, hen the war-revenue bill Bankhead Holl1s Myers Simmons went to the House, in 1\Iay, 1917, it was estimated, through the Brady · Busting Nelson Smith.. S.C. Broussard Johnson, Cal. New Smoot Secretary of the Treasury, that to meet the appropriations Calder Jones> Wash. Norris whkh had already been made for .the year ending June 30, 1918, Chambel"laln Kellogg Overman ~~fh~rand Colt • . KJ.ng Page Swanson the sum of $2.245,925,587.54· must be raised, and this amount Culberson Kirby Penrose Trc.mmell was needed over and above present receipts and the sums re­ Curtis Knox Phelan Vardaman ceh·ed !rom the sale of borids. Dillingham La Follette Pittman Wadsworth Fletcher Lodge Ransdell Weeks When the bill reached the , enate from the House it was drawn Frcl!nghuysen McCumber tlaulsbmy Williams so as to provide for J:he raising of about $1,800,000,000, and we Gronna McKellar Shafroth were told about July 1 that the bill to be reported to the Sen­ Hale McNatT. Sheppard ate from the Committee on Finance was framed so as to rai e Mr. FRELINGBUYSEN. I wish to rumounce the unavoid­ about $1,250,000,000, but when the bill was reported, August able absence of my colleague [Mr. RuaHES] on account of ill­ 6, we find that it provided for the raising of lli2,006,000.000. ness. I will let this announcement stand for the day. When this bill was reported to the House it was supposed that Mr. MYERS. · My colleague [1\!r. 'V ALSHl is necessarily it provided for the raising of all tbe additional funds that absent on account of illness in his family. Be is paired with the ·would be required by the Government for the year ending Senator from New Jersey [Mr. FRELINGHUYSEN]. I will let June 30, 1918; but on July 26. 1917. a letter from the Secretary this announcement stand for the day. of the Treasury was sent to the Speaker of tbe House of Rep­ 1\Ir. KillBY. I wish to announce the unavoidable absence of resentatives containinO' deficiency and supplemental estimates my colleague [1\Ir. RoBINSON]. for the War Department to the amount of $5.917,878.347.98, and l\lr. CURTIS. I desire to announce the unavoidable Rbsence we are advised in the morning papers that the additional of the senior Senator from New Hampshire [Mr. GALLINGERl. amount needed by the Government will reach $9.000.000.000. I will let this announcement stand for the present. There is quite .a difference between the figures submitted in the I wish also to announce the absence of the senior Senator estimntes sent to the E:ou. e in May, those contained in the bill from New Mexico [Mr. FAIL], and the absence of the junior as it passed the House in June. and those contained in the hill ·Senator from Michigan {Mr. ToWNSEND], on account of illness reported to the Senn te on the 6th day of this month, and now in their families. I will let this · announcement stand tor the comes the additional estimates for nearly $6,000,000,000 to add pre ent. · to the burden nh·eady on our hands. 1\Ir. SUTHERLAND. I desire to announce the absence .Of We were told by the able chairman of the committee, in his my colleague, the senior Senator from West Virginia [Mr. opening speech) that it was intended by this bill to raise what GoFF], on account of illness. I will let this announcement balance as needed to meet the appropriations heretofore stand for the day. made. There is no intimation as to how tile amount of $5.~17.- Mr. KING. I desire to announce that the senior Senator 878.347.98 called for in tile estimate of July 26 is to be raised. The from Maryland [Mr. SMITH], the junlor Senator from Ken­ Congress has already appropriated the sum of 9,103.086.707.11 tucky [Mr. BECKHAM], and the Senator from llJinois [1\lr. for t11e year ending June 30. 1918, and the estimate mentioned LEWIS] are detained from the Senate on official business. a moment ago calls for $5,917 ~000,000 more, and we are tolu I· Tbe PRESIDENT pro tempore. Fifty-four Senators have tl1at we :qtay expect other estimates before the year ls out. answered to their names. There is a quorum present. If no more is added. we will have appropriated for this year the enormous sum of $15.030.965,155.09. If you add the addi­ THE L W. W. liENACE, tional three billion mentioned in the morning papers, the Mr. .ASHURST. Mr. President. although the Senate ()f the total amount needed for the first year will be nbove $18,- ·United States is an unusually well-informed body of men. I 000,000.000. find nevertheless a number of Senators are not familiar with Ur. Presjdent, I submit that the ConO'ress should be advised, just what the I. W. W. menace throughout the Western States as soon as possibl~. just what amount of revenue must be raised means. for the year ending .June 30. 1918, and then Congress should \Vith the I. W. W.'s perjury is a fine art. With this organiza- determine upon a plan which will best distribute the sum in tion murder is reduced to a science, nnd after the I. W. W. accordance with ability to bear it. ·slays its unoffending victim the accused and guilty person The people at home are the force back of the Goverpment, frequently escapes conviction by reason of a prearranged alibi, and they have a right to know. what is going on. If the Gov­ because, as I said, the I. W. W. has reduced perjury ton fine art. ernment will only take the people into its confidence and tell At a later time I expect to deal with this subject and explain them just \Vhat is needed and for what purpose the funds ·some of the views and activities of this treasonable organization, raised by tax~tion and bond jssues are to be used, antl if it but this morning I will simply ask to have the Secretary read will assure the people that there will be the strictest economy at the desk n. short extract from a very reliable Arizona weekly in all expenditures, that new under~akings will be limited to , ·newspaper which gives some illumination upon the activities the smallest numb-er possible, that all "pork-barrel" appropria­ and views of the I. W. W. I have frequently been asked what tions will be eliminated, that no favoritism will be shown in ~~I. W. W." means. It means simply, solely, and only" Imperial th-e letting of contracts, and that the lowest t'esponsible bidtlers Wilhelm's Warriors." will be favored, then it will find the people ready and willin« The PRESIDENT pro tempore. Without objection, the Secre­ to do their full duty. tary will read as requested. The Chair hears none. I favot·e

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191~. CONGRESSIONAL RECORD--=-SEN A~TE.

:wEYUld be helpful to the: administrrrtion and to Co-ngress and domestic luxuries, and it would justify the elimination of all would inspire confidence. war taxes ODJ necessaries; and this shouJtl1be done. I favored .it for another reason, 1\lr. President. A few weeks If the above items will not produce~nough· revenue, it is est!:. ago a distingui bed Senator stood upon the floor and asked any IIUlted that the inheritance tux would raise $100;000,000. If \ . Senators to advise him' whnt hnd been done· by the Defense a reasonable tax were assessed on all inheritances of over Board. No Senator was abl~ to- give that Senator the i:nformn.­ $100 000. with1progressive rates. on amounts in excess of $100,000, tion which he desired. I submit if we had a joint committee, a. much larger sum could be had. Of course, in fixing- the and a Senator asked for information, he wallld' obtain it,. be~ amount of the inhenHance tax, due allowance should be. made cause that committee would he advised. , for such taxes levied by States~ The taxes should be equitably distributed and the plan ot It has been stated by a student of the tariff that a much taxation should not add mmecessary burdens upoq. the poorer larger sum could be realized from duties oru imparts• . and1I uiui-er­ people, nor should ft cripple industry nor injure business, and stund that it is estimated that from $210.000,()()(). to: $230,000,000 no tax should be retroactiv~ . will be raised from the custom duties this yea1:; and: iT the dnties The business men of the colJDtry have e~ressed their willing­ of. the Payne tariff law were now b.eing conected, I am informed. ness to- pay as laTge a tax as possible, but they do- not wish to that the sum of $450,000,000 would be raised~ If this is SO.; have their business taxed out of existence. then a small increase in the duties on imported lu:rnties would The working people· have expressed their desire to help in run the am~t up to $600,000,000. every way, but they ask to be protected from an unscrupulous It seems to me that the measure cont:tins- some provisions dealers ano aU gamblers in the necessru:i£8 of life. which will place unjust burdens upon peop:l.e' who are unable to The farmers and stock raisers have shown their loyalty by bear them-the bu:ndem; of such people- are· too heavy now-but increasing their productiorrto the fullest extent. - these items in the bill w.ill be referred to when amendments are A great majority of the people o:f the country are doing their ·being considered. I am imposed to the war excise tax on: coffee, part, and this they will continue to do as long as it is necessary. tea,. cocoa, and sugar, and, as advised now, will vote against We- all hope the war may soon end, but no one can tell how long the tax on these articles. I am also opposed' to the tax imposed it will last, and it is our duty to prep.are f€}r a long contest and by the bill on some other necessities. Instead ~ of ta'Xing- the poor . one ()f' the greatest magnitude; man'::> breakfast table, why not increase the tax on. liiXpries? To finance the war means that we should have a well-formed Mr. McCUMBER. Mr. Pr.esident, one of the principal items and comprehensive program. A wise plan adopted now will en­ of expense, to cover whlch this bill is reported to the Senate. is able the Government to raise all funds that may be needetl the expense conneeted with the purchaSte and the building of without disorganizing our country. injuring our credit, or shak­ ships. In the month of April last I called: th-e attentiGn of' the ing the confidence of our people. Senate to the enormous devastation by U boats upon the tonnage While Congress shotlld hasten in doing eveyYthing tbat is of the world, and, -with all the available figures and data whi'Ch needed for the Army and Navy and the conduct of the war, it I could theri collect, I showed conclusively, I thought, that it was should carefully deliberate and take its time when it comes to only a question of time when the tonnage ot the world would considering the tax laws by which the growing billions of war IJe so reduced as to compel an nnfa vo.rable peace. At that tiBre exvenditures are to be provided. The measures should· be drawn · I introduced a joint resolution providing that the Navy Depart­ so. no one section would be given an advantage over any other ment should offer a f'air sum of money to any man or- men who section of the country, and the laws' enacted to meet the emer­ wolrl-d succeed in producing any cba:ra.cter of mechanism that gency should end when the emergency ceases ; and the people would protect a merchant ship against the, submarine· torpedO:. must know that the war measures are temporary and are not That joint resolution was referred to the Committee on Naval • to be used as precedents for the future. Affairs. There was no action of that committee, and I again called No taxes should be Ie.vied which will deprive any !'f ouT peo­ the' matter UP\ The acting ehail'man of the committee at that ple of the common neeessaries and comforts of life. time assured me anlil assured the Senate that the Navy Depart­ - · The expenses of the war, as far as possible, should be paid .ment was giving proper and adequate consideration to that sub­ by those who are making large profits out of war contracts, ject and to. like subjects, and also- indieated very clearly that in a those who have large incomes and the luxuries which only the very short time.. indeed,; the Navy Department would have d~ rich can afford. veloped a mechanism that would protect our merchant ships, and A heavy tax should be collecteo from the _immense profits that the submarine menace would be met. 1 did not agree witll that are being made on war contracts. The papers elairn that the Senator making t.llat. statement, and insisted that all of the the Senator from Oklahoma [Mr: GoRE] · states the profits to energies of the department were directed not toward the defense have been about $4,000,000,000 the last year. The report of th~ of ships but toward the extinction of the submarine, and that committee fixes the amount at $3,000,000,000, and estimates the only hope lay in providing a defense against the to~pedo. that the war profits will be much larger this year. I have not I then called upon an officer connected with the department had time to look into the question, but no one doubts that the and ascertained from him that the mercha:nt ships could be profits have been large, and those who have made these great protected, but t.hat the cost of the protection was so great that pro.fits should not hesitate to pay a large amount m the way the owners preferred to pay the extra expense in insurance-and -of taxes, and this measure should be drawn so as to require it will be remembered that t:p.e Government was the- insurer­ them to pay their full share of the burdens· of the war. rathel" 1:han the extra expense which the protection of the ship · One· of the New York papers contained an article to the effect would involve. The result has been that millions of tonnage that one large corporation had reported a profit of $146,000,000 of the best British, American, French, and neutral ships have made in 91 days. The chairman of the committee referred to been sunk in' tll.e sea, and their eargees have· been lost to us and ,, 'Several huge concerns which were making enormous profits out to our allies. of wnr contracts. In view of these reports. is it not reasonable Being somewhat impatient, I then introduced a resolution ask· to estimate the war profits this year at $4.,000,000,000? ing for information as to what the department had succeeded in There should be a readjustment of the rates of the income accomplishing in the way of protecting the ships against the sub· tax, the rates on normal incomes should be low. and the rates marines. The an...c;;wer which was received from the department on large incomes should be increased so as to make immense was to the effect, practkal1y, that nothing wnatever had been incomes pay a fair and j-ust proportion of the- cost of the wm·. accomplished. I do not believe it necessary to lower the exemptions now Now; MF. Presidffit, I wish to have an editorial read into the allowed to heaC!ls of families. The sum of $360,006,141.70 was REcoRD, with-tne hope that some ray of the Ughtl of truth cone -raised from the income tax for tile year ending June 3(}, 1911, tained in the article may penetrate through the keyhole into th~ and it is claimed in the report ·on the- pendillg bill that an NaYal Committee room, and that that committee may a-wake from additional sum of $777,700,000 will be raised by it. its peaceful dreams and ascertain whether or not there is in realc There should be · a heavy tax upon imported luxuries, the ity any truth in this editorial; whetper or not it is possible to pro• importatioo of which f~r the calendar year, according to news­ teet our merchant shipping against the torpedo ; and, if the-re is paper repocts, amounted to about $500,000,000. · It seems to me any Iwpe of so doing, that they will exert some activity toward that it would be an easy matter to- rai.Be $300,000,000 revenue that end I especially wish to call the attention of that committee eaeh year from such an importation o:f luxuries, and surely t'he­ to the fact that it is charged that the insurance rates made by people of this country who can and do a:ffo.rd the luxuries im­ the Government -itself a.re sueb as to discourage any attempt on ported should be willing to pay a little extra tax- for the privi- the part o:f ·the- owners of vessels to protect them against tor· lege. · pedo attacks. _ To the amount raised on WIU" profits, incomes, and' imported . If it is possible for us to save our shipping and save the tone luxuries could be added the sum that will be derived from taxes nage of the world, it is time, Mr. President, that_the Senate wns on a large number of other items n·ow in tl'le b·m and a tar on taking some active steps. If the-Navy Department is unable to 6106 DONGRESSIONAL RECORD-- SENATE. AUGUST_ 17, sol "\7e the problem, then th~ Senate, acting· through the Committee different Senators, beginning with the amendment known as sec­ on Naval Affairs, ought to attempt to do something. I there­ tion 310, on page 34, the wine schedule. fore especially invite the 'tlttention of the Senate to the editorial The PRESIDENT pro tempore. The amendment will be which is printed in th1s morning's Washington Post, which I ask · stated. _, to have rea(}. The SECRETARY. On page 34, after line 7, the committee pro­ The PRESIDENT pro tempore. Is the1'e objection to the read­ poses to insert a new section, as follows : ing of the editorial? Without objection, the Secretary will read SEC. 310. (a).That (1). upon all stlll wines, including vermuth, liqueurs, us requested. cordials, ar~ficml or imitation wines or compounds sold as still wine, which contam more than 14 per cent of aosolute alcohol and whi~h The Secretary read as follows : are hereafter removed from customhouse for sale or consu'mption, ana .A CERTAIN WAY TO SAVE SHIPS. (2) upon all of the above which are fortified with or which contain The submarine situation was discussed with unusual freedom yester­ any product fortified with, grape brandy or wine 'spirits and which day by Premiet· Lloyd George. He expressed confidence that the food are. hereafter produced in the United States and removed from the .. stock on hand and in prospect would enable England, with ordinary place of manufacture or from bonded prem1ses for sale or consumption economy, to defy the submarine operations so far as starving the people there shall be levied and collected, in addition to the tax now imposed was concerned. Apparently, however, he did not go into particulars by law upon such articles, a tax of $1.10 on each proof gallon and a profcortionate ta:c at a like rate on !lll £ractional parts of such proof t·egarding the growing shortage of shipping for munitions purposes. gal on, to be levied, collected, and paid under the provisions of existin.,. During April G6o ooo gross tons of British shipping were destroyed by Jaw. . .. submarines. In Ju1 y the loss was 320,000 gross tons. Mr. Lloyd George said that the net loss since unrestricted submarine warfare commenced (b) Upon (1) all of the articles enumerated in subdivision (a) which was "under 250,000 tons a month." The new construction for the first ax:e hereafter _produced in the United States and which are not fortified six months of this year amounted to 404,000 tons, and the last six w~th. ot: .do not contain any proquct .fortified with, grape brandy or months would see 1 424,000 tons added, including purchases. wme sp1nts, and which are removed from the place of manufacture or These figures pertain to Great Britain. The purchases of vessels do from bonded premises for sale or consumption. and (2) all of the not add to the common stock of tonnage possessed by the allies, of course, articles enumerat~nd of a year. Sin<'e the destruction of neutral and allied shipping by law upon such articles1 a ta.x equivalent to the internal-revenue tax !J'?W imposed .bY law, ro be levied, collected, and paid under the Is also very large, and , t.he restoration small, the fact is clearly estab­ proV1s1ons of exisbng law. . lished ~hat Germau submarines are steadily and surely destroying the world:t:; shipping. . (c) Upon champagne, sparkling wines, and artificially carbonated There is a deadly meaning in this to the United States. Is it sup­ wmes, hereafter . produced in or imported into the United States and posed that this Nation can make its resources .clfective in Europ_e if removed from customhouse, place o( manufacture, or bonded premises, there is no way of getting to Europe? If ships are built without pro: for sale or consuiJ?ption, there shall be levied and collected, in addition tection against torpedoes, mer-ely 'to dash across the ocean and take to the tax. now Imposed by law ' UP!ln such articles, a tax equal to their chances against submarines, the proportion of losses in · men and double the rnternal-revenue tax now Imposed by law, to be levied, col­ material may be staggering. Could the United States look upon the lected, and paid under the provisions of existing law. loss of 250,000 tons a month with anything but extreme concern? This (d) Whoever has possession of any empty cask or package which has would be equivalent to 25 ships of 10,000 tons each, some of them trans- been used for wine or any article taxable under this section or under ports witli soldiers aboard. - - subdlvlslon (a) or (e) of section 402 of the act entitled "An act to The opinion has been expressed by American naval experts that mer­ increase the rev!!nue, and for other p_urposes," approved September 8, chant vessels can and should be protected against torpedoes. Gen. 1916, and on 'vhtch the stamp or any mark denoting payment of tax has Goethals's plans for steel ships provided for such protection. The naval not been effectually destroyed or obliterated, or reuses any such cask or .advisory ·board went over these plans and approved them, and has package, having thereon any such stamp or mark previously so . used, recommended that shipowners apply similar protection to their vessels. shall for each such oiiense be fined not less than $100 nor more than But there is no law to compel owners to protect ships by reconstruction, $1,000, or be ·tmprtsoned not more' than one year, or both; and all such stowing of cargo, and otherwise. On the contrary, the war-risk in­ casks. or packages, · and their contents in the case of reuse shall be surance provided by the Government is sufficient to make shipowners forfeited to the United States. ' indiffet·ent as to the fate of their vessels. So far as the Government +he PRESIDENT pro tempore. The question is on agreeing has acted at al1 it has discouraged the protecting of private merchant vessels· against t:orpedoes.1 - to the amendment reported by the committee. Now, all suitable merchant vessels are subject to Government super­ Mr.. SIMMO.NS. The Senator from California [1\Ii'. PHELAN] vision. They are to be operated by their owners or charterers accord­ I see IS n6w rn the Chamber. I call his attention to the fact ing to directions issued by the United States Shipping Board. Why should not the Shipping Board reqUire that all vessels be fitted with that section 310 now under consideration was passed over yes­ protective dPvlct>!< and be loaded according to the methods suggested by terday. at the request of the Senator from Ohio [1\Ir. PoM­ the Naval Advisory Board? Vessels so protected and so loaded can ERENE], upon the statement that the Senator from California survive the damage done by a single torpedo. Certain cargoes properly stowed will enable vessels to reach port, even if struck by two or even desired to be heard on it. three torpedoes. With an alert gun crew to engage the submali.ne on l\1r. PHELAN. 1\fr. President, we are discussing a revenue sight, ,vessels so protected could cross the Atlantic in defiance of sub­ measure, and I must assume that the Senate is interested only marines. They might be wounded, but they would not be lost· their passengers and ft·eight w~uld be Celivered instead of being sunk ; and in that phase of the wine controversy which affects the rev­ they would occasionally smk a submarine. . enue. There is certainly no attempt being made now to re­ The shipowners have.shown that they care nothing for ships, sailors' strict the use of wine, although the most effective way to de­ lives, or valuable cargoes so long as the Government grants cheap war insurance. The owners will not expend an extra dollar for protective stroy an industry is to ta,A it to death. But I do not believe devices or changed methods of stowage unless compelled to do so: Is that there is any purpose, either on the part of the committee it not time that the Government should take these rapacious interests or on the part of the Senate, to restrict the manufacture or use by the throat and force them to cooperate in winning the 'Yar? of wine by this indirect method, and the only object of the Sen~ Mr. McCUMBER. I wish to call attention to the fact, Mr. ate is to provide adequate revenue for the extraordinary pur­ President, . that the board has approved devices which it is poses of the Government. claimed will protect ships. If that be true, then we are crimi­ It .so happens that the State of California produces 90 per nally negligent if we do not compel the use of such devices, cent of all the .wine made in the United States; therefore the whether or not the owner of a ship is willing to take his chances tux does not in an economic sense affect to any degree, certainly with insurance. not to the same degree, other American communities. Hence 1\fr. KIRBY. Mr. President, I should like to ask the- Senator it has always been incumbent upon the representati-ves ·of Cali­ if there is anything in the law or the regulations that would fornia in this body to explain the situation. Needless to say, prohibit the

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.1917. DONGRESSIONAh RECORD-SENATE: 6107 (

cient· in the: making of wines; it- is an i'rulustry that is·lianded insist- UIJOil' the tax. If you Jet· the House· rate· stand that' re­ clown from father to son:_went; to Spain and discovered that suit will nob follow. The House seems · to be wiser tha~ the sweet wines as· well as- dry wines c0nld be made in California Senate· in tliis. respect.. .lust as -it has· been, endowed. by the. by a little encouragement from the Government. The market Constitution with, the initiation of revenue legislation; it seems is about equally dividecl between• the two varieties. B:L"alidy to give~ through its committees; a much· closer consideration wns then taxed at $1.10 a gallon for an purpases, and· hence oveJ." a longer period of time;- without: hurrY', ta tbesec maters; ~ that maue the making of sweet wines prohibitive, because wine and I think. the learned chairman of the Committee on. Ways spirits or brandy had' to be used to overcome the- natural fer- and Means of the· IWuse is: ~ · very · well ~ informed . ma:n: on· tills mentation of the grape; not to stren-gthen. tl1e. product, but to sul.Jjeet: arrest th·e fermentatimr, because: otherwi e the fermeritatie.n Before• the. amendment of the 1914: law it was claimed that it would go on an(]_produce an excessi¥e- degree· of. alcohol on the would prodlTCe • 7,000,000 of revenue. As r have shown y.()U; wine become sour. So it was necessary to add brandy· to'cl1eclt less. than llalf1 that amou:rrt was· produced~ Instead of :providing the natm·;xl f-ermentation of the· grape&. Butt these menJ wim· the revenue estimate(], the 191:4J 'tax: during its op·er.a:tion'. was hml diseovered. in Spain. tim secr.et of making· sw;ee wines and: ' fast. destroying· tha wine industry.; with ~ cumulative effeetl, as found: that' brarruy-usell in: fortification.. wa not taxed. there· a:t shewn1 tl:v' the· continuing. dhninution of· tnx- receipts. The foH all; whereas sph±ts: weJ.ver luglUy taxed ~ about ~. 18 ~ years• ago got lowing figures are tn:ken: from the· Treasury Department: reports: fl'om Congress a ~oncessi(Jl},l of ru 3-;cent. rate· instead·· ot: a: $1:.10 First 12 months;.ofthe law: of 19:1.4, $B,444:;0Qa " rate, wl1ere· the brandy was used' only for'· malting· tb-e sweet Eam' 12. months, ~2 ; 805:000: wine: Henee;. during tlm:t period of about' 1...7 yearsJ tbe sweet=· And in spite of the contitming decrease of revenue during wine- industry has.grown anrl developed. N.ow·it· is proposed to ,1915-16 California reports show· that the crop was normal, and put1the brandy. m;ed in the forti:ficatiotr of·swe-eb wine~that:. is, that: tim- Vitimlltural Commission. of California-whi-eh is a for- attesting the fe.rrnentation'-upon practically tll.E¥-same- baS:is tiocly organized by. th~ · State-; a - publie e6mmissi()B ~ net a pri­ US·' commercial brandy: If tha;t is dune,. I: saYJ w.itlll absolUte vate:commission-reports that about 100~000' tomrof~ gr.apes were confklence; from the· infbrmatiom which:: I lia..ve.,.. tliat the' sweeb- left on the vines to rot, the growers refusing to harvest a crop wine ind'Ustry will· be. destroyedJ.. That· may. not. interest you·; that. had. no maPk~. - your communities: have no· sweetl-wine:industry; but it; does•in . When the tn-x:- forbidS"' the· ma:nufn-u can. not mak.e be raised on:~ the · same plane, irrespectiv.e·of the!indtvi' I ,, " The production of sweet wine in the Sta:te· fell"o1f ' enormously,· d'lre one now propos~. was: .:.u cents. s.uou1 d say that this act: pro- to the- prohibitive- tax lev-ied by· the Il'edera:l Government 1.rr its emer- 1 posed by the committee would· t~ sweet wine 60· cents.. It is gency revenue act o-r October122. 1914. . The: swee t~wine- mak-ers durtng selling for 35 cents. I' say that that act produced $2,805,000: Ih the vintage or 1915 made little- mm~ e than one-filth of a no.llmal pr ~ duc- tion. Four-fifths of the usual amount Illilde each year was sacnfj.ced 1 916 the 8-cent rate on dry wine was reduced to 4 cents, and beeau.se of inability of the- manufadurer to finanre tbe excessive twx:,'' the total tax on sweet wine, including the brandy used in forti- To be exact, the decreased production of sweet wine in Californi:t on fication, as against 23 cents, was r educed to 13 by the conferees. aceount of the law- of 1914 was 12,584,972.24 gallons. On page 9 of · · d h t 1914 th t Bulletin No. 6 is the following: N ow, b ear In mm , t a in · e ax on sweet wines was "This is a dropping off in normal value of sweet-wine p-roduction of 23 cents; in 1916 the tax was 13 cents. In 1914 the revenue · about $4.,000,000r and, as stated heretofore, the shortag.e was occa­ raised wa:-: $2,80.5,000 ; anu u;nder the redu-ced scheeule, almest sioned' by· the· operation of the-· FedeTal emergenc:y; aet, ta.xing sweet . · 191a- tl wines· in· manufacture· at an ex~rbitan-t figure!' one-h a lf re d uct IOn, m u, 1e reyenue, raised was- almost · on: pttge 9. of thf" report. of the state' Boa:rtl' of ViucuJturnt comnri - twice as-mucb, n:miely, $5,500.000. ' sioners of· December 1, 1.91u,. appe-a'l's·: There we have n· case where, with a reduction of tJie· tax:, . " ·During: the preceding sen:'iou, during_ w.hich operatnms wue- n e c_e s- · f d th t i th sarily under the exllrbitant Federu;i tax:, t'he. protluetiorr of &wt>e 1: w1ne th ere was nn mcrease·· o l'e¥enue; an • a sz · e . very oonten in Ca-lifornia: fell off' nea-rly• 80'' per cent, and' if· pl.'ov ecJ t'o _be- on-e- of tion which I make now, that you will destroy the source if you the worst seasons ev ... r experienced by the wine-grape growers of Cali- •

6108 CONGRESSIONAL RECORD-SENATE. AUGUST 17,

fornia. :Manufacturers C'Ould not afford to buy their grapes, and the sweet wine, anc~ the fortitying fax of $1 per proof gallon on b;andy culls of the. raisin and table grapes also went begging." used in fortlfymg. This will kill the &weet-wlne inItaly, and F1·ance The President therefore has control of the situation, which with China and .other .Asiatic countries, and .American prohibition should mollify those who are in favor of any form of legislation neighborhoods, before they decide to see how much they can make this leading toward prohibition. But that question has been settled. country like .Asia, and unlike those parts of the world in which there has been progress. So the only question before us is the question of revenue. I hope that you will demand from the Senate an amendment to the On August 15 of this year there was a meeting of all the proposed constitutional amendment, · limitlng' thls control of the people wine makers of California at the town of Lodi. I am in ~ceipt to the abolition of whisky and retaining the light beer that is needed by the working10en, and the light wines that nre a normal and health· of this telegram coming from that assemblage, signed by thA ful food of educated men. California Grape Protective Association, Frank T. Sweet, presi­ Yours, sincerely, .A. BRISBANE. dent: SAN FnANCisco, CAL., .&.ugust 15, 1911. NEW YORK, Ju.ne 30, 1917. • Hon. JAMES D. PHEI.AN, Hon. J. D. PHELAN, Wa!thington, D. a.: Senate Ohamber, l-Vashington, D. a. Grape growers in mass meeting assembled at Lodi on Saturday DEAB SENATOR: As president of a national association for promot­ passed resolution thanking California delegation for their efforts to pre­ ing hygiene and as a physician interested for over 50 years in welfare serve the grape industry of California and express the hope that the movements--confirmation of which mav be obtained from my son, ~Ir. California delegation would do everything in their power to defeat a Bernard M. Baruch-! aak your attention to the following facts : prohibitive war tax. We understand that the Senate Finance Com­ If you are not interested in the temperance aspect, please read only mittee has recommended increasing the House rate by 2 cents per from page 3 (II). As. an ardent temperance advocate, I would hail gallon more on dry wines, $1.10 a proof gallon as a gallonage tax on with joy the removal of the alcohol curse. I favor the prevention 'l>y I

.. 1917. CO~rGRESSIONAL RECORD-SENATE. 6109 law of the manufacture, importation, and. sale of distilled alcohol or Here we have a plain guide for successful food conservation which its preparations, except for industrial purposes. Even in medicine removes all doubt regarding the unwisdom of forbidding the use of alcohol is r:ot reeded, except in the preparation of drugs. Nevertheless barley and other grains for ·brewing. I am opposed to tile present antagonism of beer and wine, because I Lin contributions to the Medical Record of the 9th and 16th of June; believe that if the saloon, cafe, and home could not be supplied with 1 pointed out why the Germans have so successfully met the menace distillrd beverages, ferme 1ted drinks would replace the latter. The of starvation up to this time. The scientific methods there referred curse of alcohol would thus be abolished. The saloon would, indeed.t to may be of great value to out· authorities who have, so far as I know, become the ··workingman's club, · where be and Ws family would finn not utilized them.J harmless refreshment. This bas actually been achieved in Germany, The above data show that both from the temperance and food-conser­ where custom has ruade beer the dominant beverage, and in Denmark vation standpoint the House bill is unwisely against beer. where places in which beer of 2t per cent alcohol is sold to the exclu­ Not beipg interested in oeer drinking or brewing, I have not dwelt sion of spirituous drinks, are called "Afholdjen" (temperance' homes). upon other obvious objections to the threatened beer embargo (via. You are aware that during the latter half of the last century the the food menace). temperance movement was on the eve or victory, one-half of the States Very truly, yours, S. BARUCH, M. D. having passed proWbltion laws which were repealed in from 1 to 12 .1\[r.. HARDWICK. l\Ir. President, I desire to offer now a vears. T~is failure was due chietly to the intolerance and unreason­ able attitude of the temperance advocates. During the past decade Senate resolution, which I shall ask to have go over under the the more enlightened view that abolition of alcohol was not only an rule, and which I give notice that at an early alent of about toons representing its views on the pending public questions of 10 ounces of beer. . gravest importance and moment. It had three or four articier3 II. From the food-conservation standpoint the legal forbidding of with respect to its views on those same questions, one par­ barley for brewing is unwise because (a) barley, not being a popular ticularly assailing the President of the United States for his food, farmers wlll plant it only to export it to other countries where it would fetch a large price for use in malting; (b) that beer has by inconsistency in respect to certain vie"-s which he now entee­ custom and habit becmp.e an imperative need of harll-working people tains and certain positions that he now occupies, and comparing is demonstrated by the fact the Brltish minister of agriculture has previous utterances of the President with his present utterances recently confirmed the reluctant view of the .minister of munition to the ell'ect that the working people demand beer so insistently that the and his present positions. embargo has been considerably modified in their country. To the On that account and for that reason, acting under certain pro­ toilers beer ls, indeed, food and drink combined as unprejudiced physiolo­ visions of the espionage law which it was alleged were applicable gists agree. 1 am aware of no proof that efficiency has been notably diminished by its coJ)sumption; (c) whether barley and other cereals to the case, the Post Office Department denied this publication would be more useful as human food than for brewing has been dis­ the use of the mails, and denied it entr y as second-class mail cussed by chemists whose differences in their estimates of food values matter. The publisher sued out a mandatory injunction before recovered after brewing range from 27 per cent to 90 per cent. I regard the latter as correct. "Whe~ uoctors disagree who shall decide?" the United States judge of the southern district of New York. Of course, experience must dec1de, and we have the most reliable guide That injunction came on to be heard and the presiding judge in the persent ex;;~erience of the German people. When, in 1915 Eng­ decided that without reference to the merits or demerits of the land threatened the Germans with starvation by its strict blockade -they went to work methodically tct avoid defeat from this cause. Theh! views and cartoons as contained in this publication they were scientists labored on the conservation of food supplies, their cooks and merely the free expression of opinion as to governmental policy, housewives on saving waste, etc. The most important work wWch ap­ and that as long as this remained a free country anti its citizens peared at that time was "Die Deutsche Volk ernaehrung und der Eng­ lische Aushungersplan," by Paul Elzbacher, who gathered the views continued to possess the right of free speech uo one had the right or the world's greatest fooll experts, among them Zuntz and Rubner at to deny the right of this publication to express these views even whose feet our best food experts have sat years ago. The plan' of if they did not concur therein. rood conservation evolved by these men to meet the threatened starva­ tion of their people meri -:: ~ strict imitation, although our danger is not Therefore the court issued a mandatory injunction against the so ·Imminent. [Access has been obtained to their views through the Post O:ffic~ Department. Following that decision the Govern­ writings of a Danish cheCJist, Dr. Sorensen, who details and coniirms ment appealed to the circuit judge of that circuit, presiding in their experiments. 15orensen writes: "A small loss is ·suffered when barley is used in the brewing industry and a larger loss when the same Vermont, and that judge, I think h1s name was Judge Hough, is used for feeding animals. In this fact there is nothing remark­ under a provision of the judicial code authorizing it, .suspemfell able. • . • • .At first glance it may seem surprising that a utiliza­ the operation of the mandatory injunction, pendente lite. tion of the barley in the brewing industry causes such a relatively small loss of nutritive value. The reason may be looked for in the usual Of course, that is just the history of what happened in a pre4 defective knowledge regarding the large content of nutritive matter in liminary way. But now comes the remarkable part of it. products of the brewery • • •."] The views presented correspond Since all that has happened the Post Office Department has perfectly with the proposals made by Elzbacher and his assistants in the above-mentioned bool' at the beginning of 1915, which treats in detail issued an order suspending the use of the mails as seconeen here in Denmark unmaJtetl grains are used in conjunction with the malt. going regularly through the mails at the time -you were pre~ 'l'Ws reduces still more the loss of nutritive matter in brewing."] vented from doing so by our order." If that is not taking LV--388 6110 CONGRESSIO~At RECORD--SEN ATE. AUGUST 17, advantage 'of your own 'wrong I do not know bow else to put it. Mr. BRADY. 1\Il~. 'President-- It seeins · to· ,nie that is' too arbitrary a -proceeding to be counte· The PRE SWING OFFICER. Does the Senator from Georgia nanced in this country oi free speech. · yield to the Senator from Idaho? l\fr. KNOX. I should like to have the Senator from Georgia l\1r. HARDWICK. I yield ·to the Senator_from Idaho; restat~ · the position _taken by the Post Office Department. I did Mr. BRADY. Does the Sel}ator believe that a horizontal rate not quite ca_tch it. . should be. applied on all excess profits or simply on newspaper · 1\lr. HARDWICK. The Post Office Department has now ex- publications? . · ' eluded The Masses-that is the name of the publication~from 1\Ir. HARDWICK. I uo' not think-and I am coming to thau the mails and denied it second-class privileges because it said in a minute-that. it ought to be applied to anybody especially; during the recent months, while this litigation was pending, it but if it is to be applied, there is no reason why the new paper bau not been going regularly through th3 mails, ;tnd they fall publishers of this country should pay a special tax that otllel' tbck on 'another provision of the law which denies second·class business men do not pay. I am going fully to discuss that in. ·privileges to publications that do not issue regularly and go just a moment, but, so far as this particulat" question is con­ through the mails regularly, although the only reason The Masses cerned', I do not think this excess-profits tax as it is framed has not issued regularly, and _has not gone through the mails l1ere ought to be applied to anybody, whether it be- newspaper regularly, is because the Post Office Department would not let men or anybody else. it do it. · 1\Ir. SMOOT. Will the Senator yield to me? l\Ir. President, I am not excited about this matter. Personally l\Ir. HARDWICK. I yield to the Senator. I have a very warm regard for the Postmaster General. A friend- Mr. Sl\IOOT. I am always interested in wlmt . the Senator ship or years that I prize very highly exists between us. says, but let me suggest to Wm, before he begins the argu· I do not know to what e:rtent he has had anything to do witli ment he intends to make, that the theory of the bill is not bnsed this matter or even it he knows exactly what has been done, on excess profits but war profits. The House bi11 provides for but if this is to remain the land of the free ·and if freedom of excess profits and then specifies what they consider a oormal the pres's and freedom of speech are not to become mockeries . profit; all above that, of course, is to· be taxed. But the: Senate in this Republic the Senate of the United States or the Con- committee have taken the position that w:Uat they want to tax gress of the United States can not a:fl'ord to countenance- any is war profits. · such proceeding as this or fail to condemn it. l\-1r. HARDWICK. I understand that; and I run glad the Sen­ - So I say at the proper time, as soon as I can do it under the ator has made that contribution to the discussion, but the rules, I expect to ask the Senate to call on the Post Office trouble is when it comes to working it out practically you can Department for inforllllltion with respect to these matters so not do it. That is the great difficulty-the impracticability of that it may be seen exactly to what extent my information about the application of this tax as you propose iL this mater and matters of a -similar kind is accurate. I think What are war profits and what are not? Where- i.;c; the line my information is accurate, and I have therefore presented this to be drawn? Where do war profits begin and wher~ do they resolution. end? You can take the cotton mills in my State. to. pursue Now, I want to say just a word or two in a very general way· · the very illustration that I have been giving the Senate, and, about this tax bill. In th'e first place, I am opposed to the I ask, does the Senator· say their profits are war profits? I do plan -proposed IJy the committee for a tax on excess prof!t!'{. not think so, and yet there might be room for cUspute ancl I believe it is unwise, unfair, and unjust. I believe that taxes debate abou-t that. ' ought to be levied at all times, and particularly at the present Mr. SMOOT. rdo not want to interrupt the Senator-- time, with reference, first of all. to the ability of people to pay l\Ir. HARDWICK. I am perfectly willing. as the Senato1• them and to bear the burden without being ruined; and it does knows, to have him interrupt me. It never bothers me- to be seem to me as though we ought to fix a flat rate and to apply it interrupted-- equally to all business men and to all corporations as great as l\Ir. Sl\IOOT:-- I should be perfectly willing to take up the we care to make it or as those businesses can justly stand question of the cotton mills themselves and other businesses that ami not undertake to set up abih·ary standards and rules which are affected in the same way; but I am afraid it would take in their practical operation work the grossest injustices to many too long a time now. I expect to do so, however, and I hope of the great business enterprises of this counh·y, as I believe the Senator, when we do undertake to explain the· matte1~, will the Senate committee's plan will do with respect to this par- listen carefully, for if be does I believe that he will come to ticular matter. ... . the conclusion that as to that class of business and eYery other Now, let me illustrate. I have no particular interest in them class of business, we have had in mind only· war profits. That except that they are among my constituents and mapy of their is what we intended to reach. Of course, I shall be delighted to owners are among my personal friends. I have no pecuniary hear what the-Senator has to say in relation to tltat, but I only interest in them whatever; but the illustration I desire to make made the suggestion to him because that was the theory the is in respect to the cotton-mill owners and operators of the committee had. State of Georgia. For many years prior to this war they had very lean years-hard years-they made very little money. l\Ir. HARDWICK. I understand that, and I appreciate the During the three yea~ that immediately preceded the war suggestion of the Senator from Utah. I know that is the many of them had to be reorganized; they went into bank- theory on which the committee has operated, and yet I say to ruptcy, passed up their dividends, and in some cases the in~ you that in my judgment-you may change it in debate; my terest on their bonded debt. They had three of the hni·dest mind is open-it is a theo1-y that is impossible· of practical years, so I am informed, in the whole history of the in~lustry. application, without the grossest injustice to many businesses Since the war-and I do not think directly because of it, in this country~ although there may be som~ indirect influence growing out of I agree with the Senator. that we do not want any extended the increased use and desh·uction of cotton goods in times of and protracted debate on these questions; and I run only refer­ war-their operations have been profitable; they have made ring to them in a passing way. I agree witb tbe- Se>J.ator that money; they have bad fat years. it is important that we take up these questions, consider them in · They are willing to pay generously, liberally, whatever rate detail, and see what their effect will be on every kind of busi· you think is right on every cent they make, every year; but ness in this country. When that is done I believe that the Sen­ to apply this excess profits tax to them, and to go back for tlle ate will arrive at a just conclusion with respect to the matter. purposes of comparison to three of the leanest years in their The central thought in my mind, however, is-and this is history and compare those yeru·s with three of the most pros- merely one manifestation of where it leads-that it is utterly perous years they have had works a practical injustice of the unwise to.so burden and to so hamper American production and grossest kind and character, according to- my· information, with American industry and American business of any sort that it respect to this particula£ industry. I am afraid that that may can not get along and help to pny and continue to help to pay be true :with respect to man businesses and industries of this the burden of the expenses of thi o-reat ,~var. To use a very country. common homely adage, but one that is always apt, it is nonsense I should much rather see whatever rate of taxation the com- to think in this emergency of killing the goose that Jays the mittee thinks is fair, and that the business of this country can golden eggN. stand without ruin, assessed and levied uniformly on every- I want to impose all the taxes that business can iegitimately thing, so that everyone will know exactly what he is to pay, and proper1y stand upon every kind of business man; I want than to have any such rule as this established -by which to to play no favorites, and I do not think the Senate does, with measure this tax. I very much prefer the House provision to respect to that matter; but I think it would be financial suicide, the Senate committee's ·amendrrient, and I hope the Senate.will and worse than financial suicide, for the Government of tlle adopt the House plan, or something like it, rather than the United States to adopt a mistaken policy -Of not only confiscnt· plan proposed by tlle Se?Jnte committee~ ing, as I am afraid some portions of this bill will do, the totnl I .r ,...... 1917. A ' CONGRESSIONAL RECORD-SENATE. 6111

income of some of the businesses, .but, in some. instances, I am the duty paid from the Treasury of the United States. By afraid, the business themselves. manipulating the Q.rawback .provision they can manipulate the The cotton mill men in my State contend that in many market, driving it up or driving it down. That is one of the cases-and they have sent me the specific proof of it,.-the tax dangers that we incur by rea.son of the drawback in the North; imposed will amount to 81 per cent of all they earn. That is and I gather from the argument made by the Senator from not right; we ought not to do that. The Senate does not want Louisiana ·[Mr. BRoussARD] that the drawback provision on to do that. These men are willing to pay whatever we require sugar is used in the same way by the refiners. I think this them to pay; of course they will submit to the law, .no matter situation is worthy of consideration and that the market should how unjust it is ; but surely it is not necessary to treat Ameri­ be studied to see for what purpose the drawback is useu. can business along any such harsh lines as that·; surely we Mr. HARDWICK. Let me suggest to the Senator that what­ shall make for the better success of the country and for its ever may be true as to the wheat question with respect to the enduring prosperity if we treat these men justly and impose territory immediately adjacent to the Canadian border, along on them only a just and reasonable tax, and not one that is the lines of his suggestion, there is not even the slightest pos­ unjust and which almost amounts to confiscation. sibility that such a thing may be true with reference to the As to the details of this matter, the Senator from Utah well sugar situation; and when_we come to this provision I think I suggests that we can leave them until the Senate takes up the can demonstrate it to a mathematical certainty anu to the satis­ particular amendment to act on it. Th~n I will listen with o faction of every Senator in this Cllamber, with the possible ex­ great deal of interest and with a great desire to know exactly ception of the two Senators from Louisiana. I do not know - what

particular commodity, leaving it unchanged as to every othel' rather unusual and somewhat ludicrous performance of taxing connnodity emiJraces. it cost only 5i cents. Furthermore, the report of the Hughes l\1r. HARDWICK. That is true. So that the committee pro­ Commission was made almost 10 years ago, whelll _the total poses to change that; but I shall propose to strike it out, and amount of first-class mail was 157,000,000 pounds, while it is I shall propo e to strike it out because it is an entirely different now 315,000 000 pounds, and when the amount of second-class thing from the express-company tax. · · mail was less than half what it is to-day. Here is a function performed by the Government of the Uniterl l\!r. HARDWICK. That does not make any difference. 'l'he States. If there is any profit in it at an; eYery cent of it goes figures can be applied to any volume of business. into the Government Treasury, into the funds of the Postal 1\fr-. KELLOGG. The cost per pound decreases us the num· Department, to -pay first, of cour e, the postal expen.<:es df this ber of pounds increases. country, and then the excess, if any. to go into the general funds 1\Ir. HARDWICK. Well, that is a rule of traffic, and that, of of the Treasury. So that we are proposing to. tax a rather course-, is true. anomalous subject. I think-the Government itself. We are · Mr. KELLOGG. Well, that is a fact. It is not a rule of proposing to tax a function'that is exerci ed by· the G()vernment traffic, but it is a fact. itself, and to take out of the citizen more money without in­ l\lr. HARDWICK. It is a rnle of traffic. I object to t11e crea..o:;ing the rate far a pulJ!ic ·governmental service. What· we Senator ayin-g it is not a rule of traffic, becau e it is a rule of. ought to do, if these rates are not high enough, or if we want traffic.: That is exactly what it is. Of cour e, that is a fact, to increase them, is to increase the rates, and rio~ resort to the too; but it is both, instead of. being just one, and not the other. 1917. CONGRESSIONAL RECORD-SENATE. 6113

The same principle applies to first-class mail, too, for that _mat­ The Post Office Department has, I think, suggested the proper ter. It applies to anything transported in this country, e1ther solution of _this matter; and the solution that. it br.s suggested, freight or passenger .service, in my judgment. But let us see. I want to .state to-the Senator, wonld not hurt any one of ,the Mr. KELLOGG. Mr. President-- '· papers of the character he bas indicated. Tttey bave agreed to Mr. HARDWICK. I yield to the Senator. it, tbe majority" of them-the religiou.~ publications-becnuse :Mr. KELLOGG. I wish to .call the Senator's attention to the the plan of the zone system would bm:t them very badly. They fact that I think he will find, on an examination of the figures,. -could not live under that plan, I admit; but the plan that the that that estimate was not based on any figures of the carrying Post Office Department will offer to the Senate wilt not injure of second-class matter at this time, nor on any credible esti­ any of those papers, and they all, as far as I know, or n~arly mate. all of them, at least-all that we have heard from-think it is Mr. HARDWICK. Mr. President, I am glad to inform the the just plan for Congress to adopt. Senator that the exact re\erse of that statement is true; and Wbat is that" plan? I do not want to go into it too much in I get my authority for the a ertion from the Postmaster General, detail now, because I am taking up .vastly mot·e time than I who has had many -experts at work for years on this question, intended; but that plan is twofold. We have realized that the and who has not simply some brief sent him by some publisher fundamental. and basic principle on which this service rests,­ who has some special interest to serve in this matter, and who and upon which its rates are fixed, is that there shall be a very bas not some personal .or political interest to subserve in the nominal rate for the transportation and diffusion of intelli­ matter at all, but is absolutely impartial about this matter. gence throughout the country. It is necessary in a free -country, Now, if the Senator plea e, let me tell him something: He if democratic institutions are to be maintained and preserved, bas not studied this question. Now; that is right. He has that that policy shall be fo1lowed; so that we do not propose not-I want to be frank with him-and I have, for 10 years, to change the rate of 1 cent per ounce on reading matter, on night and C.ay. I have been to the bottom of e\ery one -of these editorial matter, or on matter of any other sort, except 011 reports. I ha;e had the benefit of all the expert assistance the ' advertising matter. We propose to leave the purely nominal Po t Office Department can give on this question, and I believe rate of 1 cent per pound-which is not one-eighth, at least, to the estimate of the Postmaster General is strictly within the state it conservatively, of what it costs-in effect on al1 of limits of accm·acy and truth on this question. He has no that character of matter that is pub1ished in any sort of a motive except to serve the Government of the United States. paper, magazine, or other publication in this country. But He has no newspaper to bootlick in this matter. He has no we do say, and we do insist-the Post Office Department

Senator that we o-l1ght ·to be· ·liberal in that respect; but I, ·M-r. NORRIS. And lose money on the long haul, and nverag· myself,· can not understand how ·if t he Government is going: ing the two up it would come ..out even? · But would not this ·to get lmrk the cost for · tra:tasportation it €all do it without be the ~·esult, that on the short haul, were it commercially pas- taking busines into consideration. . . sible to make a profit on transporting the newspapers or the Mr. H ARDWICK. Of course, the Senator is right in that magazines, the express companies would do the business, so that way; we can only strike averages by adopting the. other system, the Government would be left the unprofitable part of it and lose yet tlJere was a tremendous argmnent why we ought .to main· the profitable part? . tain the same fundamental fiat-rate principle that is applicaple Mr. HARDWICK. No; there is so much discrepancy between to every tran action of the Post Qffice Department except those express rates and Government rate that that is not possible. transactions that are purely and entirely commercial, like the 1\Ir. NORRI~. A !?reat many of the publications go by ex:· Parcel Post System. Ii'or instance, a 2-cent ~tamp carries a let- press now,· some two or three hundred miles anors they h.ave already bestowecial tax on publications. It ought and might tend to provincialize the press of the country, and not to be in this bill. Publishers ought to be taxed ju t like by the press of the country· I mean not only the daily news- other business men, and not differently. That is right, that is papers, but the weeklies and monthlies and other magazines and just. But, on the other band, they ought to have no . pecial publications as 'veil. · privilege, or no · special graft, in this · Government or in the I no.w yield to the Senator from Nebraska. Post Office Department. As far as their rates are conC'ernetl, Mr. NORRIS. It seems to me, as far as the newspapePs are on e>ery matter that is educational, or that is news, or that is concerned, they are provin.cial already to a great extent. After editorial, I a!ll perfectly willing that the present rate shall the riews gets a day _old it~ competition with another daily stand and the established policy of this country be maintaineu. paper, of course, is not taken into consideration. So tl1e circu- Since 1885 the development of newspapers and magazines and _lation of dailies, as far as the news _is concerned, is necessari1y other pubncations in this country into great business interests limited geog11aphically alr~ady , by the very nature of things. I and into great money-making enterprLo:;es has been tremendou~. c~n . see how the Senator·~ argument would apply_ to great There are many kinds of these publications where 75 per cent , magazines, but when the Senator comes to fix this rate on the of all their space is adrl'rtisement, and to say that we should advertising part of newspaper and magazines he must neces- carry that sort of !'!tuff through the "mails of this country at a sarily reach some common ground. He must. compromise b·e- loss of seventy to eighty million dolla.rs a year is preposterous. tween the long distance and the short distance. The moment I do not think when the peop1e of this country understand it he does that be makes the charge exorbitant for a short dis- they are likely to continue to countenance it much longer. ~ tan.ce;' and would not this be the result? Would it not mean Mr. McKELLAR. l\1r. President, I degire to discuss for a that the Government woul

The PRESIDING OFFICER. Does the Senator from Ten­ Mr. Sl\IOOT. That is, with the additional tax. . . _ ne see yield to the Senator fr~m North Carolina1 Mr. SIMMONS. That is with the addition-al tax of $1.10. Tb'e Mr. 1\IcKELLAR. Certainly. brandy that is used in it at the nresent time is taxed only 10 l\1L', SIMMONS. I \vish to ask the Senator from Tennessee cents, and under the Hpuse bill it is taxed onT;y 20 . cents _per if he would not be willing to let us vote on the amendment now proof gallon. If this w~e was fortified with grain spii·its, as pending. The Senator from ·Georgia offered a resolution, whirb the wines of the Mississippi Valley have to be fortified, the he discussed, and then it led to some general debate on the bill, spirits that they would use in its fortification would be taxed but the Senate has before it section 310, which relates to wine. $3.20 per proof gallon. But to be fair to the wine growers of The Senator from California [Mr. PRELL~] has made a speech California, we propose in thil? bill to impose a tax ripon the grape upon that amendment. . brandy used in fortification under the law, and no grape brandy 1\Ir. McKELLAR. And the Senator wants to have a vote can be produced except for fortification of wines. We pro-pose upon it? . . not a $3.10 tax, but we propose an additional tax upon that Mr. Sil\fl\fONS. I ask the Senator to let us go on with that material of only $1. So they will have to paY' a tax of only $1.10 question, and let him present bis argument on section 1101 when , as against $3.20 on the other wine, and they will have to pay that section is reached. an additional tax of only $1.10 per proof gallon upon the actual l\fr. McKELLAR. Surely. At what time will it likely be alcohol that is in the wi~e. I think a mer~ statement of the case reached? I would prefer to say what I desire to say on the is all that is required. subject to-day. I ask the Senator whether it will be reached Mr. PHELAN. 1\Ir. President, the chairman of the Finance to-d.ay or not? Committee makes the point that the object of the committee in Mr. SIMMONS. We are now acting upon amendments passed readjusting the rate was to equalize conditions between the over on yesterday, three or four, or ·probably fiv-e or six. wine growers of the Pacific slope and the wine growers of the 1\Ir. NORRIS. l\fr. President, we are unable to bear the Mississippi Valley. _ Senator on this side. . 1\Ir. SIMMONS. Let me interrupt the Senator. I said that l\fr. Sil\fl\fONS. I said we are now considering the amend­ was one of the reasons we had in--view; but the other was to ments that were passed over by request on yesterday. There tax the alcohol that is in that wine. are several Qf those, and the section to which the Senator from 1\Ir. PHELAN. The eastern growers use no grain spirits Tennessee refers is one of them. but grape spirits, with the exc&ption of a few. Now, since the Mr. McKELLAR. It is one of them. law forbids the use of grain, all will have·to use grape spirits 1\lr. SIMl\IONS. If the Senator desires, later I will agree for fortification, and hence our cause is a common one. I to take that out of its order in order to accommodate him. should think the only object the committee would have would l\fr. l\fcKELLAR. Very well, that will be entirely satis- be to raise revenue and not to go into the question of disputes factory. . . between rival wine makers, especially when there is now no l\Ir. Sll\IMONS. l\fr. President, in reply to the observation dispute. · · ·of the Senator from· California [1\lr. PHELAN] with referenee I think I demonstrated beyond peradventure of doubt from to the tax imposed upon wine and grape brandy, I do not pro­ the actual figures that the wine industry would be destroyed, • po e to make any argument but merely to state a few _facts. and hence there would be no source of revenue, by the imposi-· 'Vine is divided into two parts. There is the dry wine, tion of this tax. At the time when the wine industry col­ which contains its own alcohol; that is, it is sufficiently fortified lapsed, a year and a half .ago, reducing the revenue of the without any additional alcohol. On that the committee has Government from that source one-halft the rate upon brandy simply, following the lead of the House, which increased the ' bsed in fortification was 55 cents, which was so burdensome present rate by 50 per cent, doubled the rate. ·Then, there is that all the wine growers rose to protect against it, and the the sweet wine, a large part of which is gr;own in California conferees of the Senate and House reduced it to 10 cents. and on the Pacific coast, and another part of it, not quite so Under that rate-- large, grown in the States of the Mississippi Valley. It appears Mr. POl\fERENE. 1\Ir. President-- that the wines of California can not be very well fortified with 1\Ir. PHELAN. I will finish my sentence. Under that rate grain spirits. There is something in its__ .nature and its quality ·the revt:!nues of the Government were doubled; tha.t is, by re­ which requires a different character of fortification. The ducing the rate from 55 cents to 10 cents. Now the committee wines, on the other hand, of the Mississippi Valley are of such propo es to make it not 10 cents, as it is, not 20 cents, as the • a character that they can not well be fo'rtified with anything ~ouse now proposes-and the House has doubled the_ present except grain spirit . rate-not 55 cents, which proved destructive, but $1.10! Hence These two kinds of wine ar;e produced in different sections of I think it is perfectly obvious that ·the rate will produce no the country and are sold in competition with each other, one revenue at all. I can not understand or follow such an argu­ having to be fortified with grape spirits and the other has to ment as the chairman [l\Ir. SIMMONS] has made. I yield to the be fortified with grain spirits. The taxes upon gram spirits which Senator from Chio. tbe producers of wine in the Mississippi Valley. have to ·use is Mr. POMERENE. I think it is only fair to state, if I may $2.10 a proof gallon under the House bill, and under the Senate be permitted to suggest it, that when the 55-cent rate .was committee bill $3.20 a proof gallon. The grape brandy ·with adopted it was late in the fall, after the Yintage season was which the wines of California have to be fortified and are, as a over and the California wine producers, who were getting all of matter of fact, fortified, are_taxed under the. House bill-only 20 this bonus. had fortified the vintage of that year with grape cents, so that the wine producer of the Mississippi Valley would brandy, wliich was taxed at 3 cents only. That accounts for have to pay for the material that is used in fortification a tax the falling o:II; but the California wine producer had been yery o_f $3.20. T.be wine producers, however, of the Pacific coast will diligent in disseminating the information that the 'reYenue · fell · ha ye to pay under the House bill upon spirits they use in the off because- of the increase. If they bad allowed that rate to fortification of their wine-only a tax of 20 cents a gallon. have continued long enough until matters could adjust them­ It seems to be impo sible to eq-q.alize it, but for the purpo-se selYes the revenue would have been very much larger. of. bringing about a more equitable adjustment your committee _ More than that, the men who came down here in the interest decided to recommend that the sweet wines that are fortified of the California grape producers had a clause in their coutract With grape .brandy shall be taxed upon tl;!.e basis of the alcohol whereby if there should be an increase in the tax on grape that is actuall-y in that wine after it has been fortified. Naturally brandy the contract which they had with the grape farmer that .Wine might develop an alcoholic content of about 12 per would be null and void at the option of the wine producer, and cent of itself, but in this process of fortification the fermenta­ although _they came here and pretended that they were here tion is arrested at a point where the alcohol already developed representing the grape farmer, they went back and canceled amounts· to about 6 per cent. Then they are permitted under the their contracts ahd left the farmer with the grape .~ on their law to add to that 6 per cent of naturally developed alcohol own hands. _ · grape· spirits until they have raised the alcohol content up to 21 1\Ir. PHELAN. I should like to ask the S~nator what year per cent. So the wine. of California fortified with grape brandy .was that? It relates to ancient history, does it not? is alcohol to the extent of 24 per cent. l\fr. POMERENE. It occured in the early history of thls Your committee believe, arid I think there is foundation for wine fight, I think before the Senator was a l\Iemher of this that b~lief, that with the curtailment of the use of spirits, of body. . liquor, so to speak, this will become n national drink because of . Mr. PHELAN. But I do not quite understand the po ition of .. it high aicoholic content. It has deemed it nothing more than .the Senator from Ohio. He t·epresents a wine-producing State. fair and just that this wine, with 24 per cent of alcohol 'in it, There are 12.000 acres of vines in .Ohio, as against 350,000 in . hould be taxed upon tl1e alcoholic content. . California, but still he is interested in the settlement of the wine That is what we ba ve done, and I think we have acted wisely question. I have been in c.ommunication with the American about that. Wine As ocia~on, composed of ea tern men, men from New

• 6116 CONGRESSIONAL RECORD-SENATE. AUGUST 17;

York, Ohio, and Missouri. Mr. · Travis.· of NDrth- Cs.rolina, is destructive .of tl1e industry. I desire the Senate to understan€1 probably the niost capable man in the American· Wine Associa­ that that is the situation, and I am very sorry that the committee tion. Mr. Travis .:.nformed me that this rate was 11tterly de­ has not given the Senate fuller and mm·e correct information. structive not only of the California wine industry but of the I have presented these. facts as I believe them to be. Why eastern· wine industry. I am rather curious to know from the should the w}ne industry place its reliance wholly upon the Senator from Ohio what llis attitude is with regard t(l this rate other House, which, under the Constitution, is, I grant, the body we are discussing. I. can not believe that he is in favor of it. in which revenue measures must originate? l\1r. POMERENE. I llave taken no position at all with re­ I am telling you what I know. Why should not the Senate spect to this tax on intoxicating liquors. It was first called to ·settle this question with wisdom? · The House has discussed my attention some years ago by the Ohio grape-producing in­ this matter; the House committee has made its recommenll:1tion; dustry. It was then that I became interested in the subject, it has doubled existing rates; and certainly it ought to be suffi­ because our grapes were useu largely in the making of wine. cient foi· the Senate to know that the other House, in full pos­ .When they would produce sweet wines they were ·obliged to pay session and understanding of the facts, has prepared an in­ for their fortifying agent at the rate of $1.10 per gallon. The creased and possibly equitable schedule. Californians by some manipulation of the legislation iu 1890 I must say, judging from the statement of the chairman of the got at that time their· grape brandy absolutely free of tax. That Finance Committee concerning the use of brandy in fortifi.ca­ was by virtue of certain provisions which were injected into the tiof?, that h~ seems to be in error; and being in error, his error .bilL in conference, and the matter was not.. even disCUf;Sed on the would naturally disseminate itself amongst members of the floor of the Senate or on the floor of the House. committee, and it would then filter into the Senate if I were . Mr. PHELAN. That was in 1890? not in a position to give the Senate a correct understanding. . l\11·. POMERENE. That was in 1890. The result was that The PRESIDING OFFICER. The question is on agreeing with the absolutely free brandy at that time the Californians to the committee amendment on page 34, section 310. [Put­ drove everybody -else out of the market, or practically rlestroyed ting the question.] Tlie ayes seem to have it. . .the grape industry in the East. .A few years later tl.Jere was a 1\lr. PHELAN. Mr. President, I should like· a further ·e:xpres­ tax: of 3 cents per gallon place<.l upon this grape brandy. It was sion of the Senate on the subject. said to cov~r the cost of inspection in the Cali_fornia vineyards. The PRESIDING OFFICER. The Chair will again p1it the One object I had in mind was first to increase the revenue. question. . When I took this up I presented it to the distingUished Senater 1\lr. GRONNA. l\Ir. President, I think we ought to have a from North Carolina, then the chairman of the committee,. as quorum here. This is an important question. I suggest the he is now. The other was to equalize the legislative privileges absence of a quorum. as between the two sections of the country. That was the ex­ The PRESIDING OFFICER. The absence of a quorum tent of my interest in the subject. being suggested, the Secretary will call the roll. .: l\lr. PHELAN. l\lr. President, I explained earlier in .the day The Secretary called the roll, and the followiug SenatorN an­ that Californians went to Spain for the purpose of creating a swered to their names : new industry and studied the s\"reet-wine question. They foun(l Ashurst Gronna Martin Shields Bankhead Harding :Myers Simmons there that the Spanish Government, while taxing alcohol and Beckham IIollis Nelson · Smith, Mich. brandy very high, as most governments do, remitted the. tax Borah Busting New Smoor • absolutely on spirits that were used for fortifying sweet wines, Brady Johnson, Cal. Norris Sterling Brandegee Jones, Wash. Overman Sutherland {n order that t11e industry might live and thrive. Broussard K endrick Phelan Swanson So in 1890 these Californians who had gone to Spain for the Calder Kenyon Pittman ~'hompson .purpose of obtaining information to create a new industry in Chamberlain King Poindexter Townsend Colt Knox Pomerene Trammell America asked the Congress to reduce the tax:, whlch was then Culberson La Follette Ransdell Underwood and is now a very heavy tax, on brandy to a nominal rate of Curtis Lewis Reed Vardaman 3 cents per gallon, not. as a brandy-revenue proposition but to Dillingham J,odge Saulsbury Watson France 1\.IcKellar Shafrotb Weeks cover the cost of inspection, and create a new taxable industry. Gerry McNary Sheppard Wolcott . '.fhat obtained for 16 years, during which time this industry l\Ir. SH.A.FROTH. I desire to announce the unavoidable ab­ was created. Now, having been created bY. favor of the· Govern- sence of my colleague, the Senator from Colorado [Ml'. • ment, it is proposed to regard bl·andy which is used in fortifica­ THOMAS] , on account of sickness, and to state that he is paired tion as commercial brandy, to be taxed in the same way, and with the senior Senator from North Dakota [1\!r. McCuMBER]. so cleprive the sweet-wine makers of its use. This announcement may stand for the day. The brandy used in fortification is not, I contend, . to add The PRESIDING OFFICER. Sixty Senators having an­ alcoholic strength to wine, but is merely to arrest the natural swereu to their names, a quorum is present. The question re­ fermentation; for if it were not added, fermentation would go curs on agreeing to the committee amendment. on nnd spoil the wine. It holds the alcoholic content produced The amendment was agreed to. ·by natural processes so that it will not spoil and sour the wine The PRESIDING OFFICER. The next committee amend- - and is not for the purpose of adding alcoholic strength. So the rnent passed over will be stated. Senator in charge of this bill is absolutely in error as a sci­ The next amendment. of the Committee on Finance pns ed entific propo ition when he says that such brandies are used over was, on page 36, line 12, to change the number of the for the purpo e of increasing the alcoholic strength of the wine. section fro~r. "306 " to "312," and in line 19, after the words That being true, it is merely a question for the tax-laying "a tax," to strike out "equal to such tax" and insert "of $1 power to-determine whether it is right to destroy this industry per proof gallon," so as to make. the section read: by putting brandy used for such a purpose on a commercial­ SEC. 312. 'rhat upon all grape brandy or wine spirits withdrawn by brandy basis or allowing a reasonable tax whicll will raise a producer of wines from any fruit distillery or special bonded wa1·e- - revenue and cover inspection on the wine so produced. That house under subdivision (c) of section 402 of the a ct entitled " An act to increase the revenue and for other purposes," approved September rate when it was 55 cents reduced the revenues of the Govern­ 8, 1916, there shall be levied, assessed, collected, and paid in addition ment from three millions and a half to approximately $1,800,000, to the tax therein lmposecl, a tax •j! 1 per proof gallon, to be a ssessed, and ·when the rate was reduce

• I

1917~ CONGRESSIONAL RECOR.D-SENATE. 6117.

1·he -words "per proof. galion/' to 5trike ·out "10 cents" and miles, and 1! cents .on every paper sent· a farther distance than insert "$1 "; on page 37, line 1, pefore the words "per proof -100 miles. The country at that time .was small, and there were gallon," to· strike out "10 ·cents" and insext "$1," and in line 5, but two zones. after the words "to the," to strike out "passage" ~ and insert - The law has been changed from time to time. I think it \vas "enactment," so as to make the section read: about 1845 or 1850 that newspapers were, by act of Congress, · SEc. 313. That upon a.ll sweet wines held for sale. by the producer allowed to be distributed free, ·and after that time they were ,. - thereof upon the day this act is enacted th~re shall be levied, as~ sessed, collected, and paid an additional tax equivalent to $1 per proof allowed to be d:stributed free in the county of publication. gallo:q upon the grape brandy or. wi.ne spir~ts used in the fortification The reason why these bounties were granted and these privi­ of such wine, and an additional tax of $1 per proof . gallon shall be leges extended to second-class mail matter was that the publi­ levied, assessed, collected, and paid upon all grape brandy or wine spirits withdrawn by a producer of sweet wines for the purpose of cations so carried were regarded as educators of the public, fortifying such wines and not so used prior to the enactment of this and the distribution of educational matter was deemed to the ·~ . best interest of the people. Therefore certain concessions ''"ere The PRESIDll\G OFFICER. ·without objection, the amend­ made, possibly in the begin'ning amounting to a few hunclred, ment is agreed to. not more, than a few thousand dollars at the outside, but which 'l\lr. PHELAN. I call for the yeas and nays, MI". President. have grown ~ince that ·time to the enormous proportions that The PRESIDING OFFICER. The question is on agreeing to we now nd. In the last 20 years the amount of bounty paid the amendment reported by the committee on which the· Senator those who send second-class matter through the mails has from California ca"tls . for the yeas and nays. Is the demand increased ·from $30,000,000 to $90,000,000. Think of that! We Slipported? · are paying the publishers . one-tenth of our normal income in The yea·s and nays were not ordered. tim~ of peace. OrdinaTily in peace . time~ we raise ·from l\fr. PHELAN. 1\Ir. President, I merely desire an expression $l,oao,ooo,ooo to $1,200,000,000 a ~ear · m revenue, and of the Senate by viva voce vote. I wish the question to be put $90,000,000 of that amount is paid back to this favored class on the amendments and not to have it appear that they are of our citizens. agreed to by unanimous consent, because they are not agreed Let us inquire for a moment whether that practice can be to-fly unanimous consent. · defended . . I have heard no one up to elate defend. this sy:-:tetll The PRESIDING OFFICER. The Chair understood the outright. It is based on a wrong principle; it has notlling of Sen a tor from California to call for tl1e yeas and nays, and the substance behind it; it has nothing of fairness or justice behind Chair respected the wish of the Senator from California. The it. \Vith the .exception of letters, which form an exception to Chair now understands the Senator from California asks for a the class because of their very light weight in comparison with viva voce vote. The question is on agreeing to the amendment their impodancc, no other kind of transportation is based on ·reported by the committee. [Putting the question.] such a syste;n. In this Yery department parcel-post mutter The amendment was agreed to. · is sent upon a basis of what it costs to carry tbe parcels to their The PRESIDING OFFICER. The Secretary will state the destination, the length of the haul is fixed as a reasonable basis next amendment passed over. for tlle rate. That is perfectly right and proper. The rail­ The SECRETABY. The next amendment passed over will be roads base their charges on the' length of the haul; the telegraph found on page 44. ' companies base their charges on the distance the message is 1\fr. Sll\fl\.IONS. 1\lr. President, I should like very much to carried ; all carriers and transportation agencies on land and go on with the consideration of the amendments, bnt the· Sen­ water ba e their charge for the service rendered on the perfectly ator from Tennes~ee rMr. l\lcKELLAR] indicated to me a few natural measure of length of haul. · In the Post Office -Depart­ moments ago that he .desired to address himself briefly to a ment alone do we find an exception. '.rhe reason for it, as we section that has not been reached, and wished to do so no,v, know, has long since disappeared. It has been shown in the de­ because he is compelled to leave the Chamber. bate to-day that the publications which are sent to-day at· such 1\fr. 1\lcKELLA.R. l\fr. President-- a remarkably low rate throughout the country-rates of about The PRESIDING OFFICER. The Senator from 'l'ennessee one-eighth of the cost-are filled with advertising matter, in is recognized. fact the greater part of the magazines, of the trade journals, Mr. McKELLAR. l\1r. President, I desire to discuss for a and _practically all of the other journals is filled with adYer­ very short time the Senate committee amendment, which is tising matter that pays almost beyond the power of the human found on page 96 of the bill, and which proposes to increase the understanding to grasp. The profits along this line are mar­ present fiat 1·ate on second-class mail matter. The Senate com­ velous when one comes to examine the figures. mittee amendment reads as follows: I say, Senators, that we ought to adopt now a scientific sys­ SEC. 1101. That on and after 30 days after the enactment of this tem of handling this matter. It must be obvious_to any fair­ act the rate of postage on all mail matter of the second class shall be. in addition to the existing rate, one-fourth of a cent per pound or frac­ minded man that the present system · is not established on a tion thereof. just basis in reckoning the charge, and when inquiry is made The present rate, l\lr. President, on second-class mail matter, into the fact it can be llemonstrated that it is not fair. as we all know, is a flat rate of 1 cent a pound. It brings to the The Senator from Georgia [Mr. HARDWICK] said this mr:rn­ Government the sum of about $11,000,000 a year in income, while ing that tlle purpose and object should be to make this uep:lrt­ the service costs the Government somewhere iu the neighborhood ment of the Government self-sustairijng, and I agree with him of $100,000,000. The net loss to the Government in carrying in that. It can not be done, however, under the flat-rate ~ys­ second-class mail matte1·, therefore, is in the neighborhood of tem. Why? For the reason that in Qrder to do that it would $89,000,000. If this amendment shall be adopted, instead of be necessary to increase the flat rate from 1 cent a pound to being $89,000,000 the loss upon second-class mail matter will be 8 cents a pound on all matter carried-an absolutely prohibitive $86,000,000; in other words, the additional amount of revenue rate, which would do away with the entire lmsiness, because produced by the amendment is· the sum of $3,000,000. · other methods of transportation would be found. I wish to call the attention of the Senate to the fact that first­ What is the only reasonable basis in order to make it self­ _cla,ss mail matter is now producing about $_80,000,000 · profit. sustaining? There can be but one basis, and that is the basis The committee has increased the rate on such matter 'from 2 that experience ·and history and common knowledge ·have cents tQ 3 cents, which will raise, according to· _their; repor~t, some­ adopted in carrying parcels ·of weight by every other known where in the neigbborbood of $50,000,000 of additional revenue. means of transportation. This basis is the zone system. The Substantially no increase is made in second-class mail matter. 'Government has established the zone system in parcels post, and Why is this? The Government i~ paying out in bounties to cer­ what 1s it doing? It is reaping $10,000,000 profit a year out of it, tain p_ublishers about $90,000,000 per year · in round numbers. and bas reduced the charges on the people by more than 5{) per Why should we do this? Upon w~at th~4?ry is Congress year cent over what they enjoyed before the parcels post was put into by year paying over this va13t sum of money to a certain privi­ effect. Does not that demonstrate that the service can be per­ leged class of our people? ·formed, it can be made to pay, and the people get the benefits I pesire to trace the history of second-class matter for just a of that service at.a low rate? moment. The law providing a fiat 1:ate of 1 cent a pound for The same principle should be established about secoml-c:lass second-class matter, whether it is hauled 10 miles or whether matter. 'Ve 'should ,establish the zone· system. ·Let us look at it is hauled. 3,QOO miles and irrespective of the amounf haulen, it 'fr·om ·a· practical standpoint. I have ·nothing td say against bas been in force since 1885. I wish to call the ·attention of the these great periodicals-that are now enjoying such great favors Senaro to the fact that the first second-class mail matter law at the hands of the American people by OUT consent and "··ith that was ever put upon our statute books, ·so far as I am advised, our approval. I do not know whether it is thoroughly known .was-the law passed in 1792, which established a zone systein and or not just what remarkable gifts we are making them year by fixed a rate ~f 1 cent O!J: newspapers sent )Vithi~l u zone· ?f_lOO :year in our vai.·1ous app~ _o?riation bills under this ·anangeinent. CONGRESSIONAL RECORD-SENATE. AUGUST 17,

I am going to illustrate··for a moment by referring to two .or have made a proposition to -cut this :bounty in two; and if the three well-known examples. - - . have themselves ·come to the conclusion that we are too gener­ The .Curtis Publishing Co.t of Philadelphiat own and publish ous .to them, that we .are giving them too much, and they are three papers that I ii"now of. Tbey may publish more, but I willing to take just on~half :of what they have been receiving, know they-publish three. One is the Saturday Evening Post, we certainly might .accept that proposition to begin with. the second is the Ladies' Home Journal, and the third Js the I have said that much about the concrete facts in order, if I Country Gentleman. The Government, by way -of bounty under may, to call pointedly to the attention of. the Senate what we the present flat tt.'at~ pays to that company in the way of trans­ are do'ing iJ:! this matter. portation of its paper known .as the Saturday Evening Post a What do we do if we -adopt the Senate -amendment, or an little more than $3,000,000 every year. -The Ladies' Home increase in the fiat rate of one-fourth of 1 cent a pound? Why, .Journal gets nearly $1,300t000 every y.ear, the County Gentle­ it is mere childts play. The Curtis Co., as the Senator from man a little .over $4.00,000 a y.ear. Altogether these three cost Georgia says, virtually admitted that they would be willing to the United States Government for transportation 1l.S second­ cut theirs in two. class matter about $4,800,000; and about 60 per cent of the mat­ Mr. HARDWICK. No; I said to double the present rates. ter in those papers as advertising matter. Mr. McKELLAR. To double the present rates. . Why, you 1\Ir. HARDWICK. Mr. President-- \ get from all the magazines in this country-and the magazines The PRESIDING OFFICER. Does the Senator from Ten­ are .the ones who get the principal bounties-if you adopt this )lessee yield to the Senator from ·Georgia? - amendment you get .only $3,000,000 from all of them ; and here Mr. McKELLAR. I do. is the Curtis Publishing Co. alone getting four million seven or Mr. HARDWICK. I just wanted to ask the Senator this eight hundred thousand dollars of a bounty 1 I say that if we question: Does he say "it costs the Government that muclf for are not going to do anything more .than that, we bad better let transportation alone? it alone and let it stay just like it is. l would rather see the Mr. McKELLAR. Oh, no. rate stand just like it is than to be increased one-quarter of 1 1\fr. HARDWICK. It includes overhead charges? cent and raise only $3,000,000. 1\ir. McKELLAR. It includes overhead eharges. In usmg ;Now, let us see about this. What we should do, now ~at the word "transportation" I have included the OV"erhead the matter is up, is to adopt a t·ight and a just and a fair .charges in carrying on the transportation. basis. I do not care at all about deliberately making these Can that be defended? Can any Senator rise in his place publications bear the entire expense now if, ns they claim, it and say that the United States Government should single out would injure them irreparably~ if it would interfere with the this company and pay to it by way of rebate on postal rates­ business of the country to some extent. I expect it is true because that is in substanCe what it is-the enormous sum of that it would, and for that reason I have introduced an amend­ four million seven or eight .hundred thousand dollars .a· year? ment that I want to explain for ·just a moment. It is kn.own I do not think it can be defended. as a zone amendment, a moderate zone amendment. 1\tr. HARD,VICK. Mr. President-- The House amendment to the present law provided. that the The PRESIDING OFFICER. Does the Senator further increase in the first zone of 50 miles was to be one-sixth of. a yield? - cent-11 cents for the first zone, 11 cents for the second zonet Mr. 1\lcKELLA.R. I yield. and 1i cents for the third zone. Then it gradually increased, 1\Ir. HARD,VICK. The Curtis Publishing Co. are the largest and under thp terms of the House amendmentt as I understand users of the second-class mail privilege in the United States, it, there would be produced as additional revenue, as it was l think. estimated, about the sum of .$19,000,000. l\Ir. McKELLAR. Yes. . Suppose we adopted the House provision. It would estab­ 1\!r. HARDWICK. In justice to them I wish to say that a lish a zone &'Ystem, and it would have raised $19,000,000. We little more than a year ago, perhaps a year and a half ago, would still lose about $70,000,000 by the transaction. We when we· had this question before the Senate, and we proposed would still be contributing about $70,000,000 as bounties to a -very moderate' increase, .only about double, in the second-class the: e favored classes of op.r citizens. What we ought to do rate, the Curtis Publishing Co. was one of the few great pub­ 1:.. to establish a right basis, and then, by degrees, take away lishing companies in the United States that agreed to it. They these bounties. I is going to be a hard job, of course ; but thought the rate ought to be increased. They did not pretend the only way we can do it fairly and justly and equitably l to contend that it is right that they should be kept like they to fix a zone basis based upon the length of haul and then are. Althoug~ they are the greatest beneficiaries of this privi­ just gradually work up to it. That is what I propose to do lege in the country, they say themselves that the rate ought to in my amendment, and I want now to explain that amendment. be increased. · It differs .a little bit from the Hous.e amendment in this re­ Mr. ~IcKELLA.R. I am glad to know that. If I knew of spect, and I want to explain why that is: In the first three zones that fact before, it had escaped my attention. I want to say of 300 miles it makes no change in the present rate. In the this about the Curtis Publishing Co.: As we all know, they pub­ next zone it adds a -cent, and another cent in the next zone, lish t4ree of the best jourruils that there are in the country, and so on, until the rate is 6 cents in the last zone. I sent and they are to be commended for that; but my point is that that amendment down to the Post Office Department and asked I do not believe that the•eurtis Publishing Co. or any other them to give me a statement as to how much revenue it would company should receive an immense bounty like this from the produce, and I have their report, which shows that it wlll Government. produce twelve million six hundred and some odd thousand . Mr. LODGE. Mr. President-- dollars. 1\fr. McKELLAR. I · yield to the Senator from Ma. sachu­ Now, you will ee that under the Senate amendment we do not setts. -change the system at all. We just add a quarter of a cent. Mr. LODGE. A large increase in the zone rate, though, Under the House provision the zone system was adopted, and would put a great many leading publications out of business; an increase was made all along the line and 19.000,000 of addi­ and· I can understand the Curtis Co.'s position. tional revenue produced. My amendment is ju t a comprorruse Mr. McKELLAR. Well, I say this :_I say that if the Curtis between the two, 1l.Ild I want to give the reason for that com­ Publishing Co. or ilny other company can not live or stand on promise now. I want to give .the reason why I have changed itS own bottom without a bounty from the United States Gov­ the rate from the House provision in the fir t three zone . ernment, then -we ought not .to giV"e them that bounty. We Mr. NORRIS. Mr. President-- ought to let them go into some other business. 1\Ir. McKELLAR. I yield to the Senator. · Mr. HARDWICK. Mr. President, I thoroughly concur in l\Ir. NORRIS. I am perfectly willing to let the Senator finish what th~ Senator has just said. If these men can not get along his explanation before I 3.sk. the question. · without a governmental bounty, then they had better quit do­ Mr. McKELLAR. No; go ahead. I would jut ns soon hav ing business. I want to say, however, so that I will not mis­ the Senator ask it now. represent the Curtis Co., that I do not know that they would Mr. NO~RIS. I wanted to aSk the Senator why in his agree to anything like what we ought to do; but they do say amendment he left the rate the same as it is-that is, a 1-cent themselves, and ·they agreed more than a year ago, that the rate-in the first three zones, and in that connection I 'Should rate ought to be at least doubled; As·a matter of fact, it ought like to ask him if he doe not think that in the first zone the to be increased a -great deal more than .that. I do not know present rate ought to be reduced? :.whether they would be willing to go as far as I am or not. 1\Ir. McKELLAR. The Senator means in the first zone of : Mr. McKELLAR. I have nothing in the world of an unkind 50 miles? . nature to-say about the Curtis Co. or any other company, but . Mr. NORRIS. Yes; perhaps the first 100 miles; maybe the wha·t I .mean to -say is that I ·· indorse their proposition if they fir t two zone . I und~rstand from -new paper men and pub- 1917. GONGRESSION.Ab -RECORD-SENATE. 6119--

lishers that -most of the publications now are sent by express Mr. liARDWICK. -- These figures apply to new~pape1·s only? . the first few hundred miles; and-using the same illustration Mr. McKELLAR. These figures apply to newspapers.. - ·,­ that the Senator used-I · understand that the Curtis Publishing Mr. HARDWICK. But the cost is exactly the ·same. Aii

Co., in· sending the Saturday Evening Post, for instance, instead ounce of newspapers is just as much as an ounce of magazines1 of sending it out by mail at 1 cent, send it by. express for the no more and no less, by weight. • Aii ounce of newspapers weighs first several hundred miles where the cities are close enough just as much as an ounce of magazines. · . ~ together. For instance, from Philadelphia to New York Oity Mr. l\IcKELLAR. The Senator does not catch my meaning. I understand that they send their publication by express_, be­ Nor do I agree with the Senator that the cost is the same. What cause they get a rate of less than 1 cent. I am showing now is that in this zone of 300 miles, in which Mr. McKELLAR. The Senator is entirely correct about that. newspapers principally circulate, the ordinary State papers, the They only use the bounty of the Government when it pays them cost is about what I have stated. Now, the overhead charges to use it. amount to more than that. Mr. NORUIS. Yes. Mr. HARDWICK. Mr. President-- Mr. McKELLAR. And they disregard it when it does not The PRESIDING OFFICER. Does the Senator from Ten­ pay them. nessee yiel

lt and a ·slight profit to the Go\ernment. Why shouid. not these was never in the bill, it was never the exact way of handling it, publications be made to pay in like manner? But that is not we always wanted to get .some other kind of a system. Now we true. Why, under this fiat-rate bounty or subsidy system the ba\e the Y~Y thing under investigatiou. We want to raise the remarkable fact stands out that if_ you send schoolbooks from money to carro.y on this great war. We have got to raise the one part of the country to the other you pay about four ~mes money. as much as you do for the transportation of these trade Jom·­ 1\lr. POl\IERENE. Mr. President-- na.ls and these magazines through the mails. .AJJy kind of books. Mr. McKELLAR. Just one moment. We have got to raise If you transport the Bible, you pay a great deal more for the the money, and here is a part of our citizen hip drawing transportation of the Bible through the mails than you pay enormous sums, $89,000,000, yearly in benefits, in private for transporting-- benefits, to help them to carry on their advertising matter. I Mr. NORRIS. Funny papers. say to the Senator that one of these firms on one of its issues Mr. McKELLAR. Yes; funny pape.rs like .Puck or Judge receives in pay for advertisements a sum so enormous that it is or any other paper. Now, can anybody defend lt? I -do not almost staggering to the ordinary man. Now I yield to the Sen­ believe-it can be defended; and I "-m not surprised that the ator from Ohio. Curtis Publishing Co., when they appeared before a committee, Mr. POMERENE. I ask the Senator as a matter of informa­ stated that they were willing to give up a part of this bounty tion, if it is not true that during the last Congress or perhaps that was being furnished them. the Congress before a committee, either of the House or the Now, coming back to the newspaper proposition, the news­ Senate · or of both bodies, made a very full investigation upon paper propo i.tion is in a different situation from these maga­ this subject and amendments were propo ed to the appropria­ zines and trade journals. There is no doubt in the world about tion bill. and it seems that even though legislation was pro­ that. posed which was the result of those investigatiollS those who / In the first place, I think the Senator from Georgia is entirely were interested in the continuance of the bounty were insisting wrong in the figures. We all know that it does not cost the upon fUrther investigation. same proportion or overhead charges for the handling in a cir­ Mr. McKELLAR. Of course they were, and it llas been that cumscribed zone as it does, in a large zone. That is obvious. way since I have been in either branch of Cong1·es . We all That position can not be doubted for a moment, and surely know that it ought to be changed. I do not believe I can ever· the overhead charges can not be greater than the transportation. recall hearing anyorie defend it. I remember just a day or It is not so generally. The transportation of all these things two ago when a member of the Finance Committee was making costs over 50 per cent, taking them as a whole. Now, when you a speech and referred to the niatter-I refer to the Senator from find that the transportation in the first zone costs less than a Utah [Mr. SMoOT]-wben these figm·es were referred to him half cent, surely the allowance of a little more than half a cent be at once admitted that they were true. We know it is an for overhead charges is a proper allowance. abuse that has grown up, an

The matter referred to. is as follows: mittee on tl1e Post Office and Post Roads, been furnis d with NEWSPAPEllS NOT RESPO!'\S1BLFJ FOR ANNUAL DEFICITS IN POS'I 0J'B'IClll , a schedule of prices paid by the department for <'ars and space DEPARTJ\IEXT. supplieegin Apartment R. P. 0. cars30 feet in length_ . . ·¥··· ...... 11 2. 75 Apartment R. P. 0. C:lrs-15 feet in length._ ...... ····~··- ···· .06· 2.00. an investigation of the subject, in which he had the courteous· Storage cars and storage sp:1ce: assistance of the Ron. JoHN A. Jl.iooN, chairman of the House . 21 ' 4-.25 Committee on the Post Office and Post Roads, and also the willing 8:~. ~~~:: ~ r!~r~:::: ::: ::~:::::::::::::::::::::::::: .1 0 ~ 2.12~ Apartment cars 15 feet in length ...•.....•....•...... 05t 1.06± aid of the officials of the Post Office Department. · Closed-pouch service: What was discovered in l\!ay caused tliis member to feel that .03 .501 the statements in question were not justified by the facts, and ~~= r:~:l ~ i~~~::::::::::::: ::::::::::::::::::::::: • 01 \ .25 hence upon his return to Washington in June he determined to resume his search for further facts, and therefore, on the 23th The foregoing exhibit indicates clearly that 'vhere the daily of June, submitted the following inquiry tO' th~ Ron. James B. average weight per car may be only, for example, one-haU­ Corridon, head of the Bureau of Railway Adjustments: that is, 6,000 pounds-the use of cars 30 feet in length should FACTS ELICITED. suffice and reduce tbe cost to the Go\.ernment correspondingly, "'Vhat does 'thP department, under the space· basis, pay to tlms leaving the cost in 30-foot cars for 6,000 pournls' weight at railroads· for the use and sel'vice of 6Q;.foot and 30-foot cars in practically the same rate per 100 pounds that it would cost to length, respectively, for following distance, to wit: carry 12,000 pounds in cars 60 feet in length. It also shows :_• l\1aii pay, one way, 100 pounds, 60-foot eal! basis. if the average weight should only reach 3,000 pounds per- car Cents. that a compartment 15 feet in length should suffice and the use First zone, 50 miles--•------0. 12~ of the 15 feet space in such cases would again leave the cost to Second zone, 150 miles------. 29-H the Government at tbe same- rate f)er HlO pounds. - Indeed, this 'l'hird zone, 300 miles------~-- • 56h exhibit as: to- the cost or curs and space to the Government indi­ ~

/ ; ·- 6122 CONGRESSIONAL RECORD-SENATE~ AUGUST 17, many o the railroads, especially those running north and soutb, Congress and to the country at large if the facts should be the weight of mnil carriell is about the same in both dh·ections. given to the public. Right J1ere it is-made apparent that the great percentage of re­ 'Ve repeat that all figures contained in this statement, anLl turn of empty cars is due to. the large shipments of magazines for each and every zone, were worked out on the basis of the and other like publications westward on certain days of each figures furnished by the Hon. Mr. Corridon for the 300-mile week or month requil·ing many large cars, 40 per cent of which zone. showing the actual cost paid by the Post Office Depart­ are returned entirely empty at an ::tbsolute total loss to the Gov­ ment to the railroads for the transportation of second-class ernment, because there is no mail matter going eastward to load matter. These, through error in calculation, may vary a frac­ them. tion or so, but they are otherwise correct. This is not the case, however, with the newspapers of the AMPLE SURPLUS TO MEET OVERHEAD ExrENSPl. cguntry generally. The latter, to· be found in all of the cities at terminal points of the railroads, at_ no time require or de­ It may, and doubtless will, be asked if the second-class rate mand extra cars or extra service. Their circulation is daily and of newspapers within a zone of 300 miles does not-include over­ goes in all directions, and it is these newspaper publishers, bead charges, such as salaries to carriers, clerks, post-office officials, and the general expense of the department, How is mairrly in th.e int~riol~ and smaller cities of the country, con­ stituting at least 90 pe1.· cent of the. daily newspaper publications this charge to be met? We answer, there is ample margin be­ of the United States, who are not putting an;)t burden upon the tween 48 cents per 100 pounds paid by the department to the Post Office Department, but wlw will be hurt most by the pro­ railroads in the 300-mile zone and the $1 per 100 pounlls paid posed legislation looking to a. flat increase of the postal rate, and by the newspapers to meet any fair proportion of the legiti­ yet they are those who are least able to bear the advance. mate expenses that may be charge.able for the service rendered by the Government to the daily newspapers. COST IN ZONES B:U:YO~D 300 · AHLES. COST OF HANDLING NEWSPAPERS LIMITED, We have thus shown the injustice to the large body of daily newspaper publishers of the_·country that a flat increase of the The extent of the service rendered by the department to the postal rates within the 300-mile zone would entail and, thereforP; newspapers is very meager as compared with tile service per· deem it not out of place to give figures, using the same basis formed in handling other mail matter. The newspaper pub­ as those employed in fixing the cost for the 300-mile zone, indi­ lishers do not ask the postmaster to call at their places of pub­ cating what the cost in the zones beyond 300 miles would be, lication for the papers. The publishers perform that duty, as fo1Jows, to wit: · They bind the papers in appropriate bundles and baul them. Per 100 pounds. not only to the post office, but in many cases to the railway Fourth zone, 600 miles------$1. 51-9' station, where, after being weighed, the bags and bundles are Fifth zone, 1,.000 miles ______:______2. 49-IJ taken to the postal car already on the train and put in the car. Sixth zone; 1-,400 miles------3. 47-9 The service performed by the employees of the post office is Seventh zone, 1,800 mileS------4. 45-9 Eighth zone, 2,200 miles------5. 43-g to weigh the papers, which, as a rule, can be done in a few Ninth zone, 2.600 miles------6. 41-9 minutes for each train by one man, the only other service be­ 'J'enth zone, 3,000 miles------7. 39-9 ing that performed by the mail agent in charge of the car, It will be observed that we have added three zones to the whose duty it is to take care of the bundles and bags of mail zones established for the parcel post, which are intended to until they reach their destination, and then thTow them off on cover distances beyond 1,.800 miles, and by the adding of which the platform for an agent of the newspaper to' receive them the distance of about 3,300 miles, New York to San Francisco, and make delivery to the subscribers. This system adds little is covered, except as to 300 miles,. which is eliminated because or nothing to the expense of the department, since the man of the barren territory through the Rocky Mountain section w:Q.o weighs the bundles at the station also looks after the of the country, which mile.age, however, in all fairness should delivery of other mail from tile post office to go out on the not have been eliminated, since it cost the Government just aR same trains, and the mail agent who handles the papers on' much per mile to carry the cars over this 300-mile area as it· the train and thTows them off at destination would receive the costs to carry them through the thickly populated sections. same rate of wages. that he now receives whether he bandied FIGURES ST.\RTLING. these papers or not, nor would there be any diminution of the These figures, even up to and including the se\enth zone of amount paid to the railroads for hauling newspapers if they ..-J 1,800 miles, are startling. They show to what extent magazines hauled none, since the ra~lroads ru·e paid so much per mile for and other second-class publications (newspapers excepted) send hauling the cars, whether loaded to their capacity or empty. such enormous amounts of matter, frequently almost by the Therefore the larger number of papers the department can in­ trainload, that are costing the department such large sums duce the publishers to send by mail the greater the net revenue annually. No wonder that the department is annually com­ to the department. If half of the capacity of each car were pelled to face such a large deficit, and yet the bill now pending filled with newspapers, it would serve to adu that much to the in the Senate under discussion, as at present framed. does not net receipts of the department, whereas if no newspapers were appear to have in view any method whereby the beneficiaries of hauled, it would not diminish the expense of the department these exorbitant discriminations in their favor will -be asked to the extent of a farthing, but only serve to decrease its to bear a fair share of the burden put upon the departm·ent by receipts. them, and which has resulted in such a large deficit,. so pal­ NEWSP.APEllS 0:-1 RURAL ROUTES. pably unjust to the department. The same is aJso true of newspapers delivered on ruraJ routes. All of the figures in each and all of the zones, beginning with These papers are also carried, either to the station or the post the first to the end, were made on the basis of the cost paid to office by the publishers. The papers are put in bundles. · All the railroads for transportation of second-class matter, includ­ of the bundles are marked to show to what route each is de::;tined. ing newspapers and magazines, and show to what a marked Take, for illustration, Columbia, Tenn., about 40 miles from degree the relations and obligations of the newspapers in this Nashville, from which a number of rural routes diverge. Tho connection ha\e been so grievously misunderstood. Nor has bundles for each route are made up by the publisller and marked. the enormous extent to which the publishers cf magaziues and They ru·e then put into bags, tagged "Columbia Rural Routes, other periodicals have been favored at the expense of the Gov­ No. 1, 2, 3, 4," etc. When these bags reach _Columbia the only ernment been hitherto made so clearly apparent. handling by the postmaster is to have them carried from the MAGAZINES FAIL BY MILLIONS TO PAY COST OF TRA:\SPORTATION. station to the post office. The rural route carriers know from' Is it any wonder that some of these publishers have failell by the tags which bag contains their bundle. They take their re­ se\eral millions of dollars each year · to pay the Government spective bundles out of the bag and u.eli\er the papers to each for the service rendere~ them'? Is it any wonder that many rural route subscriber, as they do other mail matter. of these publishers have added millions to their wealth from The rural carriers are paid a monthly wage. Whether the~ year to year? Is it at all surprising that several of these each carry 10 newspapers or 100 makes no difference in t11e co l wealthy publishers failed to appear and present statements of to the department. The expense remains the same. The only -their gi'oss or net earnings to the Senate committee at the question is, Shall the publi.· hers of newspapers be permitted to hearing on :May 11 and 12, and is it not remarkallle that ~my o·f continue to solicit subscriptions on rural routes or shall they bo those present· should have had the temerity to urge a continu­ forced to put up their subscription price, and thus largely cur ~ ance of their pet ":flat-rate basis " of postal rates which in the tail their number of subscribers? past has worked such discriminations in their favor and filled Suppose a newspaper in Tennessee, which is now paying the their coffers ea~h year to overflowing at the expense of the Government $40,000 per annum for the carriage of such news­ Government? · · papers as it desires to ha\e transported by mail should adYance ~. We are fully persuaded and verily believe that the figures its subscription price so as to cut off half of its cil·culatlon by herein given ''rill prove a distinct revelation, if not to all, at mail. Would that help the Government? Would it in any sense least to a large proportion of the Members of both Houses of enable the Government to decrease its expenses? Would it not, 1917. OONGRESSION AL RECORD~SE. NATE. 6123 ,

on the other hand, simply cause tlie Government a loss of 11et · JVJ~L --~RIN~ I~CRE.ASED REVENUE. · revenue to the extent of $20,000 per annum from this one news- -The Senate committee's action in favor of the fla:t adVance <1t paper? · · one quarter of· a cent per pound wilT, it is- estimate<'h add' to -the ESTABLJ!S.HlllRNT OF R'URAL ROUTES. receipts of tl1e depart:ment approximately $3,000,QOO :per annirn1, The establishment of rural routes haSJ been a great boon to while the war-profit tax -of 5 per cent on newspap~rs and magrt .. the body of the people engaged' in agricultural pur-suits- =;tnd all ·zines will bring in $7,500,000·addltiona1-per annum. · ,. well-man·aged newspapers have sought to render matenal ~id The· honorable Assistant 'Postmaster- General -has given an in the endeavor to make tne· rural-route system a success. Pr1or estimate · indlcating that the provibion of Senator McKELLAR''s to the establishment of these routes the farmer had to depend amendment will add approximately $12,616,470 to the receipts on his local weekly paper for his news, with an occasional sta1e of last yeai, thus giving the Government, through the Post Office weekly put out by some of the daily newspapers, tb~ news in Department; an e;x:cess in receipts of $616,471 over the combined each case being not <;>PlY ,me~ger but otherwise of ;nttle'value. increase that will be derived under· the Senate committee·s Scarcely. any attention was being given then by the n~wspapers proposal in favor of a fla:t 'advance in postal rates' and the war· to the publication of market reports, which was- and woUld have profit tax. of 5 per cent combined. - been of the greatest importance to the farmer.- And yet, through the adoption of Senator-McKE:r..LAR's amend­ . It was then and bad for years prior been the pracLlce of the ment. tl)e Government will not only establish a- system of postal cattle, bog, sheep, horse, and mule buyers to .travel through rates that will furnish the' greater amount of additional revenue the country, and in the absence of news to the fa.rme as to the but will fix the rate upon the one, and only equitab-le basis thnt

Also, that all of the express companies in the United States,_ On the other hand, the columns of the newspapers of thif:f on December 15. 1915, established and filed with the Interstate country have been filled to overflowing in earnest and anxious Commerce Commission tariffs providing that "when no wagon endeavors to promote the interests of this counth in the prose· service is rendered, either in receipt or delivery, and special cution of the war, and for which they have neither asked nor mail or newspaper trains are not used, the rate shall be one-half received a farthing of compensation in any form. cent per pound fo,r each company carrying." It is inconceivable, in the light of the public record made by This fits the case of the newspapers, and would in nearly all the newspapers of this country, that the Congress of the United sections of the country permit newspapers to be shipped by ex­ States should wish for any reason to inflict a penalty or burden press for 1,000 or more miles at a rate of 50 cents per 100 pounds, upon them. There could certainly be no better evidence given and the only reason why this rate has not been made available of the patriotic endeavor of the newspapers to give active sup­ to a greater extent by the newspapers is that it does not make port to the Government and aid, as far as possible; in having the the rural-route servi<'e as available or desirable as the regular war brought to a speedy and successful conclusion than what senice by mail, and also because, generally speaking, the news­ they have done up to the present time. papers prefer, as far as practicable, to give their patronage to NO DESIRE TO ATTACK MAGAZIXES. the Government. If driven to it by the action of Congress, · It is not our wish in dealing with this mattet· to attack the many papers will be forced• to a much greater extent, to give publisher of magazines, trade papers, and periodicals who are their patronage to the express companies. doing a good work in their lines. An advocacy of the zone plan We desire in this connection to correet the impression that does not mean an attack on such publishers. It simply means newspapers .are favored by being allowed, free of postage, access that the zone system is the 'best and only equitable basis to gov- by mail to the rural routes in the counties where the papers are ern in fixing rates on second-class mutter. . published. The law does not apply to daily newspapers, but This zone system applies to daily newspapers, as. well as to alone to' weekly papers published in tlie county. The daily magnzines and trade papers. It fixes the same rate for both. papers pay full second-class postal rates· on all papers they send The only reason why the magazines will pay more under this by mail to rural routes and to all other subscribers located in the system is because they are not paying their proportion under the counties ,,·here the daiJy papers are being published. fiat-rate plan. The newspapers and magazines under the zone NEWSPAPERS AND THE WAR. system will pay precisely the same rate-the only difference being An effort has been made, even in congressional debate, to make that the transportation of magazines, over such longer distances it appear that- the newspapers of the country are largely re­ and in such larger quantities, will require those publishers to sponsible for this country's entrance into the war, {1-nd that they pay a larger sum to the Government to meet the cost of trans­ should be heavily taxed to help' meet the expenses incident to the porting the large volume of their publications carried O\er the war. It has been even charged that a considerable number of longer distances. the larger newspapers of the country were subsidized to induce The present flat-rate plan, which the publishers of magazines them to create a sentiment in favor of war. We know nothing insist upon having continued, is so patently unjust to the Gov as to the truth of these allegations. Jt. ma;fbe that munition ernment that it seems incredible these gentlemen should have manufacturers, Wall Street, or Lombard Street have use-d money the temerity to insist upon its continuance. for that purpose; or it may be, as has been suggested, that n ILLUS'l'RATIONS BY COMPARISON. distinguished British lord, who owns a number of leading daily Take a zone of 300 miles, for example, within which the daily newspapers in England and other portions-of-Europe, has gotten newspapers have their principal circulation, and the aYerage a grip on one or more of the leading newspapers of this country. rate paid to the railroads within that zone costs the Government We certainly hope, for the honor of American jourp.ulism, that 48 cents per 100 pounds. The rate of 1 cent per pound now paid these allegations have no foundation. by the newspapers giYes the Government $1 per 100 poundsr. We k-now that a large majority of the American newspapers leaving a surplus of profit of 52 cents per 100 pounds to the favored war, and we must assume that they were lionest in their Government. declaration. The newspapers of the cpuntry·were·not' all, how­ Take zone 7, for example, of 1,800 miles, in which the maga­ ever, for war. Many of them, controlled by able and loyal zines, trade papers, and periodicals circulate largely, and the American Citizens, deplored war and hoped that it might be average transportation within that zone costs the Government averted. They at least said nothing in favor of war, but when $4.45/o- per 100 pounds. The fiat rate of 1 cent per pound now the Congress of the Unite(] States declared that war existed paid by the magazines, trade papers, and other periodicals gives these men burned their bridges behind them, declaring it to be the G6Yernment only $1 per 100 pounds, creating a loss of . 3.45i\J their purpose to support Congress and the administration in per 100 pounds to the Government. all things designed to bring the war to a successful conclusi~n. Is there any fairness or even common honesty back of a propo­ ALL PAPERS SUPPORTI~Ir GOVER=-MENT. sitii)n like this? Why should the Congress of the United States All of the newspapers of this country, the latter class as wish to continue a plan that will cause a loss to the Government well as the former, have since that declaration by Congress of fifty or more million dollars annually? loyally and energetically supported the President and Congress STARTLING EXAMPLES. in all matters designed to bring the war to a speedy ·and suc· A more startling example will be found in the following illus­ cessful end. They have labored earnestly and anxiously to this tration: The distance from Nashville to Columbia, Tenn., is ap­ end. Nothing has been left unwritten or undone to rally the proximately 40 mile~. The United States Government charges masses to the support of the Government. the Nashville newspapers $1 per 100 pounds to carry the papers Take the daily issues of practically every newspaper published from Nashville to Columbia. The cost of transportation paid in the United States and it will be found that fully 80 per by the Government to the Louisville & Nashville Railway Co. is cent of the reading space has been devote~l to news relating to 1H cents per 100 poun

LV-389 r

ti126 OONGRESSION.AL. RECORD-SENATE. AUGU~~ 17'1 question. is. up. filr comB.deratiQn~ promptlY" a:djust the matter in 1lor mysel:fl to take· time to discross the runendment un.ti'l he ar.. thnt way. riv:es mr to suggest:· the· absence of a qumrum. sl'ECIAL 5. PlilR cENll. wAD T.U nN.JtrsT .mD: rrtsCBUIII.N'A.'l'ORT, The PRESIDING OFFICER. The Chair is willing tO> submit Section ll06 of. the bill pending in the Senat~ provides- : a: unanimous-consent: request to have itt passed over. That in addition to the taxes und;er existing: taw and under tfii.s act Mr. SMOOT~ I do n{)t want to have· the amendment passed there shall llfr levied, assessed, collected, and paid, for- the· calendar year over. I want to take up the· amendments just as we have 1917 and each calendar year thereafter, upon the n;et income of every. assed over them d t -'~ 4""' f th r ach th individual, corporation, p:rrtnership, or association arising from the · P · an ° UU>pose 0 · em as we e em~ publication ot ne:wspapers. magazines, or periodicals, entitled' to be The:ref-ore I suggest the absence ef a quorum. entered as S"econd'-class. mall matter· (-whether or not so entered):r a tax The PRESIDING OFFICER. The absence of a quorum fs of. 5 per cent of the- amount of. su.ch net income in excess of $4,uOO. suggested. The Secretary will call the roll. The effort to levy a special tax on the publishers of news- The Secretary called the roli, and the following Senators an- papers is. apparently based on the- assumption that the publish- sweredJ to their names:: · ers who have availed themsetves of the second-class postal rate .Ashurst Harding- Martln. Sliields­ are receiving large benefits therefrom at the expense of the Bankhead Hardwick Myers Simmons Government and should therefore have levied upon them an Beckham Hollis Nelson Smith, Mich. Borah· Jon;es. Wash. Newlands. Smoot extraordinary or special tax not placed upon other lines of in- Brady Kellogg · Nor-.I,S' Sterlilu: dustry or business. · · Calder Kendrick Overman• SuthPr[a.rrd _ Speaking for the publishers of daily newspapers, we earnestly Chamberla.ID Kenyon Page Swanson C'nlberson. King. Pi ttma.n Thompson . protest against this view not only because the propo ed tax is Curtis Kirby Poindexter Trammell discriminatory and unfair but because the apparent reason Billingham. Knox Pomerene Unde1-wood Fletcher La: Follette Reed. Vardaman: assigned for its application to the daily newspapers is without France l-icCumber Saulsbur-,r Weeks warrant or•justification. Gronna McKellar Shafroth Williams While it is true that the daily newspapers of- the country have Hale McNary Sheppard been entered as "mail matter of the second class,. and have Mr. SMITH of Michigan. My colleague [M~ TowNSEND] is paid postage orr that basis, it is entirely erroneous to assume temporarily absent from the Chamber on official' business. than the great body ot the daily newspapers of the country (a The PRESIDING OFFICER. Fifty-five Senators have an­ half dozen of the: large metropolitan dailies alone excepted;)' swered to tbeir names# There· is a quornm present. The qu.es­ have had any- gratuities or benefits conferred upon them by· the tlon is. on agreeing to the amendment reported by the committee Government through which a loss of revenue has been inflicted on top of page 44 of the bill. on the Post Office Department. On the contrary, as indicated The amendment was agreed to. on many pages of this address, newspapers have paid to the The PRESIDING OFFICER. Tlie next amendment of th6 department not only what is equal to the cost of transp9rtation, committee> n_assed over will be read. ut sufficfent in excess of that cost to help the department meet The SECRETARY. The· next amendment passed over- is, on pag.e an equitable portion of the overhead expenses incurred on their · 50, line-14,. after" SEC. 600," to strike out the f-ollowing: account. That there shall' be-levied, assesse

within the 300-mile zone. 1 (a) That on the day this act takes effect, and thereafter en· July 1 · Second. To pay such advance, in. the postal rate as may by; in each year, and also at the time of the original purchase of a new automobile or motorcycle by a user, tl on any other date than July 1 tne adoption of_ the zone system beyond the 300-mile limit be there shall be levied, assessed, collected, and paid', opou the use or1 established. r automobiles and· motorcycles not used exclusively for huffiness, an excise Third. To contl,nue to pay the income tax hitherto paid by the tax at basic rates as follows : Motor<"ycl{'s, $2.50; automobtlee the original listed retail price of which ls not over $500, $5 ~ original listed newspapers under existing law. retaU price: over $500 and not over $750, $7.50; original' llfrted retail · Fourth. To pay a profit or war income tax on the basis that price over $750 and1 not ovex $1,000, $-10'; and for each fnrther increase / such tax shall be made applicable t.o: all other lines of business. of $500 or fractional part th-ereof of original listed retail price, an additional tax of $5. · 'J1his we submit as fair and equitable and will in that way In the case of a tax impose of tho ' B, S'"'AHL"rAN. · automobile Ol"' motorcycle- by tlie manufacturer or importer, but lh no El. · ~...... case sliall it be reduced to less than li.O per cent of such basic amount; Lours J. WORTHAJL RoRERT EwiNG. Mr. BRADY. In line 8, page 51, I move to strike: out" $500·" UREY WooDsON. and insert u $600.'" I do· this for the reason· that I believe it LAFAYETTE YoUNG. will be beneficial to those who purchase machines of smaller ·. WAsHINGToN, D-. c., A1.tgust 15, 191"1. ~ value. I think that. minimum should be raised from $500 to $600 and the amount of the tax left there- just as it is, fixed at Mr. SMOOT. Mr. Pre-sident, what is the pending question? the sum of $5. • The PRESIDING OFFICER. 'l'he Secretal:y wi.l.JJ state the The PRESIDING- OlfiFIOElR. The amendment ta the amend· pending amendment. merrt will be- stated.. The SEcRET.A.Jcr. On pag.e 44, at.the top ot the page, the com- . The SECRETA'RY. On page 51, in the committee amendment. mittee proposes to strike· out of the House text the following line 8, strike out "$500" and in lieu insert "$600." words in lines 1, 2, and 3: "(b) a tax equivalent Ito 6 per cent · MI:~ SMOOT. Mr. President, I do· not believe the amendment of the amount paid for the transportation of property by- ex- offered by the Senator from Idaho should be adopted. The press companies consigned from one point in. the United States amendment, as I understand· it, is· simply to allow one automo­ to another " and to insert " a tax of 1 cent for each 25 cents, ' bile in the United States to come in under the $5 rate" instead or fraction thereof, paid to any person, corporation, partnership, of the following bracket. - The committee began with $500 and or association, engaged in. the business of transporting parcels increased in- steps of $250 ,on cheap cars. If we adopt this 'Or packages by express over regular routes between fixed· ter-- t amendment we might as well adopt ot_hPr amendments in the minals, for the b·ansportation of an:y:.. package, parcel, or shiP· different bracket to take care of some other particular auto~ ment by exnre ·s from_ one point in the United States to an-- mobile that may faU just over some other dividing line. I .be­ other." Jieve that the division made by the committee is a proper one, 1\lr. Sl\fOOT. 1\Ir. President, it was requested that this and it is made taking no automobile into consideration. As to amendment should go over to be- considered in connection with whether tlie tax ought t&. be assessed in some other manner. as the imposition of a tar upon par

If the amendment of the Senator from Idaho is adopted and :.M;r. S¥00T. Mr. President, if a man does not have an excess you raise tbf: first bracket to $600, then the next bracket will be income, he does not bave to pay any tax under this bill or under only bet,veen $600 and $750, or a step of only $1Q0, and the any other bill of which I know. other steps on low-priced cars in the bill are $250, the latter Now, i \vant to refer to the otbe~ part of the bill to which part of the amendment provides, " or fractional part thereof of the Senator says he is going· to offer an amendment-the pro­ original listed retail price, an additional tax of $5 " ; that is, for vision on page 51, beginning in line 19, down to and including each further increase of $500 over and above $1,000. We might line 23, which reads: - want to change that and make it $600, but I believe, as I stated, ~he tax IJiyable in any year shall be reduced by 10 per cent of its that the committee amendment, if we are going to use the basJc amount for each 12 months elapsed since the original sale ot bracket system, is just as good a division as is possible to b~ the automobile or motorcycle by the manufacturer or importer, but in no case shall it be reduced to less than 50 per cent of such basic bad ; and I hope the amendment of the Senator from Idaho to amount. the amendment of the committee will not be adopted. Mr. President, the Senator took the position that if an auto­ Mr. BRADY. 1\Ir. President, there would be no serious in­ mobile was used 10 years, under this provision the basis of the jury done if we did change the brackets on some of the larger­ tax would be reduced only one-half. There are very few auto· priced machines. I am perfectly willing that- the amount taken mobiles used longer than 5 years, though there are some, of off of the minimum price shall be distributed among Ute higher­ course, which may be used for 10 years; but an automobile priced machines. I believe that this tax should be paid by 5 years old, if continued to be run, uses the streets just the same those who are most able to pay it. There are thousands and as an automobile that bas just been purchased, and it uses just thousands of people in the United States who are using a as much gasoline, if it is ·run as many miles as the new machine $600 machine where there are only a very few who are using a would be run. The length of an automobile's life is about five $6,000 machine. The man who is using a $6,000 machine can years. We thought that as to second-hand machines, which may, pay the extra 50 cents very much more easily than the man be purchased for quarter of their original cost, which may be who is pm·chasing .:l $600 machine, and it does not need to dis­ purchased frequently for $250, we would only tax them $5. turb the bill in any manner. We can leave it as it is, for that So, 1\Ir. President, the purchaser of an automobile which bas matter, and 50 cents on that one item is not going to make any been in use for over five years, no matter what power its engines particular difference in this great bill. may develop, does no.t generally pay more than $500 for it, and in The Senator says it would be inconsistent to change the mini­ very many cases he pays much less than that. It seems to me mum from $500 to $600; that it might disturb the bill. I think that the provision, as reported by the committee, in the bill is just it would be no more inconsistent than the manner in which as liberal as anyone could possibly ask. I think everybody will we are attempting to tax the machines after they are purchased, admit that by use a machine deteriorates at least 10 per cent as shown by lines 19 and 23, to which I expect to offer an a year; but the committee thought that for five years 10 per cent amendment. That paragraph reads: each year, which is 50 per cent on its original cost, was enough The tax payable in any year shall be reduced by 10 per cent of its basic amount for each 12 months elapsed since the original sale of the to allow when imposing the tax upon automobiles. automobile or motorcycle by the manufacturer or importer, but in no Mr. BRADY. 'Vas it the thought of the committee that the case shall it he reduced to less than 50 per cent of such basic amount. man would sell the machine at the end of five years to get rid In other words, a man who uses a machine 10 years is re-· of the tax? quired under this law to pay a tax of 50 per cent of the original Mr. SMOOT. Even if be does not sell it, if be bas used the purchase price; and anyone who knows anything about the use machine five years and still continues to use it, why should be . of automobiles knows that no machine is worth anything near not pay one-half the tax he paid at the time be purchased the as much at the end of 5 years, to say nothing about the lapse car. In other words, if his original tax is $10 a year, and he has of 10 years, as 50 per cent of its original cost. I think if we used that machine for five years, his tax will be 50 per cent are going to permit an item like that to stand it would not be less than $10, which is $5, the same as the lowest rate which is at all inconsistent to give the people of the country who are provided for in the bill. able to buy only a $600 machine the advantage of the small Mr. BRADY. Does the Senator think that if a man owned a ~mount of 50 per cent per an;mm on the tax they have to P!l-Y· span of horses which be had purchased for $500 and he bad used l\1r. SMOOT. Mr. President, I wish to call the attention of them for 10 years be ought to be assessed at 50 per cent of what the Senator from Idaho to the fact that this is a straight 1 he paid for them? - per cent tax in substance upon the price at which the machine Mr. SMOOT. If the horses are worth it; yes. · t is purchased, as near as the bracket graduated plan can obtairi. Mr. BRADY. But 'if they are not worth it, what then? ·: The man who tuys an automobile for $500 pays a tax of $5 Mr. SMOOT. No. . a year. The man who buys an automobile for $6,000 pays a Mr. BRADY. That same rule applies here. $60-a-year tax. There can not be anything fairer · than the Mr.·SMOOT. But this is not a tax on property, it is an excise tax imposed in the bill, because of the fact that the $500-auto­ tax. This is a tax upon the purchase price of the machine ; mobile owner can pay the $5 tax just as well as the m·an who not the machine itself. · The maker does not pay the tax; it is pays a tax on a $6,000 automobile. the person who ·buys the machine ; it is for ""'the privilege of run- 1\fr. BRADY. I can not agree with the Senatot: as to that. ning the machine. . Mr. SMOOT. Anyone who is the owner of an automobile at Mr. BRADY. I want to ask the Senator if be thinks that a all is not going to be overburdened by paying $5 a year for that tax system that is not based on an actual cash valuation is a privilege. If be can not pay $5 a year for the privilege of own­ fair tax system? ing an automobile he should not be running an automobile with Mr. SMOOT. Mr. President, if the Senator wants me to an· gasoline at 22 and 25 cents and as high as 30 cents a gallon. swer as to how I differentiate between this tax and the case Mr. BRADY. But the Senator does not seem to take into which be has presented for a tax upon horses, I will say that if consideration that the man who is running at least a $600 auto­ we imposed a -tax upon the owner of a farm for the privilege mobile is taxed by the bill on almost everything from the cradle of using two horses that cost $500, and if he continues to use to the grave, while the man who bas a large income is taxed those horses we would give him, say, a certain exemption in simply on his excess profits. the tax every year because of the· fact that a horse would not l\!r. SMOOT. Oh, the Senator is mistaken. be as able, perhaps, to do the work the third year as be would 1\lr. BRADY. I am speaking of the excess profits tax. in the second year. It is not, however, the value of the horse 1\.:Ir. SMOOT. That is only one tax that a man who runs a we are proposing to tax; it is the privilege of using the horse $6,000 automobile pays. He pays his war-profits tax, he pays ·for whatever purpose the farmer or anyone who may own the hi income tax, and be pays the normal tax. ' The Senator from horse may want. So it is with the automobile; it is for the Geprgia complained this- morning that there were some of the privilege of running it that the tax is imposed. taxes imposed upon business men as high as 80 per cent of all 1\fr. 1\IcCUMBER. Mr. President, I call the attention of the their profits. Of course that was an exaggerated statement Senator from Idaho to the fact that this is not a tax on a thing, made to him by one of his constituents. People may think they but it is an excise ta.~; a tax for doing the thing and not a tax are paying all sorts of taxes, but I will say to the Senator that levied upon values. I think the Senator will agree with me they are just beginning to pay taxes, and now is not the time to that an automobile which can run at all and that can be used _..;. ., . ~ ~-\ begin to quarrel about a tax of $1 a year upon an automobile. at all will certainly perform more than one-half of the, service ...... !:_.;. Mr. BRADY. I fully agree with the Senator that we are just when it is 5 years old that it would when it was new. If an beginning the new system of paying taxes; but, on the other automobile after five years could give but half of the service .. ··"'· hand, so long as I stand on the floor of the Senate and we are that it gave when first-purchased that automobile would be toQ enacting tax laws, I intend to do something for the man who expensive a thing to have around. No one would attempt to does not have an excess income and who has a right to have a use it at all; .it would go into the scrap heap. .Any automobile $600 automobile placed within his reach. I am riot, however, that is used· at all will perform more than 50 per cent of the «oing to insist upon the amendment. service which it would perform when new. This being an ex:- 6128 -OONGRESSIONAL REGOR~SEN ATE. AUGlJST 17,_

cise trr~ ·-n tax on use, it -certainly ean n.<>t ·be unreasonable to Mr. KNOX. I 'Suggest that that modlficatJon be made ·in the -sny 'that ·the use -of an automobile it used at an 'Shflfl be not less · interest of clearness, be:ca1.1Se I think v~y serious questions in yalue at any time than .one-h111f the value of its use when . "mtiY be raised as to whether "the f the committee. mnolt ev-er :33! pet •cent af itls value 11.t any kind 'Of a -sate; nnd ·Tlre PRESIDING OFFICER. The -ohs1r will suggest that yet he arol-d get 'the same service -and the same comfro-t out <)t . the Senate dispose first of the amendment offered by the Sen­ it :fQr ;a ur 10 yeam. If tthe tax is levied not npon the :s.rtide · ·ator from Idaho. itself but as an excise tax upon the use of the artic~e, you can 1\:fr. KNOX. I !(reg _pardon ., l .thought that amendment bad ao.t 1nmpbd.tt ·hen there ts·.an :mnple rednctiun maii=e. been withdrawn. Therte !is one other matter !W'1lieh the Senatar ~"'lght ·to .ron- t 'The PRESIDING •OFFiCER. Then the Chair will put the sider. 'The-Senn:tor ~of u"Vllng 5() .cen:ts fur '1::he ·po.oc -peo- · ·questlnn -nn the nmendment offered by the Senator from Penn­ pie :ho driv,e ebe:ap .antmnomtes. I win rsa:y m 'him that that sy1v.nnht. 'The question now is on tile umendment offered by means :2 gallims of gas0iine_, aeeonling to the av:e~:age price ; the Senator from ldaht> to strike out ~· $~" and insert'" $600. ~ over the United States. It .ds oSO picayunish, it seems to me, r ·The nmendmen.t was rejeded. that the )person who op.era.tes :a.n mrtomobile at all will net con- Mr. KNOX. Now I move the nmendm:ent, which is agreeable smer that be hn.s - ved n gr.eat deal in saving 5o cen'ts n ~ar. · to the Senator, I beli'eve. to m-sert-the words "in the United If he feels tlurt this : run is uch a hardshiP tlmt he shonld save , S1:ates .. after the word'" price.~) it. .he ('AD shorten 1 t::r.1J) :o-nt ~ the 865 ih.e takes -daring the , . .Mr. .SMOOT. '" Orlginal Usted retail :prl~e in the United '}'El.r :10 mil:es ~tod sn\'e tbe eqniv.nll.ent uf this tax, States."' Mr. .BRADY. It means :40 miles to fue nveMge man, ;and Mr. KNOX. "To 'insert the words "in the United .States"; many :of these p_eo;ple 'WOUld e-n}oy y;r.ery much to tmv.e a ·4.0-mile_. y-es. ride -on Sunday afternoan 11fter working all the week. 'The P"RESIDING OFFICER. 'The amendment will be stated. · •' I ·mant to .ask the Senator -tr.am North Dakota '8. question be- The Sli:bRETABY. On page 51, line 1.2, after the words " -original fol'e he takes his sert, ·multha:t :is, Does he-not think it won1d be ' listed retail price" it 'is proposed to insert the words "in the more ~ust .and fair to .requir~ an· excise 'tax: to be paid O'n the United States.'" actual valnat:i.oll n:f lthe autamotiile .in the year in which it d.s · "The PRESIDING 'OFFICER. The question is on agreeing to being used'? , : the .amendment offered by the Senator from Pennsylvania to ~lr . .M-cCm!BER. Nn, 1\k. JP:r.esident. [ ron -uslng ran :nuto- . the amendment reported by the committee. mobile now thnt is ·giving me .all af the sel'Vice that it gave m-e : The amendment to the amendment was agreed to. when I first purchased 1t 'five or six 'Y.ears :n;go, .and yet i could Mr.. KNOX. I :o.lier .anoth-er amendment to this section--: On not get '16 cents 'on the dolla:r -of what it ·cost me .at 'that .time. tine 12, -page '51. I :mov-e to 'Strike .out " $5 " at 'the end of the I .could :not po ibly sen it, beeause there lis tittle ·demand .for line and insert '"'$10," so that 'tlre tax 'On the higher -priced ma­ nn automobile that has been ·used for five years. However8 1t ·chines w:iU be .$10 for each increase of $500 ln the cost price. gives me the service .and, therefore, :for the use ·ot .it, :fo:r the · r think, Mr.' President, that wlll impose a very moderate tax service I am getting, I run wilfu:l-g to pay that tax. :upon a luxurious JPkmsur.e ~ar. This tax a-pplies to no other :Mr. BRADY~ It seems to me that tile ears eostlng between $1,000 and -$3.000. sessed at its ractn11.l m :h v.al:uati-on. and then '$10 -additional on -each · 500 increase uvel' -Llat 'fliDOunt.'

1\lr. KNOX. ·Mr. President, I sho.uld like to tnquiw \Of ome 1 Mr. SMOOT. That, I wm. :say to the Senator, would be much member -o! the 'CDmmitt:;ee a.bcmt ()ne feature of i'fhe tax -o-n .8Jllto- ' better than to have the ·increased rate aplJlY to all cars above mobiles. It is well known that the m?st ex:pen.siv.e autonm~ll.es · $1,000 in price, which would take in the $1.,100 car, the $1,200 on rt:he ma!l''k:et, the ones that .are 'ronstdered "the most Jltlxur1ous ea.r the '$1500 car-a d.ass of cars that are now very popular and ·ones affeeted most by the people who are '"dn the RWlm,', iJ.ndeed. ' are foreign automob~les the c.ost of which runs up high. I know Mr. KNOX. The car ·that I want to 'l'each is the -expensive..: pe?ple who ihave paid .as 'l!luch as $12.~ $l:3l~ and .:$14·~ ltixurious -car whleh is usu-ally Qwned by people who can very ·atnece for them. The pomt t want a little ihght on 15 'th1s • well atr:ord to pny the tax: and who would not object to paying Unt -object -at .nft.l, to putting ·those ' :ever =$3,000, $30.u • • words :in; and if tbe :&Rator will :.o:ffeT the proposed ·amend- ' Mr. SMOOT. . ~o.. · Ir. lPresident_; :that would ampose -a tax ol. :m-ent II am perfectly m1ling, .so far as I am JCoacerned-, that lit :$80 -on the $1,:500 car. lbe adopted. · .M.r. SIMMONS. "The Sena.t-nr is mrrect. 191J. CONGRESSIONAL RECORD-SENATE .. ~ 6129

1\Ir. Sl\IOOT. I will ask the Chair t:o allow this section rto ·first pla.ce, if it would not be better to inClude the words ":in: be paRsed over for a ;few minutes until the amendment can be the United States " in line· 8, after the word "price," ·instead perfected so aR to cover just what is intended. of in line 12, after •the word ·" price," because the -same words The PRESIDING OFFICER. Without objection, fnrther con- "original listed retail ·price" are found in·all the other brackets? 1 sideration of the section will be postponed. The Secretary will Mr. :KNOX. I ·think that •Wlll make it ·J>etter English. state t.he next amendment p ssed over. Mr. SMOOT. :If tused in the ·first ·bracket, it will apply to all; The SECRETARY. The ·next amendment ]>assed over is ·on Mr. KNOX. Yes; and will make ·better English. 1page rn, where the committee propose, after line S, to insert. The PRESIDING OFFIOER. 'JThe amendment wlll be sta.teJ. the following: · The SECRETAR~. On page "51, line 8, ;after the word " ; pric~,'' 2. P..arcel-post packages-- 'lt ·is :proposed to insert .the words "in 'the _;United ·States." Mr. SIM1\10NS. Mr. President, that .amendment ;may go TJ:te PRESIDENT :])ro ·tempore. The ·question is on ihe over for the present. amendment of the Senator from Utah to the amendment ·of 'the The PRESIDING OFFICER. Without objection, the 1lillend- 'COmmittee. mh s tar will 8 tat the ext The.amend.Ipent to the amendment was •agteed ·to. ment will be 111assed over. ~~. e • ecre ·y · e '11 ?t.lr. SMOOT. ·I ask that the vote by which the .same words amendment passed over. The SECRETARY. The next amendment .passed .over is on were inser.ted in line 12, _after lthe word ";Ptice,t' be -reconsidered, · 3 h 'tt -t 0 • nt .and .that that amendment be disagreed to. page !76, wher_e, after lme • t e -comnu :ee propose mse --= The PRESIDENT :Pro :tempore. Without ·objection, the vot~ 7. ·Bank check, draft, or certificate of oeposit not drawing in!m-e-st, whereby the amendment referred to was adonted will be 'recon- •or order "for 'the payment af any sum af money, drawn -upon or .Issued ~ by any bank, trust company, or any _person or persons, compan1es, or sidered, "and the amendment will be considered ·as rejected. corporations at sight or on oemand, 1 cent. Mr. SMOOT. .In 1Hne 12, after the wo:rd "price," I move to 1\-.lr. .OVERMAN. I ·think there are a nmnber of Senators insert " ~ to and including the original listed retail price ot who are interested :in that Rmendment, .and I 11sk the Senator $3,000"; and, at end of line, :to insert "; and 'for -each -further if he will not allow it to go over? increase of $500 or fractional part thereof of original li-sted 1\fr. GRONNA. I will also ask the Senator 'if he will be will- retail •value, an additional ta~ ·of ·$10." . jng to Jet that amendment go over? Mt:. Nl!II,.SON. .Mr. President, I -will inquire of the Senn.tor Mr. SI:MMONS. I am willing to .Jet that ,go .over not for from Utah why he. proposes -to :depart from the term "price," the day but for the 'Present, and I suggest, ,if there are absent whJ,ch is, used. in the preceding bracket, and employ the word Senators who are intet~sted in this particular amendment, that "val:n.e." Would it not 'be better to use the- wol'd "price" they be sent for. The fl.mendment was reached yesteooay and instead of "value "? went over until .to-day. il we Jet all of ,these matters go over, .Mr. SMOOT. Perhaps it would. i will 1ook :at the amend·- we will be out of work. I will let .it go over temporarily. ment again. 'I'he PRESIDING OFFICER. Ob-jection is made .to .a .gen- 1\Ir. NELSON. . Because .it might lead t-o a conflict. In all· eral vostponement; so the ame11dment will be laid aside tem- the bl.·ackets preceding the word "price". is used, while in the po:rarily. The Secretary will .state the next amendment passed amendment now offered it is proposed to make it .a matter of ovet-. value. ii think that is a mistake, and that 'it should be" price." 'rhe SECRETARY:. On page 80, -all rof Title X was passed ov:er, Mr. SMOOT. Perhaps it would be better to repeat the word .as well as new Title IX, "On -page 85. used in the preceding brackets, .as the Senator suggests, and I Mr. SIMMONS. Mr. :President, I do Dot see any reason why ask that the change be made. we .can not consider Title X, the amendment op.. page 80, sec- The PRESIDENT pro . t:emp.o:re. Without objection, t11e tion 1000. The Senator from Nebraska [.Mr. NoRRis] ~ked . amendment will .be so modified. The question now 'is -on agree. that it go over. He is now in the Chamber. . ing to the amendmei).t of the :senator from Uta'h as modified to 1\Ir. NORRIS. Mr. Presid'mt, what is the amendment to the amendment repo1·ted by the committee. which the S.enator .refers? The-amendment to the amendment w.as agreed to. The PRESIDING OFFICER. The Secretary will state it. Mr. KffiBY. Mr. President, is the committee amendment The SECRETARY. On page 78, "Title IX.-War estate tax." still pending? The committee proposed to strike -out all of section 900. The PRESIDENT pro tempbre. It is still pending. • l\Ir. NORRIS. 1\Ir. President, I myself do not understand :Mr. KIR.BY. Is it pr.Qposell t.o ask that it be voted on this why the committee struck this title out. It seems to me-- afternoon? f 1\fr. SIMMONS. .I was mistaken about the section. 1 thought Mr. 'SIMMONS. The ~utomohile section'? the Secretary referred to section 1000, on page 80, which r:clates M.r. KIRBY. Yes. . to coffee and tea. That was the section the Senator from Mr. SIMMONS. That is the intention. Nebraska asked to have passed over. Mr. KIRBY. Then, Mr. President, I desire to say that I 1\Ir. NORRIS. I asked that the war estate tax go over, believe the House provision of the bill should be -retained rather ns well as the coffee and tea tax. .As I understand, the .pend- than the amendment proposed by the Senate committee. :U is ing question is to strike out 'Title IX. on page 78. a matter ·of common knowledge that the automobile industry The PRESIDING OFFICER. That is the pending question. to-day is more highly profitable than Jllly other branch of manu· 1\Ir. SIMMONS. Mr. President-- facturing in the United Sta-tes except that

are now mo1·e and more resorting to the inheritance tax as a the amount by which the net estate exceeds $11,000;000 and does source of income? not exceed $15,QOO,OOO. - Mr. President, I submit that in no If I may be pardoned a personal allusion, the legislature of case would that tax be a hardship. my State recently met, and the -question of taxation was a very Mr. McCUMBER. Mr. President, may I correct the Senator important one, because there was a deficit that had to be met, in one respect? and very .great expenditures were demanded for the next two M.r_ NORRIS. Certainly. years because <>f the growing needs of the State. It was antis1- Mr~ McCUMBER. This is an additio.nai tax,' in addition to pated by some that there probably might be a war in which this the tax already levied by law. Government would participate, and it was felt that if we went Mr. NORRIS. Yes; r understand that. I stated that. to war the income tax and the corporation tax or excess-profits Mr. McCIDffiER. Ther-efore the sums that the Senator gives tax would be the principal sources of revenue. will not be the rea1 tax, but they must oo added to the tax There was quit-e a disposition to levy a State income tax. I provided under existing law. took the liberty of suggesting to the members of the lQgislatnre Mr. NORRIS. I understand that. The Senator is correct that, in my opinion, it was unwise for the States to impose an Perhaps he was not here when I began. I made the statement income tax ; I tho.ught that that matter ought to be remitted to that these taxes were in addition to the taxes imposed under the Federal Government. existing law, but the amounts I have stated are the only amounts Then the question of the inheritance tax was taken into uc- that are involved in this amendment. So 1 still contend that I count. We have an inhe1itance tax in our State, ·but the legis- ·am absolutely correct In saying that the amounts I have meri­ lature felt that they would draw more 'heavily in the future tioned as being the taxes that would be levied under this bill upon inheritance taxes as a source of revenue than in the past. are the op.Iy amounts involved. If this provision !Of the House I know that at a number of meetings of the tax experts, in bill is adopted, the taxes would be increased by the amounts that which various States havt:- been represented, the question has I have named, and, as I said before, that increase, that tax been very carefully considered, and the consensus of opinion coming upon estates would only bav~ the effect of diminishing has been that the States of the Union more and more would re- gifts that people -otherwise would receive. With an estate, for sort to the inheritance tax as a source of State revenue; that instance, of $16,000.000 tbe 15 per cent would only be reckoned they wanted to appropriate that, and to keep the Federal Gov- or computed on $1,000,~ -<>n the excess; · · ernment out of that field. As I stated, the first tax is one-half oil pa- cent, the 'lleXt is In my judgment these large estates should pay heavy taxes. 1 per cent, then 1! per eent, 2 per cent, 2! per cent, 3 per cent, When a person dies leaving an estate of considerable ruagnitude, Si per cent,. 4 per cent, 5 per cent, 7 per cent, 10 per ·cent, and that estate ought to pay a very heavy tax for the maintenance 15 per cent. In no case would the money taken by this tax come ()f the State government. But now in view of the important from anyone who, as a matter of legal right, without a statute :activities of the Federal Government, and the fact that it is of bis country, would be entitled to it. It is only because the using as a primary source of revenue the income tax, does not law of the country gives a mari the right to bequeatb his estate ,the Senator think it would be wise to leave to the States an that he possesses tl1at right. It is only because we have a ::taw open and clear field with respect to dealing with inheritance that permits a person to inherit an .estate that he could get taxes? any of Lt. The Government has a legal right to take it all when Mr. NORRIS. Mr. President. the Senator's a:rgument is force- a man is

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6132 CONGRESSIONAL RECORD-SENATE. AUGUST 17, -

I -would vote at any time to repeal the national tax upon Mr. JONES of Washington. Does the Senator remember the estates and leave that tax entirely for the support of the States. maximum inheritance tax of the States? I hope we will do that soon and that we will draw a line of l\Ir. STERLING. I do not. I merely recall now, as I said, demarcation where we will say there is something that is sacred that the number of States imposing such a tax at that time to the rights of the State which the Government will not attempt was-43. to exnct taxes from. The State can not levy a tax upon imports. Mr. JONES of Washington. -1\fy recollection is that quite a The Government can support itself almost entirely from imports lllUDber of States levy the tax, but that the tax is very small. if it sees fit to do so. The State being deprived of that right, Mr. NORRIS. 1\fr. President, I wish to call attention to the the Government ought to concede to it, and it was intended in joint resolution -from the State of Vermont which the Senator the adoption of the Constitution that the Government should from Vermont [Mr. DILLINGHAM] had read at the Secretary's concede to the States most of the other sources for raising desk. If that policy should be carried out it would not only be revenues by taxation. the estate taxes that we now have on the statute books that 1\Ir. DILLINGHAM. Mr. PresiUent, I do not desire to take -would ba repealed, but we would not have a provision in this the time of the Senate to add anything to what has been said bill providing for an income tax, and we would have to repeal by the Senator from Massachusetts or the Senator from Utah the mcome tax we now have. It not only complains about the or the Senator from North Dakota regarding the rights of the estate taxes and inheritance taxes, but the income taxes as well. States and the feeling that exists within the States, but I do I. am not speaking of it with any disfavor, either. The proposi­ desire as an expre sion of the State of Vermont to send to the tion advocated, as I understand it, in the joint resolution of the desk and to have the Secretary read a resolution adopted by the Legislature of Vermont is to have a line drawn by which a legislature of that State upon this subject at its last session. part of the income taxes shall be kept by the State and a part The PRESIDENT pro tempore. Without objection, the Sec­ taken by the Federal Government and a part of the inheritance retary will read. The Chair bears no objection. taxes kept by the State and a part taken by the Government. The Secretary read as follows : 1\Ir. DILLINGHAM. Mr. President-­ GE:\'ERAL ASSEr-IBLY OF THE STATE OF VE.R!IIONT. Mr. NORRIS. I yield to the Senator. Joint resolution relating to Federal and State taxation of incomes and Mr. J?ILLING~l\1. I ought to say, if the Senator please, inheritances. that thiS resolutiOn was adopted by the legislature before the Wher.:o as tbe Federal Government is encroaching more and more upon beginning of the war between the United States and Germany. the sources of revenue heretofore reserved for purposes of State tax- The legislat~e evidently had in mind what all the people of ation; and . Wherf to each Member of Congt·ess from the peculiarly a subject for Federal jurisdiction. Under the Con­ State of Vermont, and a. copy to the president of the senat~ and to the speaker of tbe bouse of representatives of each of the State legislatures stitution there is not any question but what the Federal Gov­ in session at this time. ernment can levy an income tax ·and also an inheritance tax. . ROGER W. HULBURD, President of the Senate. We have already levied both and both are now in existence. STANLEY C. WILSON, So if there be any principle involved of that kind it has already Speaker of the House of Representatives. been violated by the Government and is being violated every Approved 1\Iarch 23, .1917. day, and it is not proposed to repeal the law that does vio­ HORACE ~ GRAHAM, Governor. late it. 1\Ir. STERLING. l\Ir. President, I think the committee did I presume tll.e members of the Legislature of Vermont had wisely in striking out the House proyision in regard "to an in mind a sort of understanding that should be reached between estate tax. I remember. giving a little attention to this subject the Federal Government and the various States that would when the present law was under consideration here in the provide one set of machinery by which the estate taxes and Senate. I found that at that time, according to my recollection income taxes could be collected, and that on an arbitrary line now, there were 43 States of the Union that bad inheritance drawn applying to both inheritance and income taxes the and estate taxes, either a direct inheritance or a collateral in­ Federal Government should collect on one side and the State heritance tax, or both direct and collateral inheritance taxes. on the other, each one fixing the rate that would apply, and then · It seems quite appropriate that if there is any tax at all on save overhead expenses by qaving it collected through the estates or inheritances it should be left to the States, and for instrumentality of one set of officers. this one reason, that it is within the power of the State, and As I said, I am not sure but what that would be a fair solu­ within the power of the State alone, to regulate the transmission tion and· would be right. But, Mr. President, the State of of devolution of the property of a decedent, whether that prop­ Utah, the State of Vermont, and all the other States mentioned erty be left by will or whether th-e owner of the property dies by Senators have been hunting for something to tax; and it is intestate; and, as was so well said by the Senator from North not right to say that there is any agreement that the Federal Dakota [Mr. McCUMBER], many of the States now, on account Government shall not tax inheritances, because, as I said, we of municipal taxation, county taxation, and State taxation, are are doing it no\\· under existing law. This is only a provision driven to extremities, as it were, in the matter of finding sub­ jects for taxation in order that the current State expenses may that during the war we shall tax a little bit heavier in that be met. , I think it is not necessary, and it should not be neces­ regard. sary, for the Federal Government to resort to this one subject of Mr. DILLINGHAM. Mr. President-­ taxation. Mr. NORRIS. I yield to the Senator. •

1917. CONGRESS! ON AL RECORD-SEN ATE. 6133

Mr. DILLINGHAM. I ask the Senator if he recalls the date prescribed by the Secretary of the Treasury ; also teams of animals, including their harness and tackle, and the wagons or other vehicles when the Federal Government began the taxation of inher- actually owned by ·persons emigrating from foreign countries to the itances? . . United States with their families, and in actual use for the purpose of Mr. NORRIS. I can not recall the date, but I can give it to such emigration, under c;uch regulations as the Secretary of the Treasury may prescribe; and wild allimals intended for exhibition in zoological the Senator. L have it here; I think it is in the bill. This is collections for scientific and educational purposes, and not for sale or an amendment to an act to increase the revenue, and for other profit; purposes, approved September 8, 1916. I take it that that is Fourth. Books, engravings, photographs, etchings, bound or unbound, maps and charts imported by authority or for the use of the United the date. States or for the tJSe of the Library of Congress; · l\1r. DILLINGHAM. The thought I had in mind was that Fifth. Bookq, libraries, usual and reasonable furniture, nnd similar until comparatively recent time the Federal Government has household etrects of persons or families from foreign countries, all the fore~oing if actually used abroad by them not less than onP year, and kept its hands off from that as a subject of taxation. It is a not mtended for any other person or persons, nor for sale ; source of revenue to the States which has been enjoyed for a Sixth. Newspapers and periodicals; but the term " periodicals" as long time and which they have come to claim, as they think, herein used shall be unrterstood to embrace only unbound or paper­ covered publications issued withln six months of the time of entry, de­ legitimately as their own. voted to current literature of the day, or containing current literature l\1r. NORRIS. I am not belittling their claim, either. I re­ as a predominant feature, and issued regularly at stated periods, as member when the Underwood tariff law was under considera­ weekly, monthly, or quarterly, and bearing the date of issuP; Seventh. Articles the growth, produce, or manufacture of the United tion I offered an amendment to the inheritance-tax amendment States, when returned after having been exported, without having been to tax all inheritances, and I provided in it that 90 per cent of advanced in value or improved in condition by any process of manu­ the amount that any estate or inheritance should pay should be facture or other means ; steel boxes, casks,- barrels, carboy;;, bags, and other containers or coverings of American manufacture exported filled deducted if the person who had to pay it produced a receipt with American products, or Pxported empty and returned tilled with showing that he had paid that amount of tax in the State to the foreign products, including shooks and staves when returned as barrels or boxes ; also quicksilver flasks or bottll!s, iron or steel drums of either State authoritit>s. In other words, that where the State did levy domestic or foreign manufacture, used for the shipment of acids, or a tax 90 per cent of it should go to the State and not be col­ other chemicals, which shall have been actually exported from the lected over again by the Federal Government. United States; but proof of the identity of such articles sha.il be made, under general regulations to be prescribed by the Secretary of the Mr. s~.rERLING. I will state to the Senator that of all the Treasury, but the exemption of bags from duty shall apply ()nly to such States 43 of them two years ago had provided for an inheritance domestic bags as may be imported by the exporter there-of, and if any tax, and there would be very little left under the ge·neral propo­ such articles are subject to internal-revenue tax at the time of ex­ sition made by the Senator to go to the General Government. portation, such tax shall be proved to have been paid before exporta­ tion and not refunded ; photographic dry plates or films of Amerk~n :Mr. NORRIS. Yes; it would- not have been very much, but manufacture (except moving-picture films), exposed abroad, whPther the effect of it would have been to tax large estates the same developed or not, and films from moving-picture machines, .ight struck or otherwise damaged, or worn out, so as to be unsuitable for any all over the United States, so that there would not have been other purpose than the recovery of the constituent materials, provided any discrimination. the basic films are of American manufacture, but proof of the identity I am not trying, Mr. President, to deprive the State of its of such articles shall be made under general regulations to be prescribed by the Secretary of the Treasury; articles exported from the United just right to raise money by taxation, but I am contending here States for repairs; that as a war measure this is one of the least hardships that Eighth. Professional books, implements, instruments, and tools of i · contained in the bill. I am willing to permit the States to trade, occupation, or employment in the actual possession of persons emigrating to the United States owned and used by them abroad; but re ort, and to give them the exclusive right to resort; to an in­ this exemption shall not be construed to include machinery or other heritance tax. I would be glad if the States and the Federal articles imported for use in any manufacturing establishment, or for GoYernment could do what the State of Vermont wants to do any other person or persons, or for sale, nor shall it be construed to in­ clude theatrical scenery, properties, and apparel; but such articles and desires to do to draw an arbitrary line and say to the Fed-' brought by proprietors or managers of theatrical exhibitions arriving eral Government, "You stay on one side and the State on the from abroad, for temporary use by them in such exhibitions, and not other." for any other person, and not for sale, and which have been used by them abroad, shall be admitted free of duty under such regulations as But, Mr. President, we have not any such arbitrary line. We the Secretary of the Treasury m.a.y prescribe; but bonds shall be given are now taxing estates, and no one would feel this increase. for the payment to the United States of such duties as may be impo~:;ed \Ye nre in as desperate a condition as any State can be in try­ by law upon any and all such articles as shall not be exported within six months after such importation: Provided, That the Secretary of ing to find something to tax.. That is the reason, it seems to me, the Treasury may, in his discretion. extend such period for a further why this language ought to stay in the !Jill. term of six months in case application shall be made therefor. I realize that what I can say will prohuhly have no effect SEc. 1001. That upon all cofl'ee or tea which on the day this act is passed is held by a retailer (who does not sell coffee or tea at whole· and that the Members of the Senate will perhaps follow the sale) in a quantity in excess of 50 pounds in the case of tPa and 200 committee, which has taken the other view of it; but it did not pounds in the case of coffee, or by any other person, corporation, part­ seem to me that I ought to let this matter pass without an nership, or association in any quantity, and which is intended for sale, there shall be levied, assessed, collected, and paid a tax of 1 cent per opportunity, at least, to express the opinion I have briefly tried pound in the case of co tree and of 2 cents per pound in the cas' of tea. to express. Such tax shall be assessed, collected, and paid in the same manner as The PRESIDENT pro tempore. The question is on agreeing provided in section 1102 in the case of additional taxes upon articles to the amendment proposed by the committee. upon which the tax imposed by existlng law has been paid. The amendment was agreed to. And in lieu to insert : The next amendment passed over was, on page 80, after line TITLE IX.-WA.R EXCISE TA.X ON C'OFFEE, TEA., COCOA, AND SUGaR. 6, to strike out: SEC. 900. That there shall be levied, assessed, collected, and paid­ (a) Upon all coffee or substitutes therefor produced or imported, TITLE X.-WAR CUSTO:liS DUTIES AND WAR TAX ON COFFEE AND TEA. and sold, or removed for consumption or sale, a tax of 2 cents per SEc. 1000. That on and after the day following the passage of this pound, to be paid by the producer or importer; act there shall be levied, collected, and paid upon all articles when (b) Upon all tea produced or imported, and sold, or removed for con­ imported from any foreign country into' the United States, or into any sumption or l"ale ( exeept impure tea, tea waste, tea siftings or sweep­ of its possessions (except the Philippine Islands and the islands of ings, for manufacturing purposes in bond, pursuant to the provisions. Guam and Tutuila), if such articles are now rlutjable by law, a dutv of the act of May 16, 1908), a tax of 5 cents per pound, to be paid by of 10 per cent ad valorem in addition to the existing duty (whetbPr the producer or importer; ad valorem or specific) ; and if not now dutiable oy law, a diJ.ty of (c) Upon all crude cocoa produeed or imported, and sold, or . re­ 10 per cent ad valorPm. The duties imposed !>y th1s section shall be moved for consumption or sale, a tax of 3 cents perepound, and upon levied, collected, and paid under the provisions of existing Law. This all prepared or manufactured cocoa and chocolate imported and sold, section shall not apply to (a) gold or silver bullion; (b) coins of gold, or removed for consumption or sale, a tax of 5 cents per pound, such silver, copper, or other metal; · (c) printing paper a•lmitted ~ee of taxes to be paid by the producer or importer; duty under paragraph 567 of section 1 of the act entitled "An act to (d) Upon .(1) all refined sugar refined or imported, and sold, or re­ reduce tariff duties and to provide revenue for the Government, and moved for consumption or sale, and (2) all sugar manufactured or im­ for other purposes," approved October 3, 1913, as amended; (d) ores ported, if suitable for consuwption as an article of human food with­ of the platinum metals, and platinum, unmanufactured or in ingots, out further refining, and sold, or removed for consumption or sale, a bars, plates, sheets, wire, sponge, or sct·ap, and vases, t·etorts, and other tax of one-half cent per pound, to be paid by the refiner, manufacturer, apparatus, vessels1 and parts thereoft composed of platinum for chPm­ or importer ; ' ical uses; (e) mtrate of soda; (fJ mechanical ground wood pulp, (e) Upon all saccharine or similar products, glucose, grape sugar, chemical wood pulp, unbleached or bleached, and rag pulp; or (g) sirup of cane juice, and molasses, produced or imported, and sold, or -. articles specified in paragraphs 397, 398, 404, 424, 428, 451, 499, 556 removed for consumption or sale, a tax of $2.50 per pound in the case 582, and 642 of section 1 of such act of October 3, 1913. ' of saccharine or similar products, one-fourth of a cent per pound in And this section shall not ap,PlY to the following-named articles the case of gluco;;e and grape sugar, 1 cent per gallon in the case of to wit: ' molasses (except beet molasses) and sirup of cane juice, testing by First. Any animal imported by a citizP.n of the United States, spe­ polariscope above 40° and not above 56°, and 2 cents per gallon in the cially for breeding purposes, whether intende

6134 CONGRESSIONAL RECORD-··sE ·N ATE. AUGUST 17, --~-----

sale, there shall be levied~ assessed, collected, and prud the taxes- im­ Mr. SIMMONS.' Entirely. posed upon such articles in this section. Snell tax shall be assessed, collected, and paid. III the same ma.nner Mr. NORRIS. The Chair will notice that one refer!': to coffee ns provided in section 1002 in the case of additional taxes upon articles and tea, and the other .refers to coffee, tea, <'OC'oa, and sugar · upon which the tax impo ed by ext ting law has been paid. one is numbered section 100 tax under this section shall be paid with respect to any article, irre pective of change of form by manufacture or· other process. numbered section 900; one is Title X and the· other 1 · Title IX. SEc. 901. That each such manufacturer, producer, refiner, or importer That being true, I have no objection to voting on striking that $hall make monthly returns under oath to the collector of internal out and doing it no\y, so far as I am concerned. revenue for .the district In which ls located the principal place of busi­ ness, containing such information necessary for the assessment of the 1\fr. SIMMONS. 'Title X really is the tariff section of the tax, and at such times and in such manner as the Commissioner of Hou.se bill, and coffee and tea are merely incidents of that. Internal Revenue, with the approval of the Secretary of the Treasury, NORRIS. Yes. Now, I should like to have the Chair's may by regulation prescribe. Mr. Upon the removal from the custody ot customs officials of articles opinion. subject to a tax imposed by . section 900, the tax !!hall be collected by The PRESIDENT pro tempore. It depends entii·ely upon the the collector of customs and deposited as internal-revenue collections under such rules and regulations as the Commissioner of Internal manner in which the committee amendments are offered. If the Revenue, with the approval of the Secreta.ry o! the• Treasury, may committee reported as a separate propo ition the amendment to prescribe. strike out, of course it should simply be put as an amendment SEc. 902. That so much of paragraph 0 of section IV of the ad enti­ tled "An act to reduce tarUf duties and to provide revenue for the Gov­ to st1ike out, and the ather proposition would be taken up as a ernment, and for other purposes," approved Octotter 3, 1913, as au· second amendment. · thori.zes a drawback upon sugar is hereby repealed. · Mr. SIMMONS. Mr~ President, that is aU the committee is · Mr. NORRIS. This amendment strikes out two or three o:trering-to strike out that whole section. They are not offer· pages relating to the tax on coffee and tea, and in its- stead in­ ing any substitute for it. The next section is an ~tirely dl!­ serts two or t,W·ee pages levying a tax on coffee and tea and ferent section. sugar and c:ocon. I desire to propound this- question to the Mr. NORRIS. That is satisfactory to me. Chair: If the amendment of the committee is agreed to, will Mr. SIMl\IONS. It de-als with coffee, tea, and sugar upon a it be in order, when the proper time comes so that individual different basis altogether. Senators have the right to offer amendments, to move to strike The· PRESIDENT pro tempore. That makes the matter per· out the language whiclr this amendment proposes to insert? Jectly clear. -...... The PRESIDENT pro tempore. The Chair thinks the amend­ Mr. NORRIS. That ls· satisfactory. Let us- vote on it. ment · having been agreed to, it will have to be reported to the Mr. CURTIS. Wlll the Senator from North Carolina then Senata · consent that the other section go over untn to-morrow? Mr. NORRIS. Mr. President, I know there is at least one Mr. SIMMONS. I said that I would not ask to take up the Senator who ts opposed to levying any consumption tax, at the other section this afternoon. present time at any rate, on coffee, tea, sugar,. and cocoa, and The PRESIDENT pro tempore. The question is on the yet who would not particularly. care whether the House provi­ amendment reported by the' Senate commitee to strike oat sion or the Senate committee provision went into the blll ; but Title X. an opportunity is desired to vote to strike these things from the The- amendment was agreed to-. bill. If the Ohail· now holds that no such motion can be Mr. SIMMONS. Now, Mr. President, I ask that Title IX made- go over. · The PRESIDENT pro tempore. But the Chair does not hold The PRESIDENT pro tempore. \Vfthout objection, the any such thing. amendment reported by the committee as Title IX will go Mr. NORRIS. Then I did not understand the Chair. over. The Chair hears no objection. The PRESIDENT pro tempore. The motion to strike out Mr. SIMMONS. 1\!r. President, I desire to inquire whether could be voted upon and could be voted. down, and the clause Title X, embracing the administrative provisions, has been as it came from the House could be stricken out. read? Mr. CURTIS. Mr. P.resident, would not a motion to strike The PRESIDENT pro tempore. The Chair is informed that out the words " tea, coffee, sugar, and cocoa " be in order? that title has been read and agreed to. The PRESIDEl'\TT pro tempore. Certainly. Mr. SIMMONS. Title XI, relating to postage rates, by agree­ Mr. OURTIS. In other words, have we not the right to ment will be passed over. Title XII relates to lncome-ta.x: amend the committee amendment? amendments, and th-ere are some amendments in thnt title, ' • The PRESIDENT pro tempore. Undoubtedly. though not all of tberu, which will provoke some debate. Mr. NORRIS. Certainly; but the proposition which I sub­ I desire ta ask that section 1204, on page 105, be ·now taken mitted to the Chair was, What would be th~ status after the up. These amendments are merely administrative portions of ·amend'ment was agreed to? Title XII. Mr. SIMMONS. 1\Ir. President-- The PRESIDENT pro tempore. The amendment of tl'le com­ The PRESIDENT pro tempore. Does the Senator from ' Ne­ mittee referred to· by the S-enator from North Carolina will be braska yield tJ the Senator from North Carolina? stated. 1\Ir. NORRIS. I yield. . The SECRETARY. Beginning on page 105, the Committee on Mr. SIMJ\IONS. I think the Senator from Nebraska is labor­ Finance propo es to insert a new section as follows : ing under a misapprehension. I have no purpose to ask for a SEc. 1204. (1)That subdivisions (c) and (e) of section 8 of such act of September 8, 1916, are hereby amendE-d to read as follows: vote this afternoon upon that portion of the bill proposing an "(c) Guardians, trustees, executors. administrators, receivers, con­ excise tax on coffee, tea, sugar, and cocoa. I recognize that servator~ aJld all persons, corporations, or associations, acting in any there is some difference of opinion with regard to that, and that fiduciary capacity, shall make- and render a return of the tncome of the person, trust, or estate for whom or which they act, and be subject to that will lead to considerable discu sion. The matter embraced all the provisions ot this title which apply to individuals. Such fidu­ in section 1000 which I wish acted upon this afternoon relates ciary shall make oath that he has sufficient knowledge ot the atrairs of to the so-called tariff tax imposed in the House bill, .the tax of such person, trust, or estate to enable him to make such return and that the same is, to the best of his knowledge and belle!, true and correct, 10 per cent adtvalorem upon practically all the articles in the and be subject to all the provisions of this title which apply to i:ndiv1- tariff schedules. Coffee and tea are mentioned there separately, duals: Provided~ That a return made by one of two or more joint because under the.prov1sion of the Bouse bill it is proposed to fiduciaries filed in tlie district where such fiduciary re ·tdes, under such regulations as the Secretary of the Treasury may prescribe, shall be a levy a floor tax upon coffee-and tea, that floor ta.x being regulated suftlcient compliance with the requirements of this paragraph: Pro­ by the tariff tax contained in the main pro'rtsions of the House -vided further, That no return of income not exceeding $3,000 shall be bilL That is all that is before the Senat~ in that section. required except as in this title otherwise provhled. •• (e) Persons carrying on business in partner htp shall be liable for Striking that out does not interfere at all with section 900, which income tax only in their lndlvldual capacity, and the share of the profits • is an entirely independent proposition-a tax 'upon coffee and of .the partnership to which any taxable partner would be entitled 1f the tea entirely different from that imposed in the House bill. same were divided, Whether diVided or otherwise, shall be retui'Ded for taxation and the tax paid under th~ provisions of this title: Provided, Mr. CURTIS. Mr. I>re ident-~ That fTom the net di tributive interests on which the individual mem­ Mr. NORRIS. Just let me say a word. I agree ~ntirely with bers shall be liable for tax, normal and additional, there shall be ex­ Senator from clnded their proportionate shares reteived from interest on the obliga~ the North Carolina, and when he interrupted I tions of a State or any political or taxing subdivision thereof, and upon was going to call the attention of the Chair to the fact and was the obligations of th United States and its po sessions and that for going to make the point of order, which had occurred to me the purpose or computing the normal tax there shall be al 1ow ed a credit, while the Chair was announcing his deciSion, that str11.~ng out as provided by section 5, subdivision (b), 1'or their pro-portionate share of the profits derived from dividends. uch partnership when re­ the text-and this is important-on page 80, commencing with quested by the Commissioner of Internal Reve.nue or any district col­ section 1000, Title X, down to and including line 15, on page lector, shall render a correct return of the earnings, profits, and income 85, is one amendment, and the inserting of Title IX, section of the partnership, except income exempt under section 4 of this act, setting forth the item of the gross income and the deductions and credits 900, and what follows o~er to section 901, on page 87, is an­ allowed by this title, and the names and addresses of the t:ndivtdua.ls other and a separate amendment. who would be entitled to the net -enrnings, profits, and income, if dis-

'· /

1917. QONGRESSIONAL RECORD-~ SENATE. .6135 triouted. .A partnership shall have the same privilege of fixing and That relates to information at the source in place of collection making returns upon the basis of its own fiscal year as is accorded to cor·porations under this title. The share of the profits of a partnership at the source, and the paragraph on page 109, to which refer­ to which any taxable partner would be entitled for a fiscal year ending ence has been made, relates to deductions. in 19111, or subsequent tax years for which the rates of tax have been Mr. KELLOGG. I read from l,')age 107: or shall be changed by law, shall be returned for taxation and the tax paid under the respective rates applicable to each calendar year in the Subdivision (d) of section 8 of such act of September 8, i916, is proportion that the period of each calendar year bears to the full fiscal hereby repealed. year." (2) Subdivision (dJ of section 8 of such act of September 8, 1916, Is that the provision for the collection at the sour.ce? is hereby repealed. . Mr. LODGE. That is found on page 101, lines .17 and 18. Mr. McCUMBER. Before we proceed, I wish to say that I Mr. SMOOT. Lines 17 and 18, on page 101, as I have just do not understand that these sections are being adopted at this stated. ' · · time but merely read. Mr. LODGE. That repeals the provision in regard to collec­ Mr. LODGE. This is a purely administrative provision. tion at the source. Mr. SIMMONS. It is a purely adminiStrative section that 1\fr. SIMMONS. There is a p1;ovision in the section to. which I desire to get rid of this afternoon, if we can. the Senator refers relating to collection ·at the source, but-the Mr. McCUMBER. I would rather that subdivision (e) go repealing section is on page 101. over. I think it ought to be compared with other sections of , Mr. KELLOGG. Has that been adopted by the Senate as in the bill. I want to know before this section is passed on Committee of the ·whole? whether partnerships are treated in every respect exactly the Mr. SMOOT. The provision on page 101 bas been adopted. same as are corporations. I am doubtful whether this provision Mr. McCUMBER. Mr. President, what provision has been does give them the same treatment, and it may need som~ adopted on page 101? modification. "'Mr. LODGE. The whole of page 101. 1\1~·. Sll\fifONS. Let that go over, then, if the Senator. desires, Mr. McCUMBER. When was it adopted? antl let us go on with the remainder of that section. Mr. LODGE. No; I beg the Senator's pardon. It was not Mr. 1\I~CUMBER. That is satisfactory. adopted. Mr. STI\.G\fONS. we· will leave out subsection (e). Mr. SIMMONS. That was not adopted. 'l'he PRESIDENT pro tempore. The Chair is unable to tell Mr. LODGE. The whole thing was passed over. how a pal't of an ame.ndment can be segregated and allowed to ~ Mr. McCUMBER. That is what I understood, because I go over when it is one proposition. want to give notice now that on page 101 I shall move to strike Mr. SIMMONS: If the Chair holds that that is a necessary out, on lines 12 and 13, that portion in parenth-eses which reads part of the whole amendment, of course, his statement is cor- "(except income and war-profits taxes)," so that the provision rect · will read . the ·same as the old law. I do not want to take that Mr. SMOOT. I think that the provision applies to all on up to-day, because I would have to have a yea-and-nay vote on pages 106 and 107, down to and including line 8, on page 7, and it, and I do not wish to cal] for a quorum at this time. if any part of it goes over, it all ought to go over. Mr. SIMMONS. Mr. President, there have been so many re­ Mr. LODGE. Let me ask the attention of the Chaii· to section quests ab<;mt different amendments under this title_ going over 1204. It begins: that I am disposed to let it all go over down to section 1208, SEc. 1204. (1) That subdivisions (c) and (e) of section 8 of such on page 117, which is purely administrative. act of September 8, 1916, are hereby amended to read as follows: The reading of the bill was resumed. The next amendment of the Committee on Finance was, on The first amendment amends subdivision (c) of the old law, while the next amendment, which is a wholly separate amend­ page 117, after line 4, to insert: ment, amends subdivision (e). They are wholly different; they SEc. 1208. (1) That subdivision (e) of section 13 of such act of September 8, 1916, is hereby amended to read as follows : are intervening subdivisions in the original law. " (e) .All the provisions of this ti tie relating to the tax authorized The PRESIDENT pro tempore. The Chair will state that and required to be deducted and withheld and paid to the officer of the United States Government authorized to receive the same from the the Secretary, as the Chair thinks proper, has considered each income of nonresident alifm individuals from sources_withln the United , section as an amendment proposed by the committee. If that States shall be made applicable to the tax imposed by subdivision (a) is not the case, the chairman of the committee will have to of section 10 upon incomes derived from interest upon bonds and mort­ gages or dneds of. trust or similar obligations of domestic or other resi­ indicate the divisions of the amendments proposed by the com­ dent corporations, joint-stock companies or associations, and insurance mittee as they are read. companies by nonresident allen firms, copartnerships, companies, cor­ Mr. LODGE. My point was simply that we could amend the porations, joint-stock companies or associations, and insurance com­ subdivisions of the existing law separately. . panies, not engaged in business or trade within the United States and :aot having any office or place of business therein. The PRESIDENT pro tempore. There is no doubt about that (2) Subdivision (f) of section 13 of such act of September 8, 191(r, if the amendment is proposed as a single amendment. ' is hereby repealed. Mr. SIMMONS. Mr. President, I was proposing the amend­ ·The amendment was agreed to. ment to subdivision (c) as a separate amendment, but if this The next amendment was, at the top of page 118, to insert : is going to lead t_o any complication, as it seems it will, I will SEc. 1209. That section 18 of such act of September 8, 1916, is let the whole section go over. . hereby amended to read as follows : · The PRESIDENT pro tempore. The entire section will be "SEC. 18. That any person, corporation, partnership, association, or passed over. insurance company, liable to mak.e a return or to supply information required under this title, who refuses or neglects to make such a re­ Mr. SIMMONS. Now, as to section 1207-- turn or to supp1y such information at the time or times herein speci­ Mr. KELLOGG. Mr. President, ~ should like to ask the fied in each year, shall be liable, except as otherwise specially provided chairman of the committee a question. in this title, to a penalty of not less than $20 nor more than $1,000. Any individual or any officer of any corporation, partnership, associa­ Mr. SIMMONS. Just a moment and I wi.J.l yield to the Sena­ tion, or insurance company, required by law to make, render, sign, .or tor. As to section 1206, a Senator has requested that that sec­ verify any return or to supply any information, who makes any false tion go over. I have not the name 6f the Senator making the or fraudulent return or statement with intent to defeat or evade the assessment required by this title to be made, shall be guilty of a mis­ request, but I have marked it "Over." Section 1207, I think is demeanor, and shall be fined not exceeding $2,000 or be imprisoned not clearly administrative. · ' exceeding one year, or both, in the discretion of the court, with the Mr. KELLOGG. Mr. President, I should like to ask the chair­ costs of prosecution: Pro-,;idea, That where any tax heretofore due and payable ·has been duly paid by the taxpayer it shall not be re­ man of the committee if the second subdivision of section 1204 is collected from any withholding agent required to retain it at its the one repealing the provision of the law of 1916 for the col­ source, nor shall any penalty be imposed or collected in such cases lection of the income tax at the source? from the taxpayer, or such withholding agent whose duty it was to retain it, for failure to return or pay the same, unless such failure Mr. SIMMONS. To what section does_the Senator refer? was fraudulent and for the purpose of evading payment." Mr. KELLOGG. The second subdivision of. section 1204, on page 107. · The amendment was agreed to. Mr. SIMMONS. The latter part of section 1205, on page 109 The next amendment wus, on page 119, after line 2, to insert: line 18, which reads: . ' SEc. 1210. That section · 26 of such act of September 8; 1916, as amended by the act entitled ".An act to provide increased revenue to The provisions of this section relating to the deduction and pay­ defray the expenses of the increased appropriations for the .Army and ment of the tax !J.t the source of income shall only apply- Navy and the extensions of fortifications, and for other purposes," ap­ proved March 3, 1917, is hereby amended to read as follows : And so forth. "SEC. 26. Every corporation, joint-stock company, or association, or Mr. SMOOT. That relales to deductions; but I ask the Sena­ insurance company subject to the tax herein imposed, when required tor to turn to page 101, section 1201, subdivision (c), in para­ by the Commissione~; of Internal Revenue, shall render a correct re­ turn, duly verified under oath, of its payments of dividends, whether graph (2), which reads as follows: made in cash or its equivalent or in stock, including the names and Subdivision (c) of section 5 of such act of September 8 _191G, is addresses of stockholders and the number of shares owned by each, hereby ·repealed. ' and the tax years and the applicable amounts in which such dividends 6136 CONGRESSIONAL RECORD-SENATE. AUGUST 17.,

were earned. ip such form and maJlner as may be prescribed by the Mr. KELLOGG. Mr. President. my attention was diverted ·Commissioner of Internal llevenue, with the approval of the Secretary ·of the •..rreasury ." just a moment ago. Was section 31, on page 122, read? The amendment was agreed to. l\1r SIMMONS. Yes; that has ·just been agreed to. The next amendment was, on page 119, after· line 20, to iliSert: Mr. KELLOGG. That ought to be considered in connection with the subdivision repealing the provision for collecti.on at the SEe. 1211. Tblit Title I 1>f : such act of September 8~ 1916, is hereby amended by adding to Part III five new sections, as follows: source. · "SEc. ~7. T.bat every person, • .corpQl'ation, partnership, or associa­ Mr. SIMMONS. I will say to the Senator that after we have tion doing business as a broker on any exchange OJ;' board of trade or other similar place of bu in_ess shall, when required by- the· Commis­ acted upon the section relatmg to information Instead of col­ moner of Intemal Revenue, render a correct return duly verUled under lection at the source, I will consent to reopen this section if it oath. under such rules and regulations as the Commissioner of Inter­ seems to be necessary as a result of our action. nal Revenue, with the approval of the _Secretary of. the Treasm·y, may pl'escribe, showing tb_e names of customers for whom such person, cor­ Mr. KELLOGG. Very well. poration, partnership, or association has transacted any business, with EXECUTIVE SESSION. &nch ~etails as .to the profits, -losses, or othev information which the commissioner may require, as to each of such customers, as will enablo Mr. SIMMONS. I move that the Senate proceed to the con­ the Commissioner of Internal Revenue to determine whether all income sideration of executive business. tax· due on profits or gains of such customers has been paid. " SEC. 28. That all persons, corporations, partnerships,. associations, The motion was agreed to, and the Senate proceeded to the and insurance companies, in whatever <'ft.paclty acting, mcludlng lesse~ consideration of executive business. After five minutes spent or mortgagors of real or personal property, trustees actlng in any trust in executive session the deors were reopened. capacity, executors, administrators, receivers, conservators, and em­ ployers. making payment to an.other person, corporation partnershlp, EMPLOYMENT OF ADDITIONAL CLE."RK. association, · or insurance company, of- interest. rent, saiaries, wages. premiums, annuities, compensation, remuneration, emoluments, or other Mr. THOMPSON. From the Committee to Audit and Control tixed or determinable gains · profits, and income (other· than parroents the Contingent Expenses of the Senate I report back favorably described in sections 26 and 27 i, of $800 or more in any taxable year, without amendment Senate resolution 117, and I call the atten­ or, 1n the case of such payments made by the:' United States, the officers or employees of the United States having information-as to such pay­ tion of the Senator from North Carolina [Mr. SIMMONS] to the ments and required to make returns in regard thereto by the regula­ report. · tions hereinafter provided for, are hereby authorized and required to Mr. SIMMONS. I ask unanimous consent for the present render a true and accurate return to the Commissioner of Internal Revenue, under such rules and regulations and in such form and manner consideration of the resolution. · as may · be prescribed by hlm; wlth the approval of the Secretary. of The resolution was rea~ considered by unanimous consent, the Treasury setting forth the amount of such gains, profits, . and and agreed to, as follows : income, and the name and address of the recipient of such payment: Resolved, That the Committee on Finance be, and it ts hereby, au­ Pro.1Jided, That such return shall be required, regardless of amounts. thorized to employ an additional clerk, at the rate of $120 per month in the. case of payme~ts of tntefest upon bond a.nd mort~ages or 1917, 1 deros of trust o.~: other similar ob lgations of corporations, jomt-stock for a period lasting from August 2D, until the eud of the presem; companies, associations, and insurance companies, and in the' case session of the Sixty-fifth Congress, to be paid out of the miscellaneous of collections of items (not payable in the United States) of interest items of the contingent.fund of the Senate. upon the bonds of foreig-n countries and interPRt from tbe bonds and BILLS INTRODUCED. dividends, from the stock of foreign corporanons by per ons, corpo­ rations, partnerships, or associations, undertaking as a :matter of busi­ Bills were introduced, read the first time, and, by unanimous ness or for profit the collection of foreign payments of such interest consent, the second. time, and referred as follows : or divi-dend!) by meaJlS of coupons, checks, or bills of exchange. · " When necessary to make effective the provisions of this section the By 1\fr. JONES of Washington: name and address of the recipient of income shall be furnished upon A bill ( S~ 2805) for, the relief of Ralph Parsons ; to the Com- demand of the person, corporation, partnership, association, Qr insur­ mittee on l\1111tary A.fl.'atrs, ance compan:y paying the income. . " The prov1sions of thls section shall apply to the calendar year 1917 By Mr. DILLINGHAM: and each calendar year thereafter. A bill {S. 2806) granting a pension to Kate E. Le Velley; and " SEc. 29. That in assessing income tax the net income embraced in A bill (S. 2807) granting an increase of pension to Fanny S. the r eturn shall al o be credited with the amount of any exces profits tax. imposed by act of Congress and assessed for the same calendar or Coniine (with accompanying papers); to the Committee on Pen,. fiscal year upon the ta..'t])ayer. sions. " SEC, 30. That nothing in section II of the act approved October 3, By Mr. MYERS: .1913, entitled 'An act to reduce tarlfr duties and to provide revenue for the Government, and for other purposes,' or in this title, shall be A bill (S. 2808) to appropriate money for supplying seed construe<} as taxing the income of foreign Governments. received from wheat to indigent homesteaders and farmers for sowing iu the inve~;tments in tbe United States in stocks, bonds~ or othP.t domestic fall of 1917; to the Committee on Appropriations. securities. , " SEc. 31. That all contracts entered into after the e-nactment of W AB-RISK INSURANCE. this amendment by which any person, corporation, partnershlp, asso­ ciation, or insurance company agrees to pay any portion of the tax Mr. WATSON submitted an amendment intended to be pro­ imposed by this title upon an;y other person, corporation, association, posed by him to the bill (S. 2758) to amend an act entitled "An or in urance company, or to rermburse such person, corporation, associ­ act to authorize the establishment of a bureau of war-risk in­ ation, or insurance company for any portlon of such tax, shall be void, and any person. corporation, partnership, association, or insurance surance in the Treasury Department," approved September 2, company entering into such a contl'act sball be subject to a fine of not 1914. and for other purposes, which was referred to the Com­ more than $1,000." mittee on Finance and ordered to be printed. The amendment was agreed to. MEMORIAL ADDRESSES ON THE LATE SENATOB LANE. The next amendment was, on the top of page 123 to insert : SEc. 1212. That any lllDount heretofore withheld by any withholding Mr CHA.l\IDERLAIN. Mr. President, the memorial addresses agent as required by Title I of such act of September 8. Hl16. on ac­ on my late colleague, Senator LANE, were set for next Sunday count of the tax Imposed upon the income of any individual, a citizen or morning at half past 10 o'clock. Some of the Senators who l'esident of the United States, for the calendar year 1917, shall be desire to submit remarks -on that occasion have notified me r eleased and paid over to such individual. and the entire tax upon the income of such individual for ·such yea.~: shall be assessed and colleeted that they will not be able to be here, as they will be engaged in the manner prescribed by such act as amended by this act ~ in preparation for the discussion of the war-revenue bill. The amendment was agreed to. Therefore, in order to accommodate them, I ask that the time The next amendment was, under the head of " Title XIII.­ for those exercises be changed from next Sunday to the 16th General provisions," in section 1302, page 124, line 3, ·after the of September at the same hour. word "its," to strike out "passage" and insert" enactment,'~ so The PRESIDING OFFICER (Mr. KING in the chair). The as to make the section read : notice will be entered. SEc. 1302. That unless otherwise ·herein specially provided, this act RECESS. shall take en'ect on the day following its enactment. · Mr. S!Ml\:!ONS. I move that the Senate take a reeess until The amendment was agreed to. 11 o'clock to-morrow morning. . Tlle reading of the bill was concluded. The motion was agreed to; and (at 5 o ~ clock p. m., Friday. l\fr. SMOOT. 1\Ir. President, on page 114 I think in printing A._ugust 17~ 1917) th~ Senate took a recess until to-morrow, Sat­ the committee amendment three words have been left·out. After urday, August 18, 1917, at ll·o'clock a. m. the word " company " in line 20 on that page there should be inserted the words " shall be deducted. " l\Ir. SIMMONS. Mr. President, my attention has been called NOMINA~IONS. to that. I think 'it is a clear omission, and I accept the amend- ExecuUve nmninations received by tke Senate August 1'1 (legis· ment. · lativ e day of August 15), 191"1. "The PRESIDENT pro temp<>'re. The amendment will be stated. · AssisTaNT SECRET.ABIEs oF Aan~CULTURE. The SECRETABY. On page 114, in the committe amendment, on Clarence Ousley, of College Station, Tex., to. be Assistant line 20, after the woFd ".company," it is proposed to insert the Secretary. of Agriculture. words " shall be deducted." - Raymond A. Pearson, of Ames, Iowa, to be Assis.tant Secretary The amend.ment was agreed to. of Agriculture. · 1917. CONGRESSIO-NAL RECORD-SENATE. 6137 . - -

SECRETARY OF El\IBASSY OR LEGATION. ~apt. Roger S. Fitch, Cavalry, ·detached officers' list, to be Hugh S. Gibson, of California, now a secretary o.f embassy .or maJor from July 23, ~917, vice Maj. Clyde E. Hawkins, detailed legation of class 2, to be a secretary of embassy or legation oJ. in the Quartermaster Corps. cla&: 1 of the Uniteu States of America. Capt. Holland Rubottom, Cavalry, to be major from July 23 £unuc HEALTH SERVICE. 1917, vice Maj. Willard H. McCornack, detailed in the Signai Corps. · Surg. George l\I. Magrnder to be senior surgeon in the Public H~1.lth Service, to rank as such from August ll, 1.917, in :place Capt: Leslie_ A. I. Chapman, c;avalry, to be major from July 24, of Senior Surg. George W. Stoner, who was placed ou·waiting 1917, v1ee fa:~. Mathew C. ·snnth, promoted. orders to be effective August 11, 1917. Capt. Aubrey Lippincott, Cavalry (Aviation Section Signal Dr. Howard Edwin Settle to be assistant ·surgeon in the Public C01.i>S), to be major from July 24, 1917, vice Maj. He~bert J. Health Service to take effect from date of oath. Brees, detailed in The Adjutant General's Department. - Capt. Henry W. Parker, Cavalry, to be Iruljor from July 24 APPOiNTMENT IN THE ARMY. 1917, vice Maj. Aubrey Lippincott, retained in the Aviation Sec: l\faj. Clifton C. Carta·, Coast Artiliery tCorps, to be professor tion, Signal Corps. . . of natw:al and eA'T>erimental philo ophy at the United ·States Capt. William H. Winters, Cavalry (Quartermaster Corps) te Military Academy with rank' from August 14, ~917, vlce Pl'Of. be major from .July 24, 1917, :vice Maj. Charles A. Romeyn 'de- .William B. Gol'don, retired from activ~ service May 7.. 1911. tailed in The Adjutant General's Department. ' PROMOTIONS IN THE ARMY. Cap.t Douglas McCaskey, Cavalry, to be major from July ·24 in MEDICAL CORPS. 1917, vice Maj. William H. Winters, retained the Quarter: master Corps~ Maj. Edward B. Vedder to be lieutenant colonel from May 15, 1917, vice Lieut. Col. David Baker, promoted. Capt. Samuel 'B. Pear on, Cavalry lQuartermaster Corps), to be major from July 24, ~917, vice Maj. James C. Rhea, detailed CHAPLAIN. in The Adjutant General's department. Chaplain George W. Prioleau, Twenty-fifth Infantry, to be Capt. Freeborn P. Holcomb, Ca-valry ·(Quartermaster ·corps), chRplain with rank of majol' from August 9, 1917, vice Chaplain to be major from. July 24, 1917, vice Maj. Samuel B. Pearson, Halsey C. Gavitt, First Cavalry, retired from active serwice Au­ retained in the Quartermaster Corps. gust 1, 1917. Capt. Albert A. King, Cavalry, detached officers' list, to be CAVALRY ARM. major from July 24, 1917, vice Maj. Freeborn C. Holcomb, re- J ..ieut. Col. James A. Ryan, Cavalry, to be colonel front July '25, tained in the Quartermaster Corps. · 1917, Yice Col. Ellwood W. Evans, who died July 24, 1917. Capt. Daniel Van Voorhis, Cavall'y, detached ctficers' list, to · Maj. Benjamin B. Hyer, Cavalry, to be lieutenant colonel from be major from July 24, 1917, vice Maj. Paul T. Hayne, jr., -de­ J'une 28, 1917, vice Lieut. Col. Walter C. Babcock, il.'etained in tailed in The Adjutant General's department. the General Staff Corps. Capt. Julien E. Gaujot, Cavalry, to be major from July 24, l\Iaj. Mathew C. Smith, Cavalry, to be lieutenant -colonel from · 1917, vice Maj. Samuel F. Dallam, detailed in the Quarterm_aster J'uly 24, 1917, vice Lieut. Ool. .:John :M. :Morgan, detailed in The Corps. Adjutant General's Department. Capt. Delphey T. E. Casteel, Cavalry, to be major from July 'Maj. Kenzie W. Walli:er, Cavalry (Quartermaster Corps), to 25, 1917, vice Maj. William S. Valentine, detailed in the Quar­ be lieutenant colonel from July 25, 1917, vice Lieut. Col. James termaster Corps. A. Ryan, promoted. ' ·Capt. Joseph R. .1\IcAndrews, Cavalry, detac'hed offieel'S' list, :Maj. Harry H. Pattison, Cav:alry, to be lieutenant·colonel from to be major from July 25, 1917, vice Maj. Patrick W. Guiney, J'nly 25, 1917, vice Lieut. Col. Kenzie W. Walker, retained in the detailed in the Quartermaster ·Oorps. Quartermaster Corps. Capt. George E. Lovell, Cavalry, to be major 'from July 25, Maj. Francis Le J. Parker, Cavalry (General .Staff Corps), to 1917, vice Maj. Leon B. Kromer, detailed in the Quartermaster be lieutenant colonel from July 28, 1917, vice Lieut. Col. Frank Corps. S. Armstrong, placed on the detached officers' list. Capt. FrankL. Case. Cavalry (Quartermaster Co,_·ps), to be Maj. (korge F. Hamilton, Cavalry, to be lieutenant -colonel major from July 25, 1917, vice Maj. ·warren W. Whitslde, -de­ from July 28, 1917, vice Lieut. Col. Francis Le J. Par'ker, re­ tailed in the Quartermaster Col'ps. tained in the General Staff Corps. Capt. Jo.hn H. Lewis, Cavalry, to be major from July 25. 1917, Maj. William H. Paine, Cavalry, to be lieutenant colon-el from vice 1\Iaj. Frank L. Case, retained in the Quartermns1er Corps. Jnly 28, 1917, vice Lieut. Col. Robert C. Williams, placed -on the Capt. Harry N. Cootes, Cavalry (General Staff Corps), to be I detached officers' list. major from .Tuly 25, 1917, vice Maj. Harry H. Pattison, promoted. l\1aj. John W. Craig, Cavalry, detached officers' list, to be lieu­ Capt. Charles \V. Van Way ·Cavalry. to be major from July·25, f tenant colonel from July 28, 1917, vice Lieut. Col. Kirby Walker, 1917, vice Maj. Harry N. Cootes, retained in the Gen.eral Staff placed on the detached officers' list. Corps. Maj. Hugh D. Berkeley, Cavalry, to be lieutenant colonel from Capt. Wilso~ G. Heaton, Cavalry, to be ·major from .'July 28, July 28, 1917, vice Lieut. C<>l. Claude B. Sweezey, placed on the 1917, -vice l\Iaj. •George F. Hamilton, promoted. · detached officers' list. Capt. Edward Davis, Cavalry, detached officers' list, to be Maj. Albert E. Saxton, Cavalry (Quartermaster Corps), to be major from July 28, 1917, subject to examination required by lieutenant colonel from July 28, 1917, vice Lieut. Col. Sterling law, vice Maj. William H. Paine, promoted. P. Adams, placed on the detached officers' list. ~ capt. James M. Bnrroughs. Cavalry (Quartermaster Corps), Maj. Hamilton S. Hawkins, Oavalry (Inspector Heneral's . to be major from ,July 28, 1917, vice Maj. Hugh D. Berkeley, Department), to be lieutenant colonel from July '28, 1917, vice Pl'OIDOted. Lieut. Col. Albert E. Saxton, retained in the Quartermaster Corps. Capt. Dorsey_ Cullen, Cavalry, detached officers' list, to ·be Maj. Frank Parker, Cavalry, detached officers' list, to -be lieu­ major from July 28, 1917, vice Maj. James M. Burroughs, re­ tained in the Quartermaster Corps. tenant colonel from July 28, 1917, vice Lieut. Col. Hamilton~. Capt. Charles H. 'Boice, Cavalry, detached officers' list, to be Hawkins, retained in the Inspector General's Department. major from July 28, 1917, subject to examination required by Maj. George :Vidmer~ Ca-valry (Inspector General), 1t.(l be lieu­ tenant colonel from July · 28, 1917, vice Lieut. Col. Julian R. law, vice Maj. Casper H. Conrad, jr., promoted. Lindsey, placed on the detached officers' list. Capt. Daniel H. Gienty, Cavalry (Quartermaster ,corps), to ·be Maj. Casper H. Conrad, j:r.,. Cavalry, to be .lieutenant col{)nel major ·from July -28, 1917, vice Maj, Nathan K. Averill, pro­ from J'uly 28, 1917, vice Lieut. Col. George Vidmer, retained ' moted. in the Inspector General's Department. . Capt. William J. Kendrick, Cavalry, to ·be major from July Maj. Nathan K. Averill, Cavalry, detached officerS' list, to be 28, 1917, :vice Maj. Daniel H. Gienty, retained in the Quarter­ lieutenant c.Qlonel from July 28, 1917. vice Lieut. Col. Edmnnd master Corps. 1\f. Leary, plared on the detached officers' list. Capt. George T. Bowman, Cavai.t:y (General Staff CorpsL to Maj. ;Eiarry La. T1 Cavenaugh, Cavalry, to be 1ieutenan:tmlone1 be major from July 28, ~9L7, stibject to examination requi~ed from July 28, 1917, vice Lieut. Col. Julius F. Conrad; placed by law, vice Mali. Har.ry La T. Cavenaugh, vromuted. on the .detached tOfficers' list. Capt. John S. Fair, Cavalry {Quartermaster Corps), to be Capt. .Alvan C. Gillem, Cavalry, detached nfficers' Jist, ±o be major from July 28, 1-917, vice Maj. :George "1!. Bowman, retained major from June 28, 1917, vice Maj. Benjamin B. Hyer. promoted. in the General Staff Co.r,ps. Capt. William B. Cowin, Cavalry. to be major frum J'uly '3, Capt. Robert J'. Reaney. Cavalry (Quartermaster Uorps).,

Capt. Sherrard Coleman,_Cavalry (Quartermaster Corps), to . Fir~t Lieut. Thoburn K. Brown, Cavalry, detached officers' - be major from July 28, 1917, vice Maj. Robert J. Reaney, re­ list, v1ce Capt. Charles S. Haight, promoted. tained·in the Quartermaster Corps. First Lieut. Geoffrey Keyes, Cavalry detached officers' list, Capt. Willia~ F. Herringshaw, Cavalry, to be major from vice Capt. William D. Forsyth, promoted. July 28, 1917, vice Maj. Sherrard Coleman, retained in the Quar- First Lieut. Joseph W. Viner, Cavah·y,-detached officers' list termaster Corps. . . vice Cap. Patrick W. Guiney, promoted. ' To be captains 'With ranlc front May 15, 1917. .. Fir~t Lieut. John A. Considine, Cavalry, detached officers' First Lieut. Henry L. Flynn, Cavalry, detached officers' list, list, vice Capt. Leon B. Kromer, promoted. to fill an original 'vacancy. First Lieut. Earl L. Canady, Cavalry (Aviation Section Sig- First Lieut. Harold l\f. Rayner, Cavalry, detached officers' nal ~orps>, vice Capt. Charles A. Romeyn, promoted. ' . F_trst Lieut. G~orge .E. Lovell, jr., Cavalry (Aviation Section, list, to fill an original vacancy. S1gn.al Corps), VIce Qapt. Earl L. Canady, retained in Aviation First Lieut. John T. McLane, Cavalry, to fill an ·original Secbon. . , vacancy. First Lieut. James S. Mooney, Cavalry, detached officers' . Fir~t Lieut. Desmore 0 ; Nelson, Ca~alry, . detached officers' llst,.vice ~apt. George E. Lovell, jr., retained in Aviation Section. list, to fill an original vacancy. First Lieut. Carlyle H. Wash, Cavalry, vice Capt. Evan H. First Lieut. Hemy W. Harms, Cavalry "(Aviation Section, Humphrey, promoted. Signal Corps), to fill an original vacancy. . First L!eut. John F. Crutcher, Cavalry, vice Capt. Charles c. First Lieut. John E. Lewis, Cavalry, vice Capt. Henry W. Farmer, Jr., promoted. Harms, retained in Aviation Section. First Lieut. Henry Abbey, jr., .Cavalry, vice Capt. Warren First Lieut. John D. Kelly, Cavalry, to fill an original vacancy. Dean, promoted. · First Lieut. Thorne Deuel, jr., ·Cavalry (Aviation Section, First Lieut. Earl H. Coyle, Cavalry, vice Capt. James 0. Signal Corps),' to fill an original vacancy. Rb,ea, promoted. · First Lieut. 'Villiam Nalle, Cavalry, detached officers' list, First Lieut. 1\Iack Garr, Cavalry, detached officers' list, vice vice Capt. Thorne Deuel, jr., retained in Aviation Section. Capt. Llewellyn W. Oliver, promoted. First Lieut. Roy 0. Henry, Cavalry, detached officers' list, to _First Lieut. Stanley C. Drake, Cavalry, detache

First Lieut. Frederick HetT, Cavalry, ·detached officers' list, First Lieut. 'Villlam E. Shipp, Cavalry, from July 27, 191'7, from June 15, 1917, vice Capt. James H. Dickey, detailed in the vice Capt. Gordon N. Kimball, resigned July 26, 1917. Quartermaster Coi-ps. .... First Lieut. Calvin De Witt, jr., Cavalry, from July 27, 1917, First Lieut. John B. Thompson, Cavalry, detached officers' vice C pt. George V. Strong, resigned July 2~, 1917. list, from June 16, 1917, vice Capt. John J. Ryan, promoted. First Lieut. James M. Crane, Caval~y. from July 28, 1917, vice First Lieut. Sheldon H. Wheeler, Cavalry (Aviation Section, Capt. E. R. Warner McCabe, transferred to Field Artillery. _ Signal Corps), from June 18, 1917, vice Capt. Julian A. Benja­ First Lieut. Lucien S. S. Berry, Cavalry, from July 28, 1917, min, detailed in the Qun.rtermaster Corps. vice Capt. Wilson G. Henton, promoted. First Lieut. John Kennard, Cavalry, from June 18, 1917, vice First Lieut. Victor W. B. Wales, Cavalry~ from July 28, 19~7. Capt. Sheldon H. Wheeler, retained in the Aviation Section. vice Capt. William J. Kendrick, promoted. First Lieut. Sta.iiOTd Le- R. Irwin, Cavalry, from June 22, INFANTRY ABU. 1917, vice Capt. Osmun Latrobe, jr., promoted. Fir t Lieut. Pearson Menoher, Cavalry, from June 22, 1917, Capt. Frank B. Hawkins, Infantry, detached officers' list. to vice Capt. Dwight K. Shurtleff, detailed in the Ordnance Depart­ be major from .July 6, 1917, nee Gilbreth, detailed in the Quar- ment. termaster Corps. . - / First Lieut. Edwin B. Lyon, Cavalry (Aviation Section, Signal Capt. Harry A. Hegeman, Infantry {Quartermaster Corps), Corps), from June 28, 1917, vice Capt. James Long&reet, pro­ to be major from July 14, 1917, vice Turner, unassigned, de. moted. tailed in The Adjutant General's Department. First Lieut. Carl C. Bank, Cavalry, from June 28, 1917, .vice Capt. G. .Arthur Hadsell, Twenty-eighth Infantry, to be Capt. EdWin B. Lyon, retained in the A nation Section. mn.jor from July 14, 1917, vice Hegeman, retained in the Quar­ First Lieut. George H. Peabody, Cavalry, from July 3, 1917, termaster Corps on promotion. vice Capt. William B. Cowin, promoted. Capt. Wait C. Johnson, Twenty-sixth Infantry, to be major First Lieut. Earl L. Naiden, Cavalry (Aviation Se(tion, Sig­ from July 18, 1917, vice Preston, Fourth Infantry, promoted. nal Corps), from July 4, 1917, vice Capt. James ·L. Collins, Capt. J. 1\lillard Little, Twenty-seventh Infantry, t() be major transferred to Field Artillery. from July 21, 1917, vice Kerwin, Sixty-fourth Infantry, retired First Lieut. Henry McE. Pendleton, . Cavalry, from July- 4, July 20, 1917. . 1917, vice Capt. Earl L. Naiden, retained in Av.in.tiou He('tion. Capt. John L. Bond, Thirtieth Infantry, to be major n·om First Lieut. Edmund de T. Ellis, Cavalry, from July 6, 1917, July 23, 1917, vice Can·, Seventh Infantry, detailed in the Quar­ vice Capt. Duncan Elliot, retired from active service July 5, termaster Corps. 1917. Capt. Josephus S. Cecil, Twenty-fifth Infantry, w be major First Lieut. Robert W. Strong, Cavalry, ftom July 23, 1917, from J"uly 24, 1917, vice .Janda, Third Infantry, detailed in The ."\"ice Capt. Holland Rubottom, promoted. Adjutant General's Dep:1rtment. First Lieut. Clifford B. King, Cavalry, from July 24., 1917, Capt. Edward R. Stone, Fourteenth Infantry, to be major ;vice Capt. Leslie A. I. Chapman, promoted. from July 24, 1917, vice Enochs, Eleventh Infanh·y, detailed in First Lieut. Paul R. Frank, Cavalry, from July 24, 1.917, vice The Adjutant General's Department. Capt. Henry W. Parker, promoted. Capt. Albert R. Dillingham, Infantry, detached officers' list, First Lieut. Edward C. McGuire, Cavalry, from July 24, 1917, to be major· from July 24, 1917, yjce Bates, Thirty-ninth Infan­ .vice Capt. Douglas McCaskey, promoted. _ try, detailed in The Adjutant General's Department. First Lieut. John l\fcD. Thompson, Cavalry, from July 24, Capt. William R. Gibson, Infantry (Quartermaster Corps), to 1917, vice Capt. Julien E. Gaujot, promoted. be major from .July 24, 1917, vice Naylor, unassigned, detailed First Lieut. Jo~n F. Davis, Cavalry, from J"uly 25, 1917, vice in The Adjutant Generafs Department. Capt. Delphey T. E. Casteel, promoted~ Capt. Will H. Point, Infantry (Quartermaster Corps), to be First Lieut. Reese M. Howell, Cavalry, from July 25, 1917, major from 1uly 24, 1917, vice Gibson, retained in the Quarter­ vice Capt. George E. Lovell, promoted. master Corps on promotion. First Lieut. Henry J. F. Miller, Cavalry, from July 25, 1917, Capt. Henry M. Bankhead, Infantry, detached officers' list; to vice Capt. John H. Lewis, promoted. be major from J uly 24, 1917, vice Point, retained in the Quarter­ First Lieut. Frank D. McGee, Cavalry, from July 25, 1917, master Corps on promotion. :"'ice Capt. Charles W. Van Way, promoted. Capt. Henry A. Ripley, Third Infantry, to be major from July First Lieut. Harry B. Anderson, Cavalry (Aviation Section, 24, 1917, vke King, unassigned, detailed in The Adjutant G_en- Signal Corps), from July 25, 1917, vice Capt. Samuel B. Pear­ eral's Department. · son, detailed in the Quartermaster Corps. Capt. William A.. Kent, Infantry, detached officers' list, to be First Lieut. Victor V. Taylor, Cavalry, from July 25, 1917, major July 24, 1917, vice Van Horn, unassigned, detailed in The .vice Capt. Harry B. Anderson, retained in Aviation Secti-on. Adjutant General's Department. . First Lieut. Horace Stringfellow, jr., Cavalry, from J"nly 25, Capt. \Valter C. Sweeney, Twenty-first Infantry, to be major 1917, vice Capt. Alexander H. Davidson, detailed in the Quarter­ from July 25, 1917, vice Walton, Se:.venteenth Infantry, detailed master Corps. in the Quartermaster Corps. First Lieut. Ralph P. Cousins, Cavalry (Av\ntion Section, Capt. Samuel W. Noyes, Fourth Infantry, to be major from Signal Corps), from July 25, 1917, vice Capt. Charles 0. Thomas, July 25, 1917, vice Dalton, unassigned, detailed -in the Quarter­ jr., detailed in the Quartermaster Corps. ' master Corps. First Lieut. John F. Stevens, Cavalry, from July 25, 1917, Oapt. Charles W. Weeks, Thirteenth Infantry, to ~ major .vice Capt. Ralph P. Cousins, retained in Aviation Section. · from July 28, 1917, vice Lawton, Twenty-sixth Infantry, pro· First Lieut. Blackburn Hall, Cavalry, from July 25, 1917, vice Capt. Edmond R. Tompkins, detn.iled in the Quartermaster moted. Corps. Capt. James T. Watson, Infantry, detached officerS" list, to be First Lieut. Edward J. Dwan, Cavalry, from July 25. 1917, major from August 3, 1917, vice Connolly, Forty-fifth Infantry, yjce Capt. Thomas l\1. Knox, detailed in the Quartermaster Corps. assigned to the detached officers' list. . _ First Ueut. Eustis L. Hubbard, Cavalry, from July 25, 1917, Capt. William W. McCammon, Infantry, detached officers' list, vice Capt. C. Emecy Hathaway, detailed in the Quartermaster to be major from August 3, 1917, vice Sehoeffel, Twenty-seT"enth Corps. Infantry, assigned to the detached officers' list. · First Lieut. \Villiam B. Peebles, Cavalry (Aviation Section, Capt. Cyrus A. Dolph, Seventh Infantry, to be major from Signal Corps), from July 25, 1917, vice Capt. Herbert E. 1\Ia.nn, August 3, 1917, vice Qyenshine, First Infantry, assigned to the detailed in the Quartermaster Corps. detached officers' list. First Lieut. Frederic \V. Boye, Cavalry, from July 25, 1917, Capt. Willis P. Coleman, Infantry, -detached officers' list, to vice Capt. William B_,..Peebles, retained in Aviation Section. be major from August 3, 1917, vire 1\Iaxey, Eighteenth Irifan­ First Lieut. Karl H. Gorman, Cavalry, from July 25, 1917, try, assigned to the detached officers' list. vice Capt. Stanley Koch, detailed in the Quartermaster Corps. Capt. Albert B. Sloan, Twenty-second Infantry, to be -major First Lieut. James K. Cockrell, Ca\alry, from July 25, 1917, from August 3 1917, vice Nicklin, Fifty-first Infantry, assigned vice Capt. William \V. West, jr., detailed in the Quartermaster to the detached officers' list. Corps. Capt. Lucius C. Bennett, Twenty-first Infantry, to be major First Lieut. DeRosey C. Cabell, jr., CnYalry, from July 25, from August 3, 1917, vice French, Twenty-eighth Infantry, as~ 1917, vice Capt. Reynold F. Migdalski, detailed in the Quarter­ , signed to the detached officers' list. master Corps. ' Capt John E. J.\lorris. Infantry, unassigned, to be major from First Lieut. Ralph I. Sasse, Ot~.valry, from July 25, 1917; vice August 3, 1917, vice Stacey, Fortieth Infantry, as igned to the Oart. Frederick Gilbreath, detailed in the Quartermaster Corp·. detncbed officers' list

' I I 6140 CONGRESS! ON AL -RECORD-SENATE~ AUGUST' - 17,

Capt. William B. Gracie, Injantry (Quartermaster Corps), to Second Lieut. John R. Donaldson with rank from June 5, 1917. be major from August 3, 1917, vice Cavenaugh, Nineteenth In­ _ second Lieut. Julian G. Guiteras with rauk from June 5, 1917. fanti·y, assigned to the detached officers' list. Second Lieut. Gilbert D. Fish with rank from July 13, 1917. Capt. Lawrence P. Butler, Infantry, detached officers' list, to PROVISIONAL APPOINTMENT lN THE ARMY. be major from August 3, 1917, vice Gracie, retained in the Quar­ termaster Corps on promotion. • CAY ALRY ARM. Capt. Paul 0. Galleher, Nineteenth Infantry, to be major from Fir t Lieut. Ernest Frederick Apeldorn, jr., Thlru Infantry, August 3, 1917, vice Wickham, Twelfth Infantry, assigned to Penn ylvania National Guard, to be second lieutenant witll rank the detached officers' list. . from date of appointment. Capt. Claude S. Fries, Twenty-seventh Infantry, to be major PROMOTIONS IN THE NAVY. from August 3, 1917, 'Vice Com·ad, Seventeenth Infantry, assigned .. . to the detaclled officers' list. Tlle following-named warrant officers of tlte Navy to be en­ Capt. WiJliam ·a. Doane, Thirty-fourth Infantry, to be major signs in the Navy, for temporary service, from the 15th day of from Augu t 3, 1917, vice Prescott, Forty-ninth Infantry, as­ July, 1917: . . -. signed to the detached officers' list. Boatswain Francis A. Pippo, Capt. James M. Kimbrough, jr., Seventh Infantry, to be major Gunner Edward C. Wurster, from August 3, 1917, vice Falls, Twenty-eighth Infantry, as­ Machinist Charles 0. Hathaway, and signed to the detached officers' list. l\Iachinist Patrick J. Solon. Capt. Alvin K. Ba kette, Infantry (QlJartermaster Corps), to The following-named warrant officers of tlle Navy to be en­ be major from August 3, 1917, vice Graham, unassigned, detailed signs in the Navy, for temporary service, from the 15th day of in the Inspector General's Department. August, 1917 : · Capt. John L. Jordan, First Infantry, to be major from Au­ Boatswain l\Iichael J. Bresnallan, gust 3, 1917, subject to examination required by law, vice Bas­ Boatswain Edmond Delavy, . kette, retained in the Quartermaster Corps on promotion. Boatswain Horace de B. Dougherty, Capt James G. Hannah, Se'Venth Infantry, to be major from Boatswain Fred Rasmussen, August 3, 1917, vice Humphrey, Eighth Infantry, assigned to the ~oatswain Frank Schultz, detached officers' li t. Boatswain Daniel J. Sullivan, Capt. Samuel B. Mcintyre, Fourteenth Infantry, to be major Boatswain Edwin W. Hill, from August 3, 1917, vice Tillman, Fifty-first Infantry, assigned Boatswain William C. l\Iilligan, to· the deta~ed officers' list. Boatswain James Reil1y, Capt. l\lilosh R. Hilgard, Infantry {Quartermaster Corps), to Boatswain WjlJiam A. James, be major from August 3, 1917, vice Holden, Twenty-fourth In­ Boatswain Jerry C. Holmes, fantry, assigned to the detached officers' list. Boatswain Edwin R. Wroughton, Capt. Linwood E. Hanson, Infantry (Quartermaster Corps) to Boatswain Lewis H. Cutting, be major from August 3, 1917, vice Hilgard, retained in the Quar­ Boatswain William C. Carpenter, termaster Corps on promotion. Boatswain Charles L. Greene, Capt. Chal'les B. Stone, jr., Fifteenth Infantry, to be major Boatswain Charles King, from August 3, 1917, vice Hanson, retained in the Quartermaster Boatswain Ora A. l\lartin, Corps on promotion. Boatswain Stephen Ingham, Boatswain William T. Shaw, · APPOINTM]!:NTS, BY TRANSFER, IN '!HE ARMY. Boatswain William R. McFarlane, CAVALRY ARM. Boatswain l\Ielvin C. Kent, First Lieut. Ivan N. Waldron, Infantry, to be first ;ieutenant Boatswain Albert C. Fraenzel, of Cavalry with rank from June 14, 1917. Boatswain Ralph B. Wallace, INFANTRY ARM. Boatswain Joseph D. Glick, Boatswain Gregoire F. J. Labelle, First Lieut. Oscar T. Abbott, Ca'Valry, to be first lieutenant of Boatswain Henry Hartley, Infantry 'vith rank from June 14, 1917: · Boatswain Philip J. Kelly, PROVISIONAL APPOINTMENTS, BY TRANSFER, IN THE .A.R:MY. Boatswain William E. Benson, CAVALRY ABM. Boatswain Simon L. Shade, First Lieut. john W. Weeks, Field Artillery, to. be first lieu­ Boatswain Wildon A. Ott, tenant of Cavalry with rank from June 5, 1917. Boatswain Junius G. Sanders, Boatswain George T. Campbell, · FIELD ARTILLERY ARM. - Boatswain Harold G. Billings, F-irst Lieut. Wallace W. Crawford, Cavalry, to be first lieu­ Boatswain Frank Kinne, tenant of Field Artillery with rank from June 5, 1917. Boatswain Frank C. Nigg, First Lieut. Henry W. Farnam, jr., Infantry, to be first lieu­ Boatswain Thomas l\f. Buck, Lenant of Field Artill~ry with r~nk ~rom •June 16, 1917. Boatswaiu John Wllalen, INFANTRY ARM. Boatswain Oscar Benson, First Lieut. Francis Fielding-Reid, Field Artillery, 1.o be fi1·st Boatswain John R. McMeekin, lieute~aflt of Infantry \vith rank from June 16, 1917. Boatswain John R. McKean, Boatswain .Lafayette P. Guy, PROVISIONAL APPOINTME4 TS, BY PROMOTION, IN THE ARMY~ '. . Boatswain Frank J. Mayer, CORPS OF ENGTh"EERS. Boatswain Jnmes J. Joyce, To be fit·st lie_jJtenants to fill original "!acancies. Boatswain Warner K. Bigger, Second Lieut. Marion D. H. Kolyn with rank from June 3, Boatswain Joseph Sperl, 1917. Boatswain David F. Mead, Second Lieut. Walter-P. Bmn with rank from June 4, 1917. Boatswain George B. Llewellyn, Seco.nd Lieut. David L. Neuman with rank from June 4, 1917. Boatswain Frederick J. Legere, . Secon.d Lieut. Lenox R. Lohr with rank from June 5, 1917. · Boatswain John H. Macdonald, Second Lieut. Truman 1\f. Curry, jr., with rank from June Boatswain William A. Fulkerson, 5, 1917. . . . Boatswain Conrad T. Goertz, Second Lieut. Frank M. S. Johnson with rank from June 5, Boatswain Nathan E. Cook, 1917. Boatswain Erne t L. Jones, l;)econd Lieut. Simes T. Hoyt with rank from J"une 5, 1917. . Boatswain l\lurry Wolffe, Second Lieut. Clarence 1\f. Fuller with ran}r from June 5, 1917. Boatswain Bailey E. Ri".,., -Second Lieut. Harry A. Skerry with rank from June 5, 1917. Boatswain Quintus R. Thomson, jr., Second Lieut. John F. McSweeney with t·ank from June 5, Boatswain .John A. Pierce, 1917. . . . Boatswain William R. Spear, Second Lieut. Giovanni B. LaGuardia with rank from June 5, Boat wain Roy .K. Madill, . 1917. I . Boatswain Nils Anderson, Second Lieut. Fred C. Albert with rank from June 5, 1917. Boatswain John E. Armstrong, Second Lieut. Don R. Cather with rank from June 5, 1917. Boatswain ·william A. Martin, Second. Lieut. Sylvester E. Nortner with rank from June. 5, Boatswain. Ja:rrres Roberts, 1917. Boatswain James S. Trayer, ··, 1917.- CONGRESSIONAL RECORD-· SENATE. 6141

Boatswain Theodore Andersen, Gunner John Meyer, Boatswain Eugene J. Frieh, Gunner Godfrey P. Schurz, Boatswain Alfred 'Doucet, Gunner Thomas J. Bristol, Boatswain Fred C. A. Plagemann, Gunner Daniel F. Mulvihill, Boatswain Ludwig W. Gum~, · Gunner Ward T. Hall, • Boatswain Hugh \V. Nimmo, Gufi.!ler Erich Richter, Boatswain Frederick B. Webber, Gunner James L. McKenna, Boatswain Charles A. Dannenmann, Gunner Anthony E. Bentfeld, Boatswain Alfred E. Freed, Gunner John Harder, Boatswain Andrew N. Anderson, Gunner Stephen A. Farrell, Boatswain William H. Farrel, Gunner John J. Welch, Boatswain .John Shottroff, . Gunner Charles C. Stotz, Boatswain Raymond C. McDuffie, Gunner Anthony Prastka, Boatswain William Martin, Gunner Edmund D. Duckett, Boatswain John D. Thompson, Gunner Hermann Jorgensen, Boatswain John D. Thompson, Gunner Arthur J. Holton, Boatswain Raymond R. Smith, Gunner Ola D. Butler, Boatswain George E. Tarbell, Gunner Joseph O'N. ,Johnson, Boatswain John L. Scheideman, Gunner Clyde H. 1\fcLellon, Boatswain Earl Swisher, Gunner William F. Schlegel, Boatswain Walter L. Hawk, " Gunner James J. Delany, Boat!;wain Fred H. Stewart, Gunner Arthur E. Rice, Boatswain Clarence E. Williams, Gunner Albert M. Hinma,n, Boatswain Albert· \Ving, Gunner William Cox, Boatswain Harold A. Clough, Gunner Herman C. Schrader, Boatswain Albert C. Buck, Gunner William A. Eaton, Boatswain Jesse L. Harmer, and Gunner Herbert R. 1\fytinger, Boatswain John \V. Ross. Gunner Charles B. Bradley, Gunner Frederick G. Keyes, Gunner Samuel C. Washington, Gunner Frederick Petry, Gunner James A. Featherston, Gunner Frederick Evans, Gunner Herbert :r. Meneratti, Gunner Clarence L. Tibbals, Gunner Abraham De Somer, Gunner William Taylor, Gunner William A. Mason, Gunner Arthur T. Brill, Gunner John F. Murphy, Gunner Michael Garland, Gunner Clarence R. Rockwell, Gunner John C. Heck, Gunner William E. Snyoer, Gunner George W. Waldo, Gunner George H. Kellogg, Gunner ·Arthur Boquett, Gunner -Samuel E. Lee, " Gunner Sigvart Thompson, Gunner Arthur H. Cummings: Gunner William A. Vick, Gunner Rony Snyder, Gunner Arthur S. Rollins, Gunner Jack K. Campbell, Gunner John C. Maxon, Gunner Albert G. Martin, Gunner Joseph W. Birk, Gunner John l\I. Buckley, Gunner Raymond A. Walker, Gunner Robert Semple, Gurl'ner Charles F. Dame, Gunner Elmer J. McClnen, I Grinner Vincent Beneoict, Gunner John 1\f. Kirkpatrick, Gunner Edgar C. Wortman, Gunner Claude B. Arney, - ­ Gunner Davio Duffy, Gunner Jesse J. Alexanoer, Gunner Noel Chatmon, Gunner FayE>tte Myers, Gunner Lee \V. Drisco, Gunner Frederick Clifford, Gunner William H. Stephenson, Gunner Frederick-T. Walling, Gunner Peter J. Gundlach, Gunner Joseph M. Gately, Gunner Leon W. Becker, Gunner Ralph A. Laird, 1 Gunner Stephen A. Loftus, Gunner Scott H. North, ·Gunner Asa V. R. Watson, Gunner Warwick l\I. Tinsley, Gunner James M. MacDonnell, Gunner Archie R. Wolfe, Gunner Harold A. Turner, Gunner Henry A. Stuart, Gunner Curry E. Eason, Gunner Judson E. Scott, Gunner Brice H. Mack, Gunner Edward L. Newell, Gunner \Valter N. Fanning, Gunnei· Carl E. Kuter, Gunner Niels Drustrup, Gunner George 0. Farnsworth, Gunne1· George Braoley, Gunner Omar B. Earle, Gunner Everest A. Whited, Gunner Thomas Flynn, Gunner Charles A. Kohls, Gunner Alexander B. Holman; Gunner Paul E. Kuter. Gunner Michael Burke, Gunner David McWhorter, jr., Gunner Irwin V. Herin, Gunner Elery ~A... Zehner, Gunner Herman A. Bauchot, Gunner Frank Kerr, Gunner William W. Eagers, Gunner Harry J. Hansen, Gunner John F. Craig, Gunner Newcomb L. Damon, Gunner Augustus K. Goffe, Gunner George Kleinsmith, Gunner William J. Graham, Gunner Daniel McCallum, Gunner George B. Evans, Gunner John J. Madoen, Gunner Charles 0. Buin, Gunner Stanley H. Saeker, Gunner Joseph A. Flynn, Gunner Clyde Lovelace, "Gunner Francis P. Brewer, Gunner Martin Dickinson, Gunner Aaron Eldridge, Gunner John S. Conover, Gunner Clyde H. Dqugherty, Gunner John G. M. Johnson, Gunner Robert B. England, Gunner Alexander Anderson, Gunner Howard S. Raber, Gunner Charles V. Kane, Gunner Lars 0. Peterson, Gunner Joseph H. Gerrior, Gunner Alfred R. EubankS, Gunner Charles F. Fielding, Gunne-r John F. Piotrowski. - ,~ Gunner Collins R. Buchner, Gunner Ralph A. Scott, Gunner William Eberlin, Gunner William F. Schlosingei'• )

LV--390

' CONGRESSIONAL. RECORD-· 'SENATE.

~ . . Gunner Earle G. Gardner, Machinist Will Mueller, Gunner William K. Johnstone, Machinist Will S. Holloway, Gunner Frank T. Green, Machinist James D. Brown, Gunner Robert S. Savin, Machinist Franklin A. Manuel, · Gunner Emmette F. Gumm, · • Machinist Arthur A. F. Alm, Gunner Edwin Fisher. Machinist James Donaldson, Gunner Clarence H. Fogg, Machinist Ja~es Hauser, Gunner James J. Lucas, and Machinist Charles A. AriiiStrong, Gunner Thomas Southall. Machinist Donald McDonald, Machinist William Twigg, jr., Machinist Robert J. Kingsmm, 1\.Iachinist Burton 'V. Lambert, Machinist Charles B. Shackelton, Machini.st William D. Dadd, Machinist Robert C. McClure, Machinist Malcolm C. Davis, Machinist George C. Martin, Machinist Leroy Neil, Machinist Mark Strosk, Machinist John A. Ward, Machinist Helge Ohlsson, Machinist John Galhigher, Machinist Elroy G. True, Machinist Cyrus S. Hansel, Machinist Warren H. Langdon, Machinist Henry A. Lowell, Machinist Emery Smith, Machinist Oliver T. Miller, Machinist George Keeser, . Machinist John J. Coyle, Machinist Alfred E. Raue, Machinist Walter S. Belknap, Machinist Frank ,V, Yuraslfo, Machinist Anton Hengst, Machinist Philip A. Astoria, Ma.chinist Fred San Soucie, Machinist John J. Enders, Machinist Howard H. Chambers, Machinist George S. Dean, .. ' . Machinist Vincent F. Le Verne, Machinist George C. Neilsen, Machinist Walter A. Buckley; :M.achinist Joseph C. Herman, Machinist Norman MeL. McDouatd, Machinist George R. Blauwelt, Machinist Charles W. Wagner, Machinist Erich 0. Tauer, Machinist George F. Veth, Machinist Harry A. Bryan, Machinist James A. Newell, Machinist George Schneider, Machinist Fred C. 'Volf, ' . Machinist Warren L. Graeff, Machinist Max Bayer, Machinist Emmet L. Bourke, Machinist Leon ,V. Knight, Machinist Earl V. Hand, Machinist Henry H. Beck, / Machinist Abram L. Broughton, Machinist John Reber, .Machinist Albert F. Blake, Machinist Fred T. Rider, Machinist William F. Morris, Machinist Sofus K. Sorensen, Machinist Edward I. Dailey, .Machinist. Arthur L .. Hecykell, Machinist James H. Cain, Machinist FrankL. Elkins, · Machinist Carl J. Hanson, Machinist Ernest J. Leonard, Machinist Thomas T. Emerton, Machinist John P. Sa3se, MacWnist James '\V. O'Leary, Machinist John H. Chase, Machinist Andrew C. Skinner, Machinist George J. Blessing, Machinist Benjamin F. l\.Inudox, Machinist Patrick H. Cassidy, Machinist John A. Rogers. Machinist Frank Flaherty, Machinist John C. Richat·ds, Machinist Bennett McC. Proctor, Machinist Albert H. Melllen, Machinist John A. Silva, - Machinist Henry H. Fowler, ' .Machinist John E. Sullivan, Machinist Jesse J. Oettinger, Machinist Chauncey R. Doll, Machinist Bernard S. Riley, Machinist Warren E. Magee, Machinist Sidney C. Seale, Machinist Charles F. Merrill, Machinist Thomas G. Shanahan. Machinist Benjamin F. Ranger, Machinist Eric P. Teschner, Machinist Carl S. Chapman, Machinist Jens Nelson. Machinist Wilmer \V. Weber, Machinist Edwin H. Briggs, Machinist William W. Wilkins, Machinist Frank V. Shepard, ·Machinist Frederick R. Kalde, Machinist Fector L. Ross, Machinist Allen I. Seaman, Machinist John .H. Chinnis, Machinist Chai-les ·Swanberg, Machinist Alonzo W. Esworthy, Machinist 'Villiam H. 1.\Iuehlhause, Machinist Robert I. Hart, Machinist Oscar D. Parker, Machinist Charles Waters, Machinist John C. HiQ.es, Machinist J ~sse S. Hooper, Machinist George W. Robbins, 1\f.achinist John Heep, Machinist Ernest A. Healy, Machinist Hugh J. Finn, · Machinist Charles Antrobusl Machinist 'Villiam H. Wright, and Machinist August Logan, Machinist Charles F. Ware. Machinist George F. Blass, Machinist George C. Lacock, Machinist John W. Boldt, · CONFIRMATIONS. Machinist Percy R. Abrams, ~ EaJecutive nominations confinned by tlxe £enate :A.ugud 11. Machinist Charles E. Briggs, ('legislative day of .August 15), .J.911. Machinist Frank E. Nelson, PROMOTIONS IN THE ARMY, Machinist Philip S. Flint, MEDICAL CORPS, Machinist Henry A. Reynolds, Machinist James E. Kemmer, To be major8. Machinist William W. Holton, Capt. George M. Edwards. Machinist Charles J'. Naprstek.. Capt. George B. Foster, jr. Machinist Paxton Hotchkiss, Capt. Joseph Casper. Machinist Harry M. Peaco, Capt. Henry :Beeuwkes. Machinist Frank F. Webster, Capt. Edward M. ·welles, jr. Machinist Charles N. Koch, Capt. Condon C. 1\IcOorna~ l\fachinist William S. Evans, , . Capt. William H. Thcarle. Machinist George J. Romulus, 'capt. Glenn I. Jones. Machinist John P. 1\fillon, Capt. George W. Cook. Machinist Sol Shaw, Capt. Charles C. Demmer. Machinist Thomas J. Sullivan. Capt. Charles T. King.

I • ' I "1917·. CONGRESSIONAL -'RECORD-__ SEN .ATE. t.. • ~ •

Capt. Thomas H. J ohnson. Capt.. Tohnson F. I{ammoml. Capt. William H ~ All .:> n. Capt. J olm G. Ingolr K. Weaver, Capt. Harry G. Ford. Louis B. Lippman, Capt.. Tames F. Johnston. Frank Kaufman, Capt. Heriry C. Ma

ROUSE OF REJ>RESENTATIVES. PUBLIC BILLS, RESOLUTIONS, A.l'i"'D MEMORIALS. Under clause 3 of Rule XXII, bills, resolution . anti memorials FRIDAY, August 17, 1917. were introduced and severally referred as follows: The.House met at 12 o'clock noon. By Mr. FOSTER: A bill (H. R. 5786) to incorporate the . I'he Chaplain, Rev. Henry· N. Couden, D. D., offered the fol­ Medical Society of the District of Columbia; to the Committee lowing prayer: on the District of Columbia. Be graciously near to us, 0 Thou Great Spirit, whose eternal By Mr. MORGAN: A bill (H. R. 5787) making it unlawful energy is everywhere potent. Incline our hearts unto T~ee. for any Senator or Representative in Congre , or for the head that our work may be full, complete, in accordance with Thy of any department of the Government to purcha e or own any will, that we may have no regrets for the past, and go forward bond or bonus i ued under any act of Congres approved sub­ to meet the future with brave aod manly hearts, encouraged by sequently to April 6, 1917, and for other purposes; to the Com­ the example of Thy Son, Jesus Christ, our Lord. Amen. mittee on Ways and Means. The Journal of the proceedings of Tuesday, August 14, 1917, By Mr. KELLY of Pennsylv!.mia: A bill (H. R. 5788) to pro­ was read and approved. "\"ide further for the national security and defense by encourag­ MESSAGE l!'ROM THE SENATE. ing the production, conserving the supply, and conti·ol1ing tlte distribution of coal, oil, copper, iron, and other metalliferous A message ·om the Senate, by l\fr. 'Valdorf, one of its clerks, minerals, timber, and water power; to the Committee on InteL·· announced that the Senate had passed the following. bill, in state and Foreign Commerce. :which the concm·rence of the Hou e was requested : By Mr. HULBERT: lt bill (H. R. 5789} to increa e the pay S. 2477. An act to authorize _the construction of a building for of all enlisted men of the Army of the United States in acti"v.a the use of the Treasury Department. service during the present emergency; to the Committee -on ORDER OF BUSINESS. • I Military Affairs. I 1\fr. WINGO. Mr. Speaker-- By Ir. EVANS: A bill (H. R. 5790} to provide funds for indi­ The SPEAKER. For what purpose does the gentleman from gent farmers to purchase wheat for full planting; to the Com- :Arkansas rise? mittee on Appropriations. · 1\fr. WINGO. With the permission of the Speaker of the By Mr. TINKHAM: A bill (H. R. U791) to authorize the coin­ House, I would like to ask the gentleman from Texas [Mr. age of 6-cent piece , and for other purposes; to the Committee GARNER], whom I presume for the time being is majority leader on Coinage, Weights, and. Measures. de jure as well as de facto, what is the prospect for the Senate By Mr. SMITH of Idaho: A bill (H. R. 5792) provitling for catching up with the legislative program so that the House can temporary relief to defendants in civil suit and proceedings 1·esume business arid clean up what few remaining matter·s are who are actively engaged in the military or naval service of the necessary for it to att-end to before final adjournment? Of United States; to the Committee on the Judiciary. course, the House has acted with dispatch as well as intelli­ By Mr. SIEGEL: A bill (H. R. 5793} authorizing appointment gence an during the session, and, as far ns the House action is of chaplains ut large for the United States Army; to the Com­ concerned, Congress could have adjourned some time ago, but mittee on 1\Iilitary Affairs. the delay is occasioned by the Senate; and what I want to know By Mr. RA.h.'"ER: A bill (H. R. 57-94} for the protec~ion of is what hope is there of the Senate concluding the legislative desert;land entrywomen who enter the services of the Red Cross program within the near future 'l with the military or naval forces of the United States in the time Mr. GARNER. Mr. Speaker, I have no information on the of war; to the Committee·on t.he Public Lands. subject, and therefore I move that the House adjourn. Also, a bill (H. R. 5795) to relieve the owners of mining ADJOURNJ.!ENT. claims who have been entered into the Red Cross work with the military or naval forces of the United States as nurse or as­ The motion was agre(~d to; accordingly (at 12 o'cloclr and 3 • minutes p. m.) the House, under its. previous order, adjourned sistant in the Red Cr~ss work from performing asse ment work until Tuesday, August 21, 1917, at 12 o'clock noon. during the t~rm of such service in the said Red Cross work; to the Committee on Mines and Mining. EXECUTIVE COMMUNICATIONS, ETC. Also, a bill (H. R. 5796) for the relief of homestead entry­ women or settlers who enter the service in the Red Cro s with Under clause 2 of Rule XXIV, executive communications were the military or naval forces of the United States in time of war· taken from the Speaker's table and referred as follows : to the Committee on the Public Lands. ' 1. A letter from the Secretary of War transmitting, with a By Mr. BAER: Resolution (H. Res. 130) to investigate mob letter from the Chief of Engineers, reports on preliminary ex­ violence in Washington, D. C.; to the Committee on the District amination and survey of Little Wicomico River, Va. (H. Doc. of Columbia. No. 336) ; to the Committee on Rivers· and Harbors and ordered to be printed with illustration. 2. A· letter from the Secretary of War transmitting, with a PRIVATE BILLS AND RESOLUTIONS. letter from the Chief of Engineers, report on preliminary ex­ amination of Sa\annah River, Ga., from the foot of Kings Island Under clause l of Rule XXII, private bills and resolutions to point 5 miles above (H. Doc. No. 337) ;· to the Committee on were introduced and severally referred as follows: Rivers and Harbors and ordered to be printed. By Mr. CRAGO: A bill (H. R. 5797) granting an increa e of , . 3. A ietter from the Acting Secretary of the Interior, transmit­ pension to Jacob Walters; to the Committee on Invalid Pen ·ions. ting a copy of a letter from t]le Superintendent of St. Elizabeths By Mr. KENNEDY of Iowa: A bill (H. R. 5798) granting a Hospital- submitting a tentative provision of legislation for pension to Jennette Hamilton; to the Committee on Invalid Pen­ insertion in the pending deficiency bill (H. Doc. No. 338) ; to sions the Committee on Appropriations and ordered to be printed. By Mr. McKINLEY: A bill (H. R. 5799) granting an increase 4. A letter from the Secretary of the Navy, transmitting copy of pension to 1\Iary E. Tryon ; to the Committee on Invalid Pen­ of the Commis ion on Navy Yards and Naval Stations with sions. reference to expen es of said ·commission (H. Doc. No. 339); Also, a bill (H. R. 5800) granting an increa e of pension to to the Committee on Naval Affairs and ordered to be printed. Ella C. Tremble; t(.l the Committee on Invalid Pen ion . 5. A letter from the Secretary of the Treaslll'y, transmitting Also, a bill (H. R. 5801) granting an increa e of pensi-on to copy of a communication of the chairman of the Interstate James K. I?. ·weaver; to the Committee on Invalid Pen ions. Commerce Commission submitting an estimate of appropriation Also, a bill (H. R. 5802) granting an increa e of pension to for compensation of two additional commissioners (H. Doc. No. G. W. ·Bunyan; to the Committee on Invalid Pen ion . 340) ; to the Committee on Appropriations and ordered to be Also, a bill (H. R. 5803) grunting an increa e of pension to printed. A. G. Daniels ; to the Committee on Invalid Pen ions. 6. A letter from the Secretary of the Treasury, transmitting Also, a bill (H. R. 5804) granting an increa e of pen ·ion to copy of a communication of the Secretary of the Interior sub­ Melissa A. Danley ; to the Committee on Invalid Pension . mitting an item for inclusion in the pending deficiency bill (H. Also, a bill (H. R. 5805) granting an increa. e of pen ion to Doc. 1\o. 341) ; to the Committee on Appropriations and ordered Rebecca Shanks; to the Committee on Invalid Pen ion . to be printed. . Also, a bill (H. R. 5806) granting an increa. e of pen ion to 7. A letter from the Secretary of the Treasury, transmitting John L. Thomas; to the Committee on Invalid Pen ions. copy of a communication of the acting pre ident of the Board Also, a bill (H. R. 5807) for the relief of Henry C. Kurtz; to of Commissioners of the District .of Columbia submitting sup­ the Committee on Military Affairs. plemental estimates of appropriations required for the service · Also, a bill (H. R. 5808) for the relief of Fr110cis J.\.1. Watrous; of the District of Columbin for the fiscal year ending June 30, to the Committee on Military Affairs. 1918 (H. Doc. No. 342); to the Committee on Appropriatigns Also, a bill (H. R. 5809) for the relief of Jamison -Cox ; to and ordered to be printed. th'e Committee on Military Affairs. . '

1917., CONGRESSIONAL REOORD-=SENATE. • 6145

Al!'>o, :1. bill (H. R. 5810) to correct the military record of Columbia.. was read by its title and referred· to the Committee ltobert Zink ;· to the Committee on l\1ilitary Affa:.irs. on the Judiciary. AI o, :1 bill (H. R. 5811) to correct the milltrrry record of Mr. MYERS. Mr. President, I wish to say a. few wo1·ds about 'Villi am B. Gill; to tlle Committee on Military .A..f'fafrs. the bill I have just introdueed. It is intended fm· the enact­ Also, n hil1 (H. R. 5812) to correct the mllitary record of ment of better and more adequate legislation to prevent the in­ Clnrk \V. Cottrell; to tlte Committee on Military A.ffah·s. famous, outrageoul;!, scandalous~ and.,. I think, almost tl'eason­ Also, a bill (H. R. 5813) to correct the military record of able actions that have been going -on arounu the White House Richard Gulliford; to the. Committee on Military .Affairs. for months past, which have· been a gross insult to the President By lUr. MAHER: A bill (H. R .. 5814) granting a pension to of· the United States and' t