1934 CONGRESSIONAL RECORD-SENATE 4981 3130. By l'vfi". TREADWAY: Resolutions of the Worlds of Treasury certificates of indebtedness, 5 Issues of Treasury notes, and 35 iEsues of Treasury bills. Since it is necessary to obtain Service Society of Williamsburg, and the Woman's Christian from the Federal Reserve banks information as to the amounts Temperance ·Union of Athol, Mass., urging early hearings allotted to the several classes of subscribers specified in the reso and favorable action on House bill 6097 providing higher lution, I have obtained estimates from the several governors of the Federal Reserve banks of the time necessary to compile this • moral standards for films entering interstate and interna data. It will be possible for most of the Federal Reserve banks to tional commerce; to the Committee on Interstate and For complete this analysis within 3 weeks, but three of the larger dis eign Commerce. tricts have indicated that a longer time will be required. 3131. By Mr. WIGGLESWORTH: Petition of the General A complete report, giving the information desired by the Senate, will be forwarded to you as soon as this data is received and Court of Mas.5achusetts, seeking preservation of the United assembled. states industry of sugar refining; to the Committee on Very truly yours, • HE:NRY MoRGENTHAU, Jr., Agriculture. Secretary of the Treasury. INFORMATION FROM NATIONAL RECOVERY ADMINISTRATION SE~ATE The VICE PRESIDENT laid before the Senate a letter from the Administrator of National Recovery, transmitting, WEDNESDAY, MARCH 21, 1934 in response to Senate Resolution 175-requesting certain (Legislative day of Tuesday, Mar. 20, 1934) information concerning employees and codes of the Na tional Recovery Administration-the data requested so far The Senate met at 12 o'clock meridian, on the expiration as practicable, which, with the accompanying papers, was of the recess. ordered to lie on the table. THE JOURNAL Mr. NYE subsequently said: Mr. President, there was laid On motion of Mr. ROBINSON of Arkansas, and by unani before the Senate this morning a communication from the mous consent, the reading of the Journal for the calendar Administrator of the National Recovery Administration in day of Tuesday, March 20, was dispensed with, and the Jour response to Senate Resolution 175, which was agreed to by nal was approved. the Senate about a month ago. That communication has MESSAGE FROM THE PRESIDENT been laid on the table for the moment, and I now move A message in writing from the President of the United that it be referred, with the accompanying papers, to the States .was comm~nicated to the Senate by Mr. Latta, one Committee on Printing, where consideration may be given of his secretaries. to the matter being printed as a public document. MESSAGE FROM THE HOUSE The PRESIDING OFFICER. Without objection, it will A message from the House of Representatives, by Mr. Hal be so ordered. tigan, one of its clerks, announced that the House had PETITIONS AND MEMORIALS agreed to the report of the committee of conference on the The VICE PRESIDENT laid before the Senate a letter disagreeing votes of the two Houses on certain amendments from Frank I. Faulkner, of Washington, D.C., relative to of the Senate to the bill (H.R. 8134) making appropriations taxes and related matters, which was referred to the Com for the Department of Agriculture and for the Farm Credit mittee on Finance. Administration for the fiscal year ending June 30, 1935, and He also laid before the Senate a paper in the nature of for other purposes; that the House had receded from its dis a petition from Mrs. Cynthia Bradford, of Detroit, Mich., agreement to the amendments of the Senate numbered 1, 3, praying for the passage of legislation providing immediate and 32 to the said bill and concurred therein, and that the payment of the so-called "soldiers' bonus", which was re House had receded from its disagreement to the amend f erred to the Committee on Finance. ments of the Senate numbered 4, 25, 26, 27, 28, and 35 to He also laid before the Senate a letter in the nature of the said bill, and concurred therein severally with an amend a petition from Vincent Joseph Klus, of New York City, ment, in which it requested the concurrence of the Senate. N.Y., praying for the passage of legislation providing imme The message also announced that the House had passed diate payment of the so-called " soldiers' bonus ", which the bill (S. 2728) to repeal Federal liquor prohibition laws was ref erred to the Committee on Financ~ to the extent they are in force in the Territory of Hawaii, He also laid before the Senate a letter in the nature of with an amendment, in which it requested the concurrence a petition from Rev. Lloyd Roberts, of Marcellus, N.Y .. of the Senate. praying for the passage of legislation providing immediate The message further announced that the House had payment of the so-called "soldiers' bonus", which was re passed the bill CS. 2729) to repeal an act of Congress enti ferred to the Committee on Finance. tled "An act to prohibit the manufacture or sale of alcoholic He also laid before the Senate a letter in the nature of liquors in the Territory of Alaska, and for other purposes ", a petition from Mrs. E. P. Woolridge, of San Antonio, Tex., approved February 14, 1917, and for other purposes, with praying for the passage of House bill 7019, providing old amendments, in which it requested the concurrence of the age pensions, which was referred to the Committee on Senate. Education and Labor. ANNUAL REPORT OF ARCHITECT OF THE CAPITOL CS.DOC. NO. 158) He also laid before the Senate a letter from Leonard A. The VICE PRESIDENT laid before the Senate a letter from Anderson, of Tonkawa, Okla., relative to the so-called the Architect of the Capitol, transmitting, pursuant to law, his "Bankhead cotton-control bill", which was ordered to lie annual report for the fiscal year ended June 30, 1933, which, on the table. with the accompanying report, was referred to the Committee Mr. CAPPER presented telegrams in the nature of peti on Public Buildings and Grounds and ordered to be printed. tions from members of the Ladies' Auxiliary to Phillip Bil lard Post, No. 1650, Veterans of Foreign Wars, of Topeka; MARKETING OF GOVERNMENT SECURITIES Col. John D. Riddell Post, No. 1432, Veterans of Foreign The VICE PRESIDENT laid before the Senate a letter Wars, and Leslie Krepps Post, No. 62, the American Legion, from the Secretary of the Treasury in partial response to both of Salina; Quindaro Post, No. 199, the American Senate Resolution 209, which was ordered to lie on the table Legion, of Kansas City, and C. E. Strecker, post commander and to be printed in the RECORD, as follows: of Charles Walters Post, the American Legion; Harold H. TREASURY DEPARTMENT, Fayman, commander Veterans of Foreign Wars, and D. J. Washington, March 21, 1934. Speedy, past commander Orlin L. Birlew Camp, United Hon. JoHN N. GARNER, Spanish War Veterans, of Fredonia, all in the State of Kan President of the Senate, Washington., D.a. DEAR MR. PRESIDENT: I am in receipt of Senate Resolution 209, sas, praying for the passage of legislation providing imme requesting the Secretary of the Treasury to furmsh the Senate diate payment of the so-called "soldiers' bonus", which information with respect to Government securities offered to the were referred to the Committee on Finance. public during the present fiscal year. Between July 1, 1933, and March 15, 1934. the Secretary of the Mr. WALSH presented resolutions adopted by the Treasury offered for subscription 2 issues of bonds, 3 issues Woman's Christian Temperance Unions of Fitchburg, Hyde 4982 CONGRESSIONAL RECORD-SENATE MARCH 21 Park, New Bedford, North Attleboro, Somerville, Taunton, relief of Perry Randolph, reported it with an amendment and Westfield; the Cape Cod Clerical Club, of Yarmouth; and submitted a report · (By request.) A bill CS. 3127) granting a pension to Susie ages. Also, any and every person ~ho by any means . con Wichita Te-kits-kush; to the Committee on Pensions. trols the person so selling is likewise liable. By Mr. WAGNER: It is impossible to say how far-reaching this provision A bill (S. 3128) to pay certain fees to Maude G. Nicholson, may be. Thus, scores of pertectly honest, well-intentioned widow of George A. Nicholson, late a United States commis people are made liable for the mistake of another, of whose sioner; to the Committee on Claims. mistake at the time they could in all human probability A bill CS. 3129) for the relief of Max Vogel; to the Com know nothing. mittee on Finance. The act prohibits the sale of a security unless a pro A bill CS. 3130) granting a renewal of Patent No. 54296 spectus thereof has been issued, which must contain substan relating to the badge of the American Legion; and tially the same information required in a registration state A bill CS. 3131) granting a renewal of Patent No. 55398 ment, and the act imposes both penal and civil liability for relating to the badge of the American Legion Auxiliary; violation of the act with respect thereto, depending upon to the Committee on Patents. their character. LICENSING OF RACE TRACKS IN THE DISTRICT It will be seen that in the case of officers of a corporation who may be receiving only reasonable compensation, inde Mr. WALSH. M:r. President, I introduce, by request, a pendent engineers, accountants, and appraisers, and others bill to license race tracks in the District of Columbia and receiving only reasonable fees, and members of a board of provide for their regulation. directors, usually receiving no compensation, only a nom The measure is identical with House bill 7906, introduced inal fee, all acting honestly and in the highest degree of in the House of Representatives by Mr. BLACK, 6f New York. integrity, all may have their personal fortunes involved in The VICE PRESIDENT. The bill will be received and any sizable issue of securities because of the innocent mis appropriately referred. take of some one else. The bill CS. 3123) to license race tracks in the District All of the civil liabilities referred to are included in sec of Columbia and provide for their regulation was read twice tions 11 to 16 of the act, and part of section 17, and the by its title and referred to the Committee on the District conditions created by them are what have frozen financing. of Columbia. To overcome this condition it is necessary to liberali.ze the AlVl'.END:lIENT OF SECURITn:S ACT OF 1933 act, with due regard to protecting the investing public. To Mr. THOMAS of Oklahoma. Mr. President, I desire to make the common law apply to the subject, the bill which introduce a bill proposing to amend the Securities Act of I have introduced proposes to eliminate these sections and 1933. With the permission of the Senate, I will take just parts. The penal provisions of the act for willful violation a few mcments to explain what I am seeking to accomplish. of the act are not disturbed. The bill also empowers th~ My State of Oklahoma is one of the new States.· In addi commission to make the procedure in the issuance of tion to being one of the leading agricultural States and one securities as inexpensive as possible. of the leading livestock-producing States, it has made sub Under the conditions created by the act it is not surpris stantial progress in manufacturing and industrial pursuits ing that there has been but a pitiful attempt at financing. generally. In the State of Oklahoma-and I am advised the The keystone of the arch that we are all trying to build same condition obtains in other States-industry is languish is employment, without which we cannot build. Just how ing for the want of money, credit, and ability to finance we can expect employment without adequate financing I do necessary expansion and development. In order to assist not know, but I do know that unless industry is put in posi industry in Oklahoma as well as in other States, it is neces tion to finance employment when the Government carry sary to make possible the financing of industrial activity. over resources are exhausted, as they all too soon will be, The particular objections or restrictions about which I we will be in a most perilous predicament. It is well that complain are briefly as follows: the Senate and the House of Representatives should recog nize the condition which now confronts us. The Securities Act of 1933 prohibits the issuance or sale Mr. President, at this point I ask permission to have of securities unless a "registration statement" is in effect. printed in the RECORD a copy of the bill which I have just This registration statement is in substance an application introduced. to the Government for permission to issue a specified There being no objection, the bill CS. 3125) to amend the security. The statement must be signed by the issuer, its Securities Act of 1933, was read twice by its title, referred principal executive officer or officers, its principal financial to the Committee on Banking and Currency, and ordered officer, its comptrolle1·, and by the majority of its board of to be printed in the ;RECORD, as follows: directors. Schedule A of the act contains 32 specificatio~ over 1,700 wordS-Of written information to be contained Be it enacted, etc., That sections 11, 12, 13, 14, 15, and 16 of the Securities Act of 1933 are hereby repealed. in the registration statement, most of which can only be SEC. 2. Such act is amended by inserting after section 10 two furnished by expert accountants, auditors, engineers, and new sections, as follows: valuators. The information and data required is exhaustive "SEC. 11. To facilitate the operation of the provisions of this act and to the end that the issuance of securities may not be in detail, and in addition the Federal Trade Commission made unduly costly, the Commission is hereby authorized and may require such further information or data as it sees fit. empowered in its discretion to waive and dis;ense with the Should there be in any of this information or data any filing with it by any applicant for the issuance of securities any mistake which amounts to an untrue statement of a ma papers, documents, data, and/or information which in its judg ment may be unnecessary in compliance with the purpose and terial fact or to an omission to state a material fact re spirit of this act, except that this section shall not apply to the quired to be stated or necessary to make the statements registration statement provided for in section 6 or the prospectus therein not misleading, every person who signed the regis hereinbefore provided for. "SEC. 12. Except as provided in section 20 the common law tration statement, every person who was a director, whether shall apply to any violation of the provisions of this act." he signed the statement or not, every accountant, engineer, SEC. 3. Section 17 of such act is renumbered as section 13, and appraiser, or any person who has with his consent been is amended by striking out, where they appear in subsection named in any part of the statement or any report or (a) (2), the following words: "or any omission to state a mate rial fact necessary in order to make the statements made, in the valuation which is used in connection with the statement, light of the circumstances under which they were made, not and also every underwriter, may be sued by any person misleading"; and such section is further amended by striking acquiring such security, no matter from whom, and every out subsection (b) and by relettering subsection (c) as subsec- such person is made jointly and severally liable to pay the tion (b). · SEC. 4. Sections 18, 19, 20, 21, 22, and 23 of such act are hereby cost of the security or damages not in excess of the price renumbered as sections 14, 15, 16, 17, 18, and 19, respectively. at which the security was originally offered. SEC. 5. Section 24 of such act is hereby renumbered as section 20. Every person who sells a security by means of a written and is amended by inserting immediately before the word "omits" the word "willfully." or oral statement, or both, which contains or omits the SEC. 6. Sections 25 and 26 of such act are hereby renumbered as statement of a material fact as aforesaid is liable in dam- sections 21 and 22. 1934 CONGRESSIONAL RECORD-SENATE 4985 REGULATION OF COTTON INDUSTRY-AMENDMENT opinion should be done. But the engineers must act ftrst. Finally, I agreed to come on one condition. That condition is that I be Mr. BANKHEAD submitted six amendments intended to permitted to speak frankly and give you my observations as an be proposed by him to the bill well be slapped on which would automatically absorb and turn In lieu of the sum proposed by said amendment insert back to the Government all income over $100,000 a year. Under .. $669,430." tfie conditions in which we now llve a greater income than this That the House recede from its disagreement to the amendment cannot be socially justified. of the Senate numbered 35 to said bill and concur therein with Next, the inheritance and estate taxes should also be stiffened the following amendment: up and tightened, so as to bring about the public appropriation In lieu of the sum proposed by said ame.::idment insert of all inheritances, monetary and in real property, in excess of .. $60,232,007." two to three mlllion dollars. Almost any " poor little rich child " should be able to stagger along through life with such a bene Mr. RUSSELL. I move that the Senate agree to the faction from his parents or rich relatives. House amendments to Senate amendments numbered 4, 25, In short, a rational taxation scheme would not only be a fiscal 26, 27, 28, and 35. expedient. It would be an instrument for achieving social justice. It would serve the cause of equity. It would end the insane and The motion was agreed to. disastrous struggle for fabulous individual riches. It would lead REPEAL OF FEDERAL PROHIBITION LAWS IN HAWAil AND ALASKA to a more sensible and effective distribution of purchasing power, thus increasing the market effectiveness of American consumers The PRESIDING OFFICER laid before the Senate the and stimulating a revival of capitalistic business endeavor. amendment of the House of Representatives to the bill cs. MESSAGE FROM THE HOUSE 2728) to repeal Federal liquor prohibition laws to the extent A message from the House of Representatives, by Mr. they are in force in the Territory of Hawaii, which was, on Megill, one of its clerks, announced that the House had dis page 2, line 2, to strike out the word " are " where it appears agreed to the report of the committee of conference on the the first time and insert " shall be retained." disagreeing votes ·of the two Houses on the amendments of He also laid before the Senate the amendments of the the Senate to the bill (H.R. 6604) to estz.blish the compo House of Representatives to the bill CS. 2729) to repeal an sition of the United States Navy with respect to the cate act of Congress entitled "An act to prohibit the manufac gories of vessels limited by the treaties signed at Washing ture or sale of alcoholic liquors in the Territory of Alaska, ton, February 6, 1922, and at London, April 22, 1930, at and for . other purposes'', approved February 14, 1917, and the limits prescribed by those treaties; to authorize the con for other purposes, which were, on page 1, line 7, to strike struction of certain naval vessels, and for other purposes; out all after " 909," down to and including " repealed" in that the House insisted upon its disagreement to the amend line 1, page 2, and insert "is repealed. Title II of the Na ments of the Senate to said bill, requested a further con tional Prohibition Act, as amended and supplemented, and ference with the Senate on the disagreeing votes of the two the act entitled 'An act to provide revenue by the taxation Houses thereon, and that Mr. VINSON of Georgia, Mr. of certain nonintoxicating liquor, and for other purposes', DREWRY, Mr. GAMBRILL, Mr. BRITTEN, and Mr. DARROW were approved March 22, 1933, except such provisions of such appointed managers on the part of the House at the con title and of such act of March 22, 1933, as shall be retained ference. in force and effect in the States, are repealed to the extent ENROLLED BILL SIGNED such title and such act of March 22, 1933, are in force and The message also announced that the Speaker had af effect in the Territory of Alaska "; and, on page 4, after line 13, to insert: fixed his signature to the enrolled bill (H.R. 3908) for the relief of Joanna .A. Sheehan, and it was signed by the Vice SEC. 5. Section 13 of the Revised Statutes (U.S.C., title 1, sec. 29) shall not apply with respect to any penalty, forfeiture, or President. liability incurred under any provision repealed by this act. APPROPRIATIONS FOR DEPARTMENT OF AGRICULTURE Mr. TYDINGS. Mr. President, the amendments of the The PRESIDING OFFICER (Mr. ERICKSON in the chair) . House to the Hawaiian and Alaskan liquor bills have not been laid before the Senate the action of the House of Repre referred to the Committee on Territories and Insular Affairs . sentatives on certain amendments of the Senate to House of the Senate since the House adopted them, but I under bill 8134, the Agricultural Department appropriation bill, stand they are simply clarifying amendments recommended which was read as follows: by the office of the Attorney General of the United States. IN THE HOUSE OF REPRESENTATIVES, U.S., Unless there is some disposition on the part of members of March 20, 1934. the committee to ask for a conference, I move that the Sen Resolved, That the House recede from its disagreement to the amendments of the Senate numbered 1, 3, and 32 to the bill (H.R. ate concur in the House amendments to both bills. 8134) making appropriations for the Department of Agriculture The motion was agreed to. and for the Farm Credit Administration for the fiscal year ending June 30, 1935, and for other purposes, and concur therein. PHILIPPINE INDEPENDENCE That the House recede from its disagreement to the amendment Mr. FESS obtained the floor. of the Senate numbered 4 to said bill and concur therein with the following amendment: Mr. TYDINGS. Mr. President, will the Senator yield? In lieu of the matter stricken out by said amendment insert: Mr. FESS. I yield . . ", but the amount so used for any one person shall not exceed the Mr. TYDINGS. I do not want to take the floor a way amo'lint permitted by law to be so used, during the fiscal year 1935, for any one person in the foreign service of the Department from the Senator; but I understand-I may be wrong-that of Commerce." all the speeches on the Vandenberg amendment have been That the House recede from its disagreement to the amendment made. of the Senate numbered 25 to said bill and concur therein with the following amendment: Mr. KING. I am going to speak. In lieu of the matter inserted by said amendment insert: Mr. TYDINGS. The Senator from Utah is going to speak "Dutch elm disease: For control and prevention of spread of on his own amendment; but if there are to be no more the Dutch elm disease in the United States, $150,000: Provided, speeches on the Vandenberg amendment, I was wondering That this sum shall be reduced by an amount equal to any amount that may hereafter be allotted for the purposes named herein from if the Senator from Ohio would let us dispose of this one any Federal relief or other Federal emergency appropriations." amendment before he takes the floor, so that we could at That the House recede from its disagreement to the amendment least do that much today on the bill. I do not think it will of the Senate numbered 26 to said bill and concur therein with 5 I the following amendment: take minutes to dispose of the amendment. do not In lieu of the matter inserted by said amendment insert: believe there are any other speeches to be made on it. "Gypsy and brown-tall moths: For the control and prevention Mr. KING. May I say to the Senator that I should pre of spread of the gypsy and brown-tall moths, $360,000 of the sum allotted for this purpose for the fiscal year 1934 by the Public fer to speak on both amendments before a vote is taken upon Works Adm.1nistration shall be available only for expenditure dur the bill. ing the fiscal year 1935." Mr. TYDINGS. Of course, then I shall give way, except That the House recede from its disagreement to the amendment of the Senate numbered 27 to said bill and concur therein with that the Philippine legislature expires, as the Senator knows, the following amendment: sometime in May or June, and I was hopeful that we could In lieu of the sum proposed by said amendment insert have this bill accepted by it before a new legislature shall .. $3,130,536." be elected. That the House recede from its disagreement to the amendment of the Senate numbered 28 to said bill and concur therein with Mr. KING. Mr. President, will the Senator yield? the following amep.dment: Mr. FESS. I yield. 1934 CONGRESSIONAL RECORD-SENATE 4995 · Mr. KING. I think it would be very unfair and very un · to the allegedly fraudulent contractors whose contracts were fortunate if this bill were to be submitted to a legislature canceled. which has heretofore been elected. If the proponents of Mr. CONNALLY. Mr. President, will the Senator yield? this measure want the wishes of the Filipinos to be ascer Mr. FESS. I yield. tained, they will accept an amendment which I shall tender, Mr. CONNALLY. Is the Senator from Ohio complaining under the terms of which there will be a plebiscite, rather because the Department made a mistake, or is he com than submitting it to a legislature which perhaps is already plaining because they had the courage, if they did make discredited. a mistake, to admit it and try to correct it? Of what is Mr. TYDINGS. I hope the Senator from Ohio will not the Senator complaining? feel that I am at all discourteous in asking these questions, Mr. FESS. If I knew they would admit their mistake and because I realize the great interest he has in the subject he try to correct it, I should have nothing more to say. is about to discuss. May I inquire if he will occupy the rest Mr. CONNALLY. The Senator says they are doing just of the afternoon? that. He says they are now giving contracts to the same. Mr. FESS. Mr. President, let me state to the Senator concerns that he thinks ought to have had them all the from Maryland that I am going to cooperate with him in time. securing action on the pending bill. Mr. FESS. If the Senator wants to keep me on the floor Mr. TYDINGS. The reason I ask the question-and I all afternoon, just let him continue that line of remarks, again apologize-is that I have this bill in charge, and yes and I will stay here. terday I had to stay here all afternoon. Mr. CONNALLY. I beg the Senator's pardon. I ask Mr. FESS. I want to assure the Senator that I am going unanimous consent to withdraw my remarks if we are to to cooperate with him. I desire to make a statement which have, as a consequence, any such calamity as the Senator will not take over 3 minutes, and then I will give way. indicates. Mr. TYDINGS. Very well. Mr. FESS. The Senator is going to be visited with that calamity, in spite of my promise to my good friend from CANCELATION OF AIR-MAIL CONTRACTS Maryland [Mr. TYDINGS] if the Senator insists upon that Mr. FESS. Mr. President, the afternoon press yesterday sort of question. carried an item of news which is elaborated this morning in Mr. CONNALLY. I withdraw it all, Mr. President, and the Washington Post on the first page, in the leading col apologize to the Senate and to the Senator. umn. The Post states: Mr. FESS. Then I will keep my promise to the Senator Commercial aviation's anticipated return to the air-mall pic from Maryland. ture took tangible form for the first time yesterday since abro Mr. CONNALLY. We are in an emergency. We want to gation of mail contracts February 19 with private air lines au get out of it; and I would not dare invite any such catastrophe thorized to carry mail in bulk and with the Army employing former airline pilots in increasing numbers. as the Senator threatens. Authorization for private lines to carry individually stamped Mr. FESS. Mr. President, just one more word. and addressed mail in bulk as " express " was issued by the Post In the case of the air-mail flyer who was killed the other Office Department March 10, the day the Army flyers were grounded following President Roosevelt's denunciation of fatalities. day-the day before the mail was resumed when he was on This was admitted by Department officials yesterday despite a trial flight-it has been stated by many that he was a previous denial that such an authorization had been given and trained man brought in from the reserve service. The facts declarations that commercial lines were to be barred from par are that he was not a pilot but a copilot, and that he was ticipation in mall carrying of any kind until new air-mall legis not qualified to fly the mail, and would not have been lation is enacted. Meanwhile, Army air-mall headquarters reported 47 commer accepted by any one of the commercial air companies had cial pilots have been called into service to supplement the Army's the companies been operating the service instead of the Gov experienced flyers in carrying the mall on restricted schedules put ernment operating it. This man got but $250 a month, while into etrect when the corps resumed mail service Monday. a pilot gets $600 a month. So the suggestion that the man MAY USE ALL LINE PILOTS recently killed-the eleventh one who went to his death Prior to the time the Army flyers were grounded and air-mail was a trained pilot is not true. service resumed on an eight-route basis, Army pilots were used Mr. President, I am going to suspend further discussion of exclusively in mail operations, though a small number of com mercial pilots who were Reserve officers were put on active status. the air-mail question in order to facilitate disposing of the Army Air Corps officials here were uninformed as to the number bill which my friend from Maryland has in charge. I prom of former airline pilots actually engaged in flying the mail, but ised him yesterday that I would not interfere with his efforts it was understood that employment of the entire allotment was to secure action on his bill. contemplated. · Authorization of mail carrying by commercial companies was Mr. FESS subsequently said: Mr. President, on yesterday described at the Post Office Department as "insignificant and rou the Senator from Arkansas [Mr. RoBmsoN], in his discus tine ", arising from repeated requests on the part of large ma.li sion, dealt almost exclusively with the Aviation Corpora e rd er houses for such service. W. W. Howes, who signed the au tion of Pittsburgh. In the forenoon. before the address was thorization order as Acting Postmaster General in the absence of Postmaster General Farley, denied the action bad any connec made, the secretary of that concern appeared before the tion with restriction of the Army's mail operations. Post Office Committee and gave information in reply to Mr. President, I want to take the time today only to queries propounded to him by the chairman and other mem call attention to the significance Of this dispatch, if it is bers of the committee. true, and I assume that it is. The significance grows out of Ordinarily, if it were not for the fact that it would take the fact that without its being known to the public, there time, I should like to comment on some of those questions was an order given not only for the employment of com and answers, because they deal directly with the subject dis mercial pilots for the operation of planes, but also for the cussed yesterday; but I do not want to interfere with the use of commercial aviation to carry mail marked "express" bill of my friend from Maryland [Mr. TYDINGS]. I therefore which, as every Senator knows, is unfair to the public, be ask unanimous consent to have the testimony of this witness cause it involves a double charge. The man who sends the inserted in the RE co an; and I ask Senators especially to note mail pays the postage, and somebody must pay when it goes the latter part of it, where there are answers to questions as express matter instead of mail matter. The payment of propounded dealing directly with the subject of dispute. expressage does not obviate the payment of postage; and The PRESIDING OFFICER (Mr. BARKLEY in the chair) . why, if the dispatch be true, this subterfuge is being used, Is there objection to the request of the Senator from Ohio? wonld be interesting to all of us. Mr. ROBINSON of Arkansas. I have no objection to the In the second place, I hope it. is to be admitted without request. further controversy that the Department is now confessing The PRESIDING OFFICER. The Chair hears no objec that an error was made, and that it is now giving contracts tion, and it is so ordered. LXXVIII--316 4996 CONGRESSIONAL RECORD-SENATE MARCH 21 The matter referred to is as follows: Our analysis which we present for your consideration concerns chiefly sections 3, 5, 7, and 8, for it seems evident that on those STATEMENT OF M.R. C. B. MONRO, EXECUTIVE VICE PRESIDENT OF sections is based the entire air-mail policy of the Government, the PENNSYLVANIA Am LINES other provisions, although important in themselves, being more or The CHAIRMAN. Whom do you represent, Mr. Monro? less subordinate to the main issue. Mr. MoNRO. Pennsylvania Air Lines. Uthe committee wm permit, we shall first give our comments The CHAIRMAN. Did the Penn Air Lines have a contract up to on sections 5 and 8, which provide for the qualifications of the February 19? bidder and the terms under which an award may be made, provi Mr. MONRO. That is correct. sions so closely related that they may be discussed as one unit. The CHAIRMAN. And between what points? It seems evident that the restrictions on who should bid are Mr. MONRO. Between Cleveland, Akron, Pittsburgh, and Wash- purely fictitious in character: a list of directors and stockholders, ington. a financial statement. All that can be supplied by any "paper" The CHAIRMAN. What is the length of that line? company. And for what purpose is the requirement introduced Mr. MoNRo. Three hundred and twenty-one miles. of furnishing a list of stockholders? Take a large company, for The CHAIRMAN. What amount per year did you receive? example, whose stock is traded in on one of the exchanges. A list Mr. MoNRo. We were receiving an average in the calendar year of its stockholders furn1shed on one day would be out of date 1933 of approximately 40 cents per mile. in 24 hours. The CHAIRMAN. How much in money? No mention is made of the essential qualifications of experience Mr. MONRO. Over $320,000. I have the exact figures here. and practical ability to carry out the terms of the contract. Any The CHAIRMAN. All right, sir, tell us what you have to say. individual owning pen and paper may actually bid on a contract Mr. MoNRO. I a&llme in appearing before you that there is no and then during the 6 months given him to qualify enter into a desire on your part to conduct a hearing on the matter of the wild stock-promotional scheme, unload the stock on · the public, cancelation of all domestic air-mail contracts. Frankly, we would and then take his profit and turri the company over to an inex welcome such a hearing, welcome any questions that might be perienced management for the fulfillment of the contract. In asked in that connection, for no representative of our company other words, a 6 months' promotional period is guaranteed to any has yet been accorded that privilege. I am assuming, however, unscrupulous promoter, with a bona fide Government contract to that you are primarily interested in the bill now under discussion back his speculative efforts. And the money he secures will not and are interested in the viewpoint of one of the compan1es which come from business men and people acquainted with the problems held an air-mail contract prior to February 19, and which, accord of transportation, of finance, and of industry. They know too well ingly, has a vital interest in new air-mail legislation. the impossibility of conducting a successful air-transport system As a preface to our comments on this bill and purely as a matter under rates at which a contract will be secured. They realize of information for your better understanding of our situation, I too well the unstable and shifting foundation on which this new would like to offer this brief explanation. Pennsylvania Air Lines structure will be raised under this bill. That money will come 1s one of the smallest of the companies formerly carrying air mail, from men and women unacquainted with these facts, from men and is entirely lndependent of any of the larger aviation groups. and women who cannot afford the loss of a single dollar. And It operates from Washington to Cleveland via Akron, and Pitts their participation and the inevitable loss of their money will be burgh over a route 321 miles in length, the major portion of sponsored by the Un1ted States Government. which is mountainous territory. Until February 19, five round And during the 6 months allowed to the bidder to qualify the trips were being flown daily, all with tri-motored 12-passenger air responsible and experienced compan1es which formerly carried the planes carrying both mail and passengers, airplanes equipped with air mail will be liquidating their affairs. Their equipment and two-way radio, blind-fiying instruments, and all possible devices supplies will be dumped on the market to be snatched up by to insw·e a safe and efficient service. concerns which, even if they could avoid later financial ruin, The original contract on this route was let on April 27, 1926, could not supply the former safety and efficiency of service for and called for service between Cleveland and Pittsburgh only. years to come. In other words, our assets, the property of our On June 8, 1931, the line was extended from Pittsburgh to Wash stockholders, are to be sacrificed to the unscrupulous or to the ington, an extension on which pioneering passenger operations inexperienced with the full knowledge and consent of the had been conducted for a period of almost 2 years and on which Government. many thousands of dollars in route surveys and other development But why do we say the compan1es which formerly carried the work had been expended by us-no other aviation interest having air mail will be forced to liquidate? For two reasons. First, spent one cent in that territory. let us look at section 7 of the bill, which is specifically written With regard to its corporate affiliations, Pennsylvania Airlines is to disqualify all of the present operators without specifically 100 percent owned and operated by the Pittsburgh Aviation Indus charging any of them, except by inference, of any wrongdoing. tries Corporation. This Pittsburgh company was organized in In this section is included one of the most unfair, if not actually 1928 purely as a community enterprise under the sponsorship of unconstitutional provisions ever seriously considered by a legis the Pittsburgh Chamber of Commerce. Its capital of approxi lative body. The special Senate committee investigating ocean mately $1,200,000 was subscribed by over 200 of the business and and air-mail contracts has been loud in denouncement of the civic leaders of the Pittsburgh district. No promotional fees or air transport industry. But even that committee has insisted brokerage commissions were paid to anyone. I might also add that everyone would be given a fair trial. Yet into this legisla that no family or group interest holds or ever held in excess of tion is written the following: 5 percent of the total stock issued and outstanding. " • • • and no person shall be eligible to bid for or hold an air-mail contract if it or its predecessor is asserting or has At the present time Pittsburgh Aviation Industries Corporation any claim against the United States because of a prior annul holds 100 percent of the stock of Pennsylvania Airlines, 50 per ment of any contract by the Postmaster General." cent of the stock of a company known as "Pittsburgh-Butler To the best of my knowledge this clause has been condemned Airport, Inc.", and 4.73 percent of the stock of Transcontinental by practically every witness appearing before the Post Office and & Western Air, Inc. Our chief interest lies, however, in the owner Post Roads Committee of both the Senate and the House, with ship and operation of Pennsylvania Airlines, upon the successful the exception of those who had some participation. either direct continuation of which depends the integrity of the investment of or indirect, in writing it into the bill. And we would like to add our 234 stockholders, and the successful continuation is in turn our protests. dependent upon the air-mail legislation which is enacted at this If the cancela tions were legal and the contractors were guilty session of Congress. of fraud and collusion, why should any fair-minded official refuse Gentlemen, 1f the bill now under discussion is passed in its to allow that company the right to proceed against the Govern present form, it is our opinion that not only the country's air ment in the courts? Why should any company which believes transportation system but aircraft and engine manufacturing and that it has been wrongfully accused and is willing to try its case all other phases of the aviation industry as well, which are de in the courts be refused the right to engage in business with pendent upon air transportation for the greatest part of their the Government? growth and development, would receive a setback from which Could this be an admission that annulment of contracts could there could be no recovery as long as the provisions of the act not be upheld in court, where the facts on each side of t he case were in force. The fundamental truth of these statements lies could be brought out fairly for the first time? Instead of in in this fact: No air-transport company, organ1zed and operated serting this clause, why has not an effort been made to bring to with the honest purpose of providing a safe and efficient air-mail trial those charged with guilt in obtaining the contracts? If and passenger service in the best interests of both the Govern there was sufficient justification for canceling contracts on the ment and the public, and with the honest intent of granting to basis of fraud and collusion. why have there not been any indict the stockholders a fair return on their investments, would even ments of those responsible for the so-called " fraud and col attempt to bid on an air-mail contract under the bill as pres lusion"? ently written. No corporate officers acquainted with the problems That is the first of our two reasons for stating that the com of air transportation, realizing the tremendous responsibility for panies which formerly carried the air mail will be forced to liqui human lives and for private property, could recommend to their date. What is the second? The second reason lies in section 3, directors and stockholders pa.rticipation in a contract the honest which prescribes the fundamental policy of the Government to performance of which could lead but to one result, the loss of all ward future commercial air-transport development in its provi capital invested. sions for a maximum rate of 30 cents per airplane-mile, or 40 These statements may seem exaggerated, but do they prove so cents when the average load is in excess of 500 pounds. after a careful analysis which we believe is divorced from any It is a business axiom that no responsible person will engage tendency to partisanship or bias. What are these provisions, in any business enterprise unless he believe a fair profit can be therefore, which would prohibit participation by any but the in made from the conduct of that enterprise. experienced or irresponsible, which would turn away legitimate The companies formerly fiying the mail realize from long ex capital and which would reduce our air transportation system to perience just what is involved in carrying on a safe and efficient the status of development of years past? air transport service. They know that the safe arrival of an air- 1934 CONGRESSION~L RECORD-SENATE" 4997 plane depends not only upon piloting skill, but upon the ground tically all the large systems. At Washington with Eastern Air organization, the maintenance and overhaul crews, the weather Transport to the South; at Pittsburgh with T.W.A., operating the observers, the communications personnel, and other departments- mid-transcontinental lines; at Cleveland with United Airlines, all coordinating their efforts to insure the safe arrival of that operating the northern transcontinental route. Also, at Cleveland, plane. They know th.at for every employee in the air there are connections are made with American Airways to Detroit and to needed from 6 to 10 on the ground. They know these things and Buffalo and other cities. In other words, all the traffic from a hundred more, all developed through years of trial and error Washington and the southern section of the Atlantic seaboard and through the sacrifice of many lives. directed to the middle, Northwest, and West flows over our line. And tb,ey know their costs and what the Post omce records And the reverse is, of course, true. If Pennsylvania Airlines were show of the cost of operating all air lines--for the fiscal year controlled by any one of these larger companies, a fictitious tramc 1933, for example, 61.4 cents per mile. For the same period they routing might result, which would be to the detriment of th3 realize that passenger and miscellaneous revenue totaled 18 cents public interest. per mile and mail revenue 49.4 cents per mile. What is ahead for In this connection I would like to read to you a section cover them under this act in the way of mail compensation, 30 cents ing this question from the report of the House Post Office and per mile for all but three of the existing routes--New York to Post Roads Committee on February 21, 1933, following an investi Los Angeles, New York to Chicago, and Chicago to San Francisco. gation into the Postal Service under House Resolution 226. This On those three routes only the Post omce records indicate that section reads as follows: the volume of mail will be sumcient to lift the maximum pay to "If a feeder or connecting-llnk extension happens to cross two 40 cents. main trunk lines, it becomes a. cross-line feeder and assumes great Take this 30 cents or even 40 cents per mile. Add to it the strategic importance. Although such a cross-line feeder might passenger and miscellaneous revenue of the fiscal year 1933 with very well be operated more economically as a part of one of the an increase of 10 percent. Subtract the total from the operating trunk lines it intersects, such absorption would tend to upset the costs for the same period, reduced by 10 percent. What are the competitive situation and might lead to a rate war or the estab results? On three of the routes a small profit might be made- lishing of a rival feeder paralleling the first. Such considerations some 4.5 cents per mile. On the remaining routes a loss of 5.5 lead to the conclusion that it may be desirable to keep a cross-line cents per mile will be incurred. And th.at is based on the bidder's feeder independent even though absorption by one of the trunks securing the contract at the maximum amount allowed. it feeds might lead to greatly reduced operating costs. These Isn't it therefore a certainty th.at if any of the companies remarks apply with special force to Pennsylvania Airlines." formerly carrying the air mail did bid on the new contracts, their The major portion of our route is over mountainous country in only recourse would be to bid the maximum? a territory notorious for its adverse weather conditions. In the But it is ridiculous to believe that any new contract could be winter months from 10 to 15 percent of our mileage is flown blind, obtained on a bid of the maximum rate. The shoestring operator by instruments and radio. Those problems were never recognized . anct the stock promoter would undoubtedly bid in the routes at by the Post omce Department, for in the 38 months of our oper a rate as low as 10 cents per mile. The premium would then be ating history, from November 1, 1930, to December 31, 1933, we placed on cheap, inefilcient, and unsafe operations; on low sal received an average mail pay rate of 40.8 cents per mile, as against aries for all personnel, whose minimum pay was not stipulated as the average of 57.2 cents per mile given to all operators. In ether a result of the provisions of the b111; that is, for all but pilots, or words, for 38 months we have been paid 16.4 cents per mile less 90 percent of the personnel. . than the average paid to all operators. And during the same But let us nov. apply the provisions of this section to the period our costs were about 5 cents per mile lower than the specific case of Pennsylvania Airlines. Let us assume, first, that average of all operators. our company has been awarded the contract between Cleveland In the 38 months of our operating history we incurred a net loss and Washington on the maximum bid of 30 cents per mile. There of $72,866.92, not a. large sum perhaps, but it represents 36.4 per would be no question of our securing a higher rate under the cent of our total capitalization. 6-cent feature, as our records indicate that for the fiscal year And now what are we faced with? If provisions of this bill 1933 our average load per trip was 69.4 pounds; for the calendar under discussion were changed to permit former air-mail con year 1933, 78.8 pounds. Our maximum would therefore be 30 tractors to bid on the basis suggested, Pennsylvania Airlines would cents per airplane-mile. have the privilege of bidding on what? Just this--the privilege of The next question is, What would the income be from passen bidding on a. contract which, if secured, even at the maximum gers and other sources? Using as an estimate the results for the rate, would result in the inevitable loss of every dollar of our calendar year 1933, our passenger revenues would be 29.5 cents stockholders' money. And again, may I state, it would be ridiculous per mile and miscellaneous revenue nine tenths of 1 cent per mile. to assume that other interests would not bid lower than the What is then the estimated revenue-from mall, 30 cents; from 30-cent maximum, interests that could have no conception of the passengers, 29.5 cents; from miscellaneous services, nine tenths of problems involved until after painful and probably disastrous 1 cent---Or a total of 60.4 cents per airplane-mile. During the last experience. 6 months of 1933, in which practically all our mileage was flown What recourse do we then have? Would you recommend that by 12 passenger tri-motored airplanes, the type of equipment the omcers of our company, in full possession of these facts--and which would be used exclusively under any future contract, our they a.re incontrovertible facts--would you recommend that the operating costs were 61.7 cents per airplane-mile. Our estimated omcers of our company deliberately attempt to enter into a con revenues are 60.4 cents; our estimated costs, 61.7 cents. The net tract the performance of which would lead but to the result stated? result would be a loss of 1.3 cents per mile. What would your opinion be of individuals who would deliberately On the tentative map prepared by the Post omce Department misuse the money intrusted to them by their stockholders? The a frequency of three round trips per day is shown for the Cleve day this bill becomes a law Pennsylvania Air Lines pays off its em I land-Washington route, or a total of 702,990 miles per annum. ployees, liquidates its assets, and returns to its stockholders -the Past history of performance under the exceptionally difilcult con few dollars which they may have coming to them. \ ditions of weather and terrain peculiar to this route would not But what are other companies going to do? Naturally, we can permit an estimate of performance greater than 90 percent of the not speak for them; but we do know these facts: mileage scheduled, or a total of 632,691 miles. Since the estimated 1. With the possible exception of three routes, mail income can costs are based on an average of 79,283 miles per month while we not exceed 30 cents per mile, if the maximum is bid in all cases. could not fly under the new plan more than 52,724, obviously our 2. Passenger revenue per mile is higher on the Washington mileage costs would actually be several cents over the above esti Cleveland route than on all but three or, at the most, four routes mates. This would result in an unavoidable and continuous drain in the country. The Post omce records will confirm this state on our cash resources. ment. Someone may raise the question, Are these costs high? To the 3. Pennsylvania. Airlines' operating costs are substantially lower contrary, they are as low as it is possible for any comparatively than the average, a. fact which can also be confirmed by Post omce short line to attain and still conduct a. safe, reliable service. These Department records. costs are lower th.an the average of all operators of long lines and If our company, therefore, with higher passenger revenues and of short lines, and such results were secured only through most lower operating costs than the average, cannot survive under the exacting economy. No omcer 'in our company has ever received a maximum rates which may be awarded by this bill. is it possible salary o! over $1,000 a .month. The average salary of our three that many of the former air-mall contractors would even attempt executive officers is now just over $700 a. month. There 1s only to bid on new contracts? What, then, of the quarter of a million one omcer in our company being paid a salary higher than the or more stockholders, American citizens, with their total invest average paid to our pilots, and that no money has been wasted ment of from $65,000,000 to $70,000,000? may be seen from the fact that the total expenses of all of our There are other possible criticisms of this bill, and also of the omcers have never exceeded $3,000 in any one year. sections discussed, but we have endeavored to confine our remarks At this point the question might be raised, Is there any justi to the fundamental provisions which we believe bear out our fication for short feeder lines such as ours continuing to be oper previous statement that" no air transport company, organized and ated independently? Wouldn't it be better from the point of view operated with the honest purpose of providing a safe and emctent of lowered costs to have such feeder lines consolidated with one air-mall and passenger service in the best interests of both the of the long routes? Government and the public and with the honest intent of grant It is probably true that some economies might be effected by ing to the stockholders a fair return on their investments, would such a consolldation, though in our case it is doubtful if much even attempt to bid on an air-mall contract under the bill as money could be saved in this manner. The real point, however, is presently written." that it is to the best interest, both of the Government and of the In view of this, it may be only logical to inquire if we have public, that a line such as ours should not be controlled in any any constructive suggestions which may be considered in your way by one of the larger companies. study of legislation designed tO restore to this country its former Pennsylvania Airlines, for example, occupies a. rather unique splendid air-transport system and to insure continued progress portion on the air-transportation map, since it connects with prac- and development in the years to come. 4998 CONGRESSIONAL RECpRD-SENATE MARCH 21 After a long study, constructive suggestions had previously The CHAIRl'>liN. Then, the Penn A1r Lines has a capital of been submitted by the Post Office and Post Roads Committee of $200,000; is that right? the House, the essential phases of which our company heartily Mr. MoNRo. Yes, sir. endorsed almost a year ago, constructive suggestions as embodied The CHAIRMAN. And the holding company has other interests in the Kelly bill and in other bills based on payment to the oper besides that? ators of revenue actually earned, plus a subsidy to those com Mr. MONRO. Yes, sir. panies not yet self-supporting. Our recommendations are there The CHAIRMAN. Now, your income from the Government was fore as follows: about $320,000 a year under your former contract? 1. Authorization to pay air-mall contractors on the basis 2 Mr. MONRO. I can give it to you correctly from the record; mills per pound-mile, such contractors who would incur a deficit $322,650.33 for the calendar year 1933, an average rate of 40.2 at this rate to be given in addition a subsidy not to exceed 25 cents per mile. cents per airplane-mile, this subsidy to be automatically reduced The CHAIRMAN. Does any other concern own the Pittsburgh by 5 cents each year until eliminated. Total payment of subsidy Aviation Industries Corporation? and revenue actually earned should not exceed 45 cents per Mr. MoNRo. No, sir; that is owned by approximately 234 stock airplane-mile. holders, all business men and civic leaders in the Pittsburgh 2. Authorization for the appointment of a board or commis community. · sion by the President to supervise and regulate air lines and to The CHAIRMAN. And all the entire Penn Air Lines is owned by issue certificates of public convenience and necessity to all air that company? lines in operation as of January 1, 1934, this board also to deter Mr. MoNRo. By that company; yes, sir. mine the amount of subsidy to be paid each airline at the time Senator DAVIS. I have heard it said several times in and about the certificate is issued. Pittsburgh that the Pittsburgh Aviation Industries Corporation On any new lines which may be established subsequent to is controlled by the Mellon family of Pittsburgh. Is that true? January 1, 1934, and which do not duplicate existing services, the Mr. · MoNRo. No, sir; that is not true. The Mellon family own board or commission should be authorized to issue a certificate, 2,400 shares of the 26,312 shares issued and outstanding, which with payment on the same basis as outlined above, 6 months' is about 5 percent. operating experience on daily schedule, however, being required The CHAIRMAN. Is that par-value stock or non-par-value stock? before such companies could make appllcation for such Mr. MoNRo. The Pittsburgh Aviation Industries Corporation certificate. the stock of that company is no par value. The stock was issued, 3. Authorization for the reduction of air-mall postage on let however, at $25 per share. The Mellons own 2,400 shares--the ters to 5 cents per ounce or fraction thereof; authorization for entire family-Mr. R. K. Mellon, 400 shares; W. L. Mellon, 1,000 airgrams at 3 cents and air postcards at 2 cents. shares, and R. B. Mellon, before his death several weeks ago, It ts our firm belief, that with some such provisions as have 1,000 shares. The exact interest of the three combined is 5.182 been hereby recommended, the present air-transport system could percent. be preserved intact, further development would be encouraged, Senator O'MAHoNEY. Was any of that stock issued for services? and the Government would receive a maximum of service at a Mr. MoNRo. During the year 1930 Mr. Robbins was the execu steadily decreasing cost. tive vice president of the Pittsburgh Aviation Industries Cor Is it not true that there are now two roads to choose between? poration. He accepted no salary; not a single dollar was paid to One of them leads to these things: him. We felt, with the rate at which money was being lost, we 1. The destruction of the investment made in the air-transport could not continue to create a loss of the company. He refused industry by over 250,000 American citizens, with the loss of to accept a salary, and I think in February or March of that $65,000,000 to $75,000,000. year the executive committee of our board of directors by reso 2. The destruction of a coordinated air-transport system that lution authorized the issue to him of 1,200 shares of stock, repre previously had no equal in the entire world and the substitu senting his total salary, in lieu of salary for the year 1930. So, tion therefor of a number of inexperienced companies. if his salary had been paid to Mr. Robbins during that year, 3. Encouragement of inefficiency and cheapness, with the re no stock would have been issued for services. That represented sultant increase in the hazards of fl.ying, and with the evident a total of $15,000, since it was issued to him. disregard for the tremendous responsibility for the lives of human Senator O'MAHONEY. There was no promotional stcck issued? beings and for the safety of private property. Mr. MONRO. No promotional stock, and no brokerage commis 4. Discouragement of legitimate private capital and of partici sions paid on the stock. I might add in the formation of Pitts pation in the industry by those with the necessary qualities of burgh Aviation Industries Corporation, several individuals in leadership and of integrity. curred an expense I know of between $5,000 and $10,000 that has 5. The denial of the inalienable right of an American citizen to not ever been reimbursed to them, in trying to create interest in be given a fair trial before he is judged guilty. aviation in the Pittsburgh district. 6. Promotion, with the Government stamp of approval, of vari The CHAIRMAN. Have any dividends been paid? ous stock-jobbing schemes to the detriment of the public interest. lvf..r. MoNRo. No, sir; no dividends of any sort have been paid. 7. Disregard of the vital part played by commercial air trans I would like to add that the loss of the Pittsburgh Aviation In portation in national defense through the discouragement not dustries Corporation in the last 5 years of experience from De only of air transport but of all other phases of the aviation indus cember 1928 has totaled $346,000, and the loss of the Penn Air lines during the 38 months of its existence has totaled $73,000, try as well. and the loss of the Pittsburgh-Butler Airport in the 3 years since But to what does the other road lead? The opportunity to it has been incorporated has been one half of the loss, which preserve the integrity and continue the development of the finest would represent as our share $26,000. So the total loss of the air-transportation system in the world, the opportunity to further three companies which we are interested in was $445,000. We the progress of the one industry that succeeded in rising against cannot pay dividends on results of that sort. the trend of the business depression, the opportunity to act in the Senator DAVIS. Were the policies and the activities of your com best interests of the American people by placing this industry in pany in any way controlled by the Mellon family? a position where it can never be subject to the whims of political Mr. MoNRo. I do not see how they could possibly have been a expediency. factor. I also hold the position of secretary of this company, and Which road are we to follow? I know that there have been 61 directors' and executive-committee The CHAIRMAN. Mr. Monro, did anyone representing your com meetings of the Pittsburgh Aviation Industries Corporation held, pany attend the so-called "spoils conference" in May 1930? and Penn Air lines, and Mr. R. K. Mellon attended 14 of those Mr. MoNRo. Two representatives of the Pittsburgh Aviation In meetings, about one half of which he attended just to put us dustries, before we had any interest in it whatsoever, attended down for a quorum, and Mr. R. B. Mellon, also a director, resigned that meeting. Mr. Ball, of the Cleveland-Pittsburgh route, at shortly after he was elected, for he said that he did not have the tended the meeting, but we had no affiliation with Mr. Ball at that time to devote to the company and he must resign. Mr. W. L. time. Mellon, also a director, never attended 8. single meeting. This The CHAmMAN. How many planes has your company? Pittsburgh Co. was organized by a. group of people entirely as Mr. MONRO. Ten tri-motor planes and two single-motor planes. a community enterprise. I was instrumental in securing a large The CHAIRMAN. What is the average cost of these? part of the stock by personal solicitation. I know definitely the Mr. MoNRo. I think they average somewhere about $10,000 Mellons were not even approached until after the majority of apiece. this stock, which was finally subscribed, had been signed up, The CHAIRMAN. What actual capital was put into your company? and their only participation in it, which they stated to me, was Mr. MONRO. In Penn Air Lines the total capitalization is $200,000. for the reason that other business men and the leading interests However, that cannot be judged with the total capitalization of of Pittsburgh were launching this thing, and that it was not con Pittsburgh Aviation Corporation, all the facilities and assets of trolled by any group, and they were going into this merely on the that company being behind Penn Air Lines, being over $1,000,000. basis on which they would contribute money to a hospital or a The CHAIRMAN. Paid-in capital? university, or something of that sort. I think that the minutes Mr. MONRO. Yes, sir. of our meetings and other correspondence would definitely show The CHAIRMAN. Does one company own the other? that the Mellons never attempted at any time to influence our Mr. MoNRO. The Pittsburgh Aviation Industries Corporation policy. They took no active part in the company and never owns the Penn Air Lines. requested us to use any products, or do anything of the sort. The CHAIRMAN. What else does the Pittsburgh Aviation Indus The CHAmMAN. Has the stock of your company, or any one of tries Corporation own besides this? the three companies, been bought and sold on the exchange? Mr. MoNRO. It owns 50 percent of the stock of a company Mr. MONRO. No, sir; it is not listed on the exchange. known as the "Pittsburgh-Butler Airport, Inc.", and 4.73 percent The CHAIRMAN. Has it a market value? of Transcontinental & Western Air, Inc. Mr. MoNRO. I happened to see an acquaintance of mine recently The CHAIRMAN. Anything else? and he mentioned to me that he had sold some stock at $5 Mr. MoNRo. No, sir. a share. That is the only thing I know. 1934 CONGRESSIONAL RECORD-SENATE Senator DAVIS. Were there any dividends ever paid by the Pitts Mr. MoNRo. No, sir; I . do not. I think every dollar that the burgh Aviation Industries Corporation or the Pittsburgh-Butler Government has paid these air-mail contractors, in addition to Air Transport Line or the Penn Air Lines? what they have received from their air-mail revenue returned, Mr. MONRO. No, sir; Senator DAVIS. I believe I brought that meaning the Government, I think that it has received very much out when I answered Senator MCKELLAR that the total loss of return in the various developments which these air-mail con these companies was about $445,000 in 5 years. tractors have been able to bring about throughout the route. The CHAIRMAN. Any other questions? If not, we are very much Undoubtedly, if it had not been for this, these various municipali obliged to you, Mr. Monro. ties, counties, and so forth, would not have poured in these mil Senator O'MAHONEY. Just a moment, did I understand you to lions in airports over the country. For example, in Pittsburgh say that at the time of this so-called " spoils conference " you alone there 1s over $4,000,000 in that airport, employing a large were not carrying the mails? number of persons in constructing it, and that is true of every · Mr. MoNRo. That is correct. The Pittsburgh Aviation Industries municipality. Also in the developments of various equipments. was not carrying the mails, and although Mr. Ball. who owned That 1s true of the Transcontinental and the Boeing and United the line from Pittsburgh to Cleveland, which we acquired 7 Air, and if the Government 1s going to cut down on the subsidies, months later, was present, we had no financial interest in his it will get just exactly what it pays for, cheap air service, and if company at that time. it 1s going to get good service, it will sooner or later pay for itself. Senator O'MAHONEY. Were you flying a.ny ships at that time? Senator O'MAHONEY. You believe that a subsidy is necessary? Mr. MoNRo. We were flying quite extensively at that time. Mr. MONRO. I believe it is absolutely necessary, if we are to The CHAIRMAN. When did you receive your contract from the have aviation in th1s country. Government? Senator DAVIS. And did the Government ever encourage the Mr. MoNRo. On the Cleveland-Pittsburgh Line? community served by your company in helping build these The CHAIRMAN. On any of the lines. airports? Mr. MoNRo. Well, the first contract was really on the Cleveland Mr. MoNRo. Very dUierent. I can recall coming down to Wash Pittsburgh Line, given April 7, 1926, and we started April 21, 1927. ington before we had anything to do with air mall, and saying The CHAIRMAN. When did you receive a contrnct on your entire there should be some air-mail line there, and the answer we got line? from the Post Office Department and Department of Commerce Mr. MoNRo. That line was extended from Pittsburgh to Wash was, " you do not have an airport up there, and you do not have ington on June 8, 1931. This was after the so-called "spoils con anything up there, and when you do that and when we see there ference." ls a demand for that service up there, then some air-mail lines The CHAIRMAN. Which of your officers were at the conference? will be put in." Mr. IvioNRo. Mr. Hand, of Pittsburgh Aviation; and Mr. Robbins, The CHAIRMAN. Who said that? formerly executive vice president and now president of the Trans Mr. MoNRo. That was said by various ofil.cials of the Govern continental and Western Air. ment. The CHAIRMAN. Is he stlll connected with your company? The CHAIRMAN. Which ones? Mr. MONRO. No, sir. He is a stockholder, however, and always Mr. MONRO. Probably stated by Mr. Glover and Mr. Brown and ha..J been. Mr. Wadsworth, and the Department of Commerce ofil.cials. The CHAIRMAN. But he has given up his ofil.cial position with The CHAIRMAN. Which one of the Department of Commerce the company? officials? Mr. MoNRo. Yes, sir; he is not an officer or director now. Mr. MoNRo. I would not like to state definitely. It was def The CHAIRMAN. When did he leave to go with the Transconti- initely stated, ••You go and develop aviation and spend your nental & Western Air? · money, and we will see what we can do for you." Mr. MoNRO. As I recall, he became the managing director of The CHAIRMAN. Any other member of the committee desire to Transcontinental & Western Air in the early part of 1931, and then ask any questions? (No answer.) Have you anything else, Mr. probably in the spring of 1931, I believe it was, he was elected Monro? president--Or it may have been the summer of 1931. Mr. MONRO. No, sir. The CHAIRMAN. They were the only two ofil.cers present? The CHAmMAN. That 1s all. Thank you very much. Mr. MoNRo. That is correct. The CHAIRMAN. You were not present? PillLIPPINE INDEPENDENCE Mr. Mol\TRO. No, sir. Mr. BORAH obtained the floor. The CHAIRMAN. Did you know about the conference? Mr. MONRO. Yes, sir; I did. Mr. TYDINGS. Mr. President, will the Senator from The CHAIRMAN. Were you put down for- a route? Idaho yield? Mr. MoNRo. The Pittsburgh Aviation, as I understand it, when Mr. BORAH. I yield. asked to state the equities of the territory which they had been serving, stated they had equities in the line between Washington Mr. TYDINGS. As I understand, all debate on the and Pittsburgh and between New York and Pittsburgh. I might Vandenberg substitute is over. Would the Senator from say in that connection all of this development work that had Idaho object to having a vote on it before he takes the floor? been done had been done by our company in that community, per mitting us to qualify under the postal air-mail routes. Previous I do not want to take the Senator off the floor. to this conference there had been conferences with various com Mr. BORAH. No; I have no objection, but the Senator panies with the idea of joining up the passengier route between from Utah [Mr. KING] is not here. New York and Pittsburgh and Washington, we being given an Mr. TYDINGS. I do not think he desires to address him opportunity to bid on this under the Watres Act, and the Post master General figured out this line by some extension. self particularly to the Vandenberg amendment. The CHAIRMAN. What were your extensions; you had the route Mr. VANDENBERG. He said he did, Mr. President. I from Pittsburgh to Cleveland at that time? beg the Senator's pardon. Mr. MONRO. Not at that time. The CHAmMAN. What did you have? Mr. BORAH. The Senator from Utah is in the dining Mr. MoNRo. We had nothing. room. Ii the Senator from Maryland can arrange the mat The CHAmMAN. Did you ever bid on any routes at all? ter with him, I will suspend at any time. A vote in this Mr. MoNRo. No, sir; we were not given an opportunity to bid on body is so rare that I should not want to interfere if one any routes. The CHAIRMAN. How did you get your route? is about to be taken. Mr. MoNRO. We purchased from Mr. Ball his ownership in the Mr. TYDINGS. Under the circumstances, I do not think Penn Air Lines, wl1.ich operated between Cleveland and Pittsburgh. I should be justified in asking the Senator from Idaho to The CHAmMAN. Then you got an extension from Pittsburgh to Washington? defer his remarks. Mr. MONRO. Eight months after we purchased :Mr. Ball's com PRICE FIXING UNDER STEEL CODE pany we had an ,extension from Pittsburgh to Washington. The CHAIRMAN. How did Mr. Ball get his contract, by purchase Mr. BORAH. Mr. President, on February 2, 1934, I sub or how? Mr. MONRO. Mr. Ball bid on the contract on April 27, 1926. mitted in the Senate a resolution calling upon the Federal The CHAIRMAN. What is the distance from Cleveland to Pitts Trade Commission to make a report upon the practices of burgh? the steel industry under the steel code. We now have that Mr. MoNRo. That has been changed at various times. It was report before us, and it presents a very serious question as 140 miles. and it was changed to 131 miles. The CHAIRMAN. What 1s the distance from Pittsburgh to to what the Congress is going to do about it-whether we Washington? are going to acquiesce in what is going on, connive at the Mr. MONRO. One hundred and ninety-five miles. practices which are now established by evidence, or whether The CHAIRMAN. Then your extension was about double? we will restore the antitrust laws and give the Government Mr. MONRO. Well, I would not say double. The CHAIRMAN. I should not say that myself, but it was con an opportunity to enforce them. There is no more impor siderably more. tant question before Congress. There is none bearing more Mr. MONRO. It was 60 miles more than the original line. directly upon the welfare of the people of the United States. Senator DAVIS. In your opinion, Mr. Monro, do you believe the former air-mail contractors have been overpaid by the Govern Mr. President, this report must be of great interest to all ment? who are concerned in the recovery program. The conditions 5000 CONGRESSIONAL RECORD-SENATE MARCH 21 which have been revealed and the .practices which have Mr. BORAH. There is a conflict of view upon that, but been established to the satisfaction of anyone who will read in my opinion the restoration of the antitrust laws would in the report are undermining, embanassing, sapping the entire no wise conflict with the fair execution of the National recovery program. They are in conflict with the whole Recovery Act. It has been supposed, and was supposed at scheme now set up to bring about recovery. the time the act was passed, that the maintenance of fair Of course, that would not be true if the steel industry competition by permitting people to come together and a.Ione were engaged in these · practices; but there are a arrange for fair competition could not be carried out if number of leading industries, practically all, which, I ven the antitrust laws were invoked, or· if they were upon the ture to say from investigations which I have made myself, statute books, but I contend that the decision of the courts if· resolutions should be introduced, would be found to be establish beyond all question that the coming together of engaged in the same practices precisely as those followed by industries for the purpose of maintaining fair competition the steel industry. The result is that the determined effort is not prohibited by the antitrust laws. It is where they of the Government to restore purchasing power to the engage in an effort to practice unfair competition, to destroy masses is being thwarted by these practices thus revealed. competition, that the antitrust laws may be invoked. Therefore, it would be, it seems to me, a matter of supreme Mr. FESS. Mr. President, will the Senator yield further? concern to those who are hopeful of making a success, if Mr. BORAH. I yield. possible, of the recovery program to consider how such prac Mr. FESS. Does the Senator believe that, with the anti tices shall be terminated or prohibited. trust laws in force, and the operation of the N.R.A. pro The report also must be of great interest to those who ceeding without the suspension of those laws, we could have are disturbed over the present condition of the labor world. reached the elimination of child labor, the sweatshop, and Everyone who has undertaken to familiarize himself with so on, which result is now regarded as a good thing? the situation knows that there is a restlessness throughout Mr. BORAH. Undoubtedly; I do not think there is any the ranks of labor in the United States. There is dissatis conflict in the two programs. I have never been able to faction and there is discontent, which are manifesting discover where the supposed conflict occurred. The Su themselves in certain particulars at the present time, but preme Court, in the last enunciation of its view on the which, I venture to say, will manifest themselves more uni antitrust laws, clearly declared that industries might meet versally and more generally as time goes on unless such and confer for the purpose of maintaining fair competi things as we find revealed by this report are remedied. In tion. They had held in a previous case that there was no other words, whenever there appears to be, or where there inhibition in their meeting for the purpose of giving labor actually is, a rise in salaries or wages these combines and fair compensation, or just compensation. The antitrust trusts and monopolies take away from the workmen all pos laws are directed against those things which are unfair, sible advantage by reason of the raises. which are unjust, the depressing of labor, extortion of con It must also be a matter of great concern to those who sumers, and are not directed toward the maintenance of are interested in preserving small business in the United fair competition. States. It is shown here that there is now almost a com Mr. FESS. I had been under the impression that large plete scheme for the elimination of small business, and the business would have no further interest in the N.R.A. if elimination takes place under the color of law. Small in the provision for the suspension of the antitrust laws were dependent business concerns, the very foundation of our eliminated. economic strengt.h as a nation, are being forced into Mr. BORAH. I am rather inclined to think that there are bankruptcy, and this is being done under authority of law. business organizations which would lose all interest in the Could there be any graver question for us to consider than N.R.A. if they were not permitted, under color of law, to do the preservation of the small independent business con the things which conscience and justice demand that they cerns of the Nation. It involves not only an economical shall not do. But it is not our business to satisfy their question but it involves the very stability of our social and longings. political structure. :Mr. President, before I read part of this report of the Fed Lastly, it is a matter of supreme concern to the consumers eral Trade Commission I call attention to a letter from the of the United States, because we shall find as we go forward Boyle Manufacturing Co., of Los Angeles, Calif. That is a in the investigations-and they will continue-that almost company engaged in manufacturing sheet-steel products. everything which the ordinary citizen must have in the way In this letter it is said: of food, of clothing, of home-building material, everything In connection with the investigation of the effect of the steel he must utilize in order to maintain a home and to take code on the price increases and price fixing, we should like to stress care of his family, is now subjected to monopolistic prices the following points: With steel mills located within 20 miles of Los Angeles and 30 and to monopolistic control. miles of San Francisco we are compelled to pay the Pittsburgh Mr. President, the remedy for this situation seems to be base price for steel plus the combination rail and water rate, twofold. Certainly there ought to be a redrafting of the amounting to 70 cents per hundredweight for all steel purchased codes. No further facts are necessary than those which are on the Pacific coast. This rate is made up of 27 cents, rail haul from Pittsburgh to tidewater; 30 cents, ocean freight; 13 cents, found in this report to necessitate and to enable those in covering wharfage, handling, insurance, and the rail freight from charge to carry out a rewriting, a redrafting, of the codes. the harbor to Los Angeles. The other remedy, with which the Congress has to do, is In other words, the parties doing business upon the Pacific through restoring the antitrust laws, so as to enable those coast must, in order to secure the material which this manu who are administering the laws to enforce the laws against facturing establishment uses, pay for it upon the theory that just such things as are revealed in this report. they purchase it at Pittsburgh, Pa., whereas, as a matter of I have a bill pending for the restoration of the antitrust fact, it is purchased from the mills upon the Pacific coast-- laws, and I beg the committee before which that bill is now we understand this price was brought about and is maintained, pending to report the bill to the Senate and give us an through an agreement between the Bethlehem Steel Co. and the opportunity to restore those laws, so as to protect the small United States Steel Co.; the latter having the only sheet plants business man, to protect labor, and to protect consumers in on the coast. Bethlehem Steel, with a plant located at Sparrows Point, will ship sheets into Pittsburgh, for the basic price of the United States against that which practically amounts to $2.25, paying 27 cents freight, and netting $1.98. The same sheets, economic feudalism. shipped to the coast, net the steel company $2.25, plus the 27 Mr. FESS. Mr. President-- cents freight from Pittsburgh, or $2.52. The PRESIDING OFFICER (Mr. ERICKSON in the chair). That practice is now going on practically under the color Does the Senator from Idaho yield to the Senator from of law to engage in such practice. Ohio? Mr. LONG. Mr. President, will the Senator yield? Mr. BORAH. I yield. Mr. BORAH. I yield to the Senator from Louisiana. Mr. FESS. I have not read the Senator's proposed bill, Mr. LONG. I think the Senator is kind of pulling his but what would be left of the N .R.A. if it were enacted? punches. He says it is under the color of authority. It is '1934 CONGRESSIONAL RECORD-SENATE 5001 · with the authority of the Government that that is going ance from code authority is exert~d on any member whose prices do not coincide with group opinion during the period before their on, as I understand. quotations filed become effective. Mr. BORAH. Well, I am not sure that the companies are I living up to the code. But undoubtedly they are acting Speaking now of the limitations imposed by the code on under the color of authority. independently determined mill-base quotations, the report Mr. LONG. What are the authorities doing to prevent it? says: The purpose of this section is to show what restrictions are Are they doing anything? placed by the code itself upon the freedom of members to adopt Mr. BORAH. Not yet. and use any mill-base quotation they please. Assuming that a Mr. LONG. If we should wait until they do something member should independently adopt a given base quotation, he is not at liberty under the code to quote it immediately to his trade I am afraid we will probably continue to be as disappointed and take orders at that figure. Under section 2 of schedule F as we have been heretofore. his baSte quotation cannot become effective in less than 10 days Mr. BORAH. I believe the evil will be remedied. after he has filed it with the cede authority- Mr. President, I ask to insert in the RECORD at the close The code-authority directors made up from the Steel of my remarks the letters I have ref erred to and the tele Institute-- gram accompanying the letters. The telegram is simply The board of directors has power " on its own initiative or on designed to correct a single statement in the letters. compla!nt of any member of the code to investigate any base price The PRESIDING OFFICER. Without objection, it is so for any product at any basing point." If it determines that "such ordered. base price is an unfair base price- Mr. BORAH. Mr. President, let us turn to this report. It is sure to be to some of the large companies- It is a remarkable document. On page 7 it is said: .. having regard to the cost of manufacturing such products", the board "may require" the member to file a new b:tSe quotation Stated in the briefest preliminary way the code constitutes the which the board considers fair. If a new quotation s~tisfactory to board of directors of the American Iron and Steel Institute as the the board ls not filed within 10 days, the board may itself fix a code authority for 1ts administration and enforcement. fair base quotation for the recalcitrant, and it "shall b:e the base The code constitutes the board of directors from the price of such member" until change is provided in the code. American Iron and Steel Institute as the code authority. That is the opportunity, that is the chance of the small The distribution of voting powers among the members of the independent business which desires to fix a point where it code is such as to insure control by the larger producing interests. is selling according to the actual facts and not according to While each member is declared to be entitled to at least one vote, imaginary fright. In other words, the small business here a system of plural voting is established giving to each member so many votes as shall equal the quotient obtained by dividing has absolutely no chance, because back of it to determine by 500,000 the aggregate amount in dollars of the invoiced value whatever may be necessary in order to protect the large of the products delivered by such member for consumption within companies is the board of MANILA, February 24, 1934. had fought that battle out on the floor already, and that in Senator TYDINGS, # Washington, D.C.: my opinion there could be no extensions of these allotments, Replying to your last cablegram, I agree to the extension of and that therefore they were in the position of having to the Hawes-Cutting law, provided same is amended according to indicate whether they wanted the bill with these allotments your proposal by eliminating entirely military reservations and as they now stand or no bill at all; and that for that reason leaving naval reservations for settlement by agreement_between United States and Philippine Republic and of your assurance to I thought we were confronted with a practical rather than later consider sympathetically other objections to act. a theoretical situation. Mr. Preside!lt, one is justified in reaching the conclusion, Mr. KING. Mr. President, when the bill was before the after reading this telegram, that promises were made, or at Philippine people for discussion and consideration, some of least assurances given, that objectionable provisions in this the major objections, indeed the important and paramount measure, if enacted, would be sympathetically regarded for objections, were not those dealing with sugar. In an ad the purpose of having them eliminated. Congress,· however, dress a few days ago I mentioned several of them. I now has given no assurances--and I assume will give no assur call attention to resolutions adopted by the veterans who ances--that if this bill shall be passed, it will be amended or served under Aguinaldo, resolutions, I am advised, in the changed or modified. drafting of which he participated, which condemn many of Mr. TYDINGS. Mr. President, will the Senator yield? the provisions of the Hawes-Cutting Act, and the least im Mr. KING. I yield. partant of the criticisms of the measure were those relating Mr. TYDINGS. I may say to the Senator from Utah that to a limitation upon exports from the islands to the United I have all the telegrams which passed between the leaders of States. the Filipino people and me, and in every single one of those Mr. TYDINGS. Mr. President, will the Senator yield? telegrams I made it abundantly clear that any promise I Mr. KING. I yield. should make would be only an individual promise, which Mr. TYDINGS. I do not want to interrupt the Senator; would not be binding upan the Congress. But having proved and if he prefers that I not do so, I shall wait until he con my friendship and regard for the Filipino people by voting cludes; but if he wishes me to present the committee's view for every amendment in their favor during 18 months when point as he brings up various phases of the bill, I shall con their independence bill was under discussion, they have con tinue to interrupt him. I shall accede to his wishes in the fidence that I would do my best to work out imperfections matter. after the bill is passed, because they know from past ex Mr. KING. I think probably I had better finish this phase perience that I have not broken faith with them or acceded of the matter. I shall refer to the Philippine veterans' to the wishes of selfish interests in the United States which memorial or petition in a few moments. At this time I want to get rid of them simply, solely, and only because they desire to read from a telegram from General Aguinaldo could then get the markets in the United States which the which the Senator from Maryland had inserted in the Filipinos are supplying. RECORD yesterday. It is addressed to Senator TYDINGS, dated Mr. KING. Mr. President, no one questions the good faith February 24: of the Senator or his friendship for the Filipinos. I might In reply to your cablegram, and in view of your commitment observe, however, that in my opinion we would be doing a therein to amend Hare-Hawes-Cutting Act, completely eliminat greater service to the Filipinos if we would immediately ing military reservations, leaving provisions regarding naval reservations for settlement by agreement between United States cast aside this hybrid bill and pass the measure which I and Philippine Republic, and in consideration of your promise to have offered, which presents a clear-cut, plain, unequivocal consider sympathetically amendments to other objectionable pro plan under which the Filipinos, within a short time, may visions of law, I agree with your proposition to extend time of act. achieve their independence. The Filipinos are warranted in Mr. President, General Aguinaldo, when the Hare-Hawes entertaining for the Senator not only a high degree of con Cutting measure was under consideration and after it had fidence but of affection. I am not questioning in any degree passed, denounced it. In an able address he analyzed its his devotion to the Filipinos. I do not, however, agree with provisions and announced his conclusion that it should not the measure which he is advocating any more than I ap receive the approval of the Filipinos. Nothing, Mr. Presi proved of it when it was under consideration at the last dent, has taken place since then to warrant a change in session of Congress. As stated, it was peremptorily and, the views of General Aguinaldo or the Filipinos. The elimi indeed, contemptuously rejected by the Filipinos. It is now nation of one little clause in the bill, relating to the reten before us with but slight modifications. If the Filipinos tion of bases for military operations, should not and cannot rejected it before, I can see no reason why it would meet warrant this overnight conversion. In the bill before us with their approval now. The Senator from Michigan [Mr. there are retained the provisions of the Hare-Hawes-Cutting VANDENBERG] has stated that this bill is a bad bill-so law relating to naval bases; and there is nothing prevent imperfect, so unjust, and so unfair in many of its provisions ing their retention indefinitely, because it is left to mutual thJ.t it ought to be rejected by the Filipinos as it was re agreement between the United States Government and the jected by the Philippine Legislature after full discussion. Philippine Republic, after it shall have been formed, with I call attention to the fact, however, that without any a view to determining what, if any, modification shall be desire to be critical, the support of this measure by Mr. made in the law respecting their retention. Sumulong who only a short time ago denounced it, must Mr. President, I received the following telegram 2 or 3 have resulted from some communications sent him by the hours ago from one of the leading citizens of the Philippine Senator and perhaps others and by assurances that he-the Islands, a man who is connected with one of the important Senator-would sympathetically consider other objections to poll tical organizations: the measure. Filipino masses indignant upon approval McDuffie-Tydings bill. Mr. TYDINGS. Mr. President-- Sakdalista Party respectfully submits that the Jones law should The PRESIDING OFFICER (Mr. O'MAHONEY in the be complied with by immediate withdrawal of American sov chair). Does the Senator from Utah yield to the Senator ereignty and recognition Philippine independence. from Maryland? CAJUCOM. Mr. KING. I yield. There, Mr. President, is the voice of the Philippine people, Mr. TYDINGS. I may say to the Senator from Utah that not the voice of a few overnight converts who have or claim the opposition of nearly all the Filipino leaders who did to have political importance in the Philippine Islands and not agree with my request that they adhere to the pending who only a short time ago were denouncing the Hawes-Cut bill was occasioned by the fact that they wanted the sugar ting bill as iniquitou8 and as an injustice to the Filipinos. allotment in the bill increased, the coconut-oil allotment in Mr. President, one of the most important :figures of the the bill increased, and the cordage allotment in the bill Philippine Islands is Bishop Aglipay. Senators may know increased. I am in favor of increasing those allotments, as that in the islands there is a Christian church, something I believe them unfair to the Filipino people, but I explained along the lines of the Greek Orthodox Church. Many of its to them that Congress was not in favor of that, that we adherents have separated from the Catholic and other 5008 CONGRESSIONAL RECORD-SENATE MARCH 21 churches. n is one of the dominating forces in the islands, If, after the elections in June, the legislature again fails to take action or acts adversely on the law, it will serve as a notice to I am told by a distinguished Filipino who is here in the the Congress that the Filipino people do not desire independence Capital and who, by the way, was one of the delegates sent and want to continue under the present status. here with Mr. Quezon to oppose any resuscitation of the Hare-Hawes-cutting bill and to plead for independence, that Mr. TYDINGS. Mr. President, I made such a statement, this bishop, this prelate, has a following of at least 3,000,000 and I reiterate it on this floor-I made a similar statement people. In his wire to me of the 7th instant he says: a moment ago-that there is no way the Filipino people can receive higher allotments of the commodities they ·must Appreciating your noble attitude, we request you insist upon the approval of the King bilL sell in order to live than those already in this bill; and the actual test of performance proves my observations. I have another telegram, Mr. President, and more will Mr. KING. Mr. President, that is not the question in come when the people throughout the Philippine Archi volved. As I understand this observation-and I am not pelago are advised of the passage of this act-telegrams con offering criticism of anyone-it is, that if the Filipinos do veying the same views as were expressed in the two which not accept this Hare-Hawes-cutting bill, and that means I have just read-which is as follows: the measure now before us, it will serve as a notice to Con American business men control the correspondents. No ma gress that the Filipino people do not desire independence jority leader accepts the modification. Nobody mentions 17 years. but want to maintain the present political status. Aguinaldo veterans, labor organizations, Philippine church, entire people, are supporting the King bill. Recent monster demonstra Mr. President, I do not agree with my friend in that ob tions best evidence. If defeated will resort to boycott. servation. Doubtless that statement-and I have received SOTTO. corroborative evidence of the effect of it-did influence some Mr. President, the passage of this bill-and doubtless it Filipinos, and led them to believe-whether many or few, I will pass-will not put an end to the question. It will not do not know-that if they did not accept this bill, then, they make for peace and harmony and felicity in the islands. would not get independence but would reinain under the There will be resentments, open and secret, to the measure present Jones law. and to many of its provisions. That opposition will be pro Mr. TYDINGS. Mr. President, will the Senator yield? vocative of unrest and confusion, indicating the unwisdom Mr. KING. I yield. of reviving the Hawes-Cutting bill and the wisdom of en Mr. TYDINGS. Of course, when I said I made that state acting a measure which will give to the Filipinos the liberty ment I did not mean it to be interpreted as the Senator is they have desired for so many years. Perhaps if the pas now interpreting it. Agreement always stops when inter.. sage of this measure were followed by another, which natu pretation begins. rally changed it and provided for an early independence, Mr. KING. Mr. President, I merely said that I had cor opposition would be largely abated. roborative evidence that some people believed that that was Mr. President, I read in this morning's New York Times a a declaration that if they did not accept this bill they would dispatch from the Philippine Islands, as follows: get nothing. Mr. MANILA, March 20.-General apathy greeted the passage of the TYDINGS. I reiterate that statement, and I do not new Philippine independence bill by the House of Representatives believe they can get a better bill than the one that we have yesterday. There were no celebrations by either faction in Manila before us. I myself do not like it, but I am trying to give and no flags were flying, though both groups declared they were them the best that can be given them which they will take. well satisfied. Hushed voices, long faces, and a general air of apprehension betray the general feeling, however. The Manila Mr. KING. I agree with the Senator that he does not Bullettn- like this bill. I am sure of that because of the Democratic The only independent paper, may I say, so far as I am views of my friend from Maryland, than whom there is no better Democrat in the United States or one who more advised, in the islands- perfectly or clearly interprets the Constitution of the United which is recognized as impartial in the local political dispute, though naturally it is opposed to the present independence legis States. But I believe, Mr. President, that he is in error in lation, expresses the general feeling editorially when it says: suggesting that unless the Filipinos shall take this bill, " The general significance of the quiet local reaction toward the which they have rejected, a bill which they have con Washington administration and the congressional action on the demned, the United States will keep them indefinitely in Tydings-McDuffie bill is explained by a simple fact which is com monly recognized but not officially proclaimed. The fact is the their present political status and will deny the appeals which bill actually pleases nobody and is technically acceptable to the they have made in the past or the appeals which may be various political camps only because as a compromise it is some made in the future for independence and the liberty which thing which cannot be dodged. The measure is basically the samt.' in its objectionable features as its predecessor, the Hawes law, they covet. which was rejected for sound reasons." Mr. TYDINGS. Mr. President, by way of interpretation, let me say to the Senator that even as we debate this bil~ Mr. President, there are many implications in that state with its limited sugar quota, in another place in this Capitol ment. Undoubtedly the Filipino leaders, here and else a bill is being written which would limit their sugar quota where, have been led to believe that it is this Tydings-Mc still further, and in still another place in this Capitol a com.. Duffie-Hare-Hawes-Cutting bill or nothing. Indeed, an ar mittee is now meeting considering a measure which would ticle in a Philippine newspaper-and I hope that it is an tax Filipino products for the benefit of American products. incorrect quotation of an observation made by the able If that is not concrete evidence of the lack of a desire on Senator-indicates that there have been statements to the the part of Congress to deal fairly with the Philippine peo effect that if the Filipinos rejected the Hawes-Cutting bill ple, then I should like to know what is evidence. as now before the Senate they will get no measure whatever. Mr. LONG. Mr. President, will the Senator yield to me? I read a few sentences from an editorial appearing in the Mr. KING. Let me first answer the Senator from Mary Filipino Herald of recent date, as follows; land. I agree with him that there is an apparent lack of Senator Mn.LARD E. TYDINGS, Chairman of the Committee on purpose on the part of the Congress to deal fairly with the Territories and Insular Possessions- Filipinos; I think Congress has exhibited upon a number of Mr. TYDINGS. Mr. President, will the Senator yield? occasions an inclination not to deal with them fairly, and Mr. KING. I yield. I think the passage of this bill will be further evidence of Mr. TYDINGS. Since the Senator is reading from a the disinclination of the American Congress to deal with newspaper which mentions my name, I think it only fair to the Filipinos fairly; but the Senator remembers that u while announce that the newspaper is the patron of the anti the lamp holds out to burn", there is a chance for conver independence sentiment in the Philippine Islands and there sion. The present Congress is not the only Congress; the fore it should be read in the light of that fact. Congress does not speak always the sentiments of the Ameri .. Mr. KING. That may be. This is the statement to which can people; and I believe, Mr. President, that upon this great I referred. and it purports to quote a statement made by moral and political issue, an issue of justice, the American my frifUld from Maryland as follows: Congress and the American people, in the near future, will 1934 CONGRESSIONAL RECORD-SENATE 5009 demand that justice be done to the Filipinos and that they Mr. LONG. Mr. President--- be accorded the liberty which, quoting Mr. Wilson in the The PRESIDING OFFICER. Does the Senator from utah last message which he delivered to Congress, " It is our yield to the Senator from Louisiana? privilege and duty to give to them the liberty which they Mr. KING. I yield. • covet." Mr. LONG. I agree with the Senator from Utah abso Mr. LONG. Mr. President--- lutely. We had no business taking over the Philippines. I The PRESIDING OFFICER. Does the Senator from Utah have not yet seen anyone who supports or justifies the action yield to the Senator from Louisiana? of the United States in taking over the Philippine Islands. Mr. KING. I yield. I understand the Senator from Utah takes that position. Mr. LONG. I support Philippine independence, not only We had no business taking over the Philippine Islands. I for the reason stated by the Senator frcm Maryland and am in fa var of turning them loose. I am in fa var of turn the Senator from Utah, but I do not see why at the same ing them loose under the King bill because it is the shortest time we cannot perform an act of charity at home. We bill. cannot move the Filipinos 10,000 miles over here into the The point I was making to the Senator, which he over territory of the United States. They do not have the kind looked, is that we are doing a great deal more injustice to of living conditions we have; they have not the same climate. Americans by keeping the Philippine Islands than we are I have great trouble in reconciling myself to the view that doing to the Filipinos. We do not owe the Filipinos so much in our pity and charity we should go to the point of under that we have to go over there and try to Americanize them. taking to Americanize the Filipinos. We have an American We will never be able to Americanize them. The whole industry here which is growing, and we need to lift Ameri world is disturbed. I think the Filipinos should swim along cans engaged in that industry to the standards enjoyed by with the Asiatics; in other words, according to what is over others of the American people. If we can bring about a there. The Lord gave them a better climate for some pur condition under which these Asiatics, living under entirely po~ es and probably a worse climate for other purposes. We different conditions, and under entirely different climatic ought to turn them loose and do something about taking conditions from those obtaining in America, may so adjust care of the sugar industry and the cotton industry that we themselves that they will be able to live on a level with have been endeavoring to build up in this country. oriental standards, according_ to the oriental manner and This policy is evidently being extended to where we have oriental customs, enjoying the ordinary fruits of other orien not only gone the Philippine route with the Philippines, but tal peoples, that seems to me to be about all the duty we we have decided to take over Cuba and refinance them a have to discharge toward them. little. We will have to pay the bonds which have been I am concerned about getting rid of these people on a issued on their account. fair basis, but I am also concerned about taking care of the Mr. KING. Mr. President, I hope the Senator will not American people. We need to protect our own sugar indus bring Cuba into the discussion because I shall not have time try. That is why we need to get them out of the way. We to enter that field today. have no business being linked up with them. Mr. LONG. I shall discuss it in my own time. Mr. KING. May I say to the Senator that there is a Mr. KING. I am gfad the Senator shares the views that question involved here that is far more important than any some of us have expressed that the Filipinos are entitled material question about sugar or coconut oil. The question to immediate and absolute independence. In view of the involved is whether or not this great Republic, having im statement he has made, may I call attention to the fact posed by military force a government upon the Filipinos that the Democratic Party has condemned this mad adven which they do not desire, having overcome the government ture in the Pacific; at least, if it has not expressly condemned which they had established, having governed them for 30 the adventure, it has promised independence to the Philip years, notwithstanding they have appealed over and over pines. again through the voice of representatives who have come In the first Democratic National Convention after the carrying their pleas to Congress and the Government--the Treaty of Paris, which was July 4, 1900, I believe, it was question is whether we should ignore their pleas and deny stated: their aspirations for liberty and freedom and the petitions We declare again that all governments instituted among men derive their just powers from the consent of the governed; which they have presented. that any government not based upon the consent of the governed Concede, for the sake of the argument, that, under the is a tyranny, and that to impose upon any people a government of United States, advancement-culturally, materially, educa force is to substitute the methods of imperialism for those of a republic. • • • We assert that no nation can long endure tionally, and morally-would be more rapid than under a half republ.ic .and half empire, and we warn the American people government of their own choosing, nevertheless it is their that imperialIBm abroad will lead quickly and inevitably to des right to have a government of their own choice. potism at home. * • * We condemn and denounce the Philip pine policy of the present administration. I say, Mr. President, the question is a moral question. I have no doubt that when our fathers were sending petitions In 1904 the Democratic National Convention adopted a to Great Britain for greater liberty, many of the people then plank reading in part as follows: living along the Atlantic coast and in Great Britain believed We oppose, as fervently as did George Washington himself, an that under the flag of Great Britain the colonists who had indefinite, irresponsible, discretionary, and vague absolutism and a policy of -eolonial exploitation, no matter where or by whom settled upon the bleak New England shores could have invoked or exercised. We believe, with Thomas Jefferson and greater prosperity than if they had their own flag. Never John Adams, that no government has a right to make one set of theless, Hancock and Jefferson and Adams and Washington laws for those "at home" and another and a different set of laws, and other members of that immortal band rejected that absolute in their character, for those "in the Colonies." All men under the American fiag are entitled to the protection of the view and argument; they preferred freedom to material institutions whose emblem the fiag ls. gains. The Senator from Maryland [Mr. TYDINGS] does himself There is no doubt that some nations, by reason of their great credit when he announces he will not favor a policy culture and wealth, might be of benefit to backward nations, which would discriminate against persons who live under the and that if the latter submitted to their rule they might flag and deny to them, because they are not upon the shores make greater progress within a limited period. Neverthe of continental United States, the rights of American citizens. less, those nations that want independence, those peoples who desire freedom, are entitled to the same; and the mere In 1908 the Democratic National Convention declarea: We condemn the experiment in imperialism as an inexcusable fact that they might secure material gain by remaining blunder which has involved us in enormous expenses, brought us under some other government ought not to deprive them of weakness instead of strength, and laid our Nation open to the the realization of their aspirations. charge of abandoning the fundamental doctrine of self-government. There is something in this world more precious than In 1912 the platform on which Mr. Wilson, that great money, more precious than worldly wealth or power, and Democrat, great liberal, great progressive, great statesman, that is liberty and opportunity for self-development. was elected, contains the following statement: 5010 CONGRESSIONAL RECORD-SENATE MARCH 21 We reaffirm the position thrice announced by the Dmnacracy in which were sent me, and as shown by the Washington Post national convention assembled against a. policy of imperialism and colonial exploitation in the Philippines or elsewhere. We condemn of February 4, 1934, which contained a dispatch from the experiment in imperialism as ~ inexcusable blunder, which Manila dated February 3, this reference was made to one of has involved us in enormous expenses, brought us weakness in the representatives of the Philippine Islands who is one of stead of strength, and laid our Nation open to the charge of the commission: abandonment of the fundamental doctrine of self-government. A, mass meeting of rejectionists of the Hawes-Cutting law which That is substantially the language in the plank adopted offered Philippine independence in 12 to 14 years went on record 4 years_previously in the Democratic National Convention. tonight as favoring measures granting immediate freedom or President, I ask unanimous consent at this point to separate government within a short period. Approval was voted Mr. of the King bill before Congress, providing independence within insert in my remarks, without taking the time to read them, 32 to 49 months, of an immediate independence bill, or of any the platform declarations of the Democratic Party at each measure avoiding the onerous provisions of the Hawes-Cutting national convention since 1912. law. The PRESIDING OFFICER. Without objection, permis The meeting, which followed a parade, also voted a criti sion i& granted. cism of one of their distinguished representatives because The platform declarations are as follows: of his support of the Hawes-Cutting bill. 1916 Mr. President, as I have indicated, the Hawes-Cutting Act We heartily endorse the provisions of the bill recently passed was placed before the Philippine Legislature for their ap by the House of Representatives, further promoting self-govern proval. Section 14 of that act, as I recall the section, ment in the Philippine Islands, as being in fulfillment of the policy declared by the Democratic Party in its last national provided that it might be voted upon by the Philippine platform, and we reiterate our endorsement of the purpose of ul Legislature. It was submitted, and the senate, by an over timate independence for the Philippine Islands, expressed in the whelming vote-my recollection is that there were only preamble of that measure. 4 voting for it and 19 against it-rejected the measure, and 1920 it was rejected by an equally decisive majority in the house. We favor the granting of independence without unnecessary Resolutions were adopted by the legislature indicating delay to the 10,500,000 inhabitants of the Philippine Islands. their views upon this matter; and after the resolutions had 1924 been adopted rejecting it, the following resolut ion was The Filipino people have succeeded in maintaining a stable government and have thus fulfilled the only condition laid adopted by the Philippine Legislature on the 17th day of down by Congress as a prerequisite to the granting of independ July 1933: ence. We declare that it is now our liberty and our duty to keep Concurrent Resolution 45 our promise to these people by granting them immediately the Concurrent resolution confirming and ratifying the action of the independence which they so honorably covet. senate in disapproving, at its session on October 7, 1933, the 1928 proposed Concurrent Resolution No. 28 and entitled "Con The Filipino people have succeeded in maintaining a stable current resolution accepting the act of Congress of January 17, government and have thus fulfilled the only condition laid down 1933, generally known as the 'Hare-Hawes-Cutting Act'" by the Congress as a prerequisite to the granting of independence. Whereas at the session of the senate on October 7, 1933, during We declare that it is now our duty to keep our promise to these the consideration of house bill no. 2800, which provides for a people by granting them immediately the independence which plebiscite on the Hare-Hawes-Cutting Act, when the debate they so honorably covet. thereon had already been closed a.nd a motion made for the pas sage of said bill, there was presented for insertion in the record Mr. KING. Mr. President, I was a delegate to a number a document of the following tenor~ of Democratic National Conventions, including 1920, 1924, "The undersigned., on behalf of the majority and minority, and 1928, and was also a member of the committee on plat have agreed that there be no plebiscite, in view of the fact that form and resolutions each of these conventions. I had it has not been possible to arrive at an agreement on the manner at in which the same shall be held, and in order to save the country the honor to prepare and submit the planks relating to the the unnecessary expense of holding said plebiscite. Philippines adopted in the conventions of 1920, 1924, and '"(Signed) MANUEL L. QUEZON, 1928. "On behalf of the majarity. "(Signed) SERGIO 0SMENA, Mr. President, a few moments ago I referred to some tele " On behalf of the m inority." grams and information recently received from residents of Whereas immediately after the introduction and reading of the the Philippines in opposition to the present bill. On Janu foregoing document the senior senator for the tenth district, Mr. ary 31, 1934, there was published in the Washington Times Osmefia, introduced proposed Concurrent Resolution No. 28, a dispatch from Manila. reading as follows.: which, copied literally, reads as follows: " Concurrent resolution accepting the act of Congress of January Senator KING'S bill, now pending in Congress, providing for 17, 1933, generally known as the • Ha.re-Hawes-Cutting Act • Philippine independence within 3 years, was endorsed by a legis- .. Resolved by the Senate (the House of Representat ives of the lative majority last night. The move coincides with the wishes H is headin · d nd t mi · Philippines coneurring), To accept the act of Congress of J anuary of the Quezon party · e now g an m epe en ssion 17, 1933, entitled 'An act to enable the people of the Philippine in Washington. Islands to adopt a constitution and form a government for the That is to say, the legislative assembly on the last day of Philippine Islands, to provide for the independence of the same, .4' this d ed. th bill hi h · t th and for other purposes', generally known as the 'Hare-Hawes- J anuary Oi year en ors e w c gives 0 e Cutting Act ', in accordance with the provisions of section 17 of Philippines independence along the lines indicated in the said act." measure which I introduced and which is now pending in Whereas when the senate considered the foregoing proposed this body. As stated a few moments ago, :h{r. Quezon was concurrent resolution and voted upon the same by ayes and nays, sent here with Mr. Gabaldon and a few others for the pur- the same failed of passage by 15 votes against 4: Now, therefore, be it pose of protesting against the attempt to revive the Hare- Resolved by the Senate (the House of Representatives of the Hawes-Cutting bill and also for the purpose of obtaining Philippines concurring), To ratify and confirm, as they hereby do legislation providing for the immediate independence of ratify and confirm, the action of the senate in disapproving pro the Philippines. posed Senate Concurrent Resolution No. 28, entitled "Concutrent resolution accepting the act of Congress of January 17, 1933, gen- May I say in passing that one of that delegation, Mr. erally known as the •Hare-Hawes-Cutting Act.'" Isaura Gabaldon, who was formerly one of the Resident Adopted, October 10, 1933. Commissioners of the Philippine Islands, has refused bis ------· assent to this bill, and has declined, regardless of any assur- President of the Senate. ances given or otherwise, to ally himself with the other Speaker of the ii~~s~-~-,-B,~p~;;~;,iives. deleg,ates who came here under instructions to ask for in- This resolution, which ortgina.ted in the Philippine senate, wa:- dependence; and he is still seeking to carry out the purpose finally adopted by the same on October 9, 1933. of the mission, and is insisting that a measure shall be ------• passed giving immediate independence to the Filipinos. . Secretary 0 1 the Senate. I do not wish to be critical of a distinguished representa- Fmally adopted by the house of representatives on October 10.. 933 tive of the Filipinos; but at one of the great mass conven- } 1 · ------· tions in the Philippine Islands, as shown by resolutions SecretaT'JI of the House of Representatives. 1934 CONGRESSIONAL RECORD-SENATE 5011 Mr. President, the resolution just read evidenced a rejec Islands, to provide for the independence of the same, and for other purposes." tion of the Hawes-Cutting Act by the Legislature of the The committee shall, at the same time, express to the Govern Philippine Islands. ment and people of the United States the objections to the said Another resolution was adopted by the Philippine Legis law and the reasons therefor, and petition the President and the lature on October 17, 1933, to inform the Congress of the Congress of the United States for changes therein or the enact ment of such new legislation as will fully satisfy the aspirations United States that the Philippine Legislature had declined of the Filipino people to become at the earliest practicable date and rejected the Hawes-Cutting Act. I shall not take the a free and independent nation, under conditions and circum trouble to read the resolution, but ask that it may be inserted stances that will not imperil the political, social, and economic in the RECORD at this point without reading. stability of their country. The Ph111ppine Legislature approaches the Government and peo~ There being no objection, the resolution was ordered to be ple of the United States through this committee, in the hope printed in the RECORD, as fallows: and confident expectation that they will not ignore the appaal of the Filipino people-a people who, in the language of every Concurrent Resolution 46 American President since the inauguration of American rule, have Concurrent resolution informing the Congress of the United States been placed by divine Providence under the protecting care of that the Phi11ppine Legislature, in its own name and in that of the American Nation so that they may enjoy the blessings of the Filipino people, declines to accept the act of Congress en freedom and happiness which are the heritage of the people of titled "An act to enable the people of the Philippine Islands to the United States. adopt a constitution and form a gQvernment for the Philip Adopted October 17. 1933. pine Islands, to provide for the independence of the same, and MANUELL. QUEZON, for other purposes ", in its present form and appointing a com President of the Senate. mittee to proceed to the United States at the earliest practicable QulNTIN PAREDES, time to seek amendments to said act of Congress, or the enact Speaker of the House of Representatives. ment of such new legislation as will fully satisfy the aspirations Finally adopted by the Philippine Senate on October 12, 1933. of the Filipino people, to become at the earliest practicable date F. TORRALBA, a free and independent nation. under conditions and circum Secretary of the Senate. stances that will not imperil the political, social, and economic This resolution, which originated in the house of representa stability of their country tives, was finally adopted by the same on October 17, 1933. Whereas the Congress of the United States on the 17th day of F. PIMENTEL, January 1933 enacted a law entitled "An act to enable the people Secretary of the House of Representatives. of the Philippine Islands to adopt a constitution and form a gov ernment for the Philippine Islands, to provide for the independ Mr. TYDINGS. Mr. President-- ence of the same, and for other purposes ", commonly known as The PRESIDING OFFICER. Does the Senator from utah the "Hare-Hawes-Cutting law"; yield to the Senator from Maryland? Whereas section 17 of said law provides that the provisions of I the same " shall not take effect until accepted by concurrent Mr. KING. do. resolution of the Phi11ppine Legislature or by a convention called Mr. TYDINGS. In connection with the reading of the for the purpose of passing upon that question as may be provided memorial which requests that we extend to the Filipino by the Philippine Legislature "; people a condition which will not impair their economic Whereas the Philippine Legislature fully appreciates the good will shown by the Congress of the United States toward the fabric and what not, I should like to announce that the people of the Philippine Islands and its efforts to finally settle Finance Committee of the United States Senate bas just the Philippine question by enacting said law; put a tax of 3 cents a pound on coconut oil to benefit the Whereas the Philippine Legislature believes that in providing that the said law shall not take effect until accepted by the local producers that come in conflict with that commodity. Philippine Legislature or by a convention called for the purpose Certainly that shows the lack of fairness with which a bill of passing upon that question the Congress of the United States could be passed through this Congress and justifies the intended to secure a frank and honest expression of the will of the remarks I made heretofore. Filipino people regarding the above-mentioned law; Whereas the Philippine Legislature is opposed to the acceptance Mr. KING. Mr. President, apparently the Senator finds of said law in its present form, because, in the opinion of the some comfort in the action of one committee of this body. legislature, the law does not satisfy the national aspirations nor I said a few moments ago that the act of one Congress will does it safeguard the welfare of the Filipino people or the stability of the social, economic, and political institutions of their country: not bind succeeding Congresses. Now, therefore, be it • I still insist that a solemn promise was made to the Philip Resolved by the house of representatives (the Philippine Senate pine people by every President from McKinley down,· and concurring) , That the Philippine Legislature, in its own name solemn promises have been made by the Democratic Party and in that of the Filipino people, inform the Congress of the United States that it declines to accept the said law in its present to give to the Filipinos independence. If we violate the form, because, in the opinion of the legislature, among other rea promises, if we enact legislation in contravention of high sons, the provisions of the law affecting trade relations between moral and political duties and obligations, then condemna the United States and the Philippine Islands would seriously im peril the economic, social, and political institutions of this coun tion must rest upon us; and we ought not, because of our try, and might defeat its avowed purpose to secure independence derelictions, to condemn the Filipinos or persist in a course to the Philippine Islands at the end of the transition period; be which will be unsatisfactory, if not disadvantageous, to them. cause the immigration clause is objectionable and offensive to the The mere fact that legislation may be enacted at this Filipino people; because the powers of the high commissioner are too indefinite; and finally because the military, naval, and other session of Congress in violation of what some believe to be reservations provided for in the said act are inconsistent with true the Constitution of the United States and of our obligations independence, violate national dignity, and are subject to mis to people under the :flag does not justify the prophecy that understanding. Resolved further, That a joint legislative committee of the Sen wiser counsels and higher statesmanship may not in the end ate and the House of Representatives be appointed, as it is hereby prevail, and thus insure freedom to the Philippines. appointed, subject to the directions, purposes, and authority In that connection, Mr. President, as only one of the un herein stated, to be composed of the Honorable Manuel L. Quezon, important evidences of the contention of the Filipinos for president of the Philippine Senate, as chairman of the Committee on the part of the Ph111ppine Senate; the Honorable Quintin liberty, I call attention to a resolution that was adopted in Paredes, speaker of the house of representatives, as chairman of November 1932 by the Philippine Legislature, in which it is the committee on the part of the house; Hon. Elpidio Quirino, stated that the following declaration is adopted as an ex majority floor leader of the senate; Hon. Jose C. Zulueta, majority floor leader of the house of representatives; Hon. Sergio Osme:fi.a, pression of the unanimous sense of the Philippine Legis senator from the tenth district; and Hon. Pedro Guevara, Resi lature: dent Commissioner to the United States; and that an invitation First. That it is the aspiration of the people of the Philippines be and is hereby extended to Gen. Emilio AgUinaldo, President of to have immediate, absolute, and complete independence. the erstwhile Philippine Republic; Hon. Juan Sumulong, former senator; and Hon. Isauro Gabaldon, former senator and Resident I shall not take the time to read the entire resolution. It Commissioner, to join said legislative committee and form a part reiterates statements made by the Legislature of the Philip thereof, General Aguinaldo as honorary chairman and the others as members. pine Islands, as well as by representatives sent by the Philip The committee thus constituted shall proceed to the United pine Legislature and by groups of Filipinos to Washington States as soon as convenient in the interest of the public service, to plead for independence. and convey to the Congress of the United States the appreciation of the Filipino people for the enactment of the law of Congress, Mr. President, it will be observed, from one of the reso entitled., "An act to enable the people of the Philippine Islands to lutions which has been read, that Mr. Quezon and others adopt a constitution and form a government for the Philippine were sent here for a specific purpose. They were sent here LXXVIII--317 5012 CONGRESSIONAL RECORD-SENATE MARCH 21 to plead with Congress to give independence to the Filipinos. riots from one end of the archipelago to the other, because One of the delegation was Hon. Isaura Gabaldon, who, as I those people could not find a market overnight to which they stated a few moments ago, was a distinguished commissioner could ship the merchandise which is now coming into this representing the Philippine Legislature and the Filipino peo country, and in that event we would be called upon, morally, ple in the House of Representatives. I hold in my hand a copy to restore order, and heaven knows when we would get an of a letter which he addressed to the President of the United other Philippine independence bill through this body. States. He has not followed Quezon, but has expressed his Mr. KING. Mr. President, the observations just made by own views and the views of the Filipinos, and attempted to the Senator were not at all germane to my discussion; but, carry out the obligations resting upon him under the man turning aside from the current of my remarks for a moment, date of the people of the Philippine Islands, and the man I may say that I dissent from the observations of my friend date of the legislature in the resolution unanimously adopted and some of his conclusions. by the Legislative Assembly of the Philippine Islands. Rohas, Osmefi.a, and others testified in the hearing that Mr. TYDINGS. Mr. President-- though there would be a serious economic crisis if they were The PRESIDING OFFICER (Mr. McCARRAN in the chair). cut off immediately from American markets, the Filipinos Does the Senator from utah yield to the Senator from Mary would be able to master the situatio·n and meet the changed land? conditions. They said they would infinitely prefer to be cut Mr. KING. I yield. loose immediately than to continue for an indefinite period, Mr. TYDINGS. I know there is no one in the Chamber or, as was stated in the beginning, for even 10 to 17 years, who has a greater desire to be fair than has the Senator under provisions which it was then suggested would be im from Utah, and while his remarks are accurate in every posed upon the Filipinos in measures which were in con sense, I am afraid they leave an inference which his words templation. do not clear up. I do not doubt for a moment that Mr. Undoubtedly, by reason of laws enacted by the Congress, Osmefia and Mr. Roxas, of the old commission, and Mr. particularly the law of 1909 and supplementary legislation, Quezon of the new, would prefer a different bill from the we have compelled the Filipinos to deal with us. They did one now pending, but I think these men have all found, not ask for free trade with the United States. We passed a from contact with Members of Congress, that this is about law cmnpeling them to deal with us and closed the markets the best they can get out of the situation, and their ac of the rest of the world to them. They may not negotiate quiescence does not mean that this is the bill which they treaties with other countries, except in conformity with the themselves would like to have, but is the best bill which they policies of the United States. They may not impose tariffs feel they can get. upon the products which we ship to the Philippine Islands. Mr. KING. I think the Senator has expressed the matter They are bound by our legislation; and by reason of this leg accurately, and I had intended in a moment to read a let islation, to which I have imperfectly referred, we have made ter from Mr. Quezon indicating that fact. I thank the Sen it impossible for them to find markets for their surplus ator for anticipating me. products and to make themselves more self-contained than Mr. President, I do not mean, of course, to be censorious they are at the present time. of those who have come here to plead for independence. Mr. LONG. Mr. President, will the Senator yield? The Senator knows that a few years ago Speaker Rohas and Mr. KING. I yield. Senator Osmefia came here with positive instructions to de Mr. LONG. In connection with what the Senator has mand independence, and in the eloquent appeals which they said, they have developed the sugar industry since they have made before committees of the House and the Senate, been a part of the colonial possessions of the United States, they pleaded for the independence of their country. When and they have done it at the expense of the United States Senators asked them if they wanted independence even while being deprived of other markets. The longer we though it might produce a condition of economic chaos or keep them, the more inextricably entangled we shall become ccinfusion, they said yes, that they and their countrymen with the Philippine situation, and the more we will make it wou.ld submit to whatever consequences resulted from imme possible for the interests which have come into the islands diate independence; that they preferred absolute and imme from the outside to profit from them. That is the trouble diate independence to waiting an indefinite period for their today-the foreign interests which have gone into the Philip freedom. However, when Congress turned a deaf ear to pines to develop the industries in those islands, to the dis their demands for complete and i.m.tilediate independence, advantage of American interests. they reluctantly, as I believe, accepted the Hare-Hawes Mr. KING. Mr. President, further, with respect to the Cutting bill. I am not critical of their action, although I remarks of the Senator from Maryland, the Filipino people can understand that some other persons, when they found are a peace-loving people. That has been demonstrated that they could not get what their constituents had in during our sovereignty over them. It is true that under the structed them to get, would have refused to accept a meas Spanish rule there were revolutions, because the Filipinos ure which was believed to be fraught with danger. sought freedom. Spain imposed upon the Filipinos a mili Mr. TYDINGS. Mr. President, if the Senator will yield tary control, and subjected them at times to harsh and ruth to me just a moment to say something in his time-and I less bureaucratic rule. They rebelled upon a number of know he is speaking under difficulties-I would like to make occasions, seeking independence, but with their limited mili this observation: The trade of the Philippine Islands with tary knowledge and primitive military weapons they could the United States represents about 78 percent of the com not match the power of Spain, compete with Spain, which merce of the Philippine Islands. a few centuries ago was one of the most powerful military Mr. KING. That is approximately correct. nations in the world. Mr. TYDINGS. Four out of five tons of merchandise find The Filipinos love peace; they love their homes; most of a market here. In 1932 the total volume of 80 percent of them reside upon lands which they own. They are more or their trade, in round :figures, was $80,000,000, of which sugar less a pastoral people. They are devoted to their f amities, made up $57,000,000. In other words, nearly three-quarters and they are interested in self-development. They do not of their trade with the United States was in one commodity, want revolution. They would not, as some Senators have namely, sugar, for which they received $57,000,000. If the said, if independence were granted them, engage in domestic tariff on Philippine imports were to be fixed at 1% cents a insurrections and controversies leading to bloodsb:ed and to pound, that would mean a tariff of approximately $36,000,- intervention by the United States. 000, so that instead of receiving $57,000,000 for their crop Mr. President, if the flag of the United States, the flag they wouJd receive, after the tariff was paid, only about which now floats over the Philippine Archipelago, shall be $21,000,000 for their crop, which would mean a shrinkage in hauled down and the flag of the Philippine Republic shall go the island revenue of about 65 percent. up, our present relations with the Filipinos will be ended. In my judgment, were that to happen, there would be such and out upon the great international sea they will steer an upheaval in the Philippine Islands that there would be their bark, it is to be hoped, with success; certainly with our 1934 CONGRESSIONAL RECORD.-SENATE 5013 friendship and sincere good wishes for their felicity and brought forth as the outstanding illustration. This industry, it 1s contended, has been built and developed under the protecting happiness. But the histories of nations show that they rise wings of the Tariff Act of 1909, and it is further alleged that and fall; powerful nations are subdued oftentimes by their "This industry is entirely dependent at present for its continued own vices, occasionally by foreign foes. There is no promise existence upon the tariff protection of the United States." If of immortality to any nation. It was Byron who said: this statement 1s correct, the inescapable conclusion is that an extension for 10 or 20 or 50 years of such protection under condi First Freedom, and then Glory-when that fails, tions barring its further expansion would not save the Philippine Wealth, vice, corruption-barbarism at last. sugar indust ry from eventual ruin, thus necessitating the continu And History, with all her volumes vast, ation of the present tariff protection for an indefinite period of Hath but one page. time. If the Philippines were a free and independent nation, her The Filipinos will have advantages over some nations for industries could be revamped and developed on the basis of fair the maintenance of their political independence and ter competition, which is the only fundamentally sound economic ritorial integrity, as many of the nations of the world. policy. Reciprocal trade treaties with other countries could be resorted to as a means of offsetting differences 1n cost of pro They are less inclined to revolution than some of the nations duction. nearer our doors, and, as I have stated, by their devotion to I submit that the Philippine government does not have to their families, to religious concepts, to the ideals of civiliza depend on the income derived from the sugar industry to enable tion, I believe that the Filipinos, when they have their th.at Government to perform its duties and responsibilities toward the inhabitants of the islands and the world at large. liberty, while they will have to struggle, of course, in the It is asserted that approximately 40 percent of the revenues economic crisis which is pervading the world, will emerge of the Philippine government ls contributed by the sugar in and will maintain and develop in the Orient a Christian dustry. CJ:ranting for the sake of argument that this ts correct, I still maintain that this gap in the governmental finances can republic, the effects and influence of which will be felt upon be spanned by the application of Philippine ta.riffs on all im other oriental nations. portations. Under present trade arrangements over 65 percent Mr. President, I desire to read a few excerpts from the of the goods imported into the islands 1s admitted duty free. letter of Mr. Gabaldon, one of the Quezon delegation sent To this may be added the proceeds from a general reduction in salaries and allowances in the higher brackets of the present to confer with the President and with Congress to demand governmental structure, which are higher than the salaries and independence, to the President of the United States: allow~nces assigned to officials of equivalent category in Great For the reasons stated, and true to the aspirations of the people Britam and other European countries, in Japan, and in many of the Philippine Islands as expressed in every popular election of the South American countries. Again, there is ample room held from 1907 to 1931, inclusive, I beg to recommend the enact in the present governmental organization for further simplifi ment of a law providing substantially the following: cation. 1. The immediate calling of a constitutional convention 1n the In fact, during the last 15 years the revenues of the Philippine Philippine Islands for the purpose of drafting a constitution for government registered increases and decreases of approximately a free and independent government of the Philippine Islands. 20,000,000 pesos without affecting in the least the ability of the government to meet its bonded indebtedness and to carry on the May I say, Mr. President, that is in harmony with· the normal functions of a stable and well-regulated government. You have, Mr. President, recently stressed the significance of a measure which I have offered, and which I shall ask the statement made by the late President Wilson that human liberty Senate to adopt in lieu of the bill which the Senator from 1s param?unt and that it should always receive higher and prefer Maryland has presented for consideration. ent consideration over trade and other material factors involved in the relationship of the people of the earth. In line with this 2. The submission of this constitution to the people. lofty idealism, may I not submit that sugar, coconut oil, and cord 3. The holding of elections for the offices provided in .the con stitution upon adoption thereof. age benefit but a negligible minority of the Philippine population? 4. Recognition of the Philippine Republic upon the installa Shall the Fillpinos be driven to face a situation similar to th.at tion of the officials provided in the constitution, not later than confronting the United States at present, where 15 percent of the 3 population control the wealth and the destinies of the remaining years from the date of the enactment of the law. 85 percent? 5. Trade relations to be determined in a conference between representatives of the United States and of the Phll1ppine Islands, I ~ee.m lt contrary to the expressed will of the people of the to be held at such time and place as the President of the United Phillppme Islands to make the granting of their independence contingent on any consideration other than that specified in the States may designate after independence shall have been achieved. Jones Law, namely, the establishment of a stable government. Mr. President, I ask to have Mr. Gabaldon's letter printed That this condition had already been met is attested by the mes sage sent by President Wilson to the United States Congress on in the RECORD at this point. December 16, 1920. He said: "Allow me to call your attention to There being no objection, the matter referred to was the fact that the people of the Philippine Islands have succeeded ordered to be printed in the R:EcoRD, as follows: in maintaining a stable government since the last action of Con gress in their behalf." The next logical and honorable step, there MR. PRESIDENT: As a member of the delegation appointed by fore, that the people and the Government of the United States the Philippine Legislature to deal with the Government of the should take in connection with Philippine-American relations 1s United States on the question _of Philippine independence, I deem the restoration of the Phillppine Republic. it my duty to bring to your attention the grave injustice that would be inflicted upon the inhabitants of the Phlllppine Islands I am constrained to disagree with the proposals that the granting by a delay in the granting of the freedom for which they fought of Philippine independence be postponed to July 4, 1940; that a in fields of battle and have struggled incessantly in times of peace. more autonomous government be established in the meantime; Three days ago, on the 18th instant to be exact, Philippine and that trade relations between the United States and the Philip Resident Conimissioner CAM.ll,O OSIAS, one of the staunchest sup pines be contin~ed as they are under certain limitations, because porters of the Hawes-Cutting-Hare law, and who has, using his these proposals mvolve an unauthorized modification of the will own words, " Just returned from the Philippine Islands after sev of the Philippine electorate as expressed in every election held in the islands since 1907. On these elections the majorities con eral months spe~t in visiting various Provinces, cities, and mu nicipalities, meetmg and conferring not only with our leaders but trolling both houses of the Philippine Legislature were elected on with the masses of the people '', declared on the floor of the the strength of their pledge that they would petition the Govern House of Representatives " that the Philippine people continue ment and appeal to the people of the United States for the grant in their firm conviction that the early grant of Philippine inde ing of "the immediate, absolute, and complete independence" of pendence is the proper solution of American-F11ipino relations." the Philippine Islands. He said further that " on this fundamental point the Filipinos are Any solution of the Philippine question based on representations united." amendatory of the expressed will of the electorate of the islands I deem it of the highest importance also to call attention to the would necessarily involve the un-American and undemocratic fact that the lower house of the Philippine Legislature had already decision that those chosen by the people to speak for them have passed a bill submitting the Hawes-Cutting-Hare law to the deci the right to alter the mandate they received from the people. sion of the electorate of the Philippines, and the majority in the RECOMMENDATIONS Philippine Senate had agreed in caucus to approve it, when those who caused the United States Congress to enact said law and now For the reasons stated, and true to the aspirations of the people claim that the Filipino people had been deprived of the oppor of the Philippine Islands as expressed in every popular election tunity to vote on the question, signed an agreement to submit it held from 1907 to 1931, inclusive, I beg to recommend the enact to and abide by the decision of the Phillppine Legislature. ment of a law providing substantially the following: I am entirely in accord with the statement of the chairman of 1. The immediate calling of a constitutional convention in the our delegation that when the Philippine Leglslature declined to Philippine Islands for the purpose of drafting a constitution for a accept the Hawes-Cutting-Hare law it did so in compliance with free and independent government of the Philippine Islands. the Wishes of the overwhelming majority of the people of the 2. The subm!ssion of this constitution to the people. Philippine Islands. 8. The holding of elections for the offices provided in the consti tution upon adoption thereof. TARIFF PROTECTION 4. Recognition of the Philippine republlc upon the installation In stressing the necessity of a 10-year period of econom.1c read of ·the omcials provided 1n the constitution. not later than 3 years justment the eventual ruin of the Philippine sugar industry 1s from the date of the enactment of the law. · 5014 CONGRESSIONAL RECORD-SENATE MARCH 21 5. Trade relations to be determined in a conference between rep It is a practical question. We have before us the Hawes resentatives of the United States and of the Philippine Islands, to be held at such time and place as the President of the United Cutting bill in all its ugly or beautiful form, whichever States may designate after independence shall have been achieved. view one may take of it. To me it is an ugly bill, it is a Respectfully submitted. hybrid bill. It measures up to the description given by the !SAURO GABALDON, Senator from Michigan this morning. It neither takes us Member, Philippine Delegation. out of the Philippines nor keeps us in. We do not know the Mr. KING. Mr. President, when Mr. Quezon came with obligations and the implications that will arise from its Mr. Gabaldon and other members of the delegation he con passage. Certainly it will not give the Philippine people ferred with me, as did his associates, with respect to legisla independence for a long time; and it contains the probabil tion for the independence of the Philippine Islands. The ities, if not certainties, of changes that will compel interven revived Hawes-Cutting bill, as I recall, was not then before tion upon the part of the United States and prolong occu Congress. Mr. Quezon told me that he favored the bill which pation by this Republic for an indefinite period. I had offered, or one containing substantially the same Mr. President, I desire briefly to examine the bill before provisions. us, although, as I stated at the outset, the presentation Subsequently a statement appeared in a newspaper that made by the Senator from Michigan leaves but little to be seemed at variance with what I had understood were his added. sentiments as to independence, and I wrote him on Febru I call attention to a sentence on the eighth page of the ary 18, 1934, as follows: bill, and I ask the attention of my friend from Maryland Bon. MANUEL L. QUEZON, to it. I think it is manifestly unfair, and I am sure that Waldorf-Astoria Hotel, New York, N.Y. neither he nor those who drafted the bill intended that any DEAR SENATOR: Upon two occasions recently, in our conversa tions respecting the Philippine situation, I understood you to unfair implication might arise. The bill reads: state definitely that you were opposed to any measure that would If a majority of the votes cast-- attempt to revive the dead Hawes-Cutting bill and revitalize it; further, that you favored the bill which I offered and which is Mr. TYDINGS. From what point in the bill does the now pending (S. 2064, 73d Cong., 2d sess.), or one containing sub Senator read? stantially the same provisions. Mr. KING. I am reading from page 8, lines 14, 15, and 16. Yesterday there appeared in the New York and Washington papers (and doubtless others), statements to the effect that a If a majority of the votes cast shall be for the constitution, such plan might be adopted which would revive the Hawes-Cutting bill, vote shall be deemed an expression of the will of the people of the With some of the provisions eliminated. I gained the impression Philippine Islands in favor of Philippine independence. from the newspaper statements that an understanding between the administration and the leaders of the Filipinos might be If all the Filipinos want Philippine independence, few, if reached that would result 1n an effort to reenact the Hawes-Cut any, want this bill. If they vote against the bill, it will be ting measure i:r;i. order that another opportunity might be given said that they do not want Philippine independence; and the Filipinos to register their approval or disapproval of the measure referred to. undoubtedly that will be the construction placed by some I have been reluctant to believe that you and the members of upon that phrase. It puts them in an awkward and embar your delegation are willing to have the Hawes-Cutting bill re rassing situation. They will say, "I do not want this bill; vived by Congress. I have assumed from what occurred 1n the I want independence; but if I vote against this bill, it will be Philippine Islands With respect to the Hawes-Cutting bill that it was wholly unsatisfactory to the Filipinos and that any attempt construed that I am opposing independence." I do not to revive it would meet with their disapproval. think it is fair to place the voters, if the question shall be It is my intention to press for the consideration of the measure submitted to a plebiscite, in that equivocal, embarrassing, which I offered and to urge the enactment of my bill or some other measure containing similar provisions. I shall be glad to and undesirable position. They ought to have the oppor be advised if my understanding of your position is correct, and tunity to subdivide this proposition, if necessary, and say, also whether you and the members of your delegation favor the "I want independence, but I do not want this bill; I vote for passage at this session of Congress of a measure containing pro independence, and I vote against the Hawes-Cutting bill in visions similar to those contained in my bill. Sincerely yours, its revised form." WILLIAM H. KING. Mr. President, if opportunity is afforded I shall offer an To that letter I received the following reply, written from amendment dealing with section 17 of the bill, which reads the Waldorf-Astoria, New York City, February 20, 1934: as follows: Hon. WILLIAM H. KING, SEC. 17. The foregoing provisions of this act shall not take United States Senate, Washington, D.O. effect untll accepted by concurrent resolution of the Phillppine MY DEAR SENATOR KING: In answer to your letter of February Legislature or by a convention called for the purpose of passing 18, I beg to inform you as follows: upon that question as may be provided by the Philippine First, that your understanding of my position, as I stated to Legislature. you in our previous conversations respecting the Philippine situa tion, and with particular reference to the Hawes-cutting bill, as The Senator from Maryland has told us that the members well as to your bill (S. 2064, 73d Cong., 2d sess.), is absolutely of the same legislature that overwhelmingly rejected the correct. Hawes-Cutting bill are still de facto members of the legis Second, that I have, however, expressed myself as being ready lature, although there is to be an election in June; but, of to agree to the revival of the Hawes-Cutting bill, if it 1s amended in certain particulars and with certain understandings, provided course, they will not meet unless the Governor General shall your bill fails to secure the approval of Congress. call them into special session. However, the proposition is, If, therefore, you should press for the consideration of your bill if I understand the Senator, that the legislature which re and urge its enactment, I, as well as the members of my delega tiop, will support it in preference to the revival, with amendments, jected it, and which; obviously from what the Senator says, ot the Hawes-Cutting bill. has been brought into the periphery of the influences behind You are, I am sure, informed that there have been popular the passage of this bill, will be called upon to vote upon it. demonstrations in the Philippine Islands supporting your bill, and that the leaders of the legislature asked me to endorse it. Mr. TYDINGS. Mr. President-- Very sincerely yours, The PRESIDING OFFICER (Mr. LoNERGAN ·in the chair). MANuEL L. QUEZON. Does the Senator from Utah yield to the Senator from Mr. President, I think the evidence brought to our atten Maryland? . tion demonstrates that the Philippine people are not in favor Mr. KING. I yield. of the Hawes-Cutting bill It may be that they believe from Mr. TYDINGS. The point the Senator makes about a recent statements made or assurances given that there will referendum or plebiscite is well taken, but it will be unneces be modifications of it after it is enacted. It seems to me sary under the bill, for this reason: If the Senator will look that if the Hawes-cutting bill is unsatisfactory and any at the language on page 8, just above the provision which assurances have been given them of sympathetic considera he read, beginning on line 6, he will find these words: tion for modification we had better obtain the modification Such election shall be held in such manner as may be pre before the bill is passed, and not leave to future Congresses scribed by the Philippine Legislature, to which the return of the the fulfillment of any assurances or hopes or anticipations election shall be made. or expectations that may enter into the hearts of the They can submit the question whether or not the Filipino Filipinos. people want their delegates to vote without resubmitting 1934 CONGRESSIONAL RECORD-SENATE 5015 the constitution to the people or whether or not they want I hope the Philippine people will conduct their schools their delegates to vote to submit it to the people; in other primarily in the English language, but I am unwilling to words, it will all be in the hands of the Filipino constitu say to those people who want independence what kind of tional convention as to whether or not they themselves want schools they shall have or what language shall be taught in to submit the question in the one way or the other. their schools. That is a matter for them to determine, not Mr. KING. The Senator from Maryland is now speaking for us. about the constitution while I am talking about this bill. Mr. TYDINGS. Mr. President, will the Senator yield? Mr. TYDINGS. Well, but they could put that question The PRESIDING OFFICER. Does the Senator from on the ballot; they could put anything on the ballot which Utah yield to the Senator from Maryland? the Filipino people wanted put on it. Mr. KING. I yield. Mr. KING. I suggest an amendment to strike out the Mr. TYDINGS. The Senator must concede that these words " by concurrent resolution of the Philippine Legisla provisions of the constitution only prevail so long as we are ture or", so that it would read: in the islands, and that when we get out of the islands the SEC. 17. The foregoing provisions o! this act shall not take e:tr.ect Filipinos can take every one of these provisions out of their until accepted by a convention called for the purpose of passing constitution, if they so desire. upon that question as may be provided by the Philippine Legis Mr. KING. Concede for the moment that to be true, but lature. we are specifying what kind of provisions must go into their I have heard the suggestion made by the proponents of constitution. Another provision of the bill is: the Hawes-Cutting bill that the Filipinos ought to have a Foreign affairs shall be under the direct supervision and control plebiscite; that if they had had a plebiscite the Hawes of the United States. Cutting bill would have been accepted by them. Of course, There is some merit in the contention that that should anyone familiar with the situation knows that that state be done; and yet, in the hybrid form of government which ment is inaccurate. The fact is that Senator Osme:fia and we are creating or establishing in the Philippine Islands, it Speaker Roxas early insisted upon a plebiscite and con would seem that they ought to have some voice in their ducted an active campaign in the Philippine Islands in international relations and in the conduct of their foreign advocacy of the Hawes-cutting bill; but they discovered that affairs. it was not acceptable, and so Senator Osmefia himself joined Mr. TYDINGS. Mr. President, will the Senator yield? with Mr. Quezon in abandoning the plan for a plebiscite The PRESIDING OFFICER. Does the Senator from Utah and agreed to submit to both houses of the legislative yield further to the Senator from Maryland? assembly the question of the approval of the Hawes-Cutting Mr. KING. I yield. bill. Mr. TYDINGS. I am advised on very good authority that Let us provide for a plebiscite if we are going to have this the English language is the only common language which bill, thus giving the people of the Philippines a chance to a majority of the Filipino people speak. There are more vote for delegates to a convention or to vote direct with Filipinos who speak that tongue than any other, because in respect to endorsing this bill, and not leave to the Philippine the Filipino languages and the Spanish language, as spoken Legislature that denounced the bill-and unanimously, so in the islands, there are many dialects and many colloquial far as the record shows, adopted a resolution to send Mr. isms, so that more people speak English as a common tongue Quezon and the other members of the delegation here to than any other language in the islands. obtain a new independence bill-to pass upon this galva Mr. KING. I am not quite sure that the Senator's state nized bill Let us not leave it to a legislature that apparently ment is correct, but concede its correctness, for the sake of has changed its position. There will be another election in the argument; yet if every man, woman, and child in the June. The present legislature ought to be defunct. It Philippine Islands spoke the English language or the Spanish exists, as I said, de facto, but probably not de jure. language, I would object to the United States requiring that If this question is to be passed upon by the legislature, let there shall be incorporated in their constitution the kind of us wait until another legislature shall have been elected, with language which should be spoken. That is for the Filipinos to the knowledge that if this bill shall not be amended, it will decide. It is a restriction upon them which I think is an have the right to pass upon the question of the acceptance affront. If they are to have freedom, if they are to have or rejection of this bill. So I shall suggest an amendment a constitution, if their flag is to go up in the Pacific and which I hope my friend will accept, because I think the ours is to' come down, if they are to exercise sovereignty over Philippine people ought to have a chance to vote directly the archipelago, give them sovereignty without restriction either upon the acceptance or rejection of this bill or have and without shackles. the right to select delegates to a convention charged with The Philippine Islands recognizes the right of the United States the responsibility of passing upon it. I might add that con to expropriate property for public uses-- ventions in this democratic Republic are the vehicles by Mr. TYDINGS (in his seat) . The Senator is :filibustering. which we express our opinions upon political and oftentimes Mr. KING. Oh, no, I am not. A measure that is so sub economic and other questions. Our State constitutions are ject to legitimate challenge ought to receive consideration, prepared by conventions the delegates of which have been though I know it will not. It will be passed. The machinery selected by the people of the respective States. is all ready. The guillotine is prepared. The heads of Mr. President, I wish to make a few other observations re those who favor a wise bill will soon be cut off, metaphori specting this bill. This is supposed to be an emancipation cally speaking; that is, so far as their support of a more measure. It is supposed to give to the people of the Philip hoeral bill is concerned their heads will be cut off. pine Islands freedom to choose their own form of govern Mr. President, I object to this provision in the bill: ment. It does not do that. We have hedged them about. The United States may, by Presidential proclamation, exercise It may be said that the restrictions are advantageous. Con the right to intervene for the preservation of the government of cede for a moment that that may be true; nevertheless, they the Commonwealth of the Philippine Islands and for the main are shackled. Restrictions, harsh or friendly, are imposed tenance of the government as provided in the constitution upon them, so that the constitution which they draft may thereof, and for the protection of life, property, and individual liberty, and for the discharge of government obligations under not be the expression of their genuine and sincere views. and in accordance with the provisions of the constitution. For instance, it is provided that they must write into their constitution certain mandatory provisions. We require that It vests in the President of the United States this unlim the trade relations between the Philippine Islands and the ited discretion. If he thinks that it is necessary for the United States shall be upon the basis prescribed in section 6. preservation of the situation there to intervene, he may We state one of the provisions or conditions is that-- do so. It is written into their constitution. It legalizes the intervention of the United States whenever the President Provision shall be made for the establishment and maintenance of an adequate system of public schools, primarily conducted in of the United States, in the exercise of his judgment or his the English language. Qiscretion, thinks that intervention is proper. 5016 ·coNGRESSIONAL RECORD-SENATE MARCH 21 My friend has said there may be revolutions if we do not products that are brought into these islands are but an insignifi pass this bill, that there may be outbreaks. I believe he cant portion of America's foreign commerce. Although the law apparently provides that the amount of F111- used the term "bloody revolutions." It may be conceived pino products so limited may continue entering free of duty into that there may be, after we pass this bill, some local strife. the American market during the transition period of 10 years, There was local strife in Cuba a short while ago. Some the gradual application of the American tariff on such products during the second half of the transition period will bring about Americans insisted that the United States should intervene. their exclusion from the American market even before the expira The President of the United States, be it said to his honor, tion or the said period of 10 years. refused to intervene. While this one-sided manner of liquidating the free-trade regime is being carried on, and as the doors of the American market are Mr. President, I shall not further take the time of the being closed to Filipino products, the law requires that any Philip Senate to examine tl:).e provisions of the bill which are to me pine legislation affecting the import and export trade can only so obnoxious. I repeat, the able Senator from Michigan have effect after its approval by the President of the United States, [Mr. VANDENBERG] made an analysis of the bill which seems which is, of course, saying that the Philippine government cannot unhindered enter into new commercial relations with other coun to me ought to have convinced every "doubting Thomas" tries, and much less establish a new econoinic structure to take · of the unwisdom of the measure and lead them to vote for the place of the one that is sought to be abolished. In other his substitute in preference to the bill now before us. I words, the period of transition, instead of being, as it should be, essentially a period of economic reconstruction for this country, would find no fault with anyone who preferred the substi it will merely serve to terminate gradually the free-trade arrange tute of the Senator from Michigan to my own, although I ment, but only as regards Philippine products. will say my own view is that it would be better to adopt the One of the most inexcusable effects of this unequal economic substitute, which I shall offer, and thus announce to the arrangement Will be that the Filipino people shall find themselves obliged to continue buying, during the transition period, American world and to the Philippine Islands that within 2 ¥2 years products at high prices precisely at a time when the general penury our flag will come down and the flag of an independent will be most acute and distressful. Philippine republic will be raised. The manifold difficulties which naturally come about as a sequel to any change of political status would be in themselves It is their land, not ours. We conquered the Territory suffi.cient to make the task of the government of the Common and imposed upon them our Government, military in form, wealth most trying. If it is not desired to lend a helping hand against their will. They fought us valiantly for 2 years. to the government of ~he Commonwealth, notwithstanding other governments similarly situated have been generously assisted by Thousands and tens of thousands of them laid down their others, there is reason, to say the least, to expect that no artificial lives upon sanguinary fields of battle. They may have been obstacles should be placed in the way of that government which wrong, as some say. They thought they were right. They would render its failure inevitable. thought that we were intruders; that we sought conquest. If unfortunately the application of these grave economic con ditions should bring about the destruction of our entire economic Let us say to the world that we will keep our promise; that system, it is to be feared that such development be attributed by there will be no benevolent assimilation; no assertion of public opinion abroad, perhaps even by American public opinion authority or jurisdiction longer than is necessary for the itself, not to its true causes, but to the much-advised incapacity of the Filipinos to maintain an independent government. In such people there to form a constitution and to set up under that case the right of intervention. reserved by the law to the American constitution the government which they desire. Government, may be exercised wtth all its disagreeable conse Mr. President, I ask permission to insert in the RECORD quences. Such are our main objections to the Hare-Hawes-cutting law. as a part of my remarks resolutions adopted by the Philip But these are not the only objections. With Uke vigor and rea pine Veterans' Memorial presided over by General Aguinaldo. son our people have formulated many other objections to the law. The PRESIDING OFFICER. Without objection, permis The proposed exclusion of Filipino laborers from the American Continent, to take place as soon as the Hawes-Cutting-Hare law sion is granted. is accepted by the Filipino people, has wounded, as was natural, The resolutions are as follows: our national feeling as F111pinos in its most sensitive part. At the same time, moreover, this same law provides that the" citizens FILIPINO VETERANS' MEMORIAL and corporations of the United States shall enjoy in the Common (The following is the memorial approved by the Filipino veterans wealth of the Phllippine Islands all the civil rights of the citizens at their convention at the stadium last Sunday, Sept. 17. It and corporations, respectively, thereof." defines their stand on the Hare-Hawes-Cutting Act.) The lengthy period of transition, which would be, under the The Association of Veterans of the Revolution in an extraord\ unfair economic conditions provided for in the law, a cruel pro nary general meeting duly assembled, having deliberated on Act longation of the distressing economic dislocation which wm nec No. 311 of the Seventy-second Congress of the United States, com essarily come about during the Commonwealth, cannot be easily monly known as the "Hare-Cutting law", has resolved to approve justified. If the econoinic clauses of the law are not to be modi and to make public the following fied in the sense of rendering them more just and reasonable, DECLARATION it is preferable undoubtedly, that the period of transition be the shortest possible, a period such as may be strictly necessary for We have come to the painful conclusion that the Hare-Hawes the orderly transfer of the powers of sovereignty from the Amer Cutting law is destructive of our ideal of absolute political inde ican people. pendence, and that the general tendency of its provisions is openly The law grants also to the President of the United States au repugnant to the ultimate aim of the American policy to place our thorit-y to suspend the taking effect of or the operation of any people, according to the language of the Jones Act, in a position law, contract, or executive order of the government of the Com to fully assume the responsibllities and enjoy all the privileges monwealth of the Philippine Islands which. in his judgment, of complete independence. would result in a failure of the government to fulfill its contracts The power which this law confers upon the President of the or to provide the sin.king fund for its public debt, or would impair United States to retain, after the proclamation of the so-called the reserve for the protection of our currency, or might violate " Philippine independence ", unspecified portions of our national international obligations of the United States. These extraordi territory for military stations and other permanent ~eservl.l.tions nary powers of the President will be, in a more obnoxious form, of the United States, constitutes a positive and radical departure the equivalent of the veto power, which is absolute in practice, of from the policy of complete independence, and secures, besides, the present Governor General. We say that the exercise of those the perpetual Inilitary occupation of these islands by the United powers wlll be very obnoxious because they might be exercised in States. Hence the acceptance of this law by the F1llpino people relation to laws already definitely approved or to Executive orders will be tantamount to an unpardonable renunciation on our part in force or to contracts already consummated by the Phllippine of the unequivocal promise of complete independence freely made government. It is inconceivable how a government can reduce to us by the American Government. another government to a more precarious position than 1n this Unrestrained selfishness, in marked contrast with the hereto manner. The people of these islands will have reason many times fore benevolent and liberal American policy in these islands, is to hesitate if it is wise to regulate their acts and their business in evident in the economic provisions of the law, the consequences accordance with the laws and Executive ordel'B of a government of which might seriously hamper the success of the government that are subject at any time to ulterior revocation. by another of the Philippine Commonwealth; that is to say, of the regime government. No person or entity would like to enter into a con preparatory to the final change in our political status. tract with a government the agreements of which may be annulled Upon the inauguration of the government of the Common by another government. But taking into consideration the other wealth, the amount of Phllippine products which may be exported provisions of the Hare-Hawes-Cutting law, it sems unnecessary to free of duty to the United States will be restricted for the purpose subject the government of the Commonwealth to such depressing of eliminating the alleged competition which such Philippine prod and humiliating treatment. As regards the security for the pay ucts offer to certain American products. On the other hand, no ment of our public debt, the high commissioner could exercise a restriction is placed on the free exportation to these islands, strict supervision on the finance of our government and, in during the transition period, of American products. That this case of necessity, may take possession and administer our customs, rank injustice cannot be defended becomes more patent when it and certainly tllere is no need of requiring greater guaranty than is considered that the Filipino products alluded to represent a this for the protection of our creditors. With respect to the very considerable part of our export trade, whereas the American preservation o:f the reserve which guarantees our c~ncy, it will 1934 CONGRESSIONAL RECORD-SENATE 5017 be recalled that no law of the government of the Commonwealth It is also the general sense among Filipinos that during the affecting our currency can have any effect without previous ap period of transition the Philippine government should enjoy a proval of the President of the United States. It is therefore not substantial political autonomy to be gradually increased as the to be expected that the President will have to resort to the ex expiration of the transition period approaches. treme measure of suspending the effectivity or the application of any law in force of the Phllippine government for the purpose of Mr. DICKINSON. Mr. President, I offer an amendment, maintaining the reserve in question intact. As regards the acts which is a perfecting amendment and should be considered of the Philippine government which might infringe upon the in before the substitute amendments. I ask that it be read ternational obligations of the United States, 1f the supervision of the American Government may exercise on our foreign relations and lie on the table. be not sufficient to prevent violations of this nature, the adjudi The PRESIDING OFFICER. The Senator from Iowa cation of such questions may be intrusted more properly to the offers an amendment, which will be stated. courts of justice. CHIEF It A well-grounded objection shared in generally, to the Hare The CLERK. is proposed to strike out the word Hawes-Cutting law is that the need of its restrictive provisions "ten" in line 23, page 20, and to insert in lieu thereof the leaves very little space, 1f any, to the exercise of free initiative by word "five", so as to read: the people and government of these islands, as well in economics SEC. 10. (a) On the 4th day of July immediately following the as in political matters. The provisions of the law which are de expiration of a period of 5 years from the date of the inaugura signed to liquidate the free trade-established as it was under tion of the new government under the constitution provided the exclusive responsib111ty of the United States-a liquidation to for in this act the President of the United States shall by proc be at the expense solely of Philippine interest s, and above &I in lamation withdraw and surrender all right of possession, super such manner ae to deny us the needed freedom to enable us to vision, jurisdiction, control, or sovereignty then existing and establish a new economic regime do not permit us to prepare exercised by the United states in and over the territory and ourselves to bear up under the effects of the discontinuance of people of the Philippine Islands, including all military and other free trade at the end of the transition period. Neither do the reservations of the Government of the United States in the Phil other provisions of the law which are calculated to reduce the ippines (except such naval reservations and fueling stat ions as minimum the sphere of action of the Philippine government in are reserved under sec. 5), and, on behalf of the United States, matters purely political tend to prepare the Filipino people in shall recognize the independence of the Philippine Islands as a the exercise of the powers inherent in an independent existence. separate and self-governing nation and acknowledge the authority At no time during the transition period, which should be, at and control over the same of the government instituted by the least, of substantial and increasing local autonomy, is the control, people thereof under the constitution then in force. · indirect but very effective, of the American Government or its representative in the islands, over the affairs of the country, Mr. DICKINSON. All this amendment proposes to do is lightened in the least. We feel obliged, for these reasons, to consider it our bounden to shorten the time in which independence shall be granted. duty to recommend to our countrymen, and especially to the It makes no other change.s in the bill. members of the association, to express courteously but firmly Mr~ TYDINGS. Mr. President~ I shall occupy the time of their disapproval of the Hare-Hawes-Cutting law. the Senate for only 5 or 10 minutes to clear up some condi Our association desires to state, however, that although it has not been possible for us to give our assent to the provisions tions which seem to be obscure. of the Hare-Hawes-cutting law, yet our full faith in the devo It is frequently stated that immediate independence for tion of the American people to the principles of liberty and justice the Filipinos can be easily accomplished. It is said that all remains unshaken. We hope that our objections and comments, made in the spirit of friendly cooperation, will not fall to be that is necessary is simply to pass a bill, and the Filipinos· heeded, and that the American people and Government, in their will have independence overnight. If the matter were as wisdom and uprightness, will find a solution more a{!ceptable to simple as that, I should be the last one in the world to want our people, to the Philippine question. to delay the transition; but if I may have the attention of We also desire to attest, on this memorable occasion, the un changing loyalty of our people to the cause of their national in the few Senators in the Chamber, and particularly for the dependence, and their constant and fervent prayers for the early RECORD, I think I can demonstrate to any person who is restoration of the Philippine Republic. open to reason that that would be the worst possible course We take the liberty to set forth generally a solution of the for this country to pursue. Philippine problem which, in our judgment, will be acceptable to the Ftlipine people. Our people desire to obtain their complete Bear in mind that four fifths of the entire exports of the independence, not only tor the satisfaction of an inborn national Philippine Islands come to the United States. Here they ambition, but also because this is the kind of independence that sell four out of every five dollars' worth of the entire pro has been promised them by the Government of the United States. In case, however, that the Government of the United States believes duction of the islands. What is that production? that its interests in the Far East require the retention of some We find that in the year 1932 they sent to this country naval station in these islands, we beg leave to suggest that such $80,000,000 worth of goods-keep that figure in mind, $80,- naval system be established in an isolated point in the islands so that it may not become a serious restriction on the sovereignty 000,000 worth-and that the total foreign commerce of the Of the Filipino people. We also suggest that this retention be Philippines for that year was about $100,000,000. So that made with the condition that, if the United States, for any of the $100,000,000 worth of foreign commerce they had, cause, should have to abandon such naval base, its full owner $80,000,000 worth, or four fifths of it, came right to this ship shall ipso facto revert to the government of these islands, as in this manner we expect to avoid being involved in confilcts country; and of that $80,000,000 worth, or four fifths of which we should like to keep away from as much as possible. the total, $57,000,000 was the value of the sugar which they We also ask the Government of the United States to take up, shipped to the United States. ' before the withdrawal of the American sovereignty from these islands, the conclusion of a treaty for the neutralization bf our Suppose that overnight our tariff laws had been applied country to guarantee our independence ·and the integrity of our to Filipino importation& We find that in the year 1932 national territory. · they sent to this country 2,080,837,000 pounds of sugar. If a If the American Government should insist t.n imposing any tariff of 2 cents a pound had been imposed on that sugar restriction on the a.mount of Philippine products which may be allowed to enter the American market free of duty during the and that is the present tariff rate on Cuban sugar-the transition period, we ask that a corresponding right be recog duties they would have had to pay to get that sugar into nized in the Philippine government to restrict proportionately the this country would have amounted to $41,600,000. So that volume of American products which may be adm.itt_ed free of duty in the Philippine Islands during said period. out of the $57,000,000 they got for their sugar crop, $41,600,- We likewise ask the Government of the United States that 000 would have been consumed in duties, leaving them but whatever may be the duration of the so-called" transition period", $15,400,000 for the crop, as against the $57,000,000 they our preference is that it be not longer than the time necessary for actually received. the orderly transfer of the powers of sovereignty from the Amer ican people to the Filipino people-that during the said period of Put that state of affairs in effect and the Filipinos cannot transition the Philippine government be given full liberty of sell sugar to this country at all. We will exclude the entire negotiating and concluding commercial treaties not only with the crop; and when we do that, we will throw out of employment United States but also with the other countries as soon as the over half the people of the Philippine Islands who are work American tariff, either totally or partially, is applied to the Phil ippine products which are exported to the United States. ing for the export trade . . When we throw them out of em We further ask the Government of the United States that the ployment we will change their standard of living so violently power to levy export tax on Philippine products free of duty that, in my humble opinion, there will be rioting; there will during the transit ion period, if such tax be deemed necessary, be placed in the hands of the Philippine government, as also the be a lack of understanding of why it happened. and then it right to fix in the case of each product the amount of such will be said, "The United States turned these people loose export tax_. without giving their future any thought or consideration, 5018 CONGRESSIONAL RECORD-SENATE MARCH 21 without providing for an orderly transition to independence; 10 years that will be provided in the bill with a shortened and therefore, now that they are in the midst of an eco period rather than in the 12 or 15 years provided in the nomic revolution, and rioting has taken place, we ought to present bill. land our Army and restore order "; and back the Army will Mr. TYDINGS. I can readily show the Senator why that go, and it will be 20 or 25 years before another Philippine cannot be done. The value of their sugar crop in 1922 was independence bill will be here. $57,000,000. If our tariff laws had applied that year, they Independence is not going to depend upon the will for would have paid us on that crop $41,000,000 in tariff duties. liberty of the Filipino people or of the American people. In They could not have raised the sugar, they could not have that aspect there is no problem. The ultimate success of transported the sugar to the mill, ground it, loaded it in Philippine independence is going to depend upon the ability bags, taken it down to the boats and sent it to this country, of the Filipino people to evolve an economic existence in the because they would have received less than 30 percent of the new state of affairs in which they will find themselves. If amount they actually got if our tariff laws had been in effect they shall not do that, Philippine independence will not be a as to them. If that is so, they could not produce sugar and success. If they shall do that, it will be a success; and it is compete in the American market with a tariff of 2 cents a our duty to give them sufficient time within which to make pound on sugar. the best possible preparation for that step. Mr. LONG. Mr. President-- I could take the figures for the 10 or 12 principal Philip Mr. TYDINGS. Just a minute until I finish. I will take pine products and prove that with the imposition of the on the Senators one at a time. [Laughter.] American tariff overnight, there would within 6 months be a The Senator from Iowa knows just as well as I know that revolution in the Philippine Islands; and it would be nation that would have meant that the entire American market wide, because all the markets into which we have forced the would have been closed to the sale of Philippine products. Filipinos would be taken from them, with no compensatory Where would the people who are now earning their bread markets to which they could go. For that reason I have and butter from the sale of Philippine sugar in the American oppQSed the Vandenberg bill and the King bill, believing market find work? What would they do? The same con that the Philippine people will need this period of transi dition would apply to copra; it would apply to coconut oil; tion if they are to survive. it would apply to rope and hemp, and other commodities. Now let me bring that home to the Senator from Iowa The result would be that we would force upon the Filipino [Mr. DICKINSON]. In good faith, and with the finest of people a situation which they could not possibly meet if we motives, he has just offered an amendment to cut down from were to provide insufficient time in which they could make 10 years to 5 years the time within which independence shall the necessary economic adjustments. be granted. Mr. DICKINSON. Let me suggest that, in the first place, Now I am going to substitute the word " Iowa " for the the great expansion in the production of sugar has taken words" the Philippine Islands." Let us suppose that all the place during very recent years. It has been practically an ·markets which Iowa now enjoys in this country were taken American expansion. The Philippine people lived before away from her overnight; that she could not sell a hog, or a they ever produced any sugar and sent it to the United barrel of corn, or a pound of beet sugar, or whatever she States; and I .suggest that if there is a long time, it can be may produce, without paying, when that article reached the shortened. I might also suggest that if there is too short boundary line of Iowa, the tariff which is levied on such a time, we could lengthen it. commodities when they come into the United States; what Mr. TYDINGS. The Senator is wrong there, and I think would the people of Iowa do? I can show him very quickly in what respect his observation Mr. DICKINSON. They would become self-sustaining; is not logical. Let us suppose that we give the Filipino and I do not think there is any place on earth where they people independence in a year, by way of illustration; let us could come as near doing that as they could in Iowa. suppose that at the end of the year we find that the time Mr. TYDINGS. They would; but while they were becom has been too short; we will have committed ourselves to ing self-sustaining they would also become self-exterminat Filipino independence at a certain time; they will have ac ing, because the Senator knows and I know that the minute cepted our commitment; their constitution will have been their market was taken from them almost overnight there written. How would the Senator then undo that situation would be a rebellion against the leaders who made such a and extend the time? condition possible. Mr. DICKINSON. I think it would be an easy matter That is what we are apt to do for the Filipinos if we are to give them the same protection that we now give them. not careful. If we give them more time than they need, we What I do not want is a declaration that they have the right can always cut it down later. If they can become completely to go ahead and act independently and still have the respon independent in 8 years instead of 10, if it is found after the sibility of the protection of their flag laid on our doorstep, bill shall have been in effect for 2 or 3 years that they can as is provided in the pending bill. lop off 1 year or 2 years or 3 years, then we can take off Mr. TYDINGS. Mr. President, I do not want to tell the the unnecessary time. It is better, however, to give them other side of this story, because I do not want to get into a too much time, and, if they do not need all of it, contract tariff argument; but some think only about what the Fili that time, than it is to give them too little time, and be pino people sell to us. Did it ever occur to us that we are unable to expand it if necessity demands that it shall be selling them practically an equal amount of goods, that expanded. unless they sell goods to us they cannot buy the goods which Mr. DICKINSON. Mr. President, will the Senator yield? we sell to them, and that if they cannot sell to us, then Mr. TYDINGS. I yield to the Senator from Iowa. the people in our own country who are now making the Mr. DICKINSON. When Delegate OSIAS was making a goods which we sell to them will be thrown out of work? speech on the floor of the House when I was a Member of Mr. ADAMS. Mr. President-- the House, and I suggested a probation period just as is pro The PRESIDING OFFICER (Mr. BARKLEY in the chair). vided in this measure, I remember very well what his retort Does the Senator from Maryland yield to the Senator from was: "Eventually; why not now?" Colorado? I take it that the people of the Philippine Islands are still Mr. TYDINGS. I yield. of the same frame of mind and that they believe that they Mr. ADAMS. The Senator states that they are selling to can work out complete independence in a shorter time than us. Has he the figures available? suggested in the pending bilL The question I think in Mr. TYDINGS. Yes. They are selling more to us than volved here is, When are the people of the Philippine we are selling to them, but the amount is not far from a Islands willing to assume this responsibility? If they are parity. willing to assume the responsibility, I do not see why they Mr. ADAMS. My information is to the opposite effect. Is cannot prepare for complete independence in the 5 or 8 or it not also a fact that the volume of commodities they have 1934 CONGRESSIONAL RECORD-SENATE 5019 been buying from us has been declining from year to year, have gotten only $16,000,000. As a matter of fact, they while the importations into the United States of Philippine could not have sent their sugar here, under the standards sugar have been increasing? which now prevail in the Philippine Islands. It will bring Mr. TYDINGS. No; the facts are that the volume of about a complete readjustment, and I say, in all good faith goods, in most of the categories, which they have been selling and in all sincerity, the obstacle in the pathway of Philip to us has been declining. For example, let us take coconut pine independence is so high that they will be very lucky oil. They sold us 317,000,000 pounds in 1930, 325,000,000 in indeed if they make this transition, after we have forced 1931, and only 249,000,000 in 1932. Of course, the depression them to build up their trade in our market, without very was on. I could go down the list and show the Senator that serious consequences in the islands. there is a general decline in the exportation of most of their Mr. LONG and Mr. ADAMS addressed the Chair. commodities. That is not true in reference to sugar. The PRESIDING OFFICER. Does the Senator from Mr. BORAH. Mr. President, will the Senator yield? Maryland yield; and if so, to whom? Mr. TYDINGS. I yield. Mr. TYDINGS. I promised to yield to the Senator from Mr. BORAH. I think there is much force in the Senator's Louisiana. argument that the Filipinos could not bear the load which Mr. LONG. I was going to ask the Senator this ques would be imposed upon them with immediate independence. tion, if at the end of the 15 years-- The thing that has occurred to me is that they will be Mr. TYDINGS. It is not 15; it is 10. equally unable to bear it, economically speaking, in 15 Mr. LONG. It is 10 after they get all the preliminaries years. settled. Mr. TYDINGS. I would not take issue with the Sen Mr. TYDINGS. Not at all. There is no reason why it ator. As I see the economics of this thing, the Filipinos should not be 10 years after the end of this year. are embarking on a very hazardous adventure. They them Mr. LONG. They might delay it, however. selves want the law, and I, as a Democrat, or as a Repub Mr. TYDINGS. I do not think so. lican, for that matter, would not be anxious to subject them Mr. LONG. At the end of the time, whatever it may be, to this step against their will, but I had hoped that we let us suppose there were conflict and turmoil in the islands, would provide sufficient time so that when they do take say at the end of 10 years; then manifestly the United States this hazardous adventure, they may take it under the most could not get out. favorable auspices which we can throw around them. Mr. TYDINGS. I might ask the Senator the same ques Mr. BORAH. The Senator will agree with me, I am sure, tion as to any length of time. Suppose there were turmoil that 10 years is a very limited time within which a people in 1 year, or 3 years, or 5 years, or 7 years, or 10 years. can change their position from that of economic depend The longer the time taken in the transition, the less likeli hood there would be of turmoil. ence to economic independence. That is why I have always Mr. LONG. I disagree with that, because conditions in been in favor of immediate independence. I think they will the Orient become more complicated all the time. There be able to take care of themselves in 2 or 3 years from now is a likelihood that there will be more trouble 10 years just as well as they will in 10 years. And the objective is independence. from now than there is now. It is to be left to the President of the United States to decide whether or not the conditions Mr. TYDINGS. The Senator may be right. My own justify his intervening, as I understand, after this move shall opinion is that they will not be able to take care of them have been made. If we had a President in 10 or 15 years, selves in a shorter time; and, having had them for 33 years, whatever the time may be, who wanted to intervene, and having spilt our blood on their soil, having tried to help who did intervene, that would mean that this arrangement them, having assisted with education and other things, would be all knocked out, and there would be no such thing after having done all that, in our great haste to do the as Philippine independence. things which we all want to do, namely, to see them inde Mr. TYDINGS. Let me answer the Senator from Louisi pendent, I am afraid we will not provide sufficient time for ana. It is no secret-the President of the United States them to take the necessary steps to readjust their com has already said in his message, inferentially, and has said merce, their economic life, and do such things as ought to it directly, and it is no violation of confidence to repeat it be done before absolute independence comes. that if this bill shall be enacted and accepted by the Fili I look upon the situation in this way: The condition in pino people, and any way can be shown by which the re-· which they find themselves was not of their choosing. We adjustment can be made in a shorter time, or through dif forced them to accept our tariff laws, we forced them to ferent methods, compatible with the welfare of both coun abide by our markets, we compelled them to sell their goods tries, it is his disposition to accelerate it. It is my opinion here under the tariff laws of our country. They did not that he will appoint a commission to go to the Philippine make the choice. Now that we are going to sever that rela Islands to investigate that very question, and work out a tionship, having compelled them to seek an economic destiny solution with the Filipino people. in one direction, and blocking the road now in that direction Mr. LONG. The Senator has not answered my question, through the medium of an independence bill, is it too much which is, could not any President, in the course of 10 years, to ask that they be given sufficient time so that they may frustrate this whole arrangement? We know that Mr. find a way in another direction? Hoover did not want the Philippines freed. Mr. BORAH. I would agree entirely with the Senator if Mr. TYDINGS. I will have to digress a moment. There I thought they could find their way within that time. I is not a Filipino on this floor, not one; we are white, and anticipate that those who will be here will find that in 10 they are Malays. They are 10,000 miles from here. This years these people will be economically no better prepared is the greatest country in the world, and it boasts of its to take care of themselves than they are now. liberty, and its justice, and its humanity. We read the Mr. TYDINGS. That may be true. The Senator was not Declaration of Independence on every Fourth of July. We in the Chamber a moment ago, and, at the risk of repeti extoll John Hancock, who wrote his name so large that the tion, I want to call the facts briefly to his attention, because king could read it without spectacles, and all the time we they may not have been placed before him. stand here and talk about justice. About 80 percent of all that the Filipinos sell in world Who made the Filipinos a part of the sovereign territory trade is sold to the United States. Of that 80 percent, of this country? We got them through a chain of circum nearly two thirds consists of the return from one crop. stances connected with a war which started in the Carib-· sugar. In the year 1932 they sold us 2,080,000,000 pounds bean. We had no idea of taking sovereignty over them. of rngar, and received for their crop $57,000,000. If our In the unfolding of fate strange things happened, and we tariff had applied to those importations, the tariff on that acquired the Philippine Islands, and from that day to this· quantity of sugar would have amounted to $41,000,000. They every Congress and every President has said that ultimate received only $57,000,000 for it, without the tariff. So that independence for those people is the object toward which for a crop for which they received $57,ooo.ooo. they would we a.re working. 5020 CONGRESSIONAL RECORD-SENATE MARCH 21 We hear much said about men who lost their lives in the 10 men to their 1 if it comes to a question of war. We World War. God rest their souls! There were Americans know that there is force back of our legislative action. I am who lost their lives in the Filipino insurrection, and we had appealing to the Congress for justice. In Heaven's name, never had any difficulty with the Filipino people. They give the Filipino people this opportunity! They are very helped us to defeat the Spaniards who were in the city of much like children. They cannot learn to walk alone over Manila. It was Admiral Dewey who asked General Agui night. They have to feel their way. We must hold their naldo to go from China to the Philippines and organize the hand a little while until they get used to walking on the Filipinos to help us def eat the Spaniards there. international pathway. When the American fleet was in Manila Bay, the Filipinos Mr. President, it would be a crime to turn the Philippine had won every battle, and the Spanish Army had been people loose in so short a time that they could not make driven into the city of Manila. Then there was a period of the necessary economic transition. Like the Senator from waiting while our Army landed, because the Spania:-ds an Idaho [Mr. BORAH], I have my misgivings about the eco nounced that they would not surrender to the Filipinos but nomic future of these people. I see great difficulties in the they would surrender to the Americans. So, after confer way; and if they did not want independence, I would counsel ring with them-they had declared an armistice, just as we }Ilore with them about the consequences as I see them. had-the Spanish forces in the city of Manila surrendered However, they want independence. They are willing to pay to the American forces. the price. All they ask from the American Congress is jus Mr. LONG. We double-crossed both sides. We sent- tice. We cannot afford to deny them that justice, in view Mr. TYDINGS. Just a moment. Then the Filipinos were of our history. We cannot afford to lose the friendship around Manila in their trenches. Our Army was in Manila, which is built on blood and care and money. We cannot too, but inside the Filipino lines. Accidentally one night afford to lose the hope of creating a better feeling in the there was a shot fired, and a Filipino was killed, or an society of nations by treating the Filipino people fairly; and American was killed-I have forgotten the circumstances certainly, in view of the fact that they are in the Orient, and firing broke out between both sides over this accident, we should watch our step and do all we can to assist them and from that time on it took us 2 years to bring about order to self-government. in the Philippine Islands. That war never was intended. I ask for a vote on the amendment of the Senator from We never intended to stay there. We promised the Filipinos Iowa [Mr. DICKINSON]. that if they would cooperate with us, we would stand by Mr. ADAMS. Mr. President-- them and give them their country. The PRESIDING OFFICER. Does the Senator from Because of this incident, however, we have been now for Maryland yield to the Senator from Colorado? 36 years in the Philippine Islands. In Heaven's name, is Mr. 'I_'YDINGS. I yield. it too much to ask under these circumstances that we give Mr. ADAMS. The Senator from Maryland says that the them every chance to work out a just destiny under their Filipinos have no voice here, and argues, therefore, that we own .flag, and that they shall have all the assistance we should continue to govern them without giving them a voice can give them? rather than granting their own desires for independence and Furthermore, Mr. President, as the Senator from Louisi the expression of their own voice. ana has said, the Orient is a very difficult portion of the Mr. TYDINGS. No 1 Mr. President; the Senator misunder globe at this time. It would be much better for us in our stood me. If I said that, I certainly did not mean to do so. future relations with the Orient if we had friends in the What I meant to say was that they have no representation in Filipino people. I do not mean to say that the Japanese this body, and such independence as they may get will be are not friendly. So far as I know, they are friendly. I the result of the action of a legislature in which they have do not mean to say that the Chinese, or any other people no voice. I am in favor of their independence. and ask only Who inhabit Asia, are not friendly to us. I do know, how that Congress do the fair thing toward them as promptly as ever, that at this moment the Filipinos are friendly to the we can do it. American people, and we shall be a mighty short-sighted Mr. ADAMS. I think the first vote I cast was cast in Congress if we throw away that friendship that has cost so 1900 for Mr. Bryan, running upon a platform of Philippine much blood and so much time and so much effort when it is independence, the declaration of the Senator's · party and ours to retain for the simple price of mere justice. That is mine. an there is in this bill. Mr. TYDINGS. I may say to the Senator from Colorado Mr. LONG. Mr. President-- that it is a historical fact that Mr. Bryan was oppased to The PRESIDING OFFICER. Does the Senator from the acquisition of the Philippine Islands, and came to Wash Maryland yield to the Senator from Louisiana? ington to see President McKinley about the matter at the Mr. TYDINGS. I yield. time the treaty was written; but because it was represented Mr. LONG. The Senator, I am sure, lost sight of my to Mr. Bryan that the ratification of that treaty would bring point. The question I asked was whether a President in the about an end to the hostilities, Mr. Bryan, I understand, next 10 year~ could not frustrate the whole thing. used his influence with his friends in Congress, and the Mr. TYDINGS. I do not believe that will happen for 10 treaty was ratified making the Philippine Islands a part of rears. the American territory. Although Mr. Bryan was opposed Mr. LONG. I know it might not, but it could happen. to that, he agreed to it for the reason that he thought it Mr. TYDINGS. Let me state to the Senator something would end the hostilities in the Philippine Islands and else that I do not think is fair, though I dislike to make this where. Those are the circumstances under which we got utterance. There is not a Filipino in this body. Their des the islands; and even then the treaty was ratified by a tiny is absolutely in our hands. They have no voice here. margin of only a single vote. Only today we taxed the product of coconut oil 3 cents, as Mr. ADAMS. Mr. President, may I interrupt the Senator 1f we had not already cut down the normal importation of once more? coconut oil in this very bill. We not only cut it down but Mr. TYDINGS. I yield to the Senator. now we tax it 3 cents. We cut down the allotment of sugar. Mr. ADAMS. I understood from the statement of the We cut down the allotment of cordage. Senator from Maryland that we were compelling the Philip Mr. President, if we were out in the Philippines and they pine people to do business with us; that the intercourse with were here, and the circumstances were reversed, how we us had grown up by compulsion. would rave about the injustice which the people in Wash Mr. TYDINGS. That is right. ington were foisting on a country they never had any right Mr. ADAMS. I ask the Senator from Maryland i! it is not to have, and to which they violated their word when they a fact that instead of it being a matter of compulsion, we :were our ally against the common enemy! have given the Filipinos a. favored situation? We have Mr. President, the Filipino people have no voice here. allowed their products to come into our country without They can get only what we choose to give them. We have tartlf barriers, so there has been an attraction rather than 1934 CONGRESSIONAL RECORD-SENATE 5021 a compulsion, and we have built up their industries at the The committee of conference on the disagreeing votes of expense of our own industries. The trade has not been the two Houses on the amendments of the Senate to the bill the result of compulsion, but as a matter of fact we have design of aircraft, engines, spare parts, or equipment re CLAIMS OF FOREIGN GOVERNMENTS AND THEIR NATIONALS quired by the Navy, in bidding on such aircraft, engines, The PRESIDING OFFICER (Mr. BARKLEY in the chair) spare parts, or equipment, have named a price in excess of laid before the Senate a message from the President of the cost of production plus a reasonable profit, as provided in United States, which was read, and, with the accompanying section 3 of this act. papers, referred to the Committee on Foreign Relations, as " The funds necessary for the enlargement and expansion follows: of such existing plants and facilities now owned by the Gov ernment for the construction and manufacture of naval To the Congress of the United States: aircraft, are hereby authorized to be appropriated." I transmit herewith a report by the Secretary of State recommending the enactment of legislation for the purposes Amendments numbered 3 and 4: That the House recede from its disagreement to the amendments of the Senate described therein. The recommendations of the Secretary of State have my numbered 3 and 4, and agree to the same with an amend approval, and I request the enactment of legislation for the ment as follows: In lieu of the matter stricken out and in purposes indicated in order that this Government may carry serted by amendment numbered 3, and in lieu of the matter out the projects and meet the obligations outlined in the inserted by amendment numbered 4, insert the following: report. ~' Provided, That no contract shall be made by the Secre FRANKLIN D. ROOSEVELT. tary of the Navy for the construction and/or manufacture Tm: WmTE HousE, March 21, 1934. of any complete naval vessel or aircraft, or any portion thereof, herein, heretofore, or hereafter authorized unless [Enclosure: Report of the Secretary of State.] the contractor agrees-- RECESS "(a) To make a report, as hereinafter described, under Mr. ROBINSON of Arkansas. Mr. President, I move that oath, to the Secretary of the Navy upon the completion of the Senate take a recess until 12 o'clock noon tomorrow. the contract. The motion was agreed to; and (at 5 o'clock p.m.> the "(b) To pay into the Treasury profit, as hereinafter pro Senate took a recess until tomorrow, Thursday, March 22, vided shall be determined by the Treasury Department, in 1934. at 12 o'clock meridian. excess of 10 percent of the total contract price, such amount to become the property of the United States: Provided, That if such amount is not voluntarily paid the Secretary of the HOUSE OF REPRESENTATIVES Treasury may collect the same under the usual methods WEDNESDAY, MARCH 21, 1934 employed under the internal revenue laws to collect Fed eral income taxes. The House met at 12 o'clock noon. "(c) To make no subdivisions of any contract or sub The Chaplain, Rev. James Shera Montgomery, D.D., offered contract for the same article or articles for the purpose of the following prayer: evading the provisions of this act, but any subdivision of Calmly, our souls look up to Thee, O God. We pray that any contract or subcontract involving an amount in Thou wouldst reveail unto us the riches unseen. Persuade excess of $10,000 shall be subject to the conditions herein us to realize that life does not consist in the things we prescribed. possess but rather in the thoughts we think, the motives "(d) That the manufacturing spaces and books of its that sway our actions, the ideals toward which we press, and own plant, affiliates, and subdivisions shall at all times be in the God, whom we make our own. Merciful Lord, always subject to inspection and audit by any person designated by keep open the gates that we may front Thy stainless throne. the Secretary of the Navy, the Secretary of the Treasury, Consider aind hear us, Almighty God; be at the conference and/or by a duly authorized committee of Congress. table with our President these momentous days. May men "(e) To make no subcontract unless the subcontractor not face one another with sullen eyes. Break down aJl bar agrees to the foregoing conditions. riers of differences and let there be no thought of faltering .. The report shall be in form prescribed by the Secretary until there is born a new order of fraternity, good will, and of the Navy and shall state the total contract price, the cost brotherhood. Heavenly Father, regard us this daiy with of performing the contract, the net income, and the percent favor and spare us from anything that might keep us from such net income bears to the contract price. A copy of such hearing and loving the divine strains, which breathe a repart shall be transmitted to the Secretary of the Treasury heavenly melody into our souls. Amen. for consideration in connection with the Federal income The Journal of the proceedings of yesterday was read and tax returns of the contractor for the taxable year or years approved. concerned. MESSAGE FROM THE PRESIDENT " The method of ascertaining the amount of excess profit A message in writing from the President of the United to be paid into the Treasury shall be determined by the states was communicated to the House by Mr. Latta, one of Secretary of the Treasury in agreement with the Secretary his secretaries, who also informed the House that on the of the Navy and made available to the public. The method following dates the President approved and signed bills of initially fixed upon shall be so determined on or before the House of the following titles: June 30, 1934: Provided, That in any case where an excess On March 15, 1934: profit may be found to be owing to the United States in H.R. 7199. An act making appropriations for the NavY De consequence hereof, the Secretary of the Treasury shall partment and the Naval Service for the fiscal year ending allow credit for any Federal income taxes paid or remain June 30, 1935, and for other purposes; and ing to be paid upon the amount of such excess profit. H.R. 7295. An act making appropriations for the Treasury "The contract or subcontracts referred to herein are lim and Post Office Departments for the fiscal year ending June ited to those where the award exceeds $10,000." 30, 1935, and for other purposes. And the Senat.e agree to the same. On March 16, 1934: PARK TRAMMELL, H.R. 5632. An act to supplement and support the Migra Mn.LARD E. TYDINGS, tory Bird Conservation Act by providing funds for the acqui FREDERICK HALE, sition of areas for use as migratory-bird sanctuaries. refuges, JESSE H. METCALF, and breeding grounds, for developing and administering such Managers on the part of the Senate. areas, for the protection of certain migratory birds, for the CARL VINSON, enforcement of the Migratory Bird Treaty Act and regu P.H. DREWRY, lations thereunder, and for other purpases. STEPHEN W. GAMBRILL, MESSAGE FROM THE SENATE FRED A. BRITTEN, A message from the Senate, by Mr. Horne, its enrolling GEORGE P. DARROW, clerk, announced that the Senate had passed without amend Managers 01J- the part of the House. ment bills of the House of the following titles:
Congressional Record-Senate 4981 3130
