1942 ·coNGRESSIONAL RECORIY-HOUSE 3283 with the rank of major general, tor a period The Journal of the proceedings of s·. 1648. An act conferring jurisdiction upon of 4 years from date of acceptance, vice Maj. Tuesday, March 31, 1942, was read and the United States District Court for the Dis­ Gen. Charles M. Wesson, Chief of Ordnance, approved. trict of Oregon to hear, determine, and ren­ whose term or office expires June 2, 1942. der judgment upon the claim of the Shaver MESSAGES FROM THE PRESIDENT Forwarding Co., of Portland, Oreg.; TEMPORARY APPOINTMENT IN THE ARMY OF S. 1732 An act for the relief of Max Miller THE UNITED STATES Sundry messages in writing from the and Vera Caroline' Miller, and others; Brig. Gen. Levin Ricks Campbell, Jr. (colo­ President of the United States were com­ S. 1756. An act for the relief of Franklin nel, Ordnance Department), Army of the municated to the House by Mr. Miller, Benjamin McNew; United States, for temporary appointment as one of his secretaries, who also informed S. 1944. An act for the relief of Thomas major general in the Army of the United the House: that on the following dates the Samuel Wuriu; · States. President approved and signed bills of S. 1991. An act for the relief of Mrs. William the House of the following titles: Meister; · CONFIRMATIONS S. 2025. An act to readjust the pay and On March 13, 1942: allowance of personnel -of the Army,. Navy, Executive nominations confirmed by H. R. 1535. An act for the relief of the Marine Corps, Coast Guard, Coast and Geo­ estate of John J. Murray; detic Survey, and Public Health Service; the Senate April 1 (legislative day of H. R. 2120. An act for the relief of John H. March 30), 1942: S. 2048. An act for the relief of Lt. William Durnil; Stewart Walker; POSTMASTERS H. R. 2430. An act for the relief of John Huff; S. 2069. An act fo:t: the relief of the Quimby­ NEW YORK H. R. 3798. An act to amend the act of Au­ Ryan Engineering Sales Co., Inc.; Theodore M. Stenner, Penfield. gust 5, 1939, entitled "An act to provide for S. 21.16. An act for the relief of Frank S. Mathias and Elsie Mathias; UTAH the disposition -lf certain records of the United States Government"; S. 2221. An act to provide for the adjust­ Fred L. Gadd, Nephi. H. R. 4896. An act for the relief of David B. ment of certain tort claims against the United WISCONSIN Byrne; States and to confer jurisdiction in respect H. R. 5478. An act for the relief of Nell thereto on the district courts of the United Mildred M. Dwyer, East Troy. States, and for other purposes; Ludy J. Drolson, Lake Nebagamon. Mahoney; and H, R. 6531. An act to suspend .the effective­ • S. 2235. An -act for the relief of Harriett ness during the existing national emergency ·Boswell, guardian of Betty Fisher; of tari:tr duties on scrap iron, scrap steel, and S 2250. An act to mobilize the productive nonferrous-metal scrap. facilities of small business in the interests of HOUSE OF REPRESENTATIVES On March 14, 1942: successful prosecution of the war, and for H. R. 6291. An act to amend the Merchant other purposes; THURSDAY, APRIL 2, 1942 Marine Act, 1936, as amended, to provide for S. 2278. An act for the relief of Bob the coordination of the forwarding and simi­ Sampley; The House was called to order at 12 lar servicing of water-borne export and im· S. 2286. An act to .authorize inclusion of o'clock noon by the Speaker pro tempore, port foreign commerce of the United States. service on active duty as service on the ac­ Mr. Cox. On March 21, 1942: tive list in computation of service commis­ H. R. 6758. An act to provide a penalty for sioned warrant officers in the Navy for pay The Chaplain, Rev. · James · Shera violation of restrictions or orders with respect purposes; Montgomery, D. D., offered the following to persons entering, remaining in, leaving, or · S. 2288. An act to amend subsection 11 (b) prayer: committing any act in military areas or zones. of the act approved July 24, 1941, entitled Oil March 27, 1942: "An act authorizing the temporary appoint­ Our Father, we wait on the rim of a H. R. 6543. An act to amend certain provi­ ment or advancement of certain personnel cloud so dark that even· the· sun refused sions of the Internal Revenue Code relating of the Navy and Marine Corps, and for other to shine. As the breakers of passion to the production of alcohol; and purposes"; beat against the very soul of Thy Son our H. R. 6759. An act to amend the act en­ S. 2305. An act to relieve disbursing and reason is tossing on the sea and wrestling titled "An act to fix the hours of duty of certifying officers of the United States of re­ for the daybreak. 0 Saviour alone in postal ·employees, and for other purposes," sponsib111ty for overpayments made on trans­ the garden, praying and girding Thyself approved August 14, 1935, as amended, so as portation accounts under certain circum­ for the struggle, Thou givest us the voice to permit payment for overtime for Saturday stances; service in lieu of compensatory time. S. 2309. An act for the relief of the First of unuttered speech and the prayer of a On March 28, 1942: · National Bank of Huntsville, Tex.; troubled heart. We praise Thee that the H. R. 6691. An act to increase the debt of S. 2327 . An act to provide for payment and cloud will not be suffered to hover long the United States, to further amend the settlement of mileage accounts of officers and above the forbidding hilltop, nor float in Second Liberty Bond Act, and for other pur­ travel allowance of enlisted men of the Navy, the gleam of a wandering sun. In the poses; and Marine Corps, and Coast Guard; hour of silence, out of the sealed chamber H. R. 6738. An act to limit the initial base S. 2353. An act to amend sections 1305 and pay of $21 per month for enlisted men in the 1306 of the Revised Statutes, as amended, of Thy soul, the darkness will pass and Army and Marine Corps to those of the the immortal light will break through. to eliminate the prohibition against payment seventh grade. of deposits and interest thereon of enlisted For our sins, we ask the mercy of the On April 1, 1942: men until final d!scharge; cross and for our country the benediction H. R. 5784. An act to consolidate the police S. 2356. An act authorizing the Adminis­ of Thy love and care. court of the District of Columbia and the trator of Veterans' Affairs to grant easements 0 Saviour of the world, cleanse our municipal court .of the District of Columbia, in certain lands of the Veterans' Adminis­ hearts from all unrighteous purposes and to be known as "the Municipal Court for the tration facility, Murfreesboro, Tenn., to th€ as the hart panteth after the water­ District of Columbia," to create "the Munic­ city of Murfreesboro, State of Tennessee, to ipal Court of Appeals for the District of Co· enable the city to construct and maintain a brooks, so may our souls pant after Thee, lumbia," and for other purposes. 0 God. Be patient with us as we kneel water-pumping station and pipe line; in the shades of the garden; Thy trial MESSAGE FROM THE SENATE S. 2380. An act to suspend for the dura­ A message from the Senate, by Mr. tion of the present war all prohibitions makes us heavy and Thy tears make us against the marriage of officers of the land weep. Grant that Calvary fillY be a re­ Frazier, its legislative clerk, announced that the Senate had passed bills and a and naval forces of the United States; vealing curtain through which our souls S. 2381. An act to provide that certain pro­ may pass into the uncharted realms of joint resolution of the following titles, in visions of law relating to the Navy shall be eternal life, and into the haven of peace: which the concurrence of the House is held applicable to the personnel of the Coast requested: "0 angel of the garden, Guard when that service is operating as a S. 716. An act for the relief of Hazel M. part of the Navy; Descend to us today, Lewis; S. 2382. An act to amend the act approved And comfort all our sadness S. 1044. An act for the relief of L. H. Good­ June 24, 1926, entitled "An act to authorize And drive death's fear away. man; the construction and procurement of air­ We all are sorrow-laden, S. 1227. An act for the relief of Mr. and craft and aircraft equipment in the Navy and Speak to our hearts, we pray, Mrs. R. F. Claud; Marine Corps, and to adjust and define the 'He whom ye love is risen S. 1334. An act for the relief of Anthony status of the operating personnel in connec­ And lives with Christ alway.'" Famiglietti; tion therewith," so as to provide for the S. 1542. An act to authorize the leasing of establishment of tl_le designation of naval In the name of the King of Glory. the segreg&.ted coal deposits of the Choctaw aviation pilot (airship), and for other pur­ Amen. and Chickasaw Nations in Oklahoma; poses; 3284 CONGRESSIONAL RECORD-HOUSE "APRIL 2 S. 2387. An act to equalize the rates of pay EXTENSION OF REMARKS The SPEAKER pro tempore. Is there of all personnel in the United States Army, objection? the Navy, the Philippine Scouts, and the Mr. LELAND M. FORD. Mr. Speaker, Philippine Commonwealth Army, and for I ask unanimous consent to revise anp There was no objection. other purposes; extend my remarks and include therein Mr. VOORHIS of California. Mr. S. 2399. An act to amend the act entitled · a fireside chat to the White House by Speaker, I ask unanimous consent that I "An act to require the registration of certain Robert Morton, an attorney, of Los be allowed to proceed for 10 minutes to­ persons employed by agencies to disseminate Angeles. day following the gentleman from Oregon propaganda in the United States, and for [Mr. ANGELL]. other purposes," approved June 8, 1938, as The SPEAh.ER pro tempore. Is there amended; · objection? The SPEAKER pro tempore. Is there S. 2406. An act to authorize the Secretary There was no objection. objection? . of the Navy to proceed with the construction Mr. HART. Mr. Stx:aker, I ask unan­ There was no objection. of certain public works, and for other pur­ imous consent to extend my remarks and EXTENSION OF REMARKS poses; and to 'include therein an editurial. S. J. Res. 68. Joint resolution for the relief The SPEAKER pro tempore. Without Mr. VOORHIS of California. Mr. of s_undry Indians of the Five Civilized Tribes. Speaker, I ask unanimous consent to ex­ objection, it is so ordered. tend my remarks in the Appendix of the The message also announced that the There was no objection. RECORD and include the creed of the Senate requests the return from the Mr. SWEENEY. Mr. Speaker, I ask United Spanish War Veterans of my dis­ House of the bill

and letting these columnists g~ on their The SPEAKER pro tempore. Is there proportion of our aluminum and magne­ merry way. However, there is a time to objection to the request of the gentleman sium · requirements. Power from our call a halt to everything, and apparently from California? great Federal dams is flowing to alumi­ Mr. Jones thought this was the time. There was no objection. num plants, pulp plants, shipyards, saw­ I am glad that others are checking up. Mr. COFFEE of Washington. Mr. mills, arsenals, steel and ferroalloy plants Now, here is what happened with these Speaker, I ask unanimous consent to and a host of other war industries. No same two so-called headache boys con­ revise and extend my remarks on three single other factor in the operation of this cerning myself. topics, and in one to include an article great new industrial region approximates I quote from an article appearing in from the Philadelphia Record, in another in importance the great resource of cheap · their column last summer: to include a letter from a leading for­ power that the Congress has created in The other day WHEELER called in O'CoNNOR ester in the Pacific Northwest, and in the this region. Those of us who sponsored and informed him that he was to oppose other a letter from a leading lawyer in the origlnal Bonneville legislation in 1935 MURRAY in the Democratic senatoriaL pri- 1 . the Pacific Northwest. and seeured its enactment into law, de­ mary next year. The SPEAKER pro· tempore.- ~ Is there spite bitter opposition, have had the "MURRAY must go," said WHEELER flatly, objection? ·pleasure of assisting in its development "and you're the man to beat him. We need There was no objection. into what is today one of the most es­ someone of your caliber in the Senate, JIM, and with my backing you can't miss." The SPEAKER pro tempore. Under sential units in our all-out victory pro­ "That suits me, BuRT," replied O'CONNOR. special order of the House heretofore gram in the United States. ''But who will run for my seat in the House?" granted, the Chair recognizes the gentle­ The amendments that I have intro­ "Oh, that's all arranged," said WHEELER. man from Washington [Mr. SMITH] for duced and for the enactment of which "Bailey Stortz, my right-hand man here, will 15 minutes. 1 intend to devote myself assiduously be the candidate for your job." AMENDMENTS TO BONNEVILLE ACT have several EPecific objectives. In the first place, we have sought to bring under Mr. Speaker, there is not a single word Mr. SMITH of Washington. Mr. of truth in this publication. No such the terms of the present Bonneville Act Speaker, yesterday ~Jternoon Senator conversation occurred. There is no more the sale of the powrr from that other HoMER T. BoNE, our senior Senator for great Columbia R ! ~er development, the truth in this than in the story denied by · the State of Washington, acting also in Jesse H. Jones, and I am glad there are Grand Coulee Dam. behalf of Senator MON C. WALLGREN, in­ . At the present time the Bonneville others besides myself finding out the troduced in the Senate certain amend­ fact that you cannot believe all you read Power Administration is selling Grand ments to the Bonneville Project Act of Coulee power by virtue of the terms of an in that column gotten out by these two · 1937, S. 2430. Senator McNARY, of Ore­ so-called headache boys, in spite of Executive order of ·the President. I gon, expressed his .approval of these would like to see the Congress carry that the fact that they are nationally known amendments. In his remarks on the correspoqdents. Executive order into permanent law so as floor of the Senate, Senator BoNE stated to establish a definite, permanent policy PURCHASE OF AUTOMOBILE TAGS BY that it was my ·intenti9n to introduce a with respect to the sale of power that the DEFENSE WORKERS . companion measure in the House, and I Government produces on the Columbia Mr. WICKERSHAM. Mr. Speaker, I am doing so at this time. I am aEking River. I want to urge that we continue ask unanimous consent to prcceed for 1 that it be referred to the Committee on the unified command of these great.power minute and to revise and extend my own R:vers and Harbors, which has jurisdic­ resources that we have created. I am remarks in the RECORD. tion of all the Bonneville-Grand Coulee convinced that the people of my State legislation; on which committee I am and of my district want this unified ar­ The SPEAKER pro tempore. Is there~ serving. rangement. I believe that they are look­ objection to the request of the gentle­ These amendments deal with the same man from Oklahoma? ing to us to establish a Columbia Power problems as the larger bill which I in­ Administration that will carry forward There was no objection. traduced last year, and which was also a the great progress that has already been Mr. WICKERSHAM. Mr. Speaker, a companion bill to the one introduced by made in the marketing of the energy from number of law-enforcement bodies in the Senator BONE. While the Bone-Smith these Government dams. · various States are requiring the soldiers, bill was somewhat more, comprehensive, · Secondly, these amendments provide a patriotic defense workers, and those : I think that these proposed amendmentsi work·.ng for the War Department and · unified command for the acquisitions of have the advantage of being more simple , private-utility properties that ~he public other governmental defense agencies to and concise. I believe that this legisla­ purchase additional 1942 automobile bodies and cooperatives of my State have tive procedure will not only simplify the · so long sought to make. The slow, cum­ tags, even though they have been in the problem of the Congress but will assure temporary location a short time. . bersome and costly process of having to the Bonneville Power Administration each public utility district, each cooper­ Th~se citizens, wh,o are performing a the continuity of authorized operation ative and each municipality attempt rea.l service and furthering the defense that it must have during these critical separately to purchase the properties in program, have purchased their 1942 tags times. its respective area from the remotely in their respective places of abode and. Mr. LEAVY. Mr. Speaker, will the controlled private companies is not a it is· very unfair to require them to pur­ . ·gentleman yield? - practical workable arrangement. It is chase another 1942 tag every time they Mr. SMITH of Washington. Certainly, · expensive both to the public bodies and accept a t~mporary position in another I yield to my colleague from Washington. · to the legitimate investors in the· private­ defense area in another. State. It cer­ . Mr. LEAVY. I wish to say to my-col­ . utility · properties. Piecemeai acquisi­ tainly works an undue hardship on them. . league that I congratulate him on the in-· . tions entail severance damages that do This situation is happening quite fre­ traduction of the legislative proposal. ·I not benefit the' acquiring public body. quently and I believe it would be wise am very familiar with it. It deserves· They are merely an effort to compen­ for each of the Members of the House tn early and favorable considLration. ·· look into the matter. I feel sure that sate the' companY" for loss of business and the Governors of the various States Mr. SMITH of Washington. I thank· - are- not easily translated 'fairly and would not want the police to bother these my colleague for his contr:bution. The · equitably into dol~ars and cents. Even defense workers who are temporarily lo­ Bom1eville Power Administration is no'w with the payment of these damages the cated away from their own State. an important war agency of the Govern­ companies look forward to an uncertain I believe if our President would issue ment, and these amendments which I am future. The continuation of piecemeal an Executive order, an additional tag introducing will render it a more effective acquisitions will mean that the com­ would not be required. one. They will make that agency re­ panies will be left with uneconomic rem­ [Here the gavel felLJ sponsible for unifying the power re­ nants of their systems and their cus- sources of the Columbia River region so . tamers will be forced to pay higher EXTENSION OF REMARKS that they will be more effective in fur­ charges for the operation of these re­ 1\fr. COSTELLO. Mr. Speaker, I aGk thering and aiding the war effort. These maining properties. unanimcus consent to extend my re­ amendments provide the unified com­ A unified command to take over this marks in the RECORD and to include a mand so necessary in this sector. of the · troublesome and important acquisition new.:;~aper art~cle r(gard:ng the 40-hour battle front for war materials. The great ·problem will make it possible for the pub­ weel{. Pacific Northwest will produce a great lic bodies and cooperatives to secure iu 1942 CONGRESSIONAL RECORD-HOUSE 3291 the most economical and efficient method will be a responsible organization that amortized and reduced, whereas it has the properties they have for so long been will pay its own way and return to the been characteristic of privately owned seeking to secure. The amendments that Treasury the moneys that have hereto­ power systems that their bonded indebt­ I have introduced will permit the Colum­ fore been appropriated for its use and edness continues undiminished, because bia Power Administration to take the prove to be self-liquidating and self­ they build their rates upon their bonded leadership and to acquire by purchase, amortizing. indebtedness and securities outstanding. lease, condemnation, or donation the In short, the Federal Government has Mr. SMITH of Washington. My col­ properties of the private companies created in the great dams on the Colum... league has called attention to an im­ whenever such acquisitions are feasible bia River at Bonneville and Grand Coulee portant distinction, and has revealed one and desirable. The Administration will a huge reservoir of power that must be of the iniquities and one of the worst .be required to sell as speedily as possible sold so that it will benefit the people of evils of private ownership· of utilities. to the appropriate public bodies and co­ the region. It must be sold in the pub!fc The policy of the private power com­ operatives the distribution facilities thus interest. It must assume the responsi­ panies, to which he alludes, has been re­ acquired. It may retain the generating bilities incumbent upon the largest sup­ sponsible for the high rates which the and transmission properties within its plier of power in the region. Upon this public has had to pay. own system so that there will be a single great utility enterprise will be dependent Mr. ANGELL. Mr. Speaker, will the unified power wholesaler in the region. not only the homes and farms of our sec­ gentleman yield? In o,rder to effect these acquisitions tion of the country but also the great Mr. SMITH of Washington. I yield to the Administration is authorized to issue industrial enterprises that have been my colleague from Oregon. revenue bonds. These bonds are payable brought into the region and that are so Mr. ANGELL. Is it not also true that solely out of the income from the project important to our national defense. As if it were not for the immense volume of and do not add 1 penny to the indebted­ a public utility the Columbia Power Ad­ power that is produced at Bonneville and ness of the United States. This latter ministration must act quickly. It must Grand Coulee, we would be unable to fact I desire to emphasize very strongly, be efficient. It must not be free from carry forward our present war program, for it is of the utmost importance during rules that are proper for the conduct of particularly with reference to aircraft? this period of huge, astronomical ex­ research bureaus and offices. Its tempo Mr. SMITH of Washington. That is penditures for military purposes. We do must be geared to the tempo of its gen­ so. We ·are producing now in the two not, I repeat, impose any financial obli­ erators. · For those reasons these amend­ aluminum plants which are already op­ gation upon the Federal Government ments provide in the Columbia Power erating and being served by Bonneville and do not -add to the national debt. Administration a unified command of all power, both of which happen to be in my The bonds will be secured solely and ex­ the problems and practices of this enter­ district at Vancouver, Wash., and Long­ clusively by the revenues of this great prise. view, Wash., I am advised, 242,000,000 hydroelectric-power project and from . Mr. LEAVY. Mr. Speaker, will. the pounds of ingot aluminum per year, our experience with this type of financing gentleman yield again? which is more than the entire national in the Pacific Northwest, I am certain in Mr. SMITH of Washington. Yes; I output of aluminum a few years ago, and my own mind that these bonds will be so yield. is absolutely essential to the production good that our interest rates will be as Mr. LEAVY. This legislation is so of aircraft for the successful waging of low if not lower than that generally paid drastic that one of its primary concerns the war in which we are engaged. by the Federal Government. is to pay to the Federal Government every Mr. ANGELL. And is it not also true · Thirdly, and finally, the amendments dollar that it has invested in both the that the ultimate program for aluminum which Senator BoNE and I have intro­ Bonneville and Grand Coulee, and in the is 2,000,000,000 pounds, and that 30 per­ duced provide for the businesslike oper­ Bonneville administration transmission cent of that will be produced from the ation of this vast public enterprise. The system. Columbia River power in these two Administration will be decentralized and Mr. SMITH of Washington. The gen­ projects? will have the power to make its day-to.­ tleman is correct, and we have every rea­ Mr. SMITH of Washington. I thank day decisions in the region, providing son to believe, and I know that my col­ the gentleman for his contribution, and the type of home rule which · Senator league will agree with me, that those I believe those figures are· correct. . BoNE and I and the other Members of great hydroelectric projects on the Co­ Mr. PIERCE. Mr. Speaker, will the the congressional delegations from our lumbia River will be liquidated and amor- ­ gentleman yield? section have been contending for. It tized in far less time than was originally Mr. SMITH of Washington. I yield to will be enabled to follow sound business contemplated when the projects were au­ my colleague from Oregon. 'practices and will be subject to the same thorized by the Congress. We are mar­ Mr. PIERCE. Speaking of the capital­ accounting principles as any utility op­ keting the power generated to a greater 'ization of private utilities, is it not a fact eration. It will have the authority to extent than ever anticipated, due to the also that they not only have capitalized make all proper business judgments and demands of war production, thereby in­ for money invested but for value of fran­ will be independent in a very real sense creasing the revenues. chise and their opportunity to do busi­ from the ordinary cumbersome proce­ Mr. BROOKS. Mr. Speaker, will the ness so that their capitalization basis dures and practices. The Columbia gentleman yield? reaches far more than the money in­ Power Administration must be in a posi­ Mr. SMITH of Washington. I yield to vested? tion to act quickly and efficiently. The the gentleman from Louisiana. Mr. SMITH of Washington. I think amendments that I am introducing will Mr. BROOKS. And when it is finally that is the history of private power com­ make possible such expeditious handling concluded the projects would not cost the panies in our country everywhere, and it of the Administration's affairs. Its ac- • Federal Government 1 cent? has been one of the worst abuses that counting and funding arrangements will Mr. SMITH of Washington. The the public and consumers of electric light permit the flexibility necessary to the gentleman is correct. These projects will and power have h~d to contend with, and operation of such an enterprise. It will not have cost the taxpayers of the United has been responsible for the extortionate have the right to de'll with labor locally · States one penny, and the ·money appro­ rates which have been charged the public and to effect proper agreements for the priated and expended will be returned to by the private power companies. protection of the workers on the project. the Federal Treasury with interest.· Mr. PIERCE. I think that is a very We safeguard and secure the hard-won Mr. COFFEE ·of Washington. Mr. proper description. rights of labor to collective bargaining Speaker, will the gentleman yield? Mr. SMITH of Washington. Mr. and all the other gains made by labor Mr. SMITH of Washington. I yield to Speaker, may I digress at this point to say · during the past decade. It. will have the my colleague from Washington [Mr. that when I came to Congress in 1933 we same rights and responsibilities with re­ COFFEE]. did not have a single P. U. D. district in spect to suits and claims that ordinary Mr. COFFEE of Washington. And my entire congressional district. The business enterprises have. The Colum­ could the gentleman not differentiate be­ private power interests had a strangle­ bia Power Administration will be an tween publicly owned power systems and hold on the citizens, industries, and rural agency that operates under a broad private systems, by calling attention to communities of my district. After meet- charter of powers, policies, and respon­ the fact that in publicly owned systems . ing with several defeats and set-backs we sibilities laid down by thi& Congress. It the bonded indebtedness is rapidly now have P. U. D. districts functioning 3292 CONGRESSIONAL RECORD-I-IOUSE APRIL 2 successfully in every one of the nine islation will result in untold benefits to that excessive profits should be curbed; counties of my district, and we have our Nation as a whole. It will aid us in the question is how to do something about Rural Electrification projects in five achieving victory in the war of today and it. The amendment which I offered seeks counties. We are hooked up with Bonne­ bring blessings in the peacetime of to­ to secure for the Government the right -ville in eight of my nine counties and in morrow. to renegotiate a contract when experi­ the very near future will be using Bonne­ [Here the gavel fell.] ence demonstrates that excessive profits ville power in every one of the nine coun­ · The SPEAKER pro tempore. The are being made. · ties. Chair recognizes the gentleman from . This approach grew out of the decision In addition to the establishment of nu­ South Dakota [Mr. CASE] for 10 minutes. in the Bethlehem Steel Co. case, in which merous new industries and pay rolls as a EXCESS PROFITS ON WAR CONTRACTS the United States Supreme Court deliv­ result of this public-power development ered a decision on the 16th of February .. made possible by Bonneville, we have ob­ · Mr. CASE of South Dakota. Mr. In that decision Mr. Justice Black tained electric-rate reductions which Speaker, I -asked for this time in order pointed out that- cause substantial savings to all our peo­ that I might say for the RECORD a few The problem of war profits is· not new in ple. Bonneville has brought, and will things with reference to the profits-limi­ this country. Every war we have engaged in continue to bring, to the citizens of south­ tation amendment which the House has provided opportunities for profiteering, west washington more benefits and ad­ adopted the other evening on the $18,- and they have been too often scandalously vantages than any project or enterprise, 000,000,000 appropriation bill. At the seized. • • • But if the Executive is in pubEc or private, in our entire history. outset, I may say that I have been need of additional laws by which to protect amused at the editorials that have at­ the Nation against war profiteering, the Con­ It will serve coming generations as well. stitution has given to Congress and not to Mr. Speaker, the Columbia Power Ad­ tempted to dispose of the issue by an the Court the power to make them. ministration will, of course, not be cut observation that the amendment was loose from the Federal Government. It adopted without debate or without any The decision of the Court went back to is true that· it will be financially inde­ explanation. . a review of the contract which v1as given pendent in that it will have to make its Those who have made that observa­ the Bethlehem Corporation by the Gov­ revenues provide its operation and main­ tion are open to the suggestion that they ernment under powers given to the Fleet tenance exp-enses as well as the charges have not read the RECORD. In fact, in Corporation in the World War, and ·on the bonds and on the debt it owes the another body yesterday I understand a pointed. out that- Treasury. This Administration will still distinguished member of that body stated ' The price to be paid for each vessel to be be tied into the executive branch of the that the amendment had been adopted constructed and furnished in accordance with Government and 1ts policies and prac­ without even the author of the amend­ the terms of the contract shall be the actual tices, based· upon the rules· that we lay ment opening his mouth about it. Of cost, plus the definite amount of profit here­ down, 'will be subject to Executive review. course, that distinguished gentleman inafter in this article provided for: based also had not consulted the RECORD, be­ upon an estimated base cost to the contrac­ These amendments set forth arrange­ tor. ments that will permit flexibility where cause on page 3137 of the RECORD for flexibility is needed and control where March 28 it will be noted that I di.d ex­ And the contract provided that- · control is essential. plain the background of the amendment Should the actual cost be less than the In recommending these amendments at some length. It occupies a column estimated cost, the contractor shall be allowed to my colleagues on the floor of the and a half of the RECORD. I stated that as profit on each vessel in addition to said House, I want to make it ciear that they I would offer an amendment at the ap­ _fixed sum for profit • • • one-half the -have been studied not only by myself but propriate place, and asked support for it. amount by which such actual cost of each by many of my colleagues. In the main, Mr. SMITH of Washington. Mr. _vessel falls short of the estimated cost- they are the prodnct of Senator BoNE, Speaker, will the gentleman yield? As . Mr. Justice Black very properly who has-led the public-power movement Mr. CASE of South Dakota. I yield observed: ·in the Pacific Northwest for the past 25 to my colleague. Mr. SMITH of Washington. I was Thus, a high estimated cost would increase ·years. I know that the whole delegation the probability o:.' savings to be divided be­ from the State of Washington is stand- present on the floor, I will say, when the tween Bethlehem and the Government. And . ing solidly behind the principles of these gentleman's amendment was considered the more the estimated cost exceeded actual amendments. I know that many of our by the House. It was explained to the cost, the greater would be Bethlehem's share. colleagues · from other regions interested House, and I was very happy to support It can be seen, therefore, that the estimated in 'public power have studied them care- it, as were many of this side of the aisle cost agreed upon by the parties is a pivotal · fully. I know that a number of experts as well as on the gentleman's side of the figure . in the executive branch have gone over aisle. Mr. CASE of South Dakota. I thank It was for that reason that the Court, them and believe them to be a practical, in making_ its holding, said: workable, and effective means of - dis- the gentleman for that observation. The fact that there was no further The profits claimed here arise under can- . charging the t :tsk which needs to be ac­ tracts deliberately let by the Fleet Corpora- complished in the Pacific Northwest. I explanation a t .the time t h e amendment ·tion under authority delegated by the PrEsi- ·know that rep1esentatives of the Grange, itself was voted upon was due to the fact dent in accordance with an act of Congress. of the public":utility districts, and of the that the House, at the request of the • • • The question of whether or not this labor unions have agreed to their-provi­ chairman of the Appropriations Commit- policy was wise is outside our province to de­ sions, for I have been in constant consul- tee, had limited debate, and time for de- cide. Under our form of government we do . 'tation with them. I speak, therefo:re, not bate at that time had expired. But, in not have the power ~o nullify_it, a·s we believe for myself alone but for a large group of offering the original amendment, I stated, . _we should necessanly be domg, were 'Pe to as the RECORD shows that I was offering declare these contracts unenforceable on citizens who are interested in the con- . ' . the ground that profits granted under con- . servative development of the Federal an amendment ·which I had prevwusly gressional authority were too high The Government's great public-power pro­ expl~ined. The. gentleman fro~ Mis- profits made in those and other c~ntracts gram and in its progressive expansion. soun made a pomt of order agamst the entered into under the same system ~ay I speak, if you please, for the little fel­ amendment as first offered, because it· justly arouse indignation. But indignation Jow-the farmer, the worker, and .the called for affirmative action by an admin- based on the notions of morality of this or businessman-in the. Pacific Northwest. . istrative officer. I conceded the point of any ot~er court_ ca:nnot be judicially trans­ . These folks look to the Columbia River order and immediately offered the muted mto a prmc1pl~ of law of greater force as the master key to unlocking the vast amendment, changed in that particular, than the expressed w1ll of Congress. potentialities of our region. We also look and the House adopted it 70 to 8. Per- In other words, the Court said the re­ upon the Columbia River as one of the sonally, I think the first form of the sponsibility belongs in the lap of Con­ most . potential weapons in our arsenal amendment was the better, more. work- gress, and if the Congress wants to re­ which God has provided. able, if you prefer; but the paint of order capture unconscionable profits, Congress Mr. Spzaker, the enactment of the leg­ left me no choice in the matter. I shall itself must act in advance. In the ab­ islation I propose will strengthen the arm revert to this point a little later. sence of fraud or dure.ss, the courts can- of democracy by providing for the unifi­ Now, a proper understanding of the not recapture profits after final settle­ cation of the power resources of this amendment calls for recalling the cir- ment has been made. In this case duress great source of raw materials. This leg- cumstances back of it. Everybody agrees wa·s alleged, but denied. 1942 CONGRESSIONAL RECORD-HOUSE 3293 Now, then, that problem of recapture Mr. CASE of South Dakota. The _ Mr. O'CONNOR. Mr. Speaker, I mod­ has received conside-rable attention in means suggested in my amendment is to ify my request accordingly. committees of the House and by Members require a certificate of costs. Of course, The SPEAKER pro tempore. Without of the House, but the difficulty has been that certificate becomes subject to veri­ objection, it is so ordered. how to get at the problem. If taxation fication of true costs. It was precisely to There was no objection. would solve the. problem, the Bethlehem meet that problem and related problems Mr. O'CONNOR. Mr. Speaker, will case would never have been in the Su­ that I conferred with some of the officials the gentleman yield? preme Court. If the mere fixing of prof­ in the War Department who were work­ Mr. CASE of South Dakota. I yield. its by law, saying that you shall not make ing on procurement. I found they had !VIr. O'CONNOR. I want to say to the more than so much, would solve the prob­ been seeking some voluntary renegotia­ gentleman that the American people ewe lem, the problem would never have ap­ tion of contracts after costs were estab­ him a debt of gratitude for offering that peared in court as it was here, because lished. I found they were actually re­ amendment, which covers the· case com­ supposedly we had a statutory limitation writing contracts and reducing the prices pletely. As I recall, the gentleman's .on profits in the World War. to be paid. amendment covers not only contracts to The effect of the Bethlehem decision I found also that Colonel Kutz, in the be negotiated under that bill but also was to say that if the Government is to ·Ordnance Department, had evolved a covers ·contracts heretofore entered into. recapture unconscionable ,profits it must contract which provided that after 25 Mr. CASE of South Dakota. If the preserve its rights before final settle­ p~rcent of the run had been made under final payment is to be made out of fuuds ment is made on any given contract. the contract there would then be a rene­ carried in this bill. The recapture must be at the source. gotiation of the contract based upon the Mrs. ROGERS of Massachusetts. Mr. The stable must be locked before the ·experience of the costs established up to Speaker, will the gentleman yield for a horse is taken. that point. He testified in our hearings unanimous-consent request? So those of us who have been thinking before the committee on this $18,000,- Mr. CASE of South Dakota. I yield to about that phase of it have sought to 000,000 bill, a portion of which was re­ the gentlewoman from Massachusetts. find some way in which the Government cited in my remarks the other day, that Mrs. ROGERS of Massachusetts. Mr. could preserve its right to recovery in in the case of a machine-gun contract,· Speaker, I ask unanimous consent to ex­ spite of making final settlement, some -after a 25-percent run had been made, tend my OWn remarks in the RECORD and way for the Government to assert a the costs were examined and the con­ include therein a letter from Mr. Frank right, if the contractor is not willing to tract was renegotiated with a reduction Haley, Americanism legislative chair­ ·renegotiate voluntarily, and renegotiate of 50 percent in the price .for the balance man, Military Order of the , the contract on the basis of the costs of the contract. with a short editorial. established by actual performance of So far so good, but, as was observed by The SPEAKER pro tempore. Is there the contract. one of the officers with whom I discussed. · objection to the request of the gentle­ Mr. COLE of New York. Mr. Speaker, this matter, the problem is not with the woman from Massachusetts? will the gentleman yield? firm or corporation that is willing to re­ There was no objection. Mr. CASE of South Dakota. I yield negotiate on the basis of the cost dis­ Mr. LEAV¥. Mr. Speaker, will the briefly. cove_red. The difficulty .is to get some gentleman yield? Mr. COLE of New York. I do not fol­ means for requirinJ a renegotiation with M!'. CASE of South Dakota. I yield to · low the gentleman's reasoning that the the firm or the coi.poration that does not the gentleman from Washington. surtaxes and the profits taxes cannot want to renegotiat"!. The.problem is the Mr. LEAVY. I think there is much in reach these cases. bad boy who does not want to be good. what the gentleman is saying. In the Mr. CASE of South Dakota. Had they ·So machinery of compulsion was sug­ Bethlehem case, to which the gentleman reached the World War Bethlehem case gested in the amendments which I pro­ · referred, the Government was forced to it never would have been in the courts posed. In its best form it was in the first take the position, by reason of Congress in 1942. amendment, the one dropped by the point failing to enact adequate legislation, that Mr. COLE of New York. Is it the gen­ of order. I want to read that to you, be­ it was coerced into signing the contract. tleman's position that excess-profits cause, in my own mind, that amendment It is a most unusual and unheard of posi­ taxes cannot be levied on any profits on is preferable to the one the House tion for a sovereign to take with refer­ · a contract once that contract. haE been adopted. · ence to some of its subjects. consummated and payments made? [Here the gavel fell.] Mr. CASE of South Dakota. EE'pe­ Mr. CASE of South Dakota. No; that Mr. O'CONNOR. Mr. Speaker, I ask cially with reference to war powers. is not my contention. But it is my con­ unanimous consent that the gentleman Mr. LEAVY. We ought not to be tention that such a method is not effec­ from South Dakota may proceed for 10 chargeable with the same dereliction this tive. If the gentleman will read the ·additional minutes. time that they were 25 years ago. very interesting opinion of the Court in Mr. CARTER. Mr. Speaker, reserving Mr. CASE of South Dakota. The gen­ the Bethlehem case, he will see why the the right to object, are there not olher tleman is absolutely right, and I daresay excess-profits tax of itself did not reach special orders pending? every Member of Congress has said he the case because of the terms of the The SPEAKER pro tempore. The wanted to take the profit out of war. contract. The decision makes a very in­ Chair is reluctant to put the gentleman's Moreover, there is a great demand in the teresting reference to the findings of request in view of the fact that the gen­ country today for the enactment of some former Chief Justice Hughes in his justly tleman from New York, the gentleman legislation dealing with the labor situa­ famous investigation of World War air­ from Oregon, and the gentleman from tion, but everyone must recognize that craft profits which were not effectively­ California all have special orders. the Congress stands no chance of effec­ curbed by taxation. Mr. CASE of South Dakota. Mr. tively dealing with the labor situation Mr. WILLIAM T. PHEIFFER. Mr. Speaker, I would not indicate a desire unless it does something to curb excessive Speaker, will the gentleman yield? to proceed further were it not for the and unconscionable p1 ofits. Mr. CASE of South Dakota. I yield. fact that the gentleman from Washing­ The proposal in the way in which I Mr. WILLIAM T. PHEIFFER. I have ton, who just preceded me, was granted first offered it provided that that por­ followed the gentleman with much in­ a similar request and I made no objec­ tion of contract payments designated as terest up to this point. I believe he is tion to his request. "the final payment" should not b~ made on the right track with regard to limit­ Mr. COLE of New York. Mr. Speaker, from funds in this appropriatiOn bill ing these exorbitant profits. I would so far as I am concerned I have no ob­ · "until the contractor shall have filed with like to know what means could be in­ jection to a reasonable extension. the procuring agency a certificate of costs voked, in the gentleman's opinion, to Mr. ANGELL. Mr. Speaker, I have no and an agreement for renegotiation and . prevent the covering up of these profits objection . reimbursement satisfactory to the Secre­ in the form of excessive salaries and the The SPEAKER pro tempore. The tary of War or the Secretary of the Navy, . padding of pay rolls such as was 'devel­ Chair will entertain a request that the as the case may be." oped in the scandalous Jack & Heintz gentleman proceed for 5 additional min­ It is the latter language to which ob­ . case recently. utes. jection was made on a point of order b~ LXXXVIII--208 3294 CONGRESSIONAL RECORD-HOUSE APRlL 2 the gentleman from Missouri, the re­ Mr. O'CONNOR. Is it not a fact that The 1940 population was 22,290. The quirement for affirmative action by the the corporation itself escapes these sep­ chief city is Agana, which had a popula­ procuring Secretary, a provision which arate taxes by handing out these bonuses tion of 10,004 in 1940. Apra, on the mid­ kept the machinery of. adjustment flexi­ to its employees, and then the tax the dle west coast, is the only good harbor. ble. That forced me then to offer the Government collects is only from the Guam was acquired by the United amendment with the rigid condition of employees that receive the bonuses? States from Spain in 1898 as a result of the 6-percent limitation, rather than Mr. CASE of South Dakota. Certainly the Spanish-American War. It has been permitting the renegotiation agreement that is what happens in the majority of administered by the Navy Department to be one satisfactory to the Secretary of such cases. I am hopeful that a certifi­ ever since. In 1919 the joint Army and War or the Secretary of the Navy. The cate of costs satisfactory to the Secretary Navy board recommended that Guam be Members will recognize, of course, that of War or the Secretary of the Navy developed as an advance naval base and the original draft gave it more leeway would permit the Secret.ary of War or the fortified, but no action was taken then. and permitted adaptation to circum­ Secretary of the Navy to examine into In article XIX of the Washington Naval stances; yet it specifically preserved to these bonuses and determine whether Arma::nent Limitation Treaty of 1922 the the Government the right to renegoti­ they are proper costs. United States, the British Empire, and ate the contract and to require renego­ I realize we ate tackling a difficult prob­ Japan agreed to maintain the status quo tiation of it on the basis of actual costs. lem, but the difficulty of doing something in the Pacific, with· certain exceptions, Unless we do something about that, un­ is no excuse for doing nothing: The like Hawaii, with regard to fortifications less we protect our right before that people of the country expect us to try. and naval bases. This meant that no final settlement is made, under the My suggestion is that we preserve the new fortifications or naval bases could be right to renegotiate on the basis of ac­ established and no measures taken to in­ Bethlehem case, the Government is pow­ crease existing naval facilities or coast erless to recover through the courts. tual costs before final settlement is defense. · Therefore the United States It should be pointed out further that made. [Here the gavel fell.] could not, under its treaty obligations, · at the time this limitation becomes ef­ develop Guam as a fortified naval base. fective all risk in the contract has been The SPEAKER pro tempore. Under a An aviation force of four planes was sta­ eliminated. The contract has been com­ . previous order of the House, the Chair tioned there from 1920 to 1932. The pleted. The costs have been deter­ recognizes the gentleman from New York planes were withdrawn in 1932. mined. No one can be hurt unless the [Mr. COLE] for 30 minutes. In December 1934 Japan gave notice of certificate of costs reveals that there has GUAM . its intention to terminate the Washing­ been an excessive profit, and then the Mr. COLE of New York. Mr. Speaker, ton Naval Armament Limitation Treaty contractor is under obligation to rene­ in December 1936. The treaty was termi­ gotiate on a basis of known costs with the unfortunate disaster at Pearl Harbor and the naval operations in the Pacific nated on December 31, 1936, and there­ an agreement satisfactory to the procur­ fore the restrictions on the development ing agency. since the 7th of December last have com­ manded the attention of columnists, of and fortification of the Pacific bases Mr. COLE of New York. Mr. Speaker, were no longer in- force. Japan had will -the gentleman yield? editors, and of a considerable number of swivel-chair strategists. Speculations in withdrawn from the League of Nations Mr. CASE of South Dakota. I yield to which the "ifs" appear more prominently in 1933 after the Manchurian episode. the gentleman from New York. than the "haws" have been broadcast In 1936 Japan openly associated itself Mr. COLE of New York. I fe~l quite from one end of the country to the other. with Germany by entering the anti­ sure the gentleman does not want to take A favorite topic in these speculative ad­ Comintern Pact and in 1937 opened large~ the position that an appropriate excess­ ventures has been the island of Guam, scale military operations against China. profits tax will not reach excessive profits its fortification, the part that it might Although the other powers lacked au­ on war contracts, even though his amend­ have · played had a more extensive shore thoritative information, it seemed clear ment is not in the law. development program been undertaken that Japan was expanding and develop­ Mr. CASE of South Dakota. I am not there, and in that respect the Congress ing naval and air bases in various places, concerned so much about the amend­ has been charged with dereliction of and it was suspected that Japan was ment as I am about curbing excessive war duty. Many of the statements are at even developing bases in its mandated profits. The Bethlehem decision seems variance with the actual facts, and the islands in violation of the terms of the to say that if something is to be done, resultant confusion of thought prompts mandate. In the meantime, our inter­ Congress must do it in advance. I pos­ an examination of the record. ests in the Far East were changed some­ sibly may not have made my meaning Within a· very short time after the what by the passf..ge in 1934 of the Mc­ clear, but I fear, for example, that an opening of hostilities in the Pacific on Duffie-Tydings Act, which provided self­ excess-profits tax does not permit the December 7, 1941, our island possession of government for the Philippines and Government adequately to examine into Guam was captured by the Japanese. complete independence in 1946. the case of excessive salaries, such as The early fall of Guam was not unex­ With the restrictions on development were cited by the gentleman from New pected by our Government, since it was of bases in the Pacific lifted at the end York [Mr. WILLIAM T. PHEIFFER]. A close to and practically surrounded by of 1936, the United States Navy began proper certificate of costs should permit Japanese-held insular territory, practi­ to make plans for t!1e improvement of the Government to examine into unusual cally devoid of fortifications, and appar­ the facilities at Guam and other islands. or improper items of cost and determine ently garrisoned by only a small force of On March 15, 1937, the Chief of the their validity as an item of cost. fifty-odd sailors and marines.· Bureau of Aeronautics addressed a letter Mr. COLE of New York. I wonder if Guam is the largest and the most pop­ to the Chfef of Naval Operations, point­ the gentleman heard the gentleman from ulous of the Marianas or Ladrone Islands ing out that Apra Harbor, Guam, was Virginia [Mr. RoBERTSON] this afternoon in the North Pacific. It is about 5,000 very unsatisfactory for the operation of quoting an expression of opinion from nautical miles west of San Francisco, seaplanes, due to the presence of coral the Treasury Department in whi~h it was 3,300 miles west of Honolulu, 1,500 miles reefs and shoals, and recommending that said that these excessive salaries would east of Manila, and. about 1,350 miles steps be taken to remove the coral heads be reached both by taxes against the cor­ south of Tokyo. Wake Island is about and reefs and shoals. Then the Naval poration and taxes on the individual. 1,300 miles to the east. The other Mari­ Expansion Act of May 17, 1938, directed Mr. CASE of South Dakota. Yes; but ana Islands, mandated to Japan after the Secretary of the Navy to appoint a when the tax is placed on the individual World War No. 1, lie to the north of board of naval officers to investigate and it is at a different rate than on the cor­ Guam. Rota, the closest, is only about report upon the need, for the purposes poration. 50 miles from Guam. To the south are of national defense, of additional sub­ Mr. COLE of New York. But it is on the Caroline Islands and to the east and marines, destroyer, mine, and naval air the corporation as well. southeast the Marshall Islands, both also bases ori the coasts of the United States, Mr. O'CONNOR. Mr. Speaker, will the mandated to the Japanese after the its Territories and possessions. This gentleman yield? World War. Guam is about 30 miles board, with Rear Admire! A. J. Hepburn Mr. CASE of South Dakota. I yield long, has an average width of about 7 acting as chairman, reported to the to the gentleman from Montana. miles, and a land area of 206 square miles. Secretary of the Navy on December 1, 1942 CONGRESSIONAL RECORD-=-HOUSE 3295 1938; a few days more than 3 years power plant, and necessary acce.£sories In view of the Hepburn board's report thereafter Pearl Harbor was attacked. at a cost not' to exceed $900,000. The which Secretary of the Navy Swanson The recomme11dations of the Hepburn total authorization would , amount to stated he approved, and Adr-1iral Leahy's board could not be mistaken;. not only $5;000,000. In the hearings on the bill statements, it would seem that the Navy dld the board urge i;hat Guam be de­ the'representatives of the Navy were very favored the development of Guam as an veloped as a major air and submarine clear and insistent that the proposed advance fleet base, or at least as an air base but the construction of an advanced project was not that recommended by and submarine base, but that national fleet base was also advocated. "Ade­ the Hepburn board and that no fortifica­ policy precluded such recommendation in quate air and submarine protection tion was involved. The $5,000,000 was to 1939. In other words, the President's securely based on Guam" were the con­ be used for improving the harbor mainly foreign and other policies at that time ditions advanced by the board as neces­ for seaplanes. The construction of the ruled out the effective fortification or sary fer makiug "the island secure air and submarine base recommended by development of ·Guam as a naval base. ag8inst anything short of a major. effort the Hepbu-rn board would cost about . Whether the President . had. reached on the part of any probable enemy." In $80,0<' .:' ,000, and the conversion into an a .definite decision .on foreign policy at the light of our experience at Pearl Har­ advance · fleet base would cost about that time, especially .as to our relations bor; the conditions establ:she.d by the _ $150,000,000. with Japan, is not known. But, appar­ by the board, as well as the character of In speaking for the Navy Department, ently, he was hesitant to take such steps the effort-"a major effort"-are both .Assistant secretary of the Navy Edison as were recommended by the Hepburn significant; nor should it be overlooked stated that it was not the policy of the board for it does not appear that he that the report included "appropriate Navy then to fortify Guam or do any . made any requests for the necessary au­ antiaircraft and coast-defense . equip., more than· was asked for in the bill. Mr. thorizations to carry out the proposals·. ment" as essential for the purposes in­ Edison said in part on January 31, 1939: As Admiral Leahy said: tended. In other words, "adequate air With specific reference to a question as to The necessity depended entirely on the and submarine protection" and "appro­ whether the project for the Island of Guam national policy for which the Navy has no priate antiaircraft and coast-defense is the first step in a program of fortification re.sponsibility. equipm:mt" were the requisites laid down or whether it !s a development separate and · .distinct from the recommendations made by That responsibility rested with the by the board for the proposed d_eveloP-: President. ment. at Guam. If the island was to play the Hepburn board, I will state that while the developments now prop:Jsed· would be The ·House Naval Affairs Committee the part envisioned by the Hepburn useful in connection with any future de­ board, planes and submarines adequate reported the base authorization bill with velopments of the harbor and shore facilities the $5·,000,000 Guam item included. A in number and-in type and antiai;rcraft at Guam, nevertheless the $5,000,000 project minority report was filed. Thos~ who guns and coast-defense equipment of in the bill before the committee falls so far appropriate kincis would have 4-,o be avail­ short of meeting. the requirements of the join~d in the report stated that they &ble as a part of the program. The Hepburn beard that it can, in reality, be recognized the right of the United States dearth of some,if not all, o4' these essen­ considered a separate and distinct develop­ to establish military facilities at Guam tial pieces of equipment at this time, ment which is an entity in -itself and which· and approved of the necessity of the har­ will be useful to the Navy and to commercial bor improvement for the purposz of aid­ in even more important and strategic air traffic whether or not any further develop­ ing commercial trans-Pacific aviation. places, cannot be ignored as speculative ment is made. They would approve of harbor work if appraisals arc made of what might have The proposed development will permit the it were done as a regular river and har­ been Guam's value. operation of airplanes that may at any future bor improvement by the Army Engineers, It should be emphasized that the time be in that area. With such a develop­ as in the case of the improvements Hepburn board's recommendations con­ ·ment airplanes can be flown from the conti­ templated a develoment program of nental United States via Oahu, Midway, and being made at Midway. To do the work Wake. Without such a development planes by the Navy Department would involve great magnitude: cannot be operated to the westward beyond hazards which would constitute too great A major air and submarine base • * • their radius from Midway. a price to pay for the benefits which the establishment of a fully equipped fleet Facilities fc.- the operation of airplanes might inure either to commercial avia.­ -base at Guam, capable. of .maintaining at from Guam will add materially to the de­ tion or to the naval service. least the major part of the fleet in all type~. fensive power of the fleet. · It is impossible to look into the future . The debate on the base bill in the House In connection with this recommenda.­ .and see whether or not there will be need largely centered' around the $5,000,000 tion, the board, apparently having i1_1 for future development of Guam· as an air­ Guam authorization. The gentleman mind the inter:1ational situation then _plane base, but we may hope that the future · from Georgia, Chairman VINSON, of the ·existing, recognized that- international situation will not make it Naval Affairs Committee, led the fight There are, -however, other considerations necessary to use Guam except as a commer­ for its retention, pointing out that the and possibilities of a far greater significance cial ·airport. · project did not involve fortifi'cation but which it is pertinent to take account of in · It is the present policy of the Navy Dzpart­ only the improvement of the harbor, pri­ this connection. Although these considera­ ment now to ask for development only to the marily for seaplane use. Members of tions may be regarded as beyond the precept extent stated in the bill before this com- ·_ mittee. . both parties spoke against it. The gen­ -of the Board, they are of such far-reaching tleman from New Jersey, Representative importance that the Board feels impelled to If unforeseen changes in the international include them in this report. · situation .should indicate a necessity for SuTPHIN, Democratic mem}?er of the further development of an airplane base, then Naval Affairs Committee, moved to strike . Aside f~om other factors, the time re'­ . the Congress -ytrill be so informed. out the Guam item. The Sutphin mo­ : quired to complete such an undertaking We hope that there will be no necessity · tion carried on .February 23, 1939, by a for further development-none is c.:mtem- cannot be lightly dismissed. . . piated at the present time. .vote of . 205 to 168, with 63 Damocratic In January 1939, a bill was introduced Members in support of the motion. Ob_­ in Congress to· authorize the ·construc.­ The statement of the Assistant Secre- viously,. national _policy .~ had no~ as yet tion ol certain aviation facilities ~t . tary of the Navy indicated clearly that been crystallized by. the President to such Guam, but the project included in the the Navy looked upon the project which an extent that the fortification of Guam authorization was not.that recommended it was then advocating as. "a separate should be advocated or encouraged. by the Hepburn board. · and distinct development" from that No better authority on thi.3 point could All that the Navy asked for Guam in recommended . by the Hepburn board. be quoted than the chairman of the January 1939 was an authorization, first, · Admiral Leahy, Chief of Naval Opera­ Naval Affairs Committee o.i the House, to build a breakwater at Apra Harbor at tions, also . pointed out that the Guam who said during the course of the debate: ·a cost not to exceed $2,200,000; second, project did not involve fortifications. The one item of this bill that has received to dredge the harbor to remove coral But Admiral Leahy added: the most publicity and the one that has been heads, to provide channels for ships, and The necessity for a fully equipped base at subject to the most criticism is the provi­ for seaplane operations at a cost not to Guam seems to depend entirely qn the na­ sion to expend $5,000,000 to improve the har­ exceed $1,900,000; and, third, to build tional policy, for which the Na\_'y has no bor facilities for seaplane operation at the seaplan~ ramps and parking space, small. responsibility. island of Guam in the mid-Pacific. 3296 CONGRESSIONAL RECORD-HOUSE APRIL 2 Opposition to this item has been based on introduced in Congress. The project in­ have lent themselves to the defense of the assumption that Guam is to be fortified cluded the following items: the island at the time of the attack. and made into a strongly defended naval base· Breakwater across entrance to An observation made by Maj. George lor airplanes and submarines. Apra llarbor ______$2,200,000 Fielding Eliot early in 1939 on Guam is In view of this opposition, the committee Removal of coral heads, outer has gone into this matter at great length, harbor ______pertinent: 800,000 The decision to fortify Guam, or not to and I can assure you that there is no inten­ Dredging inner lagoon and con­ tion on the part _of the Navy Department to fortify, is bound up with the broader ques­ necting channel------1, 000, 000 tion of what our policy in the Far East is fortify Guam or to do anything further than Bombproofing power plant, PitL. 175, 000 what is included in this bill. going to be. It would be dtmcult to find a Conversion of power plant, Agana, better example of the interlockin g charact er The Senate Naval Affairs Committee to oil burning and bombproof- of military and foreign policy, which re':{Uires reported the bill without the Guam proj­ ing______·------100,000 the former to be adequate to support the Bombproof shelt ers for personneL 200,000 latter, while requiring the latter not to go ect and the Senate passed the bill also Recreation facilities ______75,000 without it. And since no authorization beyond the bounds of the former's &bllity so Bombproofing communication to support it. for the Guam project was voted, no center ------· 150,000 money was appropriated for it. • • • Certainly, the fortification of This authorization was accepted by Guam, the e;Kistence . there of any con'Sider­ Included in the Budget proposal for able strilting force, would make easier the public works for 1941 was a $5,000,000 Congress and included in the act of operations incident _to a war with Japan. project labeled "Fourteenth naval dis­ March 23, 1941. The appropriation of. But merely beginning these fortifications trict, improvements of harbors and chan­ the $4,700,000 was made in the Fourth might precipitate such a war. · Supplemental National Defense Appro­ nels." Of the $5,000,000, $4,000,000 was Who is there who will deny that the for Guam for the following purposes: priation Act for 1941 which was signed on March 17, 1941. item for harbor improvement as recom­ Breakwater across entrance of As yet the Congress has no information mended by the Department in 1939 if Apra lfarbor ______$2,200,000 done as a military project might have Removal of ·coral heads in outer of the progress which had been made in the work at Guam prior to the time the been the spark which would have ignited harbor ------800, 000 hostilities many m·onths before Pearl Dredging inner lagoon and con- Japanese took over the island early in necting channel------1, 000, 000 December. It must be remembered that Harbor and at a time when this country the far-away location of this outpost was far less prepared for-war than it was When members of the House Naval makes speedy construction most difiicult. in December 1941? It may weU be that Appropriations Subcommittee questioned Whether the harbor facilities and the the President was reluctant to press the Rear Admiral Moreen, Chief of the Bu­ bombproofing of certain shore establish­ military development of Guam for fear reau of Yards and Docks, as to the pro­ ments proved to be of any value must be that as Eliot said it might precipitate cedure which has been followed, he determined in the future. Whether forti­ a war at a time when there was claimed admitted that the items of harbor im­ fications, such as were contemplated by to exist certain commitments made by provement for Guam were included as a the Hepburn board, but never pressed by him with other foreign nations involv­ part of the project for which Congress the Navy or the President, would have ing extraordinary and far.-reaching mili­ had refused authorization the year be­ materially changed the results of the sur­ tary obligations and responsibilities. fore. To justify the request for the ap­ prise attack early in December is a de­ The SPEAKER pro tempore. Under a propriation when the authorization haLl batable question. However, we do have . previous order of the House, the Chair been rejected the year before, Admiral an assertion by a high naval officer in the recognizes the gentleman from Califor­ Moreen cited Cannon's Procedure. Department that construction and com­ nia [Mr. VooRHIS] for 10. minutes. He also contended that the project pletion of the $5,000,000 item recom­ . BUREAU OF THE BUDGET was quite different from that of the pre­ mended by the Department in 1939 would Mr. VOORHIS of California. Mr. vious year since it included only 3 of 15 not have avoided the devastating attack Speaker, I have asked for this time to items then asked for. It is true that the on Pearl Harbor and would only nave discuss a matter which has disturbed me 1939 items of seaplane ramps and park­ made available to the enemy an addi­ for some time; that is, the matter of cer­ ing space, small power plant, and neces­ tional base from which to operate air­ tain action·on the part of the Bureau of sary accessories, totaling $900,000, did not planes against us. the Budget. appear in the 1940 request. It was con­ In conclusion, a few comments are ap­ I should like to introduce what I have tended that the harbor improvement was propriate. In the first place, it should to say by pointing out that during the needed for safe operating conditions for be clear that no specific proposal for the past fiscal year the Bureau of the Budget aircraft and vessels en route to and from fortification of Guam and its develop­ has frozen $37,000,000 of funds that were the Asiatic station. No fortification was ment as an effective naval base was sub­ appropriated by the Congress to the De­ involved. Up to this time national policy mitted to Congress for action. The Hep­ partment of Agriculture for the carrying · had not been determined by the President burn board recommended such develop­ out of the purposes of section 32. Those to the point suggested by Admiral Leahy ment and Secretary of the Navy Swanson purposes have included the stamp plan, at an earlier date. transmitted its report to Congress "with the school lunches, and other similar The House Appropriations Committee my approval." Admiral Leahy, Chief of methods of distribution and increased reported the bill with the Guam project Naval Operations in 1939, testified that consumption of agricultural commodi­ retained but with the total-cost limit re­ in his own opinion such development ties, with the primary purpose in view of duced from $4,000,000 to $3,000,000 and would be very valuable to the Navy. But stabilizing farm priees and preventing a cash appropriation of $1,000,000 for the such a program was never approved by surpluses from glutting the market, but fiscal year 1941. The debate in the House the President's Budget Bureau in the with a corresponding effort to get food­ was similar to that of the year previous. form of either a request for an authoriza­ stuffs to the people who really need Finally Representative RICHARDS, Demo­ tion or appropriation. It was not a part tbem. The beneficial results of these crat of South Carolina, moved to strike of his program. programs on the health and attendance out the item. His motion carried in a The 1939 request for a $5,000,000 au­ records of school children are univer­ teller vote, 123 to 114, and again the thorization for harbor improvement at sally acclaimed. Guam Harbor improvement was rejected Guam was by no means a proposal for - The amount of money frozen by the by the House, this time in the form of fortification. Such improvement would Budget is enough to have permitted an appropriation. have made Guam more useful for sea­ every single one of the estimated The Navy requested the Senate Appro­ planes and for light naval vessels; but it 9,000,000 undernourished children in this priations Committee to restore the Guam is clear that the defenses of Guam country to purchase, at a cost of 1 cent, item, but the committee did not accede against the Japanese attack would not a half pint of milk a day for a year. ·to the request. So there was no appro­ have been appreciably strengthened. It is enough, if added to the amount ap­ priation for the Guam Harbor improve­ Failure to fix with any degree of definite­ propriated by the House this· year, to ment project in the Navy Dzpartment ness or certainty our national policy at have had a school lunch for every one of Appropriation Act for 1941. a very much earlier date than it was the 9,000,000 undernourished children in Early in 1941 an authorization as well :fixed appears to be the one factor for not this country during the coming year, and as an appropriation bill for ·Guam was undertaking such fortifications as would the health of our children is the main 1942 CONGRESSIONAL RECORD-HOUSE 3297 protection against disease and the main houses. More are on a v.aiting list. But cies. He pleaded that "farmers who are now assurance of the kind of stalwart people this project, hailed by school and welfare engaged in this food-for-freedom program Americans must be as we face. this war leaders since its inception in January, stands have a right to expect that we will not go to be cut at least 25 percent--and conceivably back on our moral obligation to see that their and the dangers that lie ahead. At the abolished-if Congress does not come prices do not collapse." same time, I would point out we have through. But his amendment was defeated on a appropriated about $2,000,000,000 di­ Eight thousand youngsters in the Capital's point of order. rectly for lend-lease food shipments. I elementary schools and 3,000 more in the Since there is no special authorization by am no~ going into a long discussion to­ junior and senior highs are receiving free Congress to .appropriate for these surplus day about the school-lunch program, in hot lunches daily. A 40-percent slash is in marketing and distribution activities, other which I believe so much, but I do ask prospect here. than the aforementioned section 32 of the Agricultural Adjustment Act of 1935, the rais­ unanimous consent, Mr~ Speaker, to in­ 25,000 BENEFIT MONTHLY clude with my remarks a very excellent Each month 25,000 men, women, and chil­ ing of a point of order against any restorative dren on relief or in the lowest income brack­ amendment that may be proposed on the article appearing in the Washington S3nate side would kill hopes for a supple­ Post of last Sunday on this general sub­ ets are being aided by free distribution of 600,000 pounds of flour, fruits, vegetables, mental allotment. - ject. corn meal, salt pork and sundry surplus foods The SPEAKER pro tempore. Is there bought up by the Agricultural Marketing Mr. MURDOCK. Mr. Speaker, will objection to the request of the gentle- . Administration. A still unestimated reduc­ the gentleman yield for a question? man from California? tion in this activ~ty is likewise inevitable, as Mr. VOORHIS of California. Yes; I TherJ was no objection. the appropriations bill now stands. yield. ·The matter referred to follows: Washington's poor also are served by the Mr. MURDOCK. Do I understand Agriculture-Work Projects Administration that the money the·gentleman speaks of [From the Washington Post of March 29, 5-cent milk plan, by which some a,700 fami­ 1942] has been appropriated by the Congress lies are buying an average of 90,000 quarts and its expenditure _has been held up by BUDGET-AXING PERILS DISTRICT OF COLUMBIA'S a month at a nick~! each, due to the Federal PENNY MILK subsidy whic~l similarly makes the school the executive department? (By Gerald G. Gross) milk program possible. This successful form Mr. VOORHIS of California. That is Crippling of the Federal Government's of public assistance faces the ax, too. right. By the Budget Bureau. The surplus-foods program appeared as an imme­ Also affected would be the District's many money was specifically appropriated by diate threat yesterday. summer camps for underprivileged children, the Congress· for this purpose. The Bu­ ?enny milk, 5-cent quarts, school lunches, which depend in larg-e measure upon surplus reau of the Budget, however, decides on food stamps, direct distribution of food-all food aid and, in the same category, various its own motion that the money should are in danger of drastic curtailment because Work Projects Administration household projects. not be spent for this purpose. They the Budget Bureau has snipped $100,000,000 freeze it in a fund and it is not available off the Agricultural Marketing Administra- The Capital'1:i plight, serious as it is, pales tion's 1942-43 a1lotment. · . besides that of the Nation ·as a whole. for the purpose for which Congress de­ Not only do some 10,000,000 relief and low­ The food stamp plan, whose place is taken cided it should be available. income families stand to suffer, if Congress in the J:?istrict by direct distribution of sur­ Mr. MURDOCK. It is an illustration does not restore all or part of the cut,. but so plus toods, today covers 19 States in their o: the interesting Pvint which has re-:' do the thousands of farmers wh,o are bene­ entirety. It is in operation in 1,224 counties cently arisen in our Government as to ficiaries at the production end. The issue and 83 cities. In February there were 3,600,- the powers of the two departments of rests, for the moment, with the Senate Ap­ 000 participants, who obtained in exchange propriations Subcommittee, which will open for their blue stamps food valued at $9,600,000. our Government. hearings this week on the agriculture supply SIX MILLION ONE HUNDRED THOUSAND SCHOOL Mr. VOORHIS of California. That is bill. LUNCHES correct. STOR~ IN BRIEF During the same month 6,100,000 children This is not the only case in which this What has happened, in substance, is th.is: got free hot lunches in 93,000 schools. Into has happened. It happened in the case In 1941 Congress appropriated, with the these meals went 66,700,000 ·. pounds of beans, .of the Civil Aeronautics Authority, and Budget Bureau's assent, $100,000,000 to sup­ oranges, flour, pork, and dozens of other in­ the gentleman from California [Mr. plement Agriculture's statutory allotment for gredients worth $5,300,000 on the retail mar­ CARTER] I am sure will confirm that. continuation of its surplus-marketing pro­ ket. Mr. CARTER. I was just ·going to gram. By "statutory allotment" is meant The school-lunch program is in operation in the provision in the 1935 Agricultural Ad­ all 48 States, Hawaii, Puerto Rico, the Virgin :

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