1928 CONGRESS! ON AL RECORD-8ENATE 8595 only went to Congress but he remained over 13 years. He had become The VICE PRESIDENT. The clerk will call the roll. a fixture in that body, and no thought of opposing him occurred. The legislative clerk called the roll, and the following Doctor L AzARO had a healthy body, a fine, evenly balanced mind with Senators answered to their name : unbounded cheerfulness and geniality. He was always pleasant, always Ashurst Fletcher McKellar Shipstead agreeable. I never heard him utter an unkind word against a human Barkley George McLean Sb o rtrid~e soul. He had convictions and the courage to express these, but this was Bayard Gerry McMaster Simmons Bingham Gillett Me .~. a.ry Smit h done in a quiet, easy, unassuming manner. Black Glass Mayfield Smoot I am on the wrong side of the book of time. About hall my time I am Blaine Gotr ::Uetcalf Steck scarcely alive, and a great part of the res t the slave and sport of morbid . Borah Gould Moses Steiwer ' Bratton Greene Jeely Stephens feeling, due to my disordered condition. I have everything but good Brookhart Hale Norbeck Swanson health. · Broussard Harris Norris Thomas Doctor LAzARO had health ; had happiness ; looked forward to a long, a Bruce Harrison Nye T ydings Capper Hawes Oddie Tyson successful car eer. His daughters married; he was looking for the ad Caraway Hayden Overman Vandenberg va ncement of his only son. He intended him for Princeton. Secure in Copeland Heflin Phipps Warner the est eem of his constituents, he was looking forward to many years of Couzens Howell Pine Wafsh. Mass. Curtis Johnson Pittman Walsh, Mont. u sefulness. But he is gone, gone to the undiscovered country from ' Cutting Jones Ra nsdell Warren whose bour ne no traveler r eturns. He retreated with the aspects of a Dale Kendrick Reed, Pa. Wa terman victor. His sun went down at noon, but let us hope it sank amid the Deneen Keyes Robinson, Ind. Watson Dill King Sackett Wheeler prophetic splendors of an eternal da wn. Edwards La Follette Schall The invalid bereft of one sense, enveloped almost at every turn, is Fess Locher Sheppard alive to pay tribute to his young friend who, in love with life and rap Mr. WALSH of Montana. I was requested to announce that tured wit h the world, has passed to silence and pathetic dust. Verily, the senior Senator from Missouri [Mr. REED] is dEtained from the ways of Providence are past finding out. the Senate on official business. Good-by, Doctor. When last I met you I looked forward to your The VICE PRESIDENT. Eighty-six Senators havino an- conti~ue d health, happiness, and prosperity. To-day I am sorrowfully swered to their names, a quorum is present. to paying tribute to your usefulness when alive--with the hope that you PERSONAL EXPLANATION-VOTE 0 - TAX UPON CORPORATIONS have secured life everlasting beyond the grave, which you so richly deserve. Mr. GLASS. Mr. President, I was unavoidably absent from Washington on Saturday, and since I do not care to appear to The following is an editorial from one of his home papers : have evaded an important vote I want to state that I was paired [From the New Era, of Eunice, La., April 7, 1927) with the senior Senator from Connecticut [1\Ir. McLEAN]. Had THE LOSS OF CO:NGRESSMAN LAZARO I been present in the Chamber I should have voted for the In the death of the late Ron. Dr. L. LAzARo, Representative in the graduated tax on corporations and I should likewise have voted House from the seventh congressional district, which composes the against the proposition to raise the tax on corporations as pro southwesterly group of parishes in Louisiana, the territory involved, as vided by the House. well as the entire State and South, lost a most faithful servant, who MESSAGE FROM THE HOUSE was not known for flowery speech and oratory but for his loyalty and A message from the House of Representatives, by Mr. Halti serfdom for the people whom he served. For 14 years he labored for his group of parishes. A man of his own g~n, one of its clerks, announced that the House had passed convictions, to whom party principles were cast aside when the good of Without amendment the following bills and joint resolutions of the seventh congressionnl district was to be considered. .A constant reader the Senate: and student, he had provided himself with a knowledge which fitted him S. 766. An act to fix the compensation of register of local to the cause of hls public. Never until a situation had been thoroughly land offices, and for other purposes ; analyzed did the late lamented Congressman decide; but once decided · S. 1662. An act to change the boundaries of the Tule River he fought an honest battle to enlighten those in the Chamber as to the Indian Reservation, Calif. ; S. 2340. An act to transfer to the city of Duluth, Minn., the true benefits of the proposed measure. old Federal building, together with the site thereof; His kindly attitude in the Capitol had marked him as a man worthy S. 3026. An act authorizing the construction of a fence along of the friendship of many distinguished statesmen wh~ were proud to acclaim him as a friend. To him many of his colleagues often went to the east boundary of the Papago Indian Reservation, Ariz. ; seek advice, and to them he never tul'Ded a deaf ear. Not only S. J. Res. 119. Joint resolution granting an easement to the was be known and acclaimed as a friend by the important men of our city of Duluth, Minn. ; Nation but, likewise, was he attached to the most common laborer in the S. J. Res.125. Joint resolution authorizing the President of the Capitol buildings. United St~tes to accept a monumental urn to be presented by In passing to the great beyond he left a memory which can never be th~ Rep~blic of Cuba, an.d providing for its erection on an appro era ·ed from the halls of time. At his funeral an outpouring such as pnate Site on the public grounds in the city of ·Washington, has never been seen in this section of the State assembled to pay their D. C.; and last tribute. The towns along the route which the train traveled with S. J. Res.129. Joint resolution to provide for eradication of the body bowed in sorrow. .And again dampened eyes in the town of pink bollworm and authorizing an appropriation therefor. his birthplace by the citizens announced that Louisiana had not only The message also announced that the House had agreed to the lost a distinguished solon but a friend and upright and honest man. amendment of the Senate to the bill (H. R. 126) to add certain Though he is dead he can not be forgotten. · Children and more aged lands to the Missoula National Forest, Mont. persons will continue to speak of his noble deeds in the future. When The message further announced that the House had pa sed t.be Seventieth Congress convenes his smile and warm handclasp will the following bills of the Senate, severally with an amendment, be missing, and kindly advice once given can not be secm·ed as before. in which it requested the concurrence of the Senate: Time alone will prove that few will enter from this district who can S. 1341. An act to amend the act entitled "An act to provide claim the honor of serving their public for 14 years, a goodly portion of that the United States shall aid the States in the construction which was without opposition. This one achievement alone marks him of rural post roads, and for other purposes," approved July 11, as a man " 'of the people and by the people and for the people." 1916, as amended and supplemented, and for other purposes · S. 3365. An act to authorize allotments to unallotted Indlans .ADJOURNMENT on the Shoshone or Wind River Reservation, Wyo. ; The SPEAKER pro tempore. In accordance with the resolu S. 3556. An act to insure adequate supplies of timber and tion already adopted, and as a special mark of respect to the other forest products for the people of the United States, to memory of the deceased, the House will now stand adjourned. promote the full use for timber growing and other purposes of Accordingly (at 1 o'clock and 25 minutes p. m.) the House forest lands in the United States, including farm wood lots and adjourned until tO-morrow, Monday, May 14, 1928, at 12 o'clock those abandoned areas not suitable for agricultural production, noon. and to secure the correlation and the most economical conduct of forest research in the Department . of Agriculture, through r~earch in reforestation, timber growing, protection, utiliza SENATE tion, for~t economics, and related subjects, and for other pur poses; and 1\fo:NDAY, May 14, 1928 S. 4045. An act granting the consent of Congress to the High way Department of the State of Tennessee to construct a bridge (Legislatil/e day of Thursday, May 3, 1928) across the French Broad River on the Newport-Asheville (N.C.) The Senate reassembled at 12 o'clock meridian, on the expira road near the town of Del Rio in Cocke County, Tenn. tion of the recess. . The message also announced that the House had passed the Mr. CURTIS. Mr. Pre ident, I suggest the- absence of a follow~ng bills of the Senate, each with amendments, in which quorum. it r~ueste~ the concurrence of the Senate : 8596 CONGRESSIONAL RECOR,D-SENATE ~fAY . 14 S. 2084. An act for the purchase of land in the vicinity of pate in the International Petroleum Exposition at Tulsa, Okla., Winnemucca, Nev., for an Indian colony, and for other pur- to begin October 20, 1928. poses; and FEDERAL POLICE AND LAW-ENFORCEMENT AGENCIES IN ALASKA S. 3699. An act for the relief of the l3;nd-grant railroad oper ated between the station formerly kno-wn as East Portland, in The VICE PRESIDEJ\TT laid before the Senate a report of the State of Oregon, and Roseville, in the State of California. the Secretary of the Interior, submitted pursuant to law, rela The message further announced that the House had passed tive to the feasibility and propriety of consolidating into a the following bills and joint resolutions, in which it requested single force the police and law enforcement agencies of the the concunence of the Senate: l!"'ederal Government in the Territory of Alaska, and also as H. R. 8551. An act to create an additional judge in the Dis to the creation of a supplementary force or constabulary to trict of South Dako-ta; cooperate with the existing agencies, etc., which, with the accom H. R. 9784. An act for the issuance and execution of warrants panying papers, was referred to the Committee on Territories in criminal cases and to authorize bail; and Insular Possessions. H. R. 11405. An a,ct to acquire an area of State land situate HISTORICAL MUSEUM ON SITE OF FORT DEFIANCE, OHIO in Lassen Volcanic National Park, State of California, by ex- The VICE PRESIDENT laid before the Senate the amend- change; ments of the House of Representatives to the joint resolution H. R. 11847. An act to authorize the acquisition of portions ( S. J. Res. 82) providing for the erection of a public historical of the Queen Emma and Damon estates and a portion of the museum on the site of Fort Defiance, Defiance, Ohio, which were, Halawa district in the vicinity of Fort Kamehameha, Hawaii, to strike out the preamble, and, on page 2, line 1, to strike out and for other purposes; "with the approval of the" and insert " to cooperate with· H. R. 11983. An act to provide for issuance of perpetual ease- the"; on page 2, line 2, to strike out the words "to select" and ment to the department of fish and game, State of Idaho, to insert " and the proper official of the county of Defiance, Ohio certain lands situated within the original boundaries of the in selecting" ; on page 2, line 11, to strike out all after th~ Nez Perce Indian Reservation, State of Idaho; word "available" down to and including the word "appro- H . R. 12031. An act to extend the times for commencing and priated " in line 12 and insert " the sum of $50,000, and the completing the construction of a bridge across the Rio Grande county of Defiance, Ohio, the sum of $25,000" ; and on page at or near Tornillo, Tex.; 2, line 17, to strike out "$50,000" and insert "$25,000." H . R. 12038. An act to authorize . the acquisition of certain "1\ir. FESS. I move that the Senate disagree to- the amend- patented land adjoining the Yosemite National Park boundary ments of the House and ask for a conference on the disagree- by exchange, and for other purposes ; ing votes of the two Houses thereon, and that the Chair appoint H. R. 12100. An act to ame'Ild the act entitled "An act the conferees on the part of the Senate. granting the consent of Congress to the Gateway Bridge Co. The motion was agreed to; and the Vice President appointed for construction of a bridge across the Rio Grande between Mr. FEss, Mr. HowELL and 1\fr. 1\IcKELLAR conferees on the Brownsville, Tex., and Matamoros, Mexico," approved February 1 part of the Senate. ' 26. 1926; H. R. 12409. An act to grant to the city of Fort Wayne, Ind., PETITIONS AND MEMORIALS an ea. ement over certain Government property; 1\Ir. WARREN presented resolutions adopted by the Adver H. R. 12571. An act granting the consent of Congress to the tising Club, of Casper, Wyo., favoring the passage of legislation State Highway Commission, Commonwealth of Kentucky, to providing for aided and directed settlement on Federal reclama construct, maintain, and operate a toll bridge across the Cum tion projects, which were referred to the Committee on Irri- 1 berland River at or near Iuka, Ky. ; gation and Reclamation. H. R. 12621. An act to authorize the Secretary of War to Mr. JONES presented a petition of sundry citizens of Chelan lend War Department equipment for use at annual State con County, Wash., praying for the passage of the so-called King vention of the American Legion of New York; bill, being the bill ( S. 3194) to establish the Bear River migra H. R.l2623. An act granting the consent of Congress to the tory-bird refuge, which was referred to the Committee on Louisiana Highway Commission to construct, maintain, and Agricultm·e and Forestry. operate a free highway bridge across the Sabine River, at or Mr. COPELAND presented a petition of sundry citizens of near Starks, La. ; Rochester, N. Y., praying for the passage of legislation grant H. R.12694. An act authorizing the Secretary of the Navy ing increased pensions to Civil War veterans and their widows,' to provide an escort for the bodies of deceased officers, enlisted which was referred to the Committee on Pensions. rnen, and nurses ; REPORTS OF COMMITTEE'S H. R. 12706. An act for the relief of the town of Springdale, Utah; Mr. WATERMAN, from the Committee on Claims, to which H. R. 12806. An act authorizing J . H . Harvell, his heirs, legal were referred the following bills, reported them severally with representatives, and assigns, to construct, maintain, and operate out amendment and submitted reports thereon : a bridge acros New River at or near McCreery, Raleigh County, A bill (H. R. 7895) for the relief of the Lagrange Grocery Co. ( Rept. No. 1134) ; '"· Va. ;· H. R.12811. An act to provide for the appointment of one A bill (H. R. 7897) to ratify the action of a local board of additional district judge for the eastern and western districts sales control in respect of contracts between the United States of South Carolina ; and the West Point Wholesale Grocery Co., of West Point, Ga. H. R.12877. An act authorizing the Los Olmos International ( Rept. No. 1135) ; Bridge Co., its successors and assigns, to construct, maintain, A bill (H. R. 7898) to ratify the action of a local board of and operate a bridge across the Rio Grande at or near Weslaco, sales control in respect of contracts between the United States · 'l'ex. ; and the Lagrange Grocery Co., of Lagrange, Ga. (Rept. No. H. R. 12913. An act to extend the times for commencing and 1136) ; and . completing the construction of a bridge across the Allegheny A bill (H. R. 9620) for the relief of E. H. Jennings, F. L. River at or near the borough of Eldred, McKean County, Pa. ; Johanns, and Henry Blank, officers and employees of the post H. R.13069. An act granting the consent of Congress to the office at Charleston, S. C. {Rept. No. 1137). 1 State of Minnesota to construct, maintain, and operate a free Mr. STEIWER, fro-m th€ Committee on Claims, to which was highway bridge across the Mississippi River at or near Aitkin, referred the bill (H. R. 5930) for the relief of Jesse W. Bois Minn.; seau, reported it without amendment and submitted a report H. R. 13342. An act to authorize a per capita payment to the (No. 1138) thereon. Pine Ridge Sioux Indians of South Dakota ; 1\fr. CAPPER, from the Committee on the District of Colum H. R. 13563. An act granting pensions and increase of pensions bia, to which was referred the bill ( S. 4085) to prevent profes to certain soldiers and sailors of the Regular Army and Navy, sional prize fighting and to authorize amateur boxing in the etc., and certain soldiers and sailors of wars other than the Di trict of Columbia, and for other purposes, reported it with Civil war, and to widows of such soldiers and sailors; out amendment and submitted a report (No. 1139) thereon. H. J. Res. 184. Joint resolution designating May 1 as Child 1\Ir. BLAINE (for Mr. BoRAH), from the Committee on the Health Day; Judiciary, to which was referred the resolution ( S. Res. 213) H. J. Res. 263. Joint resolution authorizing the president and to investigate certain circumstances connected with the matter fellows of Harvard College to erect on public grounds in the of additional tax assessments upon Hon. JAMES CouzENs, re District of Columbia a monument to Maj. Gen. Artemas Ward; ported it with amendments and submitted a report (No. 1140) and thereon. H. J. Res. 292. Joint resolution authorizing the President to Mr, STEPHENS, from the· Committee on Claims, to which invite the· States of the Union and foreign counb:ies to partici- was refe1~red· the bill ( S. 1364) for the relief of Wilson Selby, lg28 CONGRESSIONAL RECORD-SENATE· 8597 reported it . Nith an amendment and submitted a report (No. across the Ohio River at or near Ripley, Ohio; to the Commit~ 1142) thereon. tee on Commerce. Mr. DALE, from the Committee on Commerce, to whlch were By Mr. DENEEN: referred the following bills, reported them each without amend A bill ( S. 4451) to amend the act entitled "An act granting ment .and submitted reports thereon: the consent of Congress to Roy Clippinger, Ulys Pyle, Edgar A bill ( S. 4345) authorizing the Interstate Bridge Co., its Le3:thers, Groves K. Flescher, Carmen Flescher, their heirs, successors and a signs, to construct, maintain, and operate a legal repre. entati>es, and assigns, to construct, maintain, and bridge aero s the Mis ouri River at or near Kansas City, Kans. operate a bridge across the Wabash River," approved May 1, (Rept. No. 1143); and 1928 ; to the Committee on Commerce. A bill (S. 4405) authorizing the Detroit River Canadian By Mr. SHEPPARD: Bridge Co., its successors and a · igns, to construct, maintain, A bill ( S. 4452) relating to personal-injury suits by seamen, aml operate a bridge across the Detroit River at or near Stony longshoremen, ship repair men, and ship employees ; to the Com !:.;land, Wayne County, State of 1\Iic:higan (Rept. No. 1141). mittee on Commerce. 1\Ir. DALE also, from the Committee on Commerce, to which A bill (S. 4453) to amend subsection (b), section 60, Fed were ref rred the following bills, reported them severally with eral bankruptcy act; to the Committee on the Judiciary. amendments and submitted reports thereon: By l\Ir. McNARY: A bill ( S. 4344) granting the consent of Congress to the State A bill (S. 4454) for the relief of Jess T. Fears; to the Com Highway Commission of Arkan"as to construct, maintain, and mittee on Agriculture and Forestry. operate a bli
• 8598 CONGRESSIONAL RECORD-SEN ATE ~{AY 14 .vention of the American Legion of New York; to the Com Special meeting of the Columbus· Society, of Niagara Falls, called for mittee on Military Affairs. the express purpose of adopting resolutions on the shooting of Jacob D. H . R. 11983. An act to provide for i suance of perpetual ease Hanson on Lewiston Hill, in Niagara County, on the morning of ment to the department of fish and game, State of Idaho, to May 6, 1928 · eertain lands situated within the original boundaries of the Nez The following resolution was duly adopted : . Perce Indian Re ervation, State of Idaho; and "Whereas this society, consisting of 557 member s, was formed with a H. R. 13342. An act to authorize a per capita payment to the purpose of encouraging 11nd promoting the naturalization of all foreign Pine Ridge Sioux Indians of South Dakota; to the Committee born candidates for membership, and for the further purpose of t each· on Indian Affair . . ing and inspiring respect for all laws of the United States and of the H. R. 12031. An act to extend the times for commencing and State of New York anu the Con titution of the United States; and completing the construction of a brid.ge across the Rio Grande "Whereas it has come to our attention that the ver·y pel'sons, 'two River at or nea1· Tornillo, Tex.; Coast Guard men,' en trusted with the duty to enforce law and order, H. R. 12100. An act to amend the act entitled "An act grant ing the con ·ent of Congre s to the Gateway Bridge Co. for con lh'lve themselves set a bad example for those who are not yet citizens of struction of a bridge across the Rio Grande between Brown ville, this country by not only violating the laws of this great State but all Tex., and l\Iatamoros, Mexico," approved February 26, 1926; natural laws and t he law of God, by shooting down in cold blood an H . R.12571. An act granting the c nsent of Congress to the esteemed and highly ·respected citizen of this community; that this State Highway Commission, Commonwealth of Kentucky, to con atrocious crime was committed without the slightest pretense of a cau e struct, maintain, and operate a toll bridge acros the Cumberland or suspicion by two reckless, irresponsible, disreputable characters ; and Rive1· at or near Iuka, Ky. ; " Whereas we are of the opinion that these characters are not worthy H . R. 12623. An act granting the consent of Congress to the of bein_g _calle.d citizens of the same country of which we have the honor Louisiana Highway CommL· ·ion to construct, maintain, and op of swearing allegiance and loyalty to ; and erate a free highway bridge across the Sabine RiYer, at or near -.. Whereas we believe that the legally con tituted authorities do not Starks, La. ; sanction any such high-handed tactics, and that the authorities have H. R.l2806. An act authorizing J. H. Harvell, his heirs, legal greater respect for the rights of the public lawfully using the highways representatives, and assigns, to construct, mainb:tin, and oper in the nighttime; and ate a bridge aero s New River at or near McCreery, Raleigh "Whereas it is most humiliating and embarrassing to us to learn County. W. Va.; that such an important governmental official as the United States dis H. R. 12877. An act authorizing the Los Olmos International trict attorney refuses to cooperate with the State authorities in bringing Bridge Co., its suceessors and assigns, to construct, maintain, to justice these viciou men, and, in fact, as we are informed by the and operate a bridge across the Rio Grande River at or near press, orders officer of the United States guard to refuse the State Weslaco, Tex. ; authorities the right to exercise· their function in executing the mandate H. R. 12913. An act to extend the times for commencing and of the State court without even as much as an order of simila r force; completing the con truction of a bridge across the Allegheny and River at or near the borough of Eldred, McKean County, Pa.; "Whereas we have b~n taught that the United States district attor and ney is the chief prosecuting officer of violators of the law, and therefore H. R. 13069. An act granting the consent of Congress to the should not encourage the withholding of offenders !rom the process of State of Mione ·ota to construct, maintain, and operate a free the law; and . highway bridge across the :Mississippi River at or near Aitkin, " Whereas this action tends to arouse doubt in our minds as to the Minn. ; to the Committee on Commerce. sincerity of the great principle embodied in the Constitution of this H. J. Res. 263. Joint resolution authorizing the president and great country, that all men shall be treated equally, and that the law fellows of Harvard College to erect on public grounds in the shall be admini tet·ed equally among all citizens of this country ; and District of Columbia a monument to Maj. Gen. Artemus Ward; " Whereas we are in doubt that this action on the part of the United to the Committee on the Library. States district attorney reflects the sentiment of proper governmental H. J . Res. 292. Joint resolution authorizing the President to functioning as intended by the heads of this Government and under invite the States of the Union and foreign countries to partici stood by us; Now, therefore, be it pate in the International Petroleum Exposition at Tulsa, Okla., "Resolved, That we express our indignation at the unwarranted, to begin ·october 20, 1928; to the Committee on Foreign Rela cowardly shooting of a respectable and law-auiding citizen, lawfully tions. traveling on the public highways of this community; that we resent SHOOTING OF JACOB D. HANSON such dangerous characters being permitted to roam at large ru1der the Mr. COPELAND. 1\Ir. President, the feeling of high indig gui e of being United States enforcement officer·s and endangering the nation in my State over the shooting of Mr. Hanson, at Niagara lives of per ·ons lawfully using the publi'c highways after dark; be it Falls, lead me to ask permission to insert certain material in further the RECORD. I want to keep before the Senate the da. ·tardly "Resolved, That we are highly indignant at the attitude of the outrage which was perpetrated upon this citizen last week. United States district attorney, whose duty it is to prosecute ct·irninals, Here_be was, a private citizen engaged in no unlawful pursuit, in his refusal to ordet· the delivery ot these criminals to answer for the on the way to his home, held up and shot by the Coast Guard. violation of a State law, and that we consider such an action an as. ault It might have been a minister on the way to see a dying-man on the dignity and respect of the sovereignty of the State of New York; or the family phy ician on his rounds. It was an outrageous and it is further thing. u R es olt-ed, That if this attitude on the part of one of the chief prose I am glad to report to the Senate that the Committee on Com cuting officers of the State of New York pass unnoticed by thP. higher merce one day this week will give consideration to the matter authorities, the very teaching and purpose of our society are defeated, and hear Admiral Billard, of the Coast Guard Service. and respect for law can not be expected from those who are Jess cogni I ask unanimou consent to insert in connection with these zs.nt of the law and customs of this country; remarks first a serie of resolutions passed by the Columbus "That the ·flagrant violation of the law of the State and of the Society, of Niagara Falls. This is a group of 500 or 600 per mutual understanding between the State and Federal Government be sons of foreign birth who have banded them elves together for brought to the attention of our liono.rable Senators and Congressmen, the purpo...,e of encouraging and promoting the naturalization of to the end that speedy action be taken in delivering these criminaJt. to foreign-born citizen and to inspire respect for all the laws of justice ; and it is further the United States. They are very much distmbed becau e two "Resolved, That there is more in the refusal of the Federal petty Coast Guard official of the United States, : intrusted with the officers to deliver these men than the impeding and interfering with the duty of enforcing law and order, have themselves set a bad speedy trial and punishment of the betrayers of the trust of law example for those who are not yet citizens. Not alone have they enforcement or the making of the highways safe for the innocent public, violated tlle Jaw of the State of New York but all natural but that this attitude tends to breed contempt tor law and order and laws and the law of God, by shooting down in cold blood an ows the seed of discontent and in pire:- mob violence as the only means esteemed and highly respected citizen of Niagara Falls. of administering justice; and be it further Likewise, I have some resolutions passed by the Dunkirk "Resolved, That we call upon the United States
8602 CONGRESSIONAL RECORD-- ·sENATE· liAY 14 rate ought to be increased perhaps 1 per cent or more, and the :Mr. BROOKHART. He pays that indirect tax? graduations ought to be made on that basis; and after we Mr. REED of Pennsylvania. Tobacco taxes are the most reach the grades of excess profits they should be graduated up of it. still higher. Mr. BROOKHART. He smokes his cigarette and pays his What is an excess profit in the United States? I should tax, and then when the cigarette king of the United States like to define that again. I ha\e had occasion to do it a few and the world dies we rebate 80 per cent of his taxes back to times. I say to you that the American people are only pro the State in which be lived. ducing 5% per cent, with all their capital, all their labor, all Mr. President, I think this tax-reduction talk is political talk. increase· in propert y value, and all depreciation of the dollar I think its appeal is to the profiteer and to the campaign con added together. If, then, tlle average earning of all the country tributor. I think he is the fellow that gets the benefit. If any is but 5% per cent, you are reaching an excess profit when you benefit is going to come from the other side of the Chamber for pass 5% per cent; and then the mtes should be increased. this illogical and unreasonable talk of tax reduction, it will Again, we have a difficulty of administration in that matter, be an increase in campaign contributions; and I think you because to go out and survey the value of all these corporations will be worse fooled by the United States Chamber of Com is almost an interminable job. Look- at the difficulty we have merce than the Senator fr?m Utah has e\er fooled us pro had in determining the value of the railroads. I think the gressives. Senator from Massachusetts [Mr. WALSH] raised a great and a l\lr. HARRISON. Mr. President, may I ask the Senator a vital auestion to the future of our country when he said we question? bad created corporations in this country that had run away The PRESIDING OFFICER. Does the Senator from Iowa with the very powers of our Government. That is true. I yield to the Senator from Mississippi? have contemplated preparing a bill that \vould call for a regu l\fr. BROOKHART. I do. lation of the e corporations ; and I think the time will come Mr. HARRISON. If I under tand the ~enator's po ition, it when we must take all these corporation in interstate com is t:Qat he does not believe in tax-reduction legi lation at this merce into Government charter, and the value of their capital time. must be put upon a gold-dollar basis-a cash basis. It must Mr. BROOKHART. I do not. not be an inflated value. As soon as we have made that regu Mr. HARRISON. The Senato~ would apply the surplus to lation and have established that basis for corporate capital, the national debt? then we can tax them with a proper, graduated corporation Mr. BROOKHART. I would. tax; and I am ready for that at any minute. Mr. HARRISON. While I am on my feet, let me ask the Mr. President, I should like now to a k the chairman of the Senator whether be is in favor of the committee amendment or committee in reference to who pays the taxes to the Government the amendment of the Senator from North Carolina [l\Ir. SIM of the United States. I want to see if anybody else outside of MONS] with reference to the t·eduction of surtaxe ? the members of the Chamber of Commerce of the United Mr. BROOKHART. I am not sufficiently :familiar with the States is going to be benefited by this fake, camouflaged tax bill to understand just what items the Senator refers to. · !'eduction that the Senator from Mississippi is advocating. Mr. HARRISON. That is the pending question. I thought In the report on this bill I find that we collect :from cu toms perhaps the Senator did not understand it. $585,000,000 and $2,000,000 of tonnage tax. Then comes current 1\Ir. BROOKHART. I am not for reducing any of those income tax, $1,890,000,000. Does that include the corporation taxes. I would increa e them, as I said, and I would increase tax, I will ask the chairman of the committee? the estate tax away up. Mr. SMOOT. l\iy attention was distracted. I did not hear Mr. HARRISON. But when the Senator is called on to vote the Senator's question. ·on the pending question, arid will have to upport either .the Mr. BROOKHART. In the report of the committee on page amendment offered by the Senator from North Carolina or-the 2, in setting out the amount of taxes authorized :for 1929, Committee amendment, does the Senator know now how iie is according to the estimate--this is only an estimate, but it is not going to vote? :far different from the old law-the current income tax is given Mr. BROOKHART. I think I do. as $1,890,000,000. M1·. HARRISON. How is tl!e Senator going to vote? Mr. SMOOT. That includes the corporation tax. Mr. BROOKHART. I am going to vote for the committee 1\Ir. BROOKHART. That is corporation tax and individual position. · p.ncome tax both. In that you reduce the little corporations by Mr. HARRISON. I see. raising their exemption from $2,000 to $3,000? Mr. BROOKHART. 1\Ir. President, I think, then, I shall Mr. SMOOT. That is true. vote against the whole bill. I certainly shall unless there are Mr. BROOKHART. Then I want to call the attention of the some provisions dealing witq questions of administ:J;ation· that Senator from l\Iis issippi to the fact that I put in the RECORD it is desirable to pa s. I do not believe in tax reduction at all some time ago figures of Mr. Hoover showing that since 1922 at this tin1e. I know it i~ not for the benefit of the people of the 177,000 corporation in the United States have operated at a country to reduce the e taxes. Now is the time to pay this loss and have had no tax whatever to pay and are exempt from debt, while we have the money, and while the profiteers who tax on that account, so that the little corporations of the country made the money out of the war are still at hand to be taxed are not paying this great tax. It is the big corporations that for that purpose. are paying it. In fact, it is the big fellows that are paying Again, Mr. President, I desire to inquire, Is there any provi most of the Government tax, except the indirect prices that are sion in thi bill for the $400,000,000 that bas been provided in put upon the people, perhaps, by the custom duties. the farm bill that has pas eu both Houses of Congress? Is that Mr. SHIPSTEAD. Mr. President-- included in this estimate? The PRESIDING OFFICER. Does the Senator from Iowa l\fr. SMOOT. That would come in an appropriation bill, not yield to the Senator from Minnesota? in this bill. If that bill become a law, whatever expense may l\Ir. BROOKHART. I do. come from the enactment of that law will have to be taken Mr. SHIPSTEAD. How is this so-called tax reduction going care of in the urgency deficiency appropriation bill which the to help the farmer and the laboring man, then? Hou e, I think, began considering Saturday. Mr. BROOKHART. That is what I was coming to. The Mr. BROOKHART. But has it been included in these tax Senator from Minne ota very properly a ks bow the Senator estimates? :from Mississippi, with all his talk of tax reduction, is going Mr. SMOOT. It bas not. to reduce taxes on the farmers of the United State or on the 1\Ir. BROOKHART. Then, if that bill should become a law, it labol'ing people of the United States. I quoted, I think before will create a deficit ; will it not? the Senator from Minnesota came in, the statement of the l\Ir. Sl\IOOT. It all depends upon how much money would Senator from Mississippi [Mr. IlA.RRisoN] that he is reducing have to be appropriated for the fir t year. If the full amount taxes for the members of the United States Chamber of Com of appropriation were made, of course then there would be a merce They are his clients in this great patriotic system of deficit right off. There i no question about that. tax reduction in thi campaign year. 1\lr. BROOKHART. The Senator will concede that if we I notice here an item of " Miscellaneou. ·, $630,000,000." Will handle the exportable surplus of agriculture the first year, it the Senator from Utah e}..--plain who pays those items, mainly? would take it all and more, too; woultl it not? l\Ir. SMOOT. That includes all payments which we receive Mr. SMOOT. Yes; if they handle all of the product. that are from railroads and other sources, such as small taxes that will. provided ·for in that bill, the $400,000,000 will not be ufficient. be collected. l\Ir. SHIPSTEAD. Mr. President, is the Senator talking Mr. BROOKHART. None of that is collected from the :farm about the farm bill? ers of the United States? Mr. BROOKHART. Yes. - Mr. REED of Pennsylvania. Ob, yes, Mr. President. Every l\fr. SHIPSTEAD. If the Senator will permit me, with re- time a :fanner smokes a cigarette, be pays part of it. - gard to the farm bill, I think if the Senate will investigate the 1928 . CONGRESSIONAL RECORD-SENATE 8603 amount of farm products imported into this country, unless loose hundreds and thousands of war profiteers in these wars, some tariff schedules are written into the law to stop some of to make millions out of the blood money of the war and then these imports and make that bill effective, the chances are that have delayed an economic reward for the soldiers themselves the whole world will ship agricultural products in here, and until most of them were dead and gone. we will have to buy the products of all the world. 1\ir. SMOOT. 1\Ir. President, if I remember correctly, the Mr. SMOOT. Of coiD·se, the Senator knows my position on last bill affecting the Spanish war veterans took into considera the question of the tariff rates upon agricultural products. As tion age as a disability, the same as with regard to soldiers of far as I am personally concerned, I will support any kind of a the Civil War. tariff rate suggested by the organizations, as we did in the Mr. WALSH of Massachusetts. The bill of the Senator from passage of the act of 1922. Iowa is much more liberal than the last bill enacted. 1\Ir. BROOKHART. I think that proposition is beside the Mr. Sl\lOOT. I have not read the bill, so I can not say; but one '""e are now discussing. in answer to the question as to the Spanish War veterans, the Mr. SMOOT. Oh, it ~s entirely aside from it. attaining of a certain age would have the same re.. ult as with l\Ir. BROOKHART. It is all right; but I want to confine my regard to Civil War veterans. discussion at this time to the question of what is provided for Mr. WALSH of Massachusetts. I understand Civil War vet in this bill, and the necessity for tax reduction. erans are pensioned regardless of age, and that there is no No estimate is made, and no sum is included for the farm legislation of this nature regnrding World ·war veterans. bill. Therefore the farmers are to have no relief from the l\fr. BROOKHART. Doe the Senator ·from Massachusetts Treasury of the United States. On the other ide of the remember the age limit fixed in the law for Spanish War Chamber, after all this talk about farm relief, after the Sena veterans? tor from Mississippi voted for the farm bill, then he brings Mr. WALSH of Massachusetts. I have the impression that in a bill with les provision for taxes than even the commit Spanish War veterans receive varied amounts according to their. tee on this side of the Chamber, with less provision to take ages and regardless of physical condition. Those who are 62 care of the farmers than would the bill now pending. years of age receive $20; those who are 68 years of age receive Mr. President, I desire again to ask the chairman of· the $30; those who are 72 years of age receive $4{); and those 75 committee if there is included in the estimates in connection years of age $50. with this bill anything for flood control. Mr. BROOKHART. Before they draw a pension? Mr. SMOOT. Not any estimate that has been sent from the 1\lr. ·wALSH of Massachusetts. Yes. Bureau of the Budget. Mr. BROOKHART. They all draw pensions at 62 years, Mr. BROOKHART. These estimates, then, are all made e\en without any disability? without allowing anything for expenditure on flood control? Mr. WALSH of Massachusetts. They draw pensions for dis- 1\Ir. Sl\IOOT. I think that is true. ability at any time. l\Ir. BROOKHART. Does the Senator have an idea how l\fr. BROOKHART. At any age? much would be expended under the flood control bill the first l\fr. WALSH of Massachusetts. Yes. year? 1\Ir. BROOKHART. My bill would make the same provision 1\Ir. SMOOT. I think the general understanding is, not to for tbe soldiers of the World War, if it should be enacted. exceed $30,{)00,000. There are just the two propositions: First, to put the Spanish Mr. BROOKHART. Then these propositions for tax reduc War soldiers on the basis of the Civil War soldiers at this time. tion are altogether without reference to the interest of the and, secondly, to put the World War soldiers on the basis of people of the United ·States. They are in the interest of the the Spanish War soldiers. That being done, the fir t proposi chamber of commerce and of politics, a play on politics. tion would cost only $63,350,000 and the second proposition l\Ir. President, there i one other situation in regard to tax would cost only $73,800,000. Yet instead of doing justice to ation which I think ought to be considered now, and one other these soldiers, the Senator from Mississippi wants to reduce 1·eason why I am not for tax reduction. That is in reference taxes on the United States Chamber of Commerce. to the soldiers of the United States-! mean · the common Mr. President. I ask leave to insert in the RECORD the letter soldiers. I introduced a pension bill at this session. It is a from the Interior Department to the chairman of the Committee general bill, graduating all of the soldiers of the Spanish on Pensions regarding this matter. American War into the pension rates and grades of the soldiers The PRESiillNG OFFICER. Is there objection? of the Civil War, putting the soldiers of the World War under There being no objection, the letter was ordered to be printed the same law under which the Spanish-American soldiers are in the RECORD, as follows : now. THE SECRETARY OF THE INTERIOR, When I introduced that bill, in a general way, I thought Washitlgton, February 9, 1928. probably it would cost three or fOUl' hundred million dollars, lion. AllTHUR R. ROBIXSON, maybe more, but the chairman of the Committee on Pensions, · Chairman Committee on Pensimls, Unitecl States Senate. the Senator from Indiana [l\Ir. RoBINSON], asked the Secretary 1\IY DEAR SENATOR ROBINSON : I am in receipt of your letter, inclosing of the Interior for a report upon the provisions of the bill, a copy of bill S. 1880, geanting increase of pensions to soldiers, sailors, and in his report he showed that raising the 150,000 survivors and marines of the war with Spain, the Philippine insurrection, and and 250 nurses of the war with Spain, the Philippine insutTec the China r elief expedition, and to widows, children, and dependent tion, and the China relief expedition now on the rolls to the relatives of said soldiers, sailor , and marines, and granting pensions to varying rates indicated, increasing them to the rates now paid World War veterans, and for other purposes, concerning which you ask to the Civil ·war pensioners, would cost approximately $63,- for a report. 350,000. Section 1 of the bill increases the rate of pension of soldiers, sailors, l\lr. WALSH of Massachusetts. 1\Ir. President- and marine of the war with Spain, the Philippine insurrection, and the Mr. BROOKHART. I yield to the Senator. China relief expedition, their widows, children, and dependent relatives, Mr. WALSH of Massachusetts. Does the Senator's bill pro to the rates granted on account of service during the Civil War. pose a pension for all Spanish-American veterans and World Existing laws provide as follows: ·war veterans, based upon their reaching a certain age, without Civil War survivors : Per month regard to physical disability? If in a National or State soldiers' home______$50 Mr. If not in a National or State soldiers' home______6;> BROOKHART. I did not change the provisions of the If totally helpless or blind or so nearly so as to r equire the law as it now applies to the soldiers of the Spanish "\lllar. I regular personal" aid and attendance of another person __ 72 simply placed the World War veterans under the same law If totally helpless or blind and in a National or State sol- diers' home ______72 and with the same rates. If totally helpless or blind and not in a National or State Mr. WALSH of Mas achusetts. Civil War veterans now re soldiers' home ______90 ceh·e a pension without regard to their physical condition. I Survivors, including nurses, war with Spain, Philippine insurrec-_ was wondering 'vhether the bill of the Senator proposed a pen tion, and China relief expedition : sion to the Spanish ·war veterans and World War veterans upon Disabilitya support proportioned ______to the degree of inability to earn 20-50 renching a given age, ''ithout regard to their incapacity. It regular aid and attendance of another pet·soll needed or 1\Ir. BROOKHART. 'l'hat is the form in which the bill is required and not in a State or Nation!ll soldiers' borne __ _ 72 If regular aid and attendance of :motheY. person needed or drawn, the a me as applies to Spani h war veterans ; but I required and in a State or National soldiers' home ______50 would have no objection to an amendment that would reach the Age, regardless of physical condition: proposition which the Senator suggests. 62 years-----~------20 68 ycars------30 Mr. WALSH of Massachusetts. The law that pensioned all 72 years------40 Ch·il War veterans was not passed for a good many years after 75 years------50 Dependent parents : the Civil War, and was originally with age limitations. Civil War ______30 Mr. BROOKHART. Yes; it was too long afterwards. All \Yar with Spain, Philippine insurrection, and China relief pension bills have been delayed too long. We have turned . expedition------~------2R 8604 CONGRESSIONAL RECORD-SENATE 1\fAY 14 Widows and minor children receive. the same rate, whether Civil War Mr. HARRISON. I thought so. Very often we hear men or war with Spain service; that is, $30. per month plus $6 per month discu ·s on the floor of the Senate something about which they for each minor child under 16 years of age. know absolutely nothing, and here is the Senator criticizing me There are approximately 150,000 survivors and 250 nurses of the for votes cast in the past and for my views with reference to war with Spain, the Philippine insurrection, and the China relief. expedi tax reduction when he does not know what the surtax is in the tion now on the rolls at the varying rates above indicated. To mcrease higher brackets in the preNent law. these to the rates now paid to the Civil War pensioners would cost That is just carrying out my idea as to the Senator's in approximately $63,350,000. formation. I asked the Senator as to the pending amendment, Section 2 of the bill grants title to any soldier, sailor, marine, or which is the amendment reported by the coilllhittee reducing nurse, entitled to the benefits of the World War compensation act !!-S surta:x'es, and the Senator sajd he was not familiar with that· amended, their widows, children, or dependent relatives, and at the amendment. I asked him whether he was for the amendment rates now provided for service during the war with Spain, the pension or for the substitute offered by the Senator from North Caro therein provided being in addition to all other pensions, bounties, and lina and he said he did not know. I am not surprised because compensations granted on account of service in the military or naval he did not know anything about this subject matter. forces during the World War; that is, for survivors at rates from $20 to That· was a frank admission. Then, after he stated he did $30 per month, proportioned to the degree of inability to earn a sup not know what was the issue here, he admitted that he- was for port; or if by reason of physical or mental disabilities, regular aid and the committee amendment. attendance of another person is needed or required, at $72 per month, Mr. BROOKHART. Yes; and the Senator forgot I indicated provided the di abilities are not the. result of vicious habits and the I was against the entire bill. applicant is not an inmate of a State or national soldiers' home; or, 1\lr. HARRISON. Oh, yes; the Senator said be was against regardless of physical condition, for attained ages, as above specified; the whole bill. In other words, he is " agin " everything except, widows and children at $30 per month, plus $6 for each additional I believe, that he would repeal the present e tate tax law, al child under 16 years, and dependent parents at the rate. of $20 per though he paid high eulogy to the distinguished Congressman month. from Iowa, who was recently chairman of the Committee on Approximately 3,400,000 veterans of the World War and 110,000 Way and Means, and who not only conceived but put through dependents have been awarded adjusted compensation. Assuming that the House that law. The Senator from Iowa is blowing hot and 10 per cent -of the survivors have at least a 10 per cent disability, cold by paying high tribute to the Congre sman from Iowa and· thereby entitling them to $20 per month under the bill, ami that all yet condemning his handiwork. The whole coalition over there, the dependents would be eligible to the proposed pension, the cost of as I understand-and the Senator can deny it if he will-and this Hem would be approximately $73,800,000. the reason why be is voting with them over there is because • • • • • • • there is some understanding with reference to the estate tax. The approximate aggregate cost of the bill would be $137,150,000. l\fr. BROOKHART. I must correct the Senator in reference I am unable to recommend that tbis bill be enacted into law. to Cong1·es man Green's position. He oppo ed any change in A copy of this report was forwarded to the Director of the Bureau the estate tax law as ardently a it was possible for him to do: of the Budget, who advises that the proposed legislation is in conflict 1\lr. HARRISON. Congres man Green conceived1 as I under with the financial program of the President. stand, the present plan and engineered it through the Hou e, Very truly yours, and it is now the law. At any rate he got that credit. HUBE"R'f WORK. 1\Ir. BROO:.{{BART. Congre sman Green opposed the rebate Mr. HARRISON. Mr. Pre ident, I was somewhat surprised entirely, but it was forced upon him. Recently we had a dis-· at some of the utterances of the Senator from Iowa [Mr. cus ion here in which it was said that he was elevated to the BROOKHART], and I was not urprised at other utterances of bench because he had opposed the rebate plan. the Senator. I know that there are some things about which l\Ir. HARRISON. That is immaterial. The Senator started he and I are in disagreement, and there are other propositions out by quoting from a speech I made on Saturday. Really, I on which we have joined battle lines together. am sorry that he did not read more of it, becau e it was a good I was surpri ed at that part of the Senator's speech referring speech. When the Senator quotes from me he is then making to the soldiers of the country, and seeking to o-ive the impre ion a good speech. It is only when he gets a way from quoting me that I was oppo ed to that body of our citizens being taken care that he falls into error. He was defending the proposition that of by reasonable and adequate appropriations. The Senator he and his friends were not backsliding, but that I was back- knows I have never voted against an appropriation to take care liding, and then he.began to talk about the estate tax. I have of the needs of the soldiers of this country. been consi ·tent in my po ·ition with reference to the e tate tax. Mr. BROOKHART. Mr. President, will the Senator yield? I have never backslidden at all on the estate tax. My po~ition Mr .. HARRISON. I yield. is known by my vote and by my utterance . I do not believe l\1r. BROOKHART. I am very much delighted to hear thGse in double taxation. I voted against the impo ition of the estate remark from the Senator, and I will say to him that if he will tax by the Federal Government. I voted not only once but lead his ide of the Chamber, we can get votes on this side to many times for the repeal of the estate tax. pa. that pension bill rio-ht now, and eat up $140,000,000 of tax I am delighted that it was not put in this bill. It i not in reduction. this bill at this time. The House has not touched the estate-tax feature of the law at all. The Senate Committee on Finan , Mr. · HARRISO~. So, Mr. President, I have always tried to when it first took action, voted to repeal it on the recommenda vote to take care of the needs of those who fought for this tion of the Treasury Department, but when they found that country. I admire the gallantry and the fine war services there was a threat in the Senate that if they brought out a rendered by the di tinguished Senator from Iowa; but when provi~ion repealing the estate tax there would be a filibuster the Senator from Iowa criticizes me for my view with refer employed and that tax reduction would be denied to the Ameri ence to tax reduction, I am complimented that I find myself at can taxpayers, they changed their tactic . When they were variance with his views. served with notice by tho e who will be in conference upon the The Senator stated, in answer to a question which I pro part of the House that if we touched the estate ta.x in the Sen pounded to him, that he wa against any tax reuuction. By ate, if we repealed the e tate tax, there would be no tax reduc his vote two years ago he indicated that he was against any tion at all at this time, then it was that the majority members tax reduction then. He also stated in his speech that he would of the committee turned about face, rescinded the action they now increase the surtaxes in the higher brackets to 40 per had taken in the Finance Committee, and so there is no ques cent if it were within his power. I doubt not that the Senator tion pending here with reference to estate taxes. wou1d go even higher than that and vote for the old war-time I feel at thi: time that if the proposition . bould ari e, that I surtaxes and make the rate 65 per cent. clo not think I would join in for a repeal of it on this bill be 1\fr. BROOKHART. Mr. President, will the Senator yield? cause of circumstances surrounding the que tion. I am going l\1r. HARRISON. I yield. to do nothing that will pre\ent tax reduction during thi es Mr. BROOKHART. The Senator is in error as to the sur sion. I fear that will. 1\ly po ition ha been entire con i tent. taxes. I was talh."ing only of the 'e ·tate taxes. Now, coming to the proposition of the Senator about the great Mr. HARRISON. 'JI.he Senator then is in favor of the pres :fight we bad made on this side of the Chamber in 1921 and 192-! ent urtax in the higher brackets? again~t Mr. 1\lellon and auainst tho e in tlle Senate who thought Mr. BROOKHART. I am in favor of a . urtax; yes. a he did with reference to reduction of urtaxe , the enator 1\lr. HARRISON. I know; but there is· a great deal of said that I changed my position in 1926. No; I have never uifference between that and being in favor of the rate in the changed my position. I have certain view with re ·pect to pre ent law. Is the Senator in favor of the rate of surtax in tax reduction. Tho ·e view are the views for which my party tlie higher brackets a in the law? [After a pause.] The has ever stood. ~~hat is, that in the granting of reductions we Senator does not know what the rate is now, does he? should first give relief to those who need it mo t. That bns Mr. BROOKHART. No; I am not familiar with it. been the policy of my colleagues in the IIou e and of my col- 1928 CONGRESSIONAL RECORD-SENATE 8605 leagues in the Senate. Our record has been made. It was be oecasion to criticize me this morning, voted with us on that cause Mr. Mellon would have the favored rich get the greatest question when we put it over in the Senate at that time. reduction and refuse it to those who need it most, that we Mr. BROOKHART. Mr. President, I did not quite under battled him in 1'921 and again in 1924. It was in that sugges stand the Senator's proposition. tion, where the Secretary of the Treasury and you on that Mr. HARRISON. Two years ago the automobile tax came up side tried to give 1,200 of the 3,585,895 income-tax payers in for elimination. The Senator voted with us on that, I think. America 51 per cent of the total reduction. Mr. BROOKHART. I may have voted for that, possibly, but It was in the benign pages of that proposal that incomes I voted against the whole bill. of $5,000,000 were to be benefited by a reduction of $1,335,832, Mr. HARRISON. Oh, yes; the Senator voted against the while incomes of $3,000 were to receive only $8.75 reduction. whole bill. He voted against the whole proposition. But after This Senate amendment i patterned from the same plate and we had passed the amendment eliminating the automobile tax italicized from the same idea. and the bill went to conference, then it was that t:Q.e conferees It was under the whip and spur and united effort of Senators repudiated what tl;le Senate did. Mr. Mellon said, " Oh, the on this side of the aisle that we forced consideration in 1921 Treasury will .not stand for it. You have written a bill that and again in 1924 of tax reductions to eliminate millions from reduces taxes nearly $500,000,000, and the Treasury will stand the payment of normal taxes, to eliminate millions from the for only about $300,000,000. You must eliminate that provision payment of surtaxes in the lower brackets, and to relieve many whereby you take the tax off of automobiles." Senators relied millions more by giving reductions, not as great in the higher on the recommendation and statement of the Treasury Depart brackets as Mr. Mellon and those who believed as he did in the ment and were forced to recede from the action of the Senate. Senate and in the House wanted, but we relieved them appre The Senator from Utah was then chairman of the conference ciably. This was done under the ~nfluence of the Democratic and the first to retreat. When the bill was finally incorporated minority in the House and in the Senate, and ours is the credit into law that tax was restored. more than those on the other side of the aisle. What was done Notwithstanding the advice given by the Secretary of the we forced to be done. We did-not give in 1924 the reduction to Treasury, which was relied upon by Republican Senators, that 20 per cent, may I s~y to the Senator, which is the present rate we could not cut the tax any further than he said and not in the higher brackets, until we had eliminated from the pay withstanding that we reduced the taxes $383,000,000, there was ment of taxes the millions of whom I have spoken, and the a surplus at that time in the Treasury of over $300,000,000 and other millions who had had their taxes reduced in the lower the next year it climbed until it reached over $600,000,000. brackets. · - - Those are the facts, and they will not be denied, and yet Upon what theory of government is it t4at a man should sit the Senator from Iowa says the Democrats should not have here in the Senate of the United States and, when we have reduced the surtaxes. In 1926 we undertook to reduce them, surpluses piled up in the Treasury, continue to keep the taxes and it was our amendments to the bill relating to the reduction high just because he ha& the power to do it? Taxes should not of the surtaxes that were finally adopted in the committee. It be le,ied except in ufficient amount to run the Government. was our a,1;1peals which brought about and gave great reductions When we do not need the taxes why should we continue to to millions of moderate means. Yes; we had reduced it some impo. e tl!em? I would not vote to increase the taxes now in in the higher brackets, but the Treasury could stand- for the higher brackets, although I am opposed to reducing them that cut. in the higher brackets at this time. I hope the time will come Here are corporations, as I have pointed out, which the Sen when we can give a further reduction in the higher brackets, ator from Iowa says I am defending. That is all right. I am. but that time is not here now. So when there is a surplus, as glad the time has come in America when every institution and there is now a urplus, amounting last year to $400,000,000, every class of people can be defended, as they ought to be and every reason to believe it will be a like sum this year, w.e defended, when they are in the right. My party believes in must reduce taxes, and the question presented to us is where we equal and exact justice to every man in every class of business shall cut. in the country, and as long as a corporation confines itself We on this side of the Chamber believe in reducing the taxes within the law I care not how big and prosperous it may for those who have had the least cutting of taxes in the past, become. I want to see it treated fairly. and that is why we started in the beginning to eliminate the Corporations are no bugaboo to us as Democrats. Treat them nuisance taxes, the war-time taxes that were never known by decently, treat them fairly, and do not look at them as though this Government except when our Government had been thrust they were assassins, as my friend from Iowa would. He is into the midst of war. We have made our efforts to do away obsessed against corporations. The man who has a little money, with those taxes. In some instances we succeeded and in others made by his own efforts and zeal, should pay it all to the Gov we have failed. ernment, according to the Senator's theory. That is. not my If it had not been for our aggressiveness and our united idea of government. That is not my philof:ophy of life. Deal efforts the tax on automobile pa!'ts would not now be eliminated equitably with all men; deal impartially with all of our citi from the bill. I dare say that the distingui bed Senator from zens. Corporations are but aggregations of individuals who Michigan [M.r. CouzENS] knows that to be quite true, because sub cribe to the stock of the corporations and own it. he was the only member of the Finance Committee on the Re People in New York own stock in corporations in my State; publican E.ide who in the beginning favored the elimination at people in my State own stock in corporations in Michigan. this time of the tax on automobile parts. We Democrats were Upon them depends in a large degree the prosperity of the uuited on the proposition, and it was a Republican fear that country. If we have a great surplus in the Treasury, why they would be defeated on the floor of the Senate if they re should we want to destroy them and at the same time destroy jected our proposal which caused them finally to agree to the business of the country? No; as I pointed out on Saturday eliminate the proposition. in 1909 there was only a 1 per cent corporation tax levied upon Mr. COPELAND. Mr. President, will the Senator yield? the corporations of the counh·y, and during the World War we The PRESIDING OFFICER. Does the Senator from 1\Iissis shot it up from 2 per cent until we had levied a 12¥2 per cent sippi yield to the Senator from New York? corporation tax, an excess-profits tax in addition to that, and 1\Ir. HARRISON. I yield. in addition to all that a capital stock tax. There is no class Mr. COPELAND. I want to be clear in my mind about this of people in America from whom more taxes were exacted matter. As I understand the Senator from Mississippi, the during the war than the stockholders of corporations, and yet Republicans were not willing to have the tax taken off of auto despite that high increase from 1 per cent corporation tax to mobiles, and it was only as a result of the persistence of Demo 12% per cent two years ago, in peace times, the majority of crats that the change resulted in the bill? the Republican Party increased it to 13¥2 per cent, when we Mr. HARRISON. On a record vote in the committee they were reducing the taxes of everybody else. voted us down, and even when the distinguished Senator from I say, Mr. President, since we have reduced the tax on indi Michigan [Mr. CouzENs] voted with us, we were unable to vidual incomes, since we have lowered the normal tax, since we carry the proposition. The only rea on why they turned turtle have eliminated million in the lower brackets from the payment on the proposition was because they knew they could not stand of the surtax, the time has come when the stockholders of the the assault in the Senate, and that the tax would be eliminated corporations of the country are entitled to some tax reduction. on the floor of the Senate. Two year~ ago, in consideration of So we on this side of the Chamber put the question to the Sen the 1926 tax bill, we made a proposal to eliminate this tax. ate a to whether or not it would reduce the corporation tax to We voted the pl'oposition out here. On this side of the aisle 11% per cent as the other House had voted to do. There was not we voted solidly to repeal the automobile tax, but many Sena a division in the House on that proposition. The Republican..<; tors on the other ide of the Chamber voted against us. Theirs from the Senator's own State, Democrats from my State, all -were the only votes that were recorded against it, but there was unitedly v.oted· to put into this proposed law, a reduction of the a sufficient number over there to retain, finally, the tax. -1 think corporation tax to lllh per cent; and yet on the roll call the my friend the Senator from Iowa [1\fr. BROOKHART], who took" distinguished Senator from Iowa and all Senators gn the other 8606 CONGRESSIONAL RECORD-SENATE 1\fAY 14 side of the Chamber unitedly voted against that proposition So, :)\ir. President, it seems to me, inasmuch as the Govern ~nd made the tax on corporations 12% per cent. ment has increased the corporation tax from 1 per cent in 1909 . Yes; I am glad to_ defend my position with reference :to it. to 13% per cent in 1926, the least we can do is to reduce it to I wish that the Treasury of this Government were in such con lllh per cent. That was the proposition that was before the dition that we could reduce the. corporation tax to 10 per cent, Senate. I have said all I desire to say. or to 8 per cent, aye, I wish the time would come when we can Mr. BROOKHART. Mr. President, I care to reply to but one bring the tax back to the pre-war days of only 1 per cent. The or two of the suggestions made by the distinguished Senator American people,. I do not care whether they live in Iowa or in from :Mississippi. In the first place, his argument, as suggested:' New York or in Mississippi, do not get much pleasure out of by the Senator from New Yor~ [Mr. CoPELAND], is to the effect paying taxes; no one does; a tax is a burden; and I say that that the corporations add their tax to the price of their products the broad shoulders of the highly favored few should carry the and pass it on to the farmer; in other words, the corporations burden more than the bowed and bent backs of the moderately pay no tax. There is some truth in that in reference to the well-to-do many of this country. That is the position of the big corporations, but the 177,000 corporations that have operated Democratic Party; that is our record in this body. I do not at a loss since 1922 have passed nothing on to the farmer. The believe in destroying any JPnd of business except t~e kind that corporation tax should be graduated so that could not be done, is illegitimate, the kind that, through, the violation of laws, saps but under the plan the Senator is proposing there is no . such the lifeblood out of the Natipn, and fetters with chains of bond graduation. age our own citizens. Mr. HARRISON. If the Senator will permit me to interrupt l\1r. COPELAND. 1\Ir. President-- him, I know he wants to be absolutely fair. Let me say that The PRESIDING OFFICER (Mr. STE'CK in the chair). Does in the proposal we made on last Saturday to give a reduction of the Senator from Mississippi yield to the Senator from New 5, 7, and 9 per cent to corporations whose net ~ncomes were less York? · than $15,000 there was carried out the idea of a graduation l\Ir. HARRISON. I yield to the Senator from New York. . which ga-ve greater relief to the smaller corporations; but the 1\Ir. COPELAND. Does it not strike the Senator from Mis Senator cast his vote against the proposition. sissippi as strange that our friend the Senator from Iowa [Mr. Mr. BROOKHART. That would not give any relief to the BROOKHART], who is devotedly interested in the welfare of the small corporations. farmer, should be anxious to have taxes remain high? That Mr. SMOOT. l\Ir. President-- certainly means, to me at least, that every artiQle that the Air. BROOKHART. I yield to the Senator from Utah. . farmer buys from the manufacturer, every article that the 1\Ir. HARRISON. I wish the Senator from Utah would per household purchases, will be increased in price by reason of mit me to ask the Senator from Iowa why the tax proposed will the high tax. The people pay the tax. It does not come out not give any relief to the smaller corporations. of the rich man's pocket; he does not go out and pick up a Mr. BROOKHART. I have yielded to the Senator from Utah. chest of gold somewhere to pay the tax. The ma.nufactur·er Mr. HARRISON. Will not the Senator from "Utah allow the charges it against the people, and the farmers of the West, Senator from Iowa to make an explanation? I want the ex who are seeking relief, are going to be relieved just as much planation of the Senator from Iowa. from the lowering of taxation as any other citizens of the Mr. BROOKHART. I should prefer to do my own yielding. country are going to be benefited by it. Mr. SMOOT. Mr. President, one thing that will happen if Mr. HARRISON. The Senator from New York is exactly the graduated tax shall be adopted will be that all chain right. The higher corporation taxes are the more the pur stores in the United State , in all the little cities wherever they chaser will have to pay for the products made by corporations. may be located, are not going to pay the 12% per cent tax; but 1\Ir. President, let me say a few words more in regard to they are going to take advantage of the graduated tax. There the corporation tax. The Senator from Iowa asked why not bas already been adopted by the Senate a resolution providing help the farmers in some way? I want to help the farmers. for an investigation of those very stores, it being claimed that I have alway helped them. Through proposed legislation and they are interfering with legitimate business men of the coun otherwise I have pursued that course. I should like to vote try; and, just as certain as we live, if the graduated tax be to reduce the tariff rates that are now bleeding the American comes a part of this bill as propo ed they are going all to fall farmer and other citizens of this country to the amount of under the lower brackets. $4,000,000,000 annually in increased high costs ; but what can Mr. REED of Pennsylvania. Mr. President, will the Senator we do on that question in the Senate, may I ask the Senator? from Iowa permit me to ask a question of the Senator from We can not originate that kind of legislation, nor do we con Utah? trol the machinery that grinds it out. And what would his Mr. BROOKHART. I yield. colleagues over there do with reference to that particular Mr. REED of Pennsylvania. I was not able to be h~re on matter? Saturday when that amendment was discussed, but it occurred I am not unaware that the Senator from Wisconsin [Mr. to me as I read the text of it that it ought to be called "An BLAINE] has offered an amendment to this bill on the tal"iff amendment for the relief of the Standard Oil Co.," becau. e they question. I am opposed to that amendment, and when it shall can create a separate corporation for every gasoline station; be offered I will state the reasons for my opposition, and I and by this amendment that the Senate put in• on SatUl'day they think then the Senator from Wisconsin will also be against the are going t() get away with a 5 or a 7 per cent tax instead of a proposal. I am honestly and sincerely in favor of a tax re 12lh per cent tax. duction bill. I want to see taxes reduced by $300,000,000 or Mr. HARRISON. Mr. President, will not the Senator yield $325,000,000, if possible, but if we can not get such a re~ucti_?n as that because of the circumstances here and our mmonty now so that I can ask him a question? position, then I am in favor of getting the most we can. !f Mr. SMOOT. Mr. President-- the utmost is only $200,000,000, well and good ; but I am not rn Mr. HARRISON. Just one question. favor of the Senate of the United States doing anything that The PRESIDING OFFICER. The Senator from Iowa bas the will defeat the final passage of the pending revenue measure. floor. · Does the Senator yield, and, if so, to whom? There are many provisions in it that will give some relief; and Mr. BROOKHART. I yield to the Senator from Utah to :fini h I am not going to be a party to accepting amendments offered his statement. by ce1·tain Senators who are in favor of taking all the surplus Mr. SMOOT. Mr. President, I had one of the experts in the and paying the national debt without giving any reduction of Government service engaged since Saturday up to the present taxation to the American taxpayer. time in trying to figure 01.1t what that amendment really means, Do not let the Senator fool himself that a 13% per cent or a and as nearly as he can figure it will be over $50,000,000; and 12¥2 per cent corporation tax does not increase the cost of living who is going to benefit? in this country. The Senator may get it into his head that only Mr. HARRISON. Has the Senator conferred with Mr. McCoy, the rich in this country own stock in co·rporations, but it is the actuary? estimated-the figures vary-that millions of people hold stock Mr. SMOOT. I ha\e not seen Mr. McCoy. in corporations, and I know that when a corporation bas to pay Mr. HARRISON. The Senator will not accept his figures on a 12¥2 per cent tax or a 13¥.! per cent tax it must make it up the proposition. With whom bas the Senator conferred who and that it makes it up by increasing the price of its products gave him those figures? to those who buy them. - Mr. SMOOT. An official of the Government. I know that there are many corporations which give to their Mr. HARRISON. The Senator must have been playing mum employees shares of stock. 1\Iany of them are doing that. blety-peg with himself. Those working for the corporations are interested, and I know 1\Ir. SMOOT. I wish the Senator would play mumblety-peg that when a corporation has got to pay 12th or 13¥.! per cent as sometimes instead of making the statements that be makes. I a corporation tax it is very likely to reduce wages of the men, think it would be to the advantage of the Government of the when it can do so, who wo~k in the particular indust17. United States. 1928 CONGRESSIONAL RECORD-SENATE . 860~ Mr. HARRISON. No; I would r~ther work with the Actuary Mr. Sll\Il\IONS. Mr. President, it is rather late to make the of the Trea ·ury Department. May I ask the Senator a question observation, but do I understand the Senator from Pennsyl in the time of the Senator from Iowa? vania as making the point that because the people who own Mr. BROOKHART. I yield. these service stations in copartnership, probably, or in coopera Mr. HARRISON. Was the purpose of the Senator in throw tion with the Standard Oil Co. would get the benefit of these ing himself into this breach and answering questions for the graduated rates, we are to deny the same benefit to all the Senator from Iowa, when he employed the chain-store argument trade-rs of the United States? and the Senator from Pennsylvania employed the Standard Oil Mr. BROOKHART. As far as I am concerned, I would reach argument, merely to holU the Senator from Iowa in line on this that conclusion. I am for taxing the higher rate of profits at a prop·osition? heavier tax than the lower rate of profits. - Mr. SMOOT. Not in the least. The Senator from Iowa is in Mr. SIMMONS. The Senator is in favor of a graduated tax, 1 line just as strongly as any Senator in this body. as I understand him. 1\Ir. HARRISON. But the Senator wants to hold him there? Mr. BROOKHART. But not on the basis of the mere total 1\fr. SMOOT. I am sure he thinks for himself; and if any earnings of any corporation. That does not get the results. statement made by the Senator from Utah or the Senator from Mr. SIMMONS. •.:hat does not appeal to the Senat(lr? The Pennsylvania was not approved by the Senator from Iowa, he Senator does not favor a graduated tax upon the incomes of would say so and act in accordance therewith. corporations up to $15,000? Mr. WALSH of Massachusetts. 1\Ir. President, will the Sen Mr. BROOKHART. Yes; I believe in a graduated tax on ator yield? the incomes of corporations. The PRESIDING OFFICER. Does the Senator from Iowa Mr. SIMMONS. That is what this bill does. yield to the Senator from Massachusetts? Mr. BROOKHART. But it does not do it on tlre basis in Mr. BROOKHART. I yield to the Senator from Massachu which I believe. setts. Mr. SIMMONS. I understand that the Senator now is Mr. WALSH of Massachusetts. May I have the attention of discussing the corporate tax, not the individual surtax. He is the Senator from Utah? As I understand the Senator's argu discus ing the corporate tax; and what is done by the amend me-nt, it is that a graduated income corporation tax will result ment that the Senate agreed to on Saturday is simply to grad in the breaking up of the big trusts and combines and result in uate the tax on incomes of $15,000 or less. the formation of small unit corporations. I should like to know Mr. BROOKHART. But it is on the basis of the total if that is not going to be a public benefit. For local control, income. knowledge of ownership, and for levying State and municipal Mr. Sll\IMONS. On the basis of the total income. taxes it will be an advantage. Mr. BROOKHART. A1;1d that is not a fair basis of gradu Mr. SMOOT. The Senator from Utah never made any such ation. The right basis is the rate of return on the capital statement. The Senator from Utah thinks these chain stores investment. Whenever the Senator brings in a graduated tax are small units in almost every little city that there is in the of that kind I will stand for it. I have talked it out many United States. times with the late Senator Jones of New Mexico. I was in Mr. WALSH of Massachusetts. The Senator, I understood, complete accord with his ideas; but the amendments offered stated that they would incorporate in small units, so as to get here are not of that character. the benefit of the low tax upon small incomes. What do I mean by that? Here is a corporation earning Mr. SMOOT. And make their returns, perhaps, in affiliated 4 per cent on its honest capital, we will say. It should have returns, owned by the same identical people, the same per a tax rate perhaps not above 2 per cent of that-a low tax centage owned in every institution. rate. If it earns 4% per cent, the rate should be perhaps 3 1\Ir. WALSH of Massachusetts. But is it not true that they per cent. If it earns 41h per cent, it should be 4 per cent, or can not get the benefit of this graduated corporation income tax perhaps more. I am only using these rates by way of illus unle s their income is small ; and to get a small income they tration; because after it goes above 5¥2 per cent, which is ali will break up into small corporations, small units? the American people can produce, then the graduation should Mr. SMOOT. That is what they are doing to-day. go Eltill higher. I have no objection, a little above that, to 1\Ir. REED of Pennsylvania. Mr. President, will not the Sen- taking all of the excess profits· in taxes. ator yield to me? . Mr. SIMMONS. Then the Senator would readjust all of Mr. BROOKHART. Mr. President, I desire to answer the our individual income-tax rates. They are based upon income, suggestion of the Senator from Massachusetts myself about that without reference to the amount of capital invested. I may breaking up and the effect of it on these great co~porations. have $100,000 invested in my farm; but if I do not make I helped conduct the first hearing against the Standard anything on it I have no income to be taxed, notwithstanding Oil Co. down in Kansas City, Mo., when the proceedings were the investment that I have in it. started which finally resulted in its dissolution; and after we Mr. BROOKHART. I shall be glad to discuss that proposi dissolved it it was worse than it was before. There has got tion with the s_enator. to be something more effective than the mere breaking up of Mr. SIMMONS. That is the basis upon which all of our big corporations because there are other powers, when they legislation since the war with reference to individual income are broken up, which enable them, providing they are under the taxes and corporate taxes has been based. We have based it, same sympathetic management, to engage in less competition not upon the capital invested. but upon the amount of net and make more profits from the people than they did before. profits earned in the operation of the business in which that Mr. REED of Pennsylvania. Mr. President, will the Senator capital was invested. permit a suggestion? Mr. BROOKHART. There are some cases where the same Mr. BROOKHART. Yes. injustice applies as in the illustration the Senator has given, Mr. REED of Pennsylvania. It is all as simple as A, B, C. no doubt, and I am perfectly willing to correct those in If they own a hundred gasoline stations, they organize a hundred justices ; but there is no proposition of that kind here. subsidiary corporations. They own all the stock of every one Mr. SIMMONS. But I did not interrupt the Senator for of them; but those 100 corporations make separate accountings the purpose of that sort of a discussion. I had that sort of a and they get in under the benefits of this amendment adopted discussion with the Senator from Michigan, and after we had here last Saturday, on the theory that they are small corpora had some discussion he seemed to yield the point and retire tions, and the benefit all goes to the parent corporation which from the combat. I rose for the purpose of answering the owns their stock. · statement of the Senator from Pennsylvania. Mr. SIMMONS. Mr. President-- The Senator from Pennsylvania said that when we graduated The PRESIDING OFFICER. Does the Senator from Iowa this tax we allowed certain subsidiary companies, such as yield to the Senator from North Carolina? service station companies of the Standard Oil Co., to obtain Mr. BROOKHART. Just a moment. some benefit. It may be, Mr. President, that the law which we The Senator from Massachusetts himself suggested that we have passed· in order to give every little corporation in this had reached a stage in the creation of these corporations where country the benefit of these lower rates, where their income is as monstrous a thing as that just described by the Senator less than $15,000, may result in some benefit to some corpora· from Pennsylvania can be done, and I believe that is true. tion connected or affiliated in some way with the great trusts; Until we have regulated these corporations by a law that but are we to deny relief to the masses of the people of this reaches their profits-there is no other place to touch a cor country because · possibly and incidentally some little corpora poration-and that graduates their tax according to their rate tions organized as subsidiaries of these big ~rusts may get some of profit, we have accomplished nothing by the amendments benefit from it? which have been suggested by the Senator from Mississippi. 1\fr. BROOKHART. 1 think with 177,000 out of 420,000 cor Now I yield to the Senator from North Carolina. porations operating at a loss, we are taking care of the little 8608 CONGRESSIONAL RECORD-SEN_._~TE MAY 14 fellows. They · are more than being taken care of by the big we have mountains of laws and statutes upon statutes. If fellows now. the earlier laws were applied the evils sought to be corrected .Mr. SilfMONS. If a man is operating at a loss, he has would have disappeared. . nothing that the Government ought to tax. Mr. BROOKHART. I think the Senator is right in that Mr. BROOKHART. No ; he has nothing, and it is these big proposition. With reference to this matter of pas ing these combinations that are forcing him to operate at a loss ; and if taxes on to the consumer all the time, if they were able to do we allow them to break up into little snakes, little subsidiaries that without question, as the Senator from Mis8i sippi has that eat up the little independent ones still faster, we have suggested, the United States Chamber of Commerce would not gained ·nothing by that operation. be before Congress asking for tax reduction. It would be per No; the Senator is on the wrong basis of graduation of cor fectly satisfied with the situation, because it would add in poration taxes. I am for it on the basis figured out by the the tax in all cases, and then add in a profit for adding it in late Senator Jones of New Mexico, whom I rega~·ded a~ a very and charge it all up to the people of the country. But they great expert upon this proposition. do not succeed in that result so fully, and the fact is that they 1\lr. KING. Mr. President, will the Senator yield? have to pay some of these taxes. Therefore I think the argu The PRESIDING OFFICER. Does the Senator from Iowa ment upon that proposition falls. yield to the Senator from Utah? In conclusion-and I am sorry the Senator from Mississippi Mr. BROOKHART. I yield. ran away; it seems impossible for me to keep him in the Cham Mr. KING. The Senator appreciates, I have no doubt, the ber-in the beginning of this session we passed a resolution, difficulties which were encountered, when the excess-profits tax introduced by the Senator from South Dakota [Mr. Mcl\fASTER], was a part of our revenue system, in reaching these results, be in which we declared for tariff reduction at this session of cause of the almost insurmountable difficulties in determining Congress, and the Senator from Mississippi voted for it. Now valuations. · he announces that if that is offered by the Senator from South · Mr. BROOKHART. If the Senator will permit me, I men Dakota as an amendment to this tax bill he will vote against tioned that in the beginning. I concede that the administra it. Who has done the backsliding. on this tax question? tion of that kind of a law, as we create corporations in this MESSAGE FROM THE HOUSE v.rild and unre. tl·icted fashion in the United States, is a difficult, A message from the House of Representatives, by Mr. almost impossible, proposition. I am ready to put regula Chaffse, one of its clerks, transmitted the resolution (H. Res. tions around these corporations that will give us control of 204) of the House adopted as a tribute to the memory of Ron. their capitalization and control of their earnings, so that we can LADISLAs LAZARo, late a Representative from the State of tax them as they ought to be taxed. We ha•e not done that, Louisiana. however ; and we will not have a graduated corporation tax The message also announced that the House had passed law that is just or fair up.til we do our duty in that regard. without amendment the bill (S. 3565) to provide compensation I deplore the fact that the Congress of the United States lies for disability or death resulting from injury to employees in back here helpless, powerless, and says, "We can do nothing," certain employments in the Dish·ict of Columbia, and for other and allows these great corporations practically to rule the purposes. country, economically as well as politically. The message further announced that the House had agreed Mr. KING. Mr. President, may I say to the Senator that the to the report of the committee of conference on the disagreeing plan which the Senator from New Mexico expounded to the votes of the two Hou es on the amendment of the House to Senate was presented to the Democrats, and in one of our the bill ( S. 744) to further develop an American merchant conferences it commended itself to the judgment-of the Demo marine, to assure its permanence in the transportation ·of the cratic Party, and it was presented here to the Senate. foreign trade of the United States, and for other purposes. Mr. BROOKHART. I voted for it in 1924, and it passed the Senate. ENROLLED BILLS SIGNED Mr. KING. I know the Senator did; but I am just advert The message also announced that the Speaker had affixed his ing to the fact that difficulties are encountered in enforcing signature to the enrolled bill (S. 777) making eligible for re that policy. I believe, however, apparently insuperable as tirement, under certain conditions, officers and former officers those difficulties are, that it is a just system of taxation to of the Army, Navy, and Marine Corps of the United States, graduate the taxes upon corporations as we graduate the taxes other than officers of the Regular Army, Navy, or Marine Corps, upon the earnings of individuals; and I think perhaps some who incurred physical disability in line of duty while in the fm·mula might be worked out by which the valuation of prop service of the United States during the World War, and it was erties could be ascertained in a just and fair way as a basis for signed by the Vice President. the introduction into our revenue system of a graduated profits MEDICAL OFF,ICER ASSIG~ED TO WHITE HOUSE tax. The PRESIDING OFFICER (Mr. BrNGH.AM in the chair) Mr. BROOKHART. If the Senator will present it, I shall laid before the Senate the amendment of the House of Repre be only too glad to support it._ _ sentatives to the bill (S. 3456) allowing the rank, pay, and Mr. KING. May I interrupt the Senator again? allowances of a colonel, Medical Corps, United State Army, to Mr. BROOKHART. I should like to conclude very soon. the medical officer assigned to duty as personal physician to Mr. KING. I do not want to misunderstand the attitude of the President, which was, on page 1, line 7, after the word the Senator. I rather got the view from his statement a mo "serving," to insert a colon and "Prmideit, That the officer now ment ago that he doubted the practicability of enforcing any assigned to that duty shall have the rank, pay, and allowances laws against mergers and corporations and trusts and herein provided from the date of his assignment." monopolies. Mr. REED of Pennsylvania. I move that the Senate concur Mr. BROOKHART. Not any law. If we go straight to the in the amendment of the House. core of the matter I think we can draw a law that can be Mr. KING. May I ask the Senator if, after the officer as easily enforced. The trouble about it is that our laws do not signed to this position ceases to occupy it, he will still have go straight to the point. the same rank, pay, and allowances? Mr. KING. Does not the Senator think that the Sherman Mr. REED of Pennsylvania. The bill as passed by the Sen Antitru t Act and the Clayton Act, if pro~rly interpreted and ate and by the Hou e provides that be shall have temporary vigorously enforced, will rob these monopolies of the power rank while so serving. which they are now exercising and, by the criminal processes Mr. KING. And the same will be the case with regard to and the injunctive processes of those acts, arrest their monopo pay and allowances? li<> tic com·se, which has so ruthlessly destroyed competition in Mr. REEJD of Pennsylvania. The same with pay and allow many branches of indu try? ances. The PRESIDING OFFICER. The question is on agreeing 1\fr. BROOKHART. That would help some; but the "ifs" the Senator bas put in his statement are mountain high. I to the amendment of the House. do not know whether we could even fly to them. The amendment was agreed to. Mr. KING. The Senator knows there are "ifs" in many GOV. ALFRED E. SMITH things in life and in the- administration of laws; and many Mr. HEFLIN. Mr. President, I brought to the attention of la ;vs which are just and intended to accomplish social and the Senate and of the country la t Saturday the fact that political reform fail in their purpose because not enforced. Mr. Van Namee, a member of the Public Service Commission of The trouble with many governments is that when laws have New York State, appointed by Governor Smith in 1924 for a been enacted which have teeth in them and they are not en term of 10 years, is managing Governor Smith's campaign for forced, demands for additional laws are made, and when re the Presidency, I want to 1·ead the testimony, in brief, on that sponded to and these laws fail, still others are demanded, until phase of this matter: · I . 1928 CONGRESSIONAL RECORD-SENATE 8609
The CHAIRMAN. One of the members of the committee suggests that the high office of President upon the auction block and barter it I ask one further question. Are you a member of the public utilities to the highest bidder. commi s~ i o n a t this time? Van Namee holds this power. Kenny will go from him to a 1\fr. VAN NAME E. I am a member of the publlc service commis ion. corporate concern-a street-car company, a railway company, or I have been since J une or July, 1924. any other company-and no doubt say, "Mr. Van Namee would ThC> C HAIRMAN. You are an appointee of Govemor Smith, are you like for you to contribute $10,000 or $50,000 or $100,000. Do not? not send it to him or gi>e it to me, but give it to John Jones 1\Ir. V A N N A M EE. I am. at a certain address in this city, and he will send it to North The CHAIRMA:>~. That is an appointive position? Carolina, or to some other point, and no account will be kept Mr. VAN N.HfEE. Yes, sir; confirmed by the Senate of the State of of it, and we will not have to report it." Senators, that is New York. what is going on I am told. They made the very startling Senator B ARKLEY. What is the length of the term? statement, the astounding statement, that they had gathered up 1\ft•. VAN NAMEE. Ten years. and expended only $103,000. It would come nearer being 'l'be CHAIRMAN. Where is the chief office or headquarters of the $10,000,000 than the amount they named. commission? I wonder if we are going to permit this to continue, and let Mr. VAN NAMEE. At Albany, the capital. them with their pussyfooting scheme accumulate millions to So 1\fr. Van Namee bas left his headquarters, his official buy the nomination? I am not in favor of any Democrat buy Rtaticn, and has gone down to New York City to take personal. ing it, I am not in favor of any Republican buying the Re charge of the campaign of Governor Smith. publican nomination. I fight corruption in both parties wher Mr. Pre ident, I mentioned here Saturday the fact that we ever I find it, it does not make any difference with me whether h ad another ca~e on all fours with the ca ·e of Frank Smith, a man is a Democrat or a Republican. When I was convinced of Illinois, a Republican. One of the chief things that caused that Governor Harding, of my State, appointed by President me to oppose seating him in this body was the fact that Wilson head of the Federal Reserve Board, had gone into ·a while occupying a place on the utilitie commi s~ ion in Illinois conspiracy with the Republican leaders and Wall Street finan Frank Smith was supported by Mr. Insull, the power king of ciers to wreck that banking system and produce a panic, I laid lllinois. -· 'Mr. Insull was contributing money to Smith's cam siege to him in the Senate, and I drove him off the Federal paign fund-tremendou sums. 1\Ir. Frank Smith was render Reserve Board in a fight I conducted here for two years. ing decisions, a · an official of Illinois, paying back many times It did not make any difference to me that he had been a over to Mr. InsuU the amount Insull was contributing to him. Democrat, and was appointed by President Wilson, a Democrat. So we had the awful and ugly situation, where the power I said it is more my duty as a Democrat to clean crooked king outside was rai&ing his rates upon the consumers of Illi Democrats out of our ranks than it is particularly to go after nois, and l\1r. Smith, on the inside, a a State official, was crooked Republicans. Each party ought to get rid of that kind rendering decrees that l\lr. Insull wanted rendered, approving of men in its ranks. the increase of rates upon the consumers of hydroelectric power, Day by day I am going to bring this scandalous matter to which put that money back many times over into the pocket of the attention of the Senate, and I want to ask the investigating Mr. Insull. No honest ~an can indorse such miserable and committee publicly to summon Jesse Jones, of Texas, and ask corrupt doings. him about contributions; to summon Thomas F . Ryan, of Mr. KING. l\lr. President, will the Senator yield? New York; to summon William G. McAdoo, and ask him if Mr. HEFLIN. I yield. he knows anything in connection with this matter, or can give Mr. KING. I do not wish to p-roject myself into any contro the committee any light, or can point his finger toward where . versy or into the discussion. I feel, however, notwithstanding important things can be found .out. I want them to bring Mr. my attitude toward the Smith case, that perhaps in the interest Van Namee and Mr. Kenny back again for some more question of fairness and accuracy it ought to be said that the Public ing, and I want us to get a list from l\Ir. Kenny of the big Utilities Commission in Illinois, during a number of years after contractors in New York City and State, so that we can inter the appointment of Mr. Smith, lowered the rates. upon public rogate them. utilities, as I remember now, $14,000,000. It his been some l\Ir. Pre ident, we have been sent here to faithfully guard the time since I read the record and I may not speak accurately, intere ts of this Nation, to protect it from misrule and abuse, and if I am wrong I hall be glad to correct the statement. I and to keep it clear of corruption. Now, when two candidates are literally trying to buy the Presidency we ought certainly thought in fairness I ought to call the attention of the Senator to be on our guard. I think l\'lr. Hoover is spending a vast to that fact. sum of money in his effort to obtain the Republican nomina l\Ir. HEFLIN. l\:Ir. President, in numbers of instances after tion, and we know what is going on with Governor Smith's 1\lr. In. ·ull commenced to contribute large sums of money to Roman machine. Look what it did to JIM REED up in Wis Mr. Frank Smith' senatorial campaign l\lr. Smith increased the consin. He polled 35,000 votes, Smith polled about 8,000, but rates, and Mr. Insull took in large sums of money because of in an evil hour somehow the Smith machine got in its work 1\Ir. Smith's action in the matter. Gowrnor Smith's case is on and hooked the delegation away for Smith. all fours with that o:f Frank Smith. The man he appointed to I have a great deal of confidence in this committee. I hope office on the same kind of commission, a powerful commission, the members of it will not be timid. I know that when it is which holds the Ilower of life and death over the corporate in all over they will not want anybody asking questions as to why terests of New York State, has it in his power to increase or they did not inquire into this and inquire into that. I know · lower rates, to approve contracts or disapprove them, and he is of a lot of information that is going to be giYen to them and taken away from the capital at Albany and put in charge of the suggestions that are going to be made. I will help them all campaign headquarters at the Biltmore Hotel to gather in cam I can from time to time. I make that promise now. paign fund · for Governor Smith. When I voted in the Senate to deny Frank Smith a seat in Mr. President, I submit that that is exactly parallel with the thi body it was mainly because he used Insull's money to case where the judge of a court, with a number of people who obtain the Republican nomination for the Senate in his State have cases before him, civil and criminal, have an agent of and in return corrupted hi office as utility commissioner and the judge to come to them and a ·k for campaign contributions laid the burden of increased light and power rates upon the to help reelect the judge to the office he holds. Mo t of those consumers of that State. It appeared on its face to be a people would make some contribution, and that deal, if it were corrupt deal, and I would not stand for it. Other Senators put over, would be a shocking, astounding, and criminal act. felt as I did about it. When Governor Smith, of New York, Governor Smith has picked out the man of all men appointed running for the Democratic nomination for President, appoints by him with power to influence, yes, and to coerce, contribution a member of his Tammany Roman machine to the office of to Governor Smith's campaign. Mr. Kenny, a rich contractor public utilities commi sioner or public service commi~sioner in New York, a man who has made his hundreds of thousands, the same thing, because Van Namee's work is the same kind his millions, and his tens of millions, in the contracting business of work that Frank Smith did-and when he or his friends in New York City and State. Van Namee sits back in the select that State officer, with all his great power over the Smith headquarters, while Kenny is out on the highways and business enterprises of New York State, to go out and get the byways gathering Up campaign funds. 1\Ir. Kenny admit contributions for Governor Smith's campaign, it i time for that he gave $20,000 and that he loaned $50,000 to Mr. Van hone t Democrats who love their party and their country to Namee for- Governor Smith. pause and ask themselves the questions : Can we afford to Senators, I wonder how many are going to get into this de permit this man, with his conception of civic virtues, as shown bate on thi subject before this matter is over. I wonder how by this unfortunate, ugly, and brazen act of his, and by his many Senators are going to be able to explain to their con utter lack of appreciation of the desire and importance of pre stituents that they at idly by when this phase of the matter serving American ideals and institutions in their true American wa being discu sed, when an effort was being made to put form, to become, through the secret and lavish use of money .. 8610 CONGRESSION.L~L RECORD-SENATE !fAY 14 and corrupt campaign methods, tbe leader of the party of Mr. SIMMONS. That is about my recollection. Jefferson, Jackson, Cleveland, and Wilson? No. And they are Mr. WALSH of Massachusetts. So the difference between not ,o-oing to do it. tho e benefiting under the amendment proposed by the Senator MESSAGE FROM THE HOUSE from North Carolina, repre"enting the minority of the com A message. from the House of Representatives, by Mr. Chaffee, mittee, and under the amendment proposed by the Senator from one of its.clerks, announced that the House bad agreed, without Utah, repreenting the majority of. the committee, is the differ amendment, to the following concurrent resolutions of the ence between 225,000 and 125,000 individual taxpayers. In oth r words, 100,000 more individual taxpayer who will benefit Senate: if the amendment of the Senator from North Carolina prevail ? S. Con. Re . 6. Concurrent resolution to print and bind tbe l\fr. SIMMONS. It is my understanding that 225,000 would proceedings in Congress together with the proceedings at the get the toti!,l benefit under the minority plan of reduction. unveiling in Statuary Hall of the statue of Alexander Hamilton They are the relatively smaller taxpayer . Stephens, presented by the State of Georgia; and Mr. WALSH of :Mas achusetts. May I ask the Senator an S. Con. Res. 18. Concurrent resolution to provide for tbe other question about it? The Senator's amendment would re printing of the report of tbe Federal Commission on Coopera duce the surtaxes upon that class of individuals who e income tive Marketing of Farm Products. is from $10,000 to $20,000 as well as tho e who have an income The message also announced that the House bad agreed to of over $20,000. the report of the committe·e of conference on the disagreeing Mr. SIMMONS. Ye . votes of the two Hou. es on the amendments of the House to the 1\Ir. WALSH of Massacbu etts. While the proposal of the bill ( S. 3555) to e tablish a Federal farm board to aid in the majority is that no benefit hall be given by a reduction of ~ nr orderly marketing and in the control and disposition of the taxes to that group of individual taxpayers who have incomes urplus of agricultural commodities in interstate and foreign between $10,000 and $20,000. commerce. Mr. SIMMONS. . That is true. EAST PORTLAND-ROSEVILLE RAILROAD I:N OREGON AND CALIFORNIA Mr. WALSH of l\Ia achu etts. So that the additional ad The PRESIDING OFFICER (Mr. STEOK in the chair) laid vantage of the Senator's amendment · is that it reaches a cla "S before the Senate the amendments of the House of Representa of individual taxpayers who are now receiving or reporting tives to the bill ( S. 3699) for the relief of the land-grant incomes of between $10,000 and $20,000. railroad operated between the station formerly known as East Mr. SIMMONS. That is correct. Portland, in the State of Oregon, and Roseville, in the State 1\lr. WALSH of l\Iassachu etts. Tbe third advantage, as I of California, which were, on page 1, line 6, to strike out th'e understand it, is that the Senator's amendment woul Actuary1 tells me it will be 225,000. brackets of the §Urtax schedule was not given }!is just propor- 1928 CONGRESSIONAL RECORD-SENATE 8611 tion of the reduction then made. That opinion seems to have Mr. SIMMONS. I do not know. The Secretary of the Treas found approval finally even in the mind of the Secretary 9f the ury, through Mr. Mills, came before the Finance Committee and Treasury, Mr. Mellon. vigorously opposed the repeal of the automobile tax, but the This year, when it was proposed to formulate and enact an Senator from Utah and his associates voted for the repeal. other tax-reduction measure, the Secretary of the Treasury Mr. SMOOT. Certainly; but the Senator from North Caro expressed his view with regard to the matter. I want to read lina is stating what the Secretary of the Treasury recommended. from the Secretary's reeommen(lation with regard to the new I say that the Secretary of the Treasury recommended that the tax bill. His first recommendation is a tax upon corporations $66,000,000 tax on automobiles be retained and that the $17,- of 12 per cent. The committee has exceeded, therefore, and the 000,000 tax on admissions be r·etained ; and if he had recom Senate on Saturday when it voted on the corporation income mended the repeal of the automobile tax and the admissions tax provision, exceeded by one-half of 1 per cent the recom tax be ne,-er would have recommended this amount of reduc mendation of the Secretary of the Treasury with reference to tion on sm·taxes. the amount of that tax. T}1at is to say, the connnittee and the M1·. SIMMONS. I am not di cussing that question at all. I Senate propose .a reduc-tion in corporation income taxes of am saying that the Secretary of the Treasury before the com $41,000,000 le~s than the Secretary of the Treasury himself mittee, before Congress had assembled, or when it had, perhaps, recommended. just assembled, made his recommendation. In that recom The second recommendation was "ith relation to sm·taxes, mendation be. recognized the fact that these ~ mall surtaxpayers • and I will read it: had been done an injustice in the 1926 bill, and he recom That the rate applicable to the so-called inte.rmediate brackets, run mended that that injustice be remedied. I am simply trying to ning from $14,000 to $75,000 of the individual income tax, be revised get the Senate to realize the fact tbat even the Secretary of the in accordance with the attached table, resulting in a .decrease in revenue Treasury recognized that injustice bad been done this class of o! $50,000,000. taxpayers. It is that injustice that we are now trying to remedy. The question of whether the condition of the Treasury In view of what has transpired, that recommendation of the will permit us to remedy it, has already been discussed. The Secretary of the Treasury is startling. He suggested that the question now is, Are they entitled to this remedy? The ques reduction needed was within the brackets ranging between tion of whether the Treasury can afford it we have already $14,000 and $75,000 and he recommended a reduction in the discussed. Senators on the other side contend that the Treas taxes within that range of $50,000,000. Later the committee ury can not afford to do justice to these small surtaxpayers. acted and decided to reduce them only $25,000,000. The Secre w·e contend that the Treasury can afford to do it. tary of the Treasury not only recommended a reduction of The Treasury Department contend that they have a surplus $50,000,000 within these brackets, but the Treasury Department of only about $400,000,000 for this year and $200.000,000 for prepared a table covering it. I suppose that table was worked next year available for tax reduction purposes. We have at out by Mr. Ogden ~Hlls in collaboration with the experts of the Treasury Department. tempted to show, and I think successfully, that those estimates are entirely erroneous, as most of the ot~.er estimates made by I have that table before me, Mr. President. It was prepared with a view to reducing the taxes on incomes between $14,000 the Treasury heretofore ba\e been erroneous. In fact, all of and $75,000 to the extent of $50,000,000, but upon examination the other· estimates by the Treasury Department have been I find that it was so prepared that persons whose incomes are erroneous. But e\en if they are corre-ct in the main, it bas less than $70,000 woulcl get $28,000,000 of reduction out of the been shown that they are not correct with reference to certain $50,000,000, and persons who e incomes are in excess of $70,000 other items that would make an additional margin of $160,000,- would get $22,000,000 out of the total $50,000,000 reduction 000; and it bas been pointed out further that by a proper appli proposed by the Treasury Department for those brackets. cation of the amount received from our foreign debtors we may I am not at all surprised that the Treasury Department in release another $160,000,000 for tax reduction purposes. any scheme of reduction that it may propose should look out As I started to say, when the committee met its chairman for those of large incomes, but the recommendation of the very kindly brought to the minority what was called the Re Treasury Department gives the impression that it intended this publican program of tax reduction for this year. The com reduction in order to remedy an injustice which had been done mittee had been in session ; the minority had asked that they be to the taxpayers whose incomes range between $14,000 and given the room, and the majority bad gone out, but we had $75,000. requested them to give us the statement, and the chail·man came Again, Mr. President, when the Finance Committee met to and, as he will remember, submitted it in person. In that consider this bill, the majority members of the committee very statement I find this clause: kindly, through the able chairman of the committee, the Senator 5. Revision in surtax brackets from $18,000 to $76,000, $25,000,000. from Utah [1\Ir. SMOOT] handed-- · My recollection is that in pursuance of that program· of the Mr. WALSH of Massachusetts. Mr. President, will the majority the majority did present to the committee n reduction, Senator from North Carolina permit an interruption at that which was almost identical with the proposition which I have point? submitted here, and that that was tentatively agreed upon. The PRESIDING OFFICER. Does the Senator from North Subs€quent to that time for some reason or other the majority, Carolina yield to the Senator from Massachusetts? which at that time was willing to follow out the proposition Mr. SIMMONS. Yes. that I stand for here and that the minority stands for here, of Mr. WALSH of Massachusetts. Before the Senator takes up giving all this reduction to those men who have incomes rang the discussion as to the action of the majority of the Finance ing from $10,000 to $70,000, changed their position. The propo Committee, is it not a fact that the Hou ·e of Representatives sition of the majority might have varied somewhat from that, rejected the proposal of the Treasury Department for any but very slightly. I think their plan began at a higher bracket reduction in the surtaxes? and went up to incomes of $75,000. Mr. SIMMONS. Yes. Mr. 1VALSH of Massachusetts. The bill came to the Senate Mr. SMOOT. Mr. President, our program submitted at that from the House of Representati\es making no provision for any time bad reference to rates and not to the policy adopted by reduction of surtaxes? the minority. Our policy was always to apply certain l'"ates Mr. SIMMONS. That is true. and, as I said then, to allow such rates clear through as to all Mr. SMOOT. But the same Secretary of the Treasury recom taxpayers, as has been done in the case of every tnx bill since mended that we retain the tax of $66,000,000 on automobiles, the first one which was passed. and we have taken that off. That same Secretary of the Treas Mr. SIMMONS. I am talking about the tentative proposition ury recommended that we retain the $17,000,000 derived from which was submitted by the majority; I am not talking about admission taxes, and that tax has also been taken off, as the their second proposition. bill has been reported to the Senate. Mr. SMOOT. That is exactly what I have reference to. Mr. SUIMONS. I am not now discussing the automobile l\1r. SIMMONS. The tentative proposition of the majority tax or any other tax except the surtax, nor am I discussing the provided, as I understand, \ery much as did our proposition; question of how much tax reduction the Treasury can stand. I that is to say-- am now discussing the question of the ju tice of giving those Mr. SMOOT. Oh, the Senator-- who ba\e the smaller incomes the reduction to which they are Mr. SIMMONS. The Senator in his own time, if I am not entitled and which they did not get in 1926. right, may correct me. I really am not able to get into a Mr. SMOOT. Mr. President, does the Senator from North wrangle about this matter. Carolina think for a moment, if the Secretary of the Treasm~y Mr. >3MOOT. I realize that. had recommended the elimination of the tax of $66,000,000 on l\Ir. SIMMONS. And I would prefer the Senator would automobiles and of $17,000,000 on admissions, that be wouid answer me in his own time. have al~o recommended the reduction in the surtaxes? M.r. SMOOT. Our proposition was as to rates; that is all. 8612 CONGRESSIONAL RECORD-SENATE !fAY 14 Mr. SIMMONS. But the proposition of the majority was so Mr. SMOOT. I have the statement he1·e. framed that the taxpayer in the range of lower brackets would 1\Ir. SIMMONS. I will read the statement given me by the get a benefit from the reducttion made in the total amount of Actuary of the Treasury in his own handwritino-. the $25,000,000 which the majority said ought to be reduced on Mr. REED of Pennsylvania. Mr. P1·esident, will the Senator the incomes of those falling within those surtax brackets. Sub from North Carolina permit a question? sequently a different proposition was submitted, and it is to Mr. SIMMONS. I want to say to the Senator from Penn that proposition that I file this proposed substitute. Why do sylvania that on account of physical conditions I can speak the minority through me file this proposed substitute? Be only a very short time, and if I submit to interruptions I shall cause the second proposition of the committee gin~s only about find myself unable to discuss the e sential things that I want three-fifths of the reduction to income-tax payers within the to discuss. I will thank the Senator, therefore, if he will brackets dealt with and gives the other two-fifths of the reduc reply in his own time. tion to income-tax pf!yers whose incomes exceeded $75,000. Mr. ·REED of Pennsylvania. I shall be glad to do so. I think that is a clear case, Mr. President, of the admL<;