' 11798 CONGRESSIONAL RECORD-HOUSE JANUA.RY 20 · Boatsw~in William S. Burns to be a chief boatswain in the Second Lieut. Oregon A. Williams · to be a first lieutenant in Navy, to rank with but after ensign, from the 5th day of the Marine Corps from the 7th day of July, 1927. August, 1926. . Second Lieut. Clifton L. Marshall to be a first lieutenant in Boatswain Harold S. Bogan to be a chief boatswain in the the Marine Corps from the 25th day of July, 192'7. Navy, to rank with but after ensign, from the 23d day of July, Second Lieut. Evans F. Carlson to be a first lieutenant in the 1927. Marine Corps from the 'ith day of September, 192'7. Electrician Joshua V. B. Meeker to be a chief electrician in Second Lieut. John W. Lakso to be a first lieutenant in the the Navy, to rank with but after ensign, from the lOth day of Marine Corps from the 21st day of October, 192'7. November, 1927. Second Lieut. Harold C. Roberts to be a first lieutenant in the Radioelectrician Anthony B. Pronier to be a chief radio­ Marine Corps from the 22d day of October, 1927. electrician in the Navy, to rank with but after ensign, from the Second Lieut. Monroe S. Swanson to be a first lieutenant in 20th day of September, 1927. the Marine Corps from the 23d day of November, 1927. MARINE CORPS Second Lieut. Franklin W. R. Brown to be a first lieutenant Capt. Egbert T. Lloyd to be a major in the :Marine Corps from in the Marine Corp.<; from the 21st day of December, 1927. Second Lieut. Will H. Lee to be a first lieutenant in the tile 7th uay of September, 1927. Marine Corps from the 29th day of December, U>27. First Lieut. Merritt A. Edson to be a captain in the Marine Second Lieut. William E. Lee to be a first lieutenant in the Corps from the 21st day of December, 1927. Marine Corps from the 11th day of January, 1928. First Lieut. John A. Tebbs to be a captain in the Marine The following-named noncommi '!::ioned officers of the Marine Corps from the 11th day of Janua1.·y, 1928. Corps to be second lieutenants in the Marine Corps for a proba­ The following-named first lieutenants to be first lieutenants in tionary period of two years from the 20th day of January, 1928: the Marine Corps from the dates indicated, to correct the dates from whi<:h they take rank as previously nominated and con­ Corp!. Clinton E. Fox. Corp!. Louis C. Plain. firmed: Corp!. Harold R. Lee. Corp!. Robert L. Peterson. Jame' .•. Monahan from the 25th day of July, 1925. Oorpl. Karl K. Loutller. Oorpl. Paul Drake. John A. Bemis from the 28th day of July, 1925. Corpl. Walker A. Reaves. Corpl. George E. '\'\"illiams. Howard N. Kenyon from the 7th day of August, 1925. William N. McKelvy, jr., from the 11th day of August, 1925. CONFIRM.ATIOX Andre Y. Cherbonnier from the 7th day of September, 1925. William ,V. Davies from the 14th day of September, 1925. Executive nom·ination confinned by the Senate Jauua:ry 20 Bayard L. Bell from the 15th day of September, 1925. (legi,slatitve day of January 17), 1928 Vernon E. Megee from the 25th day of September, 1925. STEAMBOAT I5SPECTIOX SERVICE Auaustus W. Cockrell from the 27th day of September, 1925. Alexander 0. Calcott to be ;upervising inspector, third dis­ James M. Smith from the 1st day of October, 1925. trict. William H. Doyle from the 3d day of December, 1925. Ernest E. Linsert from the 19th day of .January, 1926. Orin H. Wheeler from the 27th day of January, 1926. HOUSE OF REPRESEXT_-\.TIVES Joseph DaO. Humphrey from the 11th day of February, 1926. EYerett H. Clark from the 24th day of February, 1926. FRIDAY, J awuary ~0, 1928 Lewis A. Hohn from the 3d day of March, 1926. The House met at 12 o'c10<>k noon. William 0. Brice from the 26th day of May, 1926. The Chaplain, Rev. James Shera Montgomery, D. D., offered :b'rancis M. 'Vulbern from the 3d day of June, 1926. the following prayer : Edwin A. Pollock from the 6th day of June, 1926. Randolph :McO. Pate from the 11th day of June, 1926. Eternal God and our Father, we thank Thee that Thou art Uornelius J. Eldridge from the 16th day of June, 1926. the accessible and holy authority for all who come unto Thee. Lucian C. Whitaker from the 22d day of June, 1926. We would be earnest seekers for the power of the spirit of John R. Streett from the 27th day of June, 1926. service to fulfill the duties and the privileges of to-day. Lift l!'ranklin C. Hall from tbe 11th day of July, 1926. us far above all blame and need of praise by inspiring us to Beverley S. Roberts from the 15th day of July, 1926. make our liv~ noble, our love of country l'a.cred, our loyalty Dudley W. Davis from the 27th day of August, 1926. beyond question, and our achievements a rebuke to ease. John C. Donehoo, jr., from the 7th day of September, 1926. Blessed Lord God, help us to live among m·en as builders of all Raymond P. Coffman from the 14th day of September, 1926. that tends for stability, order, and the very best productive­ Rolph B. DeWitt from the 1st day of October, 1926. ness in human life. Strengthen our ties of fraternity, broaden John B. WeaYer from the 2d day of October, 1926. our scope of charity, and may our simple, holy faith have a James 1\I. McHugh from the 5th day of October, 1926. fine fruition in all hearts. After a long while let us rest where Rupert R. Deese from the 31st day of October, 1926. all night is past and where the day has dawned forever. In the Harry E. Dunkelberger from the lith day of November, 1926. holy name of Jesus. Amen. Second Lieut. James P. Riseley to be a first lieutenant in the The Journal of the proceedings of y~i:erday was read and :Marine Corps from the 9th day of November, 1926. approved. Second Lieut. Clayton C. Jerome to be a first lieutenant in the Marine Corps from the 15th day of November, 1926. INDEPENDE...~T OFFICES APPROPRIATION BILL · Second Lieut. Emery E. Larson to be a first lieutenant in the Mr. ·wooD. Mr. Speaker, I move that the Hou._e resolve 'Marine Corps from the 20th day of November, 192G. itself into the Committee of the Whole House on the state of Second Lieut. Robert L. Skidmore to be a first lieutenant in the Union for the further consideration of the bill (H. R. 9481) the Marine Corps from the 30th day of November, 1926. making appropriations for the Executive Office and s-undry in­ Second Lieut. George J. O'Shea to be a first lieutenant in the dependent executive bureaus, boards, commissions, and offices Marine Corps from the 8th day of December, 1926. · for the fiscal year ending June 30, 1929, and for other purposes. Second Lieut. Charles C. Brown to be a first lieutenant in the The motion was agreed to. :Marine Corps from the 31st day of December, 1926. Accordingly the House resolved itself into the Committee of Second Lieut. Frederick W. Biehl to be a first lieutenant in the ·whole House on the state of the Union for the further con­ the Marine Corps from the 3d day of January, 1927. sideration of the bill H. R 9481, with Mr. DowELL in the chair. Second Lieut. Eugene H. Price to be a first lieutenant in the The Clerk read the title of tbe bill. Marine Corps from the 6th day of February, 1927. :Ur. WOOD. Mr. Chairman, I yield myself one hour. Second Lieut. Lyman G. Miller to be a first lieutenant in the Mr. Chairman and gentlemen of the committee, I will try as 1\Iarine Corps from the 13th day of February, 1927. be t I can, and as briefly as po sible., to point out orne of the Second Lieut. Ralph E. Forsyth to be a first lieutenant in salient features of the bill now before the committee for its the Marine Corps from the 7th day of March, 192'7. con ·ideration. Second Lieut. William 1\1. Mitchell to be a first lieutenant in In presenting the independent offices appropiration bill for the Marine Corps from the 31st day of Ma1·ch, 1927. the fi cal year ending June 30, 1929, I desire to make the fol- Second Lieut. James A. Stuart to be a first lieutenant in the lowing statement: · Marine Corps from the 9th day of April, 1927. The bill embrace:-: regular annual appropriationR for tile office Second Lieut. Pierson E. Conradt to be a first lieutenant in of the President and for the independent e. ·tabli hments of the the Marine Corps from the 14th day of April, 1927. Government, and its order and arrangement follow the general Second Lieut. Howard R. Huff to be a first lieutenant in the outline submitted by the President in the Bud.get for the fiscal .Marine Corps from the lOth day of May, 1927. year 1929. Second Lieut. William W. Orr to be a first lieutenant in the A detailed tabulation will be found at the end of this report Marine Corps from the 29th day of June, 1927.. showing the amounts appropriated for the fiscal year 1928, the 1928 CONGRESS! ON AL RECORD--HO.USE 1799

Budget estimates for 1929, the amount recommended to be appro- fhe manner in which property bas b~n returned to claimants, priated in the bill for 1929, togeth~r with the ·mcrease or de- and the division of property still held by the Alien Property crease in appropriations and estimates as compared with the Custodian; all statements as of Octobe1· 31, 1927: amounts recommended in the bill. - Trust property a. han4 andi claim-8 paW., OctOOer 31, ~ APPROPRIATIONS ANl> ESTIMATES Cash deposited with the Secretary of the Treasury : The Budget estimates upon whlch this bill is based were sub­ In-rested------~------~ $184,655,065.51 mitted by the. President in the Budget for the :fiscal year 1929 C'ninv~ted------.----~---- 300, 864. 23 ·and will be found in detail in Chapter II of that docum~ Total cash------184,955,929.74 pages 31 to 112, inclusive, aggregating $527,553,802. Cash8toeks_ with______deposttaries ______25,495.87 4.2, 951, 506. 00 The total appropl'iations for the independent offices provided Bonds other than investments made by the Secretary for in this bill for the fiscal year 1928 amounted to $533,908,414. 30,284,948.23 The amount recommended to be appropriated in the accom­ ~rg:t~~~~~~==:==:::::::::::::=:::::::::=: 1, 924, 193. 4tJ' RealNotes estate_ receivable------______245,483.45 panying bill for the :fiscal year 1929 is $526,193,111, which sum, 3,179,717.62 eompared with the regular annual and deficiency appropria,- Aceounts receivable------­ 577,931.71 tions for 1928 and the estimates for 1929, is as follows : · Miscellaneous incorporated business and estates in It is $7-,715,303 less tllan the total of the 1928 appropriati-ons, liquidation and remainderman accounts______464,'655.73 and it is $1.360,691 less than the estimates submitted for 1929. Total _____ ------264,609,862.77 In addition to the appropriations above mentioned pe-rmanent Claims paid to date------350,008,832.55 annual and indefinite appropriations made without annual Total property accounted for ______action by Congress for the :fiscal year 1929 are as follows : 614, 678, 695. 32 Relief of indigent in Alaska______$15, 000 Property returned to claimants, Alien Properly Oustodi.a'lt-, as of October Federal Board for Vocational Education______7, 367,000 S1, 1!J21 Federal Power Comm.iBsion ______;_ 8, 250 Cash returned under sec. 9------$144, 224, 676. 45 l!'ederal Reserve Board______2, 700, 000 Income returned under sec. 23------16, 369, 034. 24 Smithsonian Institution------60, 000 Interest payments under Henkel's decision______1, 972, 859. 72 Veterans' Bureau______74, 500, 000 Stocks r-eturned under sec. 9 __ :.______62, 802, 282. 93 Bonds returned under sec. 9------58, 077,-848. 56 Total------84, 650, 250 Real estate returned under sec. 9______9, 142, 835. 30 EXECUTIVE OFFICE Mortgages returned under -sec. 9------5., 676, 551. 63 Notes receivable returned under sec. 9------3, 366, 693. 93 Under the Office of the Executive appropriations are made for Accounts receivable retlll"ned tmder sec. 9______6, 660, 950. 98 the salaries of the President and Viee President and for per­ Miscellaneous property returned under sec. 9______41, 775, 098. 81. .sonal services in the office of the President. In addition, there are appropriations for contingent and traveling expenses, print­ Total value of property returned______350,068,832.55 ing and binding, the upkeep and care of the Executive Mansion Dit:is-ion of property held by Alien Pt_·operty Oustotlian, Oc:tobet· 31, 1927 and grounds, and the White House police. ' German ____~ ·------$245, 213, 702. 70 ALlEN PROPERTY CUSTODIAN Austria and Hungarian------12, 337, 563. 38 For the office of the Alien Property Custodian the committee Interned------~------__:______13• 230. 49 Others------7, 045,366.20 recommends a change in the language of the paragraph provid- ing for the expenses of this activity. Under the terms of the Total------264,609,862.77 Winslow Act the Alien Property Custodian is authorized and I wish to say in passing that the present officer in charge of· directed to make certain charges in the handling of trust funds alien property has carried out to the letter the provisions of the and other properties, and as a consequence the cost of the work Winslow Act in making the office of the Alien Property Cus. of this establishment has become self-sustaining. The language todian self-supporting. A reference to the hearings in this recommended by the committee is as follows : matter will .show that the office of the Alien Property Custodian All 'expenses of the o:filce of- the Alien Property CustOdlan authorized has b~ conducted at far less expense, in proportion _to the by the act entitled "An act to deftne, re..~ate, and punish 'tr.ading with flDlOunt of assets on hand· and the responsibUities involved, than , 'the enemy, and for other purposes," approved October 6, 1917, as at any time heretofore. - amended, includ~ compensation of the Alien Property Custodian at I see by reading the REcoRD that some one raised the point ·hot to· exceed $10~000 per annum, shall be paid from Interest and that the proposed increase in salary of the Alien Property Cus-­ collections' on trust funds and other properties under the control o1 todian, increasing the salary to 10,000, is subject to a point of such custodian. order. I think if this point is raised when we come to a dis­ cussion of the -bill in detail, it will be ea.sily determined it is ·The provisio-ns of the above paragraph limit the maximum not subject to a point of order, for the reason that the office ot, compensation of the Alien Pro-perty Custodian to $10,000 pe_r the Alien Property Custodian is not under civil service, is not' annum, which hereto-fm·e has been at the rate of $7,500 per subject to reclassifrea.tion, and in consequence the ..A.l ien Property annum. Custodian eould fix salaries ad libitum. For the purpose of There is submitted herewith a statement showing all receipts making it perfectly within the rule, a limitation has been .:fixed and disbursements ot the Alien Property Custodian from 1918 upon the salary of the Alien Property Custodian at $10,000, and, to October 31, 1927, inclusive: in my opinion, if there is anybody whose work is worthy of the Receipu and disbursements of the AUen Properly Oustodian, 1E18 to hire and worthy of the compensation that has been fixed, it is October 31, 19'1:1, iaclU8£-ve the W(}rk that has been done by the Alien Property Custodian. To indicate the volume of work of the office of the Alien Prop­ Appropriation Special account r S_peeial account No. 2 1 erty Custodian, the following statement _is submitted showing Fiscal year the number and disposition of claims filed up to October 31, Apvropria- Disburse- R~ipts Disburse­ Disburse­ 1927: tion ments ments Receipts ments Numiber and dispos-ition ot clnims filed up to October 3~ 1!Yl7 Disposition : Suits under sec. 9------­ 528 1918______$4_95, 000. 00 $494,609.42 ------Allowed by Attorney GeneraL------6,822 1919 ______1, 015,000.00 998, 195. '1!1 ------Disallow€d by Attorney General ______1,480 Allowed by Alien Property Custodian ______23,302 Disallowed by Alien Prope~.'ty Custodian______1922~Wt===~== ______..., 375,m ooo.~: oo~ 369,~ ~01s. ~68 ======$11,295. o9 ======$20,494.19 ======------======--=------1,366 rwa______370, ooo. oo 322, OOL M 62,501.56 -oo, ooo. 88 ------;~ ------Witbdt·awn------­ 985 1924------~ 281,200.00 281,019. 49 85,349.36 51, 804..24 $116,201.1-1 $94,248. (6 Canceied------2,113 rm______225, ooo. 203,340. 53 14, 563. 65 46, 169. 25 162, 66L 34 178, rm. 09 Pending before the Alien Property Cu.stodia.n, At- oo torney General, and courts------1,94() 1926.._____ 189,220.00 { l~: '{11-,: ~} 78,899.98 57,969.77 382,890.34 335,4W. 93 1927______130, 650.00 127,066.47 113,842.83 81,971.31 431,213.10 319,.575. 48 Total number filed------­ 38,536 1928(to Oct. Total number filed sinee M.ar. 1, 1923, to Oct. 31, 31, 1927)_ '\}8, 000. 00 31,306. 75 22,693.77 13,280.18 99,760.26 103, 71S7. 78 1927 ------26,831 TotaL 4, 434, 070. 00 4, 181, 467. 72 389, 146. H 337, 749. 80 1, 192, 726. 21 I. 031, 158. 74 Property and cash returned under the Winslow bill from Nov. 1, 1926, to Oct 31, 1927------$4, 5:29, 535. 10 1 Special account-Department of Justice deduction for administrative expense on Property and cash returned under the Winslow bill claims allowed by the department. from April, 1923, to Oct. 31t. 1.927------53, 215, 518. 10 • 2 Special account No. 2-Deductions on receipts and disbursements of the Alien Property and cash returned unaer provision 1, 670.43 At Cantigny. Estimated expenditures remainder fiscal At Audenarde, near Ypres. The last two places mentioned are in year 1928 . __ ------______------___ ------_____ 2, 839, 670. 45 Belgium and the otbers in France. In the city of Tours, France, a monument will be erected to the serv­ ices of supply. An«d:: :::_··:.~=!~~-.:·~- ~::: ::::::::::::::1:::::::::::::: ~:: : One of the large naval memorials will be erected at Brest, France, Balance available July 31, 1927. ______------3, 504, G70.45 Appropriation asked for fiscal year 19~------2, 500,000.00 and the other in Englund. The three smaller naval memorials will be located at Gibraltar, at Corfu, Gr-eece, and at Ponta 'Del.gada. in the Total funds ______------6, 004,670.45 Azores ; and as stated before~ a joint Army and Navy memorial will be placed in Rome, Italy. BOaRD OF MEDIATlO~ The two bronze tablets referred to will IIUlrk, respectively, the general Appropl'iations for the Board of Mediation are recommended headquarters of the American Expeditionary at Chaumont, France, by the committee in accordance with the e::;timates !:!ubmitlell an

Persons examined ______216,135 2fr7, 340 In District Outside 248,236 221,658 Date of Colum- District of Total Persons appointed in classified bia Columbia service ______------67,349 50,164 38,916 42,063 Different kinds of examinations held, exclusive of trade positions_ 983 979 978 ~ Original military preference claims_ 08,127 liB, 785 47,858 54,003 June 30, 1916...------­ 39,442 398,615 438,057 Communications received______1, 091,185 1, 130,202 1, 050,662 1,176, 259 JulyNov. 31, 11, 19201918 ______------_ 117,760 '800,000 !917, 760 Retirement cases ______2,082 2,063 1,895 3,056 90,559 '600,557 2691,116 Continuanc-e cases._------1,565 2,085 2,046 2,682 July 31, 1921------­ 78,865 518,617 597,482 Unclassified employees ______139,393 141,180 138,405 136,140 June 30, 1922------­ 69,980 490,883 560,863 Classified employees __ ------415,593 423,538 m,3oo .22,998 June 30, 1923------­ 66,290 482,241 548,531 Total employees in executive civil JuneDec. 31,30, 1923------}924______65,025 479,646 614,671 service_------654,986 564,718 560,705 559,138 64,120 490,866 554,986 Commission's employees ______498 467 460 452 Dec. 31, 1924_------66,079 489,540 555,619 June 30, 1925------63,756 500,962 564, 7!8 Dec. 31, 1925------·------61,509 486,568 548,077 For general information the following statements are sub­ 60,811 499,894 560,705 b~~ :~: t:t==::::::::::::::::::::::::::::::::: 59,569 486,772 546,341 mitted, showing the number of employees in each branch of the 1une 30, 1927------59,800 499,338 559,138 ll"'ederal executive ci.vil service on June 30,. 1927, with totals for November 11, 1918 (armistice date), a.nd later dates, com­ Does not include legislative or judicial services, nor the commissioned, warranted, prising classified and unclassified (which includes presidential) or enlisted personnel of the military, naval, Marine Corps, or Coast Guard Services, positions: nor the government of the District of Columbia. 2 Approximated. 1nne 30, 1927 In passing I wish to call attention, as the attention of every member of the committee bas been called to it, to the examina­ In District of Outside District of tion that was held under the law for the classification of pro­ Department or office Columbia Columbia hibition agents. Seventy-five per cent of those who applied out Total of the 19,000 failed by reason of the inental test. Whether that mental test was too high I do not know, but it occ-urs to me Men Women Total Men Women Total that there ought to be some simplified way so that they could ------~------1-----1----- get at an honest person with intelligence enough to perform The White House______43 3 46 {6 the duties incident to the enforcement of the prohibition act. 284 609 --2;3«- --i;400- --3;75() {, 359 State------325 It does not make much difference whether a man kn~ws what Treasury------6, 210 7,880 14, 090 30, 702 6, 740 37, 442 51, 532 War------2, 357 1, 7« 4, 101 34, 481 3, 710 38, 191 42, 292 the capital of the Fiji Islands is in order for him to make a Justice ___ ------492. 232 724 2, 358 589 2, 947 3, 671 . good prohibition agent. Post Office ______3,117 789 3, 906 278, 3H '26, 520 304,834 ~308, 740 Navy______4, 449 1,127 5, 576 35, 575 2, 274 37, 84.9 43, 425 lllMPLOYEES' COMPB.NSATION COMMISSION Interior______2, 225 1,240 S, 465 10, 701 2, 184. 12, 885 16, 350 Agriculture______2, 821 2,010 4, 831 14, 590 2, 281 16, 871 21, 702 Appropriations for the Employees' Compensation Commission Commerce______2, 734 1,609 4, 343 9, 834 787 10,621 14,004 are recommended in accordance with the estimates ·submitted Labor.------278 341 619 2, 749 619 3, 386 3, 987 in the Budget and aggregate $3,675,000. The sum recommended Gonrnment Printing Office______II, 232 848 4,080 to be appropriated for salaries is $75,460 in excess of the ap. Smithsonian Institution_ 391 137 4, ~ :::::::: :::::::: ::::::: 928 propriation for similar purposes for the current fiscal year and Interstate Commerce may be accounted for by the additional personnel necessary to Commission______1,044 328 1,372 532 13 545 1,Q17 Civil Service Commis- carry out the provisions of the longshoremen's act passed sion______------130 208 338 66 53 119 457 during the last session of Congress. This act covers the in­ Bureau of Efficiency____ _ 49 22 71 ------71 juries of persons engaged in maritime employment upon the Federal Trade Commis- sion.______------205 88 293 navigable waters of the United States, including dry docks. Shipping Board ______479 350 1,632 For the purposes of administration 14 compensation districts Alien Property Custo- 1 were organized, and the increase recommended in the accom­ dian______107 101 208 Tariff Commission______1.23 73 ~ panying b-ill is to provide the salaries of deputy commissioners Employees' Compensa- and other personnel, including expenses of 14 field offices located tion Commission______21 50 71 ------71 Federal Board for Voca­ in the following cities: Boston, New York, Philadelphia, Balti­ tional Education______33 35 68 ------68 more, Norfolk, Savannah, New Orleans, Galveston, Cleveland, Does not include legislative or judicial services, nor the eommissioned, warranted Chicago, Louisville, St. Louis, Seattle, and San Francisco. or enlisted personnel of the military, naval, Marine Corps, or Coast Guard services, li'EDERAL POWER COMMISSION nor the government of the District of Columbia. 'Approximated. The sum of $112,640 is recommended to be appropriated for • Includes 13,200 clerks at third-class offices, ro3 screen-wagon contractors, 274 carriers for offices having special supply, 5,528 clerks in charge of contract stations, salaries and · general expenses, including printing and binding 11,215 star-route contractors, and 271" steamboat contractors. Does not include 34,809 for the Federal Power Commission for the ensuing fiscal year. clerks at fourth-class offices who are employed and paid by the postmaster, and An increase of $80,340 in the salary appropriation for 1929 as 22 131 mail messengers not included in previous computations. l Includes administrative offices of tbe Emergency Fleet Corporation, but not compared with the appropriation for 1928 is accounted for by workmen at shipyards or in warehouses or employees on vesSelS. · the fact that np to the present time the work of the commission 1802 CONGRESSIONAL RECORD-HOUSE JANUARY 20 has been performed by employees detailed from other depart­ undertaken upon the request of either House of Congress unless ments of the Government. Seeking to remedy this situation and directed by concurrent resolution. This limitation has been appropriate directly for the costs of this activity, the com­ amended to include economic investigations. It was developed mittee inserted in the appropriation act for the current year a during the hearings that the Federal Trade Commission has provision directing the Federal Power Commission to estimate been engaged in econom\c investigations, not a few of which fQr ·the salaries of employees whose service with the commission were undertaken upon the motion of the commission. The act had become permanent through such detail. As a result, 28 creating the Federal Trade Commission specifically sets forth employees are being provided for in the accompanying bill, the powers and duties- of the commission, and it may upon its their salaries are directly charged to the expense of the com­ own motion undertake investigations relating to the use of un­ mission, and it is now possible to ascertain correctly the fair methods of competition in commerce, and to gather and amounts expended for the work of the commission. Reductions compile information and investigate any corporation engaged in in the appropriations for other departments have been recom­ commerce. The testimony given before the committee indicated mended in those instances where the salary of an employee that many of the investigations directed by the Federal Trade engaged in the work of the Federal Power Commission was Commission had no relation to matters involved in interstate provided from appropriations for that department. commerce, merely being economic investigations, and the atten­ FEDERAL RADIO COMMISSION tion of the Congress is called to this misdirected energy of the commission. The attention of the Comptroller General has also For the current fiscal year an appropriation of $52,186 was been called to these matters, and it is hoped that further ex­ carried in the first deficiency act for 1928. The sum recom­ penditures of Federal funds for unlawful investigations may be mended in the accompanying bill for the fiscal year 1929 is prohibited.. $80,560, an increase of $28,374. Since the organization and first Mr. GAR~TER of Texas. Mr. Chairman, will the gentleman meeting of thls commission on March 15, 1927, 680 broadcast­ yield at this point? ing stations have been licensed, and there are pending approxi­ Mr. WOOD. Yes. mately 400 applications. The approximate number of broad­ Mr. GARNER of Texas.. Does that broaden the powers of casting stations in the United States is 25,000, of which 16,000 the Federal Trade Commission in the gentleman's opinion? are amateur stations, 200 e}.-perimental, 340 land and commer­ Mr. WOOD. No. cial stations, 40 technical and training school stations, and Mr. GARNER of Texas. Does it contract in any way the about 2,100 ships licensed by the United States. powers of the commission under the present law? The question occurred to the committee that some provision Mr. WOOD. No; it just simply calls their attention to their should be made for the future to make this activity self-support­ duties under the organic act. ing, and how be t to apply the cost, or how best to apply the Mr. GARNER of Texas. In other words, you are trying in series of license fees, which is a very difficult problem. this appropriation bill, by putting a limitation upon it, to re· Mr. WHITE of Maine. Will the gentleman yield? mind the commission of its duties as a body? 1\1r. WOOD. I will. Mr. WOOD. Yes. I am free to confess that is what we are Mr. WIDTE of Maine. The gentleman has touched on a very trying to do, and if the gentleman will just let me proceed for interesting point, and for his information let me say that in the a few moments I think he will agree with me. bill drafted four or five years ago there was carried a provision Mr. GARI\TER of Texas. I just wanted to be certain. The for graduated fees for transmitting stations-graduated and in gentleman is on the Committee on Appropriations and is able sufficient amounts as we thought at the time to take care of to direct the attention of these bureaus to their duties. The the expense of administration. rest of the membership of the House, who are not so fortu­ I do not recollect whether that was in the bill which passed nately situated as the gentleman, do not have that privilege. I the House in 1923, but it was in one draft, and we dropped it just wondered about the propriety of the Committee on Appro· out. I agree with the gentleman that it is well worthy of priations undertaking to dictate to bureaus and independent serious consideration. offices, or to the administration itself, even, by expression of Mr. WOOD. In order that we might have something tangible this character in an appropriation bill? and definite it is the purpose of the Appropriations Committee Mr. WOOD. I am very glad to answer the gentleman, and to ask those in charge of the activity to give us some idea of I say that I think and I believe that by reason of his long how best to do that thing. It strikes me that this new arrange­ service and by reason of his keeping in touch and contact with ment is so impossible to the ordinary mind-this means of trans­ the operations of the various bureaus of this Government, he mission which is destined to be one of the greatest factors of knows, as well as anybody, how prone these bureaus are when communication that the world has ever known should be under once created to expand and extend their authority. One of some economic financial control. the great misfortunes of our Government has been the creation There are about 17,000,000 receivers in the United States. of new commissions or bureaus, being given authority under Of course, it would be impossible, I imagine, to have them the organic act whereby they may adopt regulations for the contribute, but somebody sells these 17,000,000 recehing sets. conduct of their business. Immediately they begin to legi ·late. They might be made to pay. We have more than 2,000 ships In consequence most of them go far afield, each of them ever on the high seas. It would be a difficult proposition, impractica­ trying to extend its jurisdiction and power. The Federal Trade ble, to include them, for in a large part the g1·eat service of Commission has not been immune from tllis offense, and to the radio with reference to those ships is saving life. , my mind it has been one of the greatest offenders. The Federal So I say these are some of the few difficulties with which Trade Commission, by reason of the act creating it, has a gentlemen solving the problem will have to contend. But it is wonderful extent of power, authorizing it to make examinations one that we must eventually solve. and inquisition into every corporation and business engaged :.Ur. JOHNSON of Texas. Will the gentleman yield? in interstate commerce. Mr. WOOD. I will. 1\Ir. GARNER of Texas. 1\!r. Chairman, wiU the gentleman Mr. JOHNSON of Texas. There has been a good deal of yield? criticism of the Radio Commission. I wonder if the committee Mr. WOOD. Yes. had any evidence before it in the matter. 1\ir. GAR:\Jl)R of Texas. I agree with that statement, and Mr. WOOD. No; except in a general way, and the hearings if the Federal Trade Commission personnel were composed of will disclose something about what the gentleman speaks of. the type of men that were contemplated at the time the act The important thing to me seems to have a limit in the number was passed, and who occupied that position for qulte a while, of wave lengths. There are innumerable short wave lengths I do not think the abuse the gentleman speaks of could be com­ which for most purposes are quite satisfactory. plained of at the present time. A great amount of complaint now coming in will perhaps be Mr. WOOD. Possibly that is true. satisfied when they can control the wave lengths or else make Mr. YINSON of Kentucky. Mr. Chairman, will the gentle­ them correlate one with the other. The subject is too deep for man yield? me. I do not know how they are going to do it. Mr. WOOD. Yes. Mr. VINSON of Kentucky. Referring to the limitation that FEDERAL TRADE COM?IIISSION has been carried in the appropriation bill, what effect has I desire next to cnll the attention of the committee to the tllat had upon the wo1:k of the commission? Federal Trade Commission which we still have with us. Mr. WOOD. It ha had some effect. It has not had the Appropriations aggregating $063,000 are recommended for the effc>rt that I think Congress intended it should have, by reasou Federal Trade Commission for the fiscal year 1929. A limita­ of an opinion that was handed down from the Attorney Gl'n­ tion has been car1ied upon the appropriation for salaries and eral's office, written by a. present member of the Federal Trade general expenses of the commission, aud attention is called to Commission. the fact that under t11is limitation no investigation that does Mr. VINSON of Kentucky. By whom was that opinion not relate to \llleged violations of the antitrust acts may be signed1 1928 CONGRESSIONAL RECORD-HOUSE 1803 1\.I:r. WOOD. It was prepared by Mr. Myers, written by Murdack and others were £onstant1y putting into effect resolti­ Mr. Myer. tions that were being passed by the other body, and occasionally Mr. VINSON of Kentucky. :But it was signed by the Attorney by tl'rls body, for na other purpose than inquiring into and General? trying to break down the l~gitimate business interests of thi~ Mr. WOOD. Yes. country. There is a young man by the name of Myers, a eon- Mr. VINSON of Kentucky. It was addressed to the President . tribution as a Republican to this body who filled the place of a of the United States. . socialistic member whose time had expired, and I confess they Mr. WOOD. And 1 expect as perfunctorily as most of these did not make any imp-rovement in the appointment. opinions are signed~ It would be absolutely impossible, as tbe I think the only recommendation he had was from the De­ gentleman from Kentucky will find out sooner- or late1·, for the partment of Justice, he then being in tbe Department of Jus­ man who signs these various·opinions to prepare- them himself, tice, and the desire was to get him out of that body and put and the gentleman will learn that nine-tenths o-f the opinions him into this one where be might be of still more trouble. That which come from the Attorney General's office, like nine-tenthS' gentleman is now advocating the idea that all tbe business of ot the reports that come from the Secretary of the Treasury or this country, so far as corporate intereste are conce1·ned, should the Treasury Department, are laid down before the chief and be under direct Federal control. That is to say, that there signed by him by reason of the chief's dependence on those who should not be a ·eorporation in existence except by li-cense from made t.hem. tbe United States Government. Mr. VINSON of Kentucky. Of course, at tbe time the opinion Mr. BYRNS. Mr. Chairman, will my friend yield? was prepared Mr. MyeFs, now eommission.e.r of the Federal Mr. WOOD. In a moment. I will place tbis whole articffi: Trade Commission, was in the Department of Justice? in tbe RECORD. :Mr. WOOD. Yes. Mr. BYRNS. I think my question is relevant right there to Mr. VINSON of Kentucky. I call the attention of the dis­ what the gentleman is stating, if tbe gentleman will permit. tinguished gentleman from Indiana to the fact that the Comp­ Mr. WOOD. I yield to the gentleman. troHer General prior to the time the Attorney Ge-neral signed Mr. BYRNS. I will ask the gentleman from Indiana if that opinion ·specifically passed upon the limitation that tbe that policy was no.t recommended by the Secretary of Com­ gentleman caused to be placed in the app-ropriation act of 1925, merce, Mr. Oharles Nagel, wlw served in the Taft administra­ and said: tion, and was also recommended by President Taft and Attor­ This exception has tlle eJfect o.f leaving undisturbed section 6 of ney General Wickersham and approved by Judge Gary, who subsection (d) of the aet of September 26, 1914, quoted above-- was of the United States Steel Co., with a number of large industrial plants located in the gentleman's district? which seetion was the one that pr()vided for inquiry being insti­ Mr. WOOD. I think that came very largely from the gen- tuted at the request of the President or of either Hou...~ of Con­ tleman he got the- information from. gress. I ask the gentleman if it is not the opinion of the Mr. BYRNS. I got it from tbe bearing. Attorney General and the Comptroller General that the only Mr. WOOD. I think that is so. has is. of effect tbat this limitation upon concurrent resolutions Mr. BYR~S. It was not contradicted at the time the state­ the C-ongress? ment was made at the hearings. Mr. WOOD. Yes; I agree with the gentleman on that propo­ Mr. WOOD. I did not know bow to contradict it. It came sition. And that is ju._o;;t the purpose we bad in mind in adding with an air of truth. But I now know tbr.tt it is a slander ·on tbe word "economic." The lawyers who are present and who one of the greatest business men that this country ever knew. are familiar with tbe decision handed down in tbe child labor Mi. BYRNS. Then, so far as President Taft and Attorney case held, and properly, as I think. that the production of an General Wickersham and the- Secretary of Commerce are con- article is not a matte:r of interstate commerce; that an economic cerned, they approved it? · inquiry into the cost of produe.tion is a thing with which the Mr. WOOD. I think that is so, so far as Secretary :Nagel Federal Government bas nothing to do. was concerned, at least. Mr. GARNER of Texas. Mr. Chairman. will the gentleman yield there? Mr. BYRNS. I referred to that because it seemed to be- the Mr. WOOD. Yes. policy of many distinguished Republicans. 1\Ir. WOOD. I will ask the gentleman from Tennessee, Aie Mr. GARNER of Texas. If you had the type of men corn­ posing the Federal Trade Commission at the present time that you willing to subscribe to the policy that every corporation the gentleman fl'om Indiana would himself select, does the organized in the United States must have the license of the gentleman think it would be- necessary to put the limitation in? United States Government? Would it? . Mr~ BYRNS. No; I am n{)t, I will say very frankly to the ~1r. WOOD. Undoubtedly the gentleman is- correct, but un­ gentleman. But the gentleman was seeking to criticize the f()rtunately we have not had tbat eharacter of men. membership of tbe Federal Trade Commission, and Mr. 1\Iye:rS Mr. GARNER of Texas. Who is responsible for it? in particular for his advocacy of such a p-lan, and I was simply Mr. WOOD. I should say President Wilson, during his eight seeking to show that it was not a new tbing coming from him,_. years. He bad left an awful mess there to clean up. but that it bad been advocated by men much higher up in the Mr. GARNER of Texas. 'Why does not tbe present adminis­ Republican Party than Mr. Myers. . , tration clean it up? Mr. WOOD. You have the statement of Mr. Msers to tbat Mr. WOOD. When I came to Congress-and I tbink I may effect. It may or may not be true. But we have bad tbese have stated this before-there was a gentleman by the name of miasmas from the beginning of time, and probably will have Ed:ward Hurley, a member of thls Trade Commission, a high­ them to tbe end. It ought to be the desire of conservative minded, broad-minded, business man in the United States, who business men of this country, founded on the bedrock of truth. proved his worth many times over during the war, and-- that business should not be killed. Mr. GARNER of Texas. I wish the gentleman would tell us Mr. GARNER of Texas. Mr. Chairman, will t.he gentleman at this time whether there is a single member of tbe commis­ yield again? · sion now serving on that commission who was appointed by Mr. WOOD. Yes. President Wilson? ~fr. GARNER of Texas. I was asking the gentleman the ::M:r. 'VOOD.- I want to make this statement first. question, Who is responsible for these unwholesome appoint­ Mr. GARNER of Texas. Yes; and I would like to have that mentS? The gentleman said PFesident Wilson was. I want to information. The gentleman should not forget that~ show, and I want the RECORD to show, that not a man on tbe Mr. WOOD. He told me that be hoped the job I had would commisSion at the present time was an appointee of President prove satisfactory; he hoped tbat my job was e-ntirely satis­ Wilson. The gentleman ought not to say so. President Wilson factory. I had no experience at . all in it at that time. I is not responsible for it. asked him what was the matter with his job. He said that Mr. WOOD. He is reS]JOnsible for the dirty mess in which when be accepted that position be understood that it was the we found tbis situation. part of the Federal commission to proteet and encourage legiti­ Your man Houston Thompson was one- of this same character mate business against illegitimate business, and he added, of men. Your man Victor Murdock, who was appointed as a " But I find in practice that I was entirely mistaken." He said Republican, was not a Republican excep-t. as- to the fact that he it had been the practice of this eommission to stick its nose had the brand on him, for .be was really everything else but a into legitimate business at the- behest of illegitimate business. Republican. Now, remember that Mr. Hurle-y was a Demoerat, and I give I am criticizing the appointment of this man Myers, who him credit for being one of the best business men in the United is a Republiean. This is not palitical with me. I am trying to. States and witb having eontributed much to tbe general busi­ see this commission either made the agency for good it was ness welfare of the coUlltry. At that time Thompson and Victor intended to be or else abolish it. 1804 CONGRESSIONAL .RECORD-HOUSE JANUARY 20 .- 1\Ir. GAR11.TER of Texas. Will the gentleman yield? basic law under which they OI!erate is bad they can not serve Mr. WOOD. Yes. well? In other words, is it not a fact that· the whole Federal l\lr. GARNER of Texas. Let me remind the gentleman that Trade Commission act was based on the idea of the Democratic I prefaced my question by saying that if the personnel of that Party, at the time the bill was originally passed, to get at commission were what it ought to be, you would not need to some big corporation and that the framework of this law is so · put this limitation in the bill, and I want to call the gentleman's made that you can not have good results under it? I am for attention to the fact that the personnel is that which has been the gentleman's proposition to either reorganize the whole selected by his administration within the last seven years. The law or else drop the Federal Trade Commission ab ·olutely, and gentleman tried to put me off by saying President Wilson was one way to do it is to stop appropriating through the appro­ responsible beca u e of the bad situation existing there. priating committee, as our Democratic friends stopped the l\1r. WOOD. I tried to answer the gentleman from Texas by Tariff Commission by not making an appropriation. citing the experience of Mr. Hurley. 1\lr. VINSON of Kentucky. Will the gentleman yield? l\Ir. GARNER of Texas. Why did not your party appoint l\fr. WOOD. Yes. good men to the e offices? Mr. VINSON of Kentucky. In that connection it seems to me Mr. WOOD. Well, I suspect-- that if the commission is to be put out of business or their 1\Ir. GARNER of Texas (interposing). Do you not have powers limited, it should be by a direct attack rather than by the material? bitting under co\er, and I suggest to the gentleman that in l\Ir. WOOD. Yes. We are pretty nearly perfect but some the opinion of the Attorney General and in the opinion of the time or another we make a mistake. [Laughter.] I wish to Comptroller General the limitation that has been carried in say to the gentleman from Texas that the whole thing started this approp1iation bill for three years means nothing so far as wrong. l\lr. Hurley was appointed in 1914 and this commission stopping any inquiry under a resolution of either the House or was originated in 1913. If the character of men that the the Senate. gentleman from Texas might have appointed and desired to see Mr. WOOD. Well, it does mean this and it has had this appointed bad then been appointed and had been succeeded by effect. Of course, it can be evaded, according to the rule such men throughout these years there would not be any need adopted down there by the majority but not by the minority, . for complaint. But here is the trouble to-day. if a resolution is passed by the Senate or passed by the House These gentlemen are pas ing resolution~ and investigating in which it is alleged there is a violation of the antitrust law. businesses with which they have no concern, and about which Mr. GARNER of Texas.· Will the gentleman yield? there is no complaint, for no other reason than trying to carry out Mr. WOOD. Yes. their ideas of what the policy of this Government should be. Mr. GARNER of Texas. Let us get back to the original prob­ - I want to read you what this man l\Iyers said: lem that I asked the gentleman about, which was that if the I believe sooner or later we will have to pass a Federal licensing personnel of the commission were composed of men of the type law for corporations. The Government should have supervision over the gentleman would appoint there would be no occasion for corporations and the right to say how and where they should dispose any additional limitation or change in the law. Now, if the of surplus earnings. ' President has the resignations of these gentlemen on his table, which he requires with reference to members of the Tariff Com­ Think of such a document as that. I will here insert the mission and other appointments, why can he not accept them article in full : and change the personnel? Can not the gentleman make such MYERS PLA::-. TO PUT INDUSTRIES ON GUILD BASIS--TRADE COMMISSIONER'S a suggestion to the President? SCHi:ME WOULD REMOVE FEDERAL INTERFERENCE FROM BUSINESS Mr. WOOD. It may be that after he reads this RECORD he WASHINGTO:s, September 20.-Big business would be permitted to will do something of that character. correct its own unfair practices and ills under a novel plan proposed Mr. GARNER of Texas. Can not the gentleman go to the by .Abram F. Myers, Federal Trade Commissioner. White House and give the President that information? U~der Myers's proposal much of the present Government interference Mr. WOOD. I have never been ordered away when I did go would be eliminated and industrial groups allowed to " clean their there. [Laughter.] I will say, in answer to the gentleman own doorsteps." from Texas, that we have one man there that I am proud of, and I think the gentleman should be. He tries to construe the BASED 0~ GUILD SYSTEl~ law as he feels Congress intended ,it should be construed, but he The commissioner plans to form each major industry into a self­ is in a hopeless minority. correcting and governing body to draft its own rules of trade practices, In order that you may know what his idea is, I will incor­ supervised, if nece sary, by the Federal commission. porate in my remarks a brief he has submitted setting forth Myers is starting with the motion-picture industry. .A trade con­ his position, and he sustains his position by the quotation of ference of motion-picture producers, distributors, and exhibitors has numerous authorities and decisions of the United States Su~ been called in New York next month. preme Court. If he is correct, and I think he is, these gentle­ " My idea is based on the old guild system," the commissioner ex­ men have gone far afield in spending thousands and hundreds plained. "It is good and wholesome." of thousands of dollars of the money of the taxpayers of the " There is no reason why industries can not rid themselves of the United States that has resulted in no good and has not been ills of unfqir practices without arbitrary orders from the Government. edifying to the Congress of the United States and has been any­ I believe, when all major industries are organized, business men will thing but beneficial to the business interests of the United States. be more content and confident and that the general public will be Mr. BYRNS. Will the gentleman yield? better satisfied. Mr. WOOD. Yes. "Those who carry on unfair practices are in the minOI"ity and can Mr. BYRNS. The gentleman is referring to the chairman be quickly brought to terms by from the industrial group. If of the Federal Trade Commission? this fails, then the commission can step in." Mr. WOOD. Ye ; 1\Ir. Humphrey. WANTS UNITED STATES CONTROL l\Ir. BYRNS. I want to ask the gentleman if 1\Ir. Humphrey in the hearing did not say or show by his statement that if he This is Myers's for the illfi of unfair practices, but for "big had his way he would limit the work of the Federal Trade business " monopolle , interlocking stock acquisitions, and violations of Commission solely to antitrust investigation, and is not that the antitrust laws he has other ideas. also the view of the gentleman? Do not the gentleman and " I believe soonet· or later we will have to pass a Federal licensing 1\Ir. Humphrey agree upon that point? law for corporations," the commissioner stated. "The Government 1\Ir. WOOD. No; the gentleman is mistaken about that. lle should have suv<.·rvision over corporati()ns and the right to say bow and would limit it to violations of antitrust acts and to investiga­ where they should dispose of surplus earnings." tions for the benefit of CongTess as called for by Congress. There is only a dividing line between a corporation and a l\Ir. BYRNS. Preci ely. parh1ership, and if they were to apply that idea to corporations, Mr. ·wooD. Yes. in justice, if it were adopted, it should apply eventually and Mr. BYRNS. But is it not the position of Mr. Humphrey would to partnerships. There is only a dividing line between that he would absolutely ignore subsection (a) of section 6, a partnership and an individual conducting a business, and which give the Federal Trade Commission the right to initiate Iogi<'aliY it woul(l soon apply to indhiduals. It would be investigations in the interest of fair trade and for the purpose paternali m, complete in the Government of the United States. of preventing unfair competition in this country? Mr. TREADWAY. Will the gentleman yield? 1\Ir. WOOD. Upon the other hand, he says in his opinion Mr. WOOD. Yes. that is the duty of the Trade Commission and that gives them 1\Ir. TREAD,VAY. Is it not a fact that, no matter how good their limit of power. He cited several examples of that. He an official we may have in a position, whether appointed by a woulcl limit them to doing the things which it appears to the Democratic President or a Republican President, that if the commission is a violation of the antitrust law, and the Supreme 1928 CONGRESSIONAL RECORD-HOUSE 11805 Court has determined that there are half a dozen different tion, where we have no legal right to secure facts pertinent thereto, can statutes that are all part and parcel of the antitrust act and imagination suggest an investigation that we do not have the legal right must be considered in com1ection with it. to make? What is the measure of our authority? Mr. BYRNS. Of courSe, I do not want to misquote 1\Ir. As already stated, the Federal Trade Commissi()n act and the Clayton Humphrey, and I think I can find it here in the hearings, but Antitrust Act are all one in It-gal contemplation. These acts relate only I thought probably the gentleman could save me that trouble. to interstate commerce and to vi"olation of the antitrust laws. It fol­ Mr. WOOD. I can save the gentleman that trouble. lows then that the investigations by the Federal Trade Commission-can l\Ir. BYRNS. Does not Mr. Humphrey say in the hearing be made for only two purposes : that of course after Attorney General Sargent rendered the 1. To investigate violations of law. opinion to which he referred, he has been following the opinion 2. To investigate such matters as directly affect interstate commerce rendered by the Attorney General, but if that opinion had not with a view to transmitting information and recommendations to been rendered, it was his idea the Federal Trade Commission Congress for consideration for purposes of legislation. should do no more than make antitrust investigations and also None of these resolutions is for either purpose. It is claimed that respond to any concurrent resolution upon the part of Congress, the authority for such resolutions-is found in that portion of the Federal ignoring absolutely the primary purpose of the act, which was Trade Commission act, which reads as follows : to give publicity to unfair methods of competition and to secure "SEC. 6. That the commission shall also have power- the safety of legitimate business in this country, whether large "(a) To gather and compile information concerning, and to investi­ or small. gate from time to time, the organization, business, conduct, practices, l\lr. WOOD. Now that the gentleman has raised the question and management of any corporation engaged in commerce, excepting and in order that there may be no misunderstanding of the banks and common carriers subject to the act to regulate commerce, attitude of Mr. Humphrey, who was long an honored Member and its relation to other corporations and to individuals, associations, of this body, I will read this memorandum : and partnerships. MEMORANDUM RE ECONOMIC INVESTIGATIOS RESOLUTIONS "(b) To req-uire, by general or specia1 orders, corporations engaged The Federal Trade Commission, by tour resolutions-one of which in commerce, excepting banks and common carrier.s subject to the act was passed by four of the commissioners, and three of which were to re,oulate commerce, or any class of them, or any of them, respec­ passed by three of the commissioners--{)rdered certain economic in­ tively, to file with the commission in such form as the commission may vestigations. p-rescribe annual or special, or both annual and special, reports or I am opposed to these resolutions for two reasons : First, I do not answers in writing to specific questions, furnishing to the commission think we have the authority to make such investigations; and second, such information as it may require as to the organization, business, I am opposed to them as a matter of policy. conduct, practices, management, and relation to other corporations, partnerships, and individuals of tbe respective corporations filing such I find no authority, expressed or implied, authorizing the Federal reports or answers in writing. Such reports and answers shall be made Trade Commission to make investigations of this character. If we have any such authority, it must, of course, be found in the statute. under oatb, or otherwise, as the commission may prescribe, and shall be '.rbe Federal •.rrade Commission act, the Clayton Act, and the Sherman filed with the commission within such reasonable period as the commis­ Act, in legal contemplation, are all one law and should be construed sion may prescribe, unless additional time be granted in any case by the as if they were all enacted a.t the same time. (Brooklyn, etc., v. Pren­ commission. dergast, 7 F (2d) 658; State "1:1. Gerhart, 145 Ind. 439; 33 L. R. A. • • • • • 313 (320) ; Lyon v. Manhattan, etc., 25 L. R. A. 402.) "(f) To make public from time to time such portions of the informa­ I can find nothing in any of these acts that authorizes the commis­ tion obtained by it hereunder, except trade secrets and names of cus­ sion " to employ the time and talent of economists " to " develop facts tomers, as it shall deem expedient in the public interest; and to make of interest to Congress and to the business world in consideration of annual and special reports to the Congress and to submit therewith rec­ importqnt economic questions." I find no authority in the stlltute for ommendations for additional legislation ; and to provide for the publica­ the commission to make investigations except of corporations engaged tion of its reports and decisions in such form and manner as may be best in interstate commerce. adapted for public information and use." It seems to be conceded by those who favor these resolutions that "Commerce," as used in the above quotation, of course means inter­ the commission does not have the authority to eompel the production state commerce, as is especially stated in the statute. It will be s~en of information necessary to carry out these investigations. Does not that the statute says in section (a) "any corporation engaged in com­ this amount to a statement that we have no leglll right to make such merce"; in section (b) "corporations engaged in cOipmerce." None of investigations? these resolutions is so limited to commerce or to corporations engaged in Section 9 provides, "That for the purposes of this act the commis­ such commerce. " The declared purpose " of each of these investigations, sion • • • shall have power to require by subprena the attend­ according to Commissioner Myers, the author, is "to develop facts or ance and testimony of witnesses and the production of all such docu­ interest " relative to "important economic questions." Economic ques­ mentary evidence relating to any matter under investigation." tions involve three different elements, " production, consumption, and dis­ To concede that any subject matter is beyond the eompulsory power tribution." (Webster's International Dictionary.) of the commission as above defined is to concede that it is outside the Manufacture and production is not interstate commerce, and Congress powers of investigation conferred upon the commission. bas no power or authority to legislate in relation thereto. In the recent The logic of the statutory grant of compulsory power coextensive case of the Utah-Idaho, etc., v. F. T. C., C. C. A. (8th Cir. Oct. 21, 1927), "\yith the commission's power of investigation is unimpeachable. The it is stated: " It is well settled that production and manufacture is not commission's investigations and the reports based thereon are intended commerce." Otht>r authorities to the same effect are : U. S. v. E. C. to be the basis of Federal action, administrative or legislative. To be Knight Co., 156 U. S. 1 (12); Hopkins "'· U. S., 171 U. S. 578 (592) ; of value they must disclose all material facts. An investigation based U. S. v. Joint, etc., 171 U. S. 505 (567--8} ; United Leather, etc., v. only on testimony and documentary evidence voluntarily pxoduced, can Herkert, 265 U. S. 457 (471) ; Hammer v. Dagenhart, 247 U. S. 251 disclose only such facts as the parties in interest are willing to have (272-3); Industrial, etc., v. U. S., 268 U. S. 64 (80). disclosed. Such. disclosnxes will always be of but a portion of the Consequently, the commission could not investigate economic questions facts-such hcts as are deemed to be favorable to the parties making for the purpose of furnishing information to Congress in so far as pro­ the disclosures. But a part of the facts may be thus established, duction and manufacture are concerned, because that is a question with and these are likely to come from persons who are prejudiced and which Congress is not cencerned and about which it can not legislate. something less than frank. The statute clearly does not contemplate Such investigations could not be of any possible use to the commission, that the commission shall make such investigations or such reports. as its only power is to issue orders to cease and desist from violations Federal f.lction, administrative or legislative, can not safely be based of law. thereon. So far as I can conceive, such investigations for the use of either What could more definitely define our authority to investigate than Congress or the commission are equally purposeless and useless. our power to compel the production of facts pertinent to such investiga­ The argument was made for the first time before the Committee on tions? What would an investigation be worth where we could only Appropriations of the House of Representatives that these resolutions procure the evidence of those who might favor the proposition? How are limited by the provisions of the statute, even if such provisions are could we secure evidence of facts that were most necesmry, if they were not written into the resolutions themselves. It would seem that this possessed only by hostile witnesses? Does not the power to enforce is rather a belated argument to sustain the action of the commission, in obedience to our demands exactly measure our legal authority to make view of the fact that each re~ olution expressly declares that its purpose them? 'rhis seems axiomatic. So as in this instance when we pass is to investigate economic questions, and in view of the further fact that resolutions that it is admitted direct inquiries that we can not compel the action of the eco.nomic division in conducting these investigations evidence to carry out, we have no authority to direct such inquiries. up to date shows that they construed soch resolutions as directing them To argue otberwise, is to argue that we have the right to spend the to investigate economic questions, and that is what has been done. In public money in what may be perhaps an enjoyable performance, but otber word~, . the llmitations of the statutes up to this time in these one perfectly idle and useless. If we can spend money for an investiga- mvestigations bas been entirely disregarded. It is hardly to be expected LXIX--114 1806 CONGRESSIONAL R.ECORD-HOUSE JANUARY 20 tllat an employee wm IllteYPret a resolution different from ffs plaillly .As the questions of production and Ina.D,llfactu:re and consumption declared pnrpose. It was not done in the present instance. are neeessary and mest important items that must be considered in Does any Member of Congress believe that 1! these resolutions had any economic investigation, and as they do not Involve int&state com.o contained the wording of the statute that the investigations would merce, It follows that we would be doing a useless thing to make these have been made? In view of the faet that investigators have a.lready investigations. for the purpose of furnishing information to Congress been sent to various parts of the country in pursuance af these reso­ to be used in legislation. lution , making economic investigations along the lines directed in the .Another thing: I ean not escape the conviction that if Congress resolutions, does any Member of Congress believe that such inteYpre­ wantett these investigations made they would have directed us to do so. tation wa.S placed upon such resolutions by the proponents tbereoi prior Such investigatio.ns can not possibly furnish any basis for action b:r to. the time that the House Committee on .Appropriations questioned the the commission and could be of no sel'vice to the commission, as we authority of the commission to make these investigations? can not issue- orders. to cease and desist based upon economic grounds. In any event what would an eoonomie investigation be worth for any Our- orders must an be based on some alleged violation of law. There pUl'pose that was limited solely to the direct effect that snch economic is no allegation of violation of Jaw in any one of these resolutions. I p1·actices had on interstate commerce? am strongly inclined to believe that all investigations of the commis­ I find nothing anywhere in the statute that even hints that tb.Q sion should be Hmited to alleged violations ot the antitrust acts or to commission has power to make eeonomic investigations, for such inves­ some interference with interstate comme-rce. I doubt if any investiga­ tigatf"Ons must necessarily go beyond the question upon whieh Congress tions for the purpose of furnishing- information to Congress should be can legislate. Such investigations must necessarily go beyond the made unless directed by Congress. power of the commission to investigate on its own initiative, beeause The report of the Senate committee on the Federal Trade Commission they involve subjects over which the States alone have controL It is biii says, referring to the proposed commission : u The powers, of course~ significant that the Federal Trade Commission act itself limits the. mu&1: be large, but the exercise of the powers will not be against law.. power of the commission to investigate, when direeted by the President abiding business, but against lawless business." or either House of Congress, "to any alleged violations of the anti- I am in harmony with that statement. I have a conviction that it is b·ust acts by any corporation." · to the public interest that any concern that obeys the law should be I ean not belreve that it is reasonable construction of the statute a free from the expense, the annoyance, and injury of any investigation say that tlie commission has wide power to investigate its to such on by the Federal Trade Commission. own motion and so limited a power when dit:'e.cted by the President or , Congress. I can not reach the conclusion that the courts will ever IDJSOLUTIONS place such broad construction upon our power. The first resolution, which is in regard to resale-price maintenance: On the question of our authoTity to make such investigations it might This matter bas been investigated man"]" times by different committees be worth while to note that In so far as I know there was no discussion of Congress. It seems to me that about all the wisdom extant on this by the commission of the legnl questions involved before the passage proposition has already been secured by these committees. Congress of these resolutions. Neither have the legal questions involved been bas declared tor the policy of. competition in this country. I can not submitted to the chief counsel or to any other attorney representing believe that Congress desires to legalize price fixing, and unless it does­ the commission for an opinion thereon~ either before or since the such an investigation to furnish information to Congx·ess. would be- uge. passage · of the resolutions. This iB a departure from the precedents less. I can not escape the conviction that if Congress wanted us to. and practices of the commission. Of the three members out of five of investigate tor the purpose of furnishing information on this question, the commission. that voted to pass three of these resolutions, only two it would direct us so to do. The commission needs no information on were lawyers, and only one lawyer who voted for these three resolu­ this subject, as the law is suffi.cient, and the Supreme Court has said tions--Mr. Myers-is now a member o"f the commission. in a very recent case that the pw·poses of the. law are clew:ly enougb POLICY stated in the opinions that it has rendered on the subject. (F. T. C. .Assuming that we have the legal authority-which I do not believe-­ 1.1. American Tobacco Co., 274 U. S. 54:3.) as a matter of policy I am opposed to these resolutions. The appropria­ 2. In .regard to the blue sky resolution, I do not understand its pur~ tion bill tor 1928 contained the following provision: pose. Apparently it is to furnish information for State as well alf •• No part of this sum shall be expended for investigations requested Federal regulation. I do not conceive it tor be any part of the duty of by either House of Congress, except those requested by concurrent reso­ the commissinn to in~tigate in oi'der to furnish information to State lution of Congress ; but this limitation shall not apply to investiga­ legislatures. In aoy event,. the information sought. by tws resolution tions and reports in connection with alleged violations of the antitrust could be secured in the library from statutes and decisions instead of. acts by any corpoctttion:• doing as the commission is now doing-sending men to various parts of I can not believe that Congress ever intended that we should have the country to make inquiries in relation -to the matter. the authority to {Dake an investigation on our own initiative that Con­ 3.. In regard to the questions involved in the resolutions in relation to "'ress would not permit us to make upon the request of either House the economical distribution of commodities, I think the laws that exist ~f Congress. If Congress did not want us to spend the time and flill.y cover the questiollS involved. money of the commission for such investigations upon the request of 4. In regrurd to the resolutions directing the investigatwn of the either House, I can find no theory that would satisfy me in concluding do Pont Co. and the General Motors Corp&ration, inasmuch as they that Congress wanted the commission to do this thing of its own allege no violation of the law, I can not see- its purpose, unless it wag...-; motion. Even if it be admitted that said provision in the appropriation a& the resolution apparently intends-to investigate these great concerns bill did not apply in letter to investigations initiated by the co~--siou, with a view to telling them whether or not they are properly runnin~ I In can not escape the conviction that it did in spirit. my judgment, their business. by that action Congress clearly expressed the intention that it did not favor investigations by the commission that were broader than the (During the reading o! the above memorandum the follow­ commission could make upon the direction of either House of Con­ ing occurred : } gress; that is, that Congress clearly showed that. it d~d not favo: any Mr. TREADWAY. Will the gentleman state from what page investigations except when limited to "alleged VIolations of antitrust he is reading? acts by any corporation." Mr. WOOD. I am reading from a memorandum or brief. None of the resolutions referred to is so limited, nor is there any ~Ir. TREADWAY. That is not in the hearings of the sub­ claim that tt was intended to so limit them. Commissioner Myers, cemm.ittee.? the author of these resolutions, in a memorandum submitted to the Mr. WOOD. No.; it is a brief submitted by Mr. Humphrey Committee on .Appropriations of the House of Representatives, says: to me,. to be placed in the RECORD. " The declared purpose of these Inquiries was to employ the time Mr. OLDFIELD. Will the gentleman yield? and talent of its corps of economists, industrial experts. and investi­ l\Ir. WOOD. Yes. gators as much as possible on constructive inquiries which would de­ Mr. OLDFIELD.. Fr~m . listenino- to the statement of the velop .facts of intere t and benefit to Congress and to the business gentleman, and also from seeing a great many statements in world in the consideration of important economic questions." the press of Commissioner Humphrey. one would judge he does In view of that declaration, I can not escape the feeling that each not want to make any investigations at all. of these resolutions is a clear and direct evasion of the . foregoing Mr. WOOD. Oh, no; Mr. Humphrey wants to make every quoted provision in the appropriation bHI. I can see no benefit that investigation that is warranted by law. . can come from any of these investigations. The fact is that the ma­ The CHAIRM~~- The time of the gentleman from Indiana. terial information-if there is any-that can be secured under these [Mr. WOOD} bas expired. resolutions could be secured from an encyclopedia, the Census Bureau. Mr: WOOD. Mr. Cbairman. l ask for one hour more. and the D;partment of Commerce for a mere fraction of wbat it would Tb~ CHAIIUIAN. The gentleman from Indiana asks unani,. cost the commission. It would be useleb'S for us to furnish a report additional hour. tfl~re on these lnvestigations to Congress for the purpose of 1egis1ation, for mous consent to :proceed for one Is Congress can not legislate upon economic grounds, except upon the objection? narrow proposition, as they may directly affect interstate commerce. Tllere was no t>bj(:>ction. 1928 CONGRESSIONAL RECORD-HOUSE- 1807 :Mr. OLDFIELD. The gentleman from Indiana was speak­ they have held that that means a violation of the trust act by ing about Mr. Myers. I do not know anything at all about those engaged in interstate commerce. him. I do know Mr. Humphrey, because I served in the House Mr. BYRNS. The only reference in this Trade Commission with him for several years, and I also know that there is one act to trusts or investigations of trusts is subsection (d), splendid lawyer on the commission, Judge McCulloch, of my which provides that such investigations can be made on the re­ State, who for many years was chief justice of the supreme quest of the President or either House of Congress. The gen­ court of our State and one of the ablest members of the su­ tleman attempts to read back subsection (d) into subsection (a). preme court we ever had, and I would suggest that the gentle­ Another thing, section 5 of the act deals with unfair compe- · man in criticizing the commission should certainly leave Judge tition. Certainly the gentleman would not prevent the Trade McCulloch out of such criticism. Commission from making an investigation-- Mr. WOOD- I did not mention Judge McCulloch, did I? Yr. WOOD. The Supreme Court has held that any unfair Mr. OLDFIELD. No; and the gentleman knows he is a practice is a violation of the trust act. real lawyer or would know that if the gentleman ever had any Mr. BYRNS. If the gentleman will pardon me, does not the contact with him. gentleman think an investigation to see whether or not there Mr. WOOD. No; I have never had any contact with him. I has been unfair practice or some combination in violation of the understand that is correct. antitrust law of the United States by some instrumentality of Mr. OLDFIELD. He was a great judge in our State. the Government should first be made, rather than a mere charge Mr. WOOD. Yes; and I understand the judge does not sub­ based possibly on suspicion and entering into court for dissolu­ scribe to these highfalutin ideas of Mr. Myers. tion. Ought not the facts to be developed first? The gentle­ Mr. OLDFIELD. I do not know anything about that, but man's statement would -deny the commission the right to make I would resent very seriously any suggestion with respect to any investigation unless there was proof in advance that there Judge McCulloch's ability. was a violation? 1\fr. TREADWAY. Will the gentleman yield? Mr. WOOD. The gentleman is misstating my position. I 1\Ir. WOOD. Yes. thirik what they ought to do is to exercise a little common sense Mr. TREADWAY. I would like to ask a little broader in trying to carry out the purposes of the act. question than the one that has been discussed here in the last :Mr. KELLY. Mr. Chairman, will the gentleman yield? few minutes. May I ask the gentleman to cite any one act Mr. WOOD. Yes. during the life of the Federal Trade Commission or any one 1\lr. KELLY. I am interested to get the gentleman's posi­ decision it has rendered that bas been worth while for the tion. I understand that the Attorney General and the ComP­ American people or for the taxpayers of this country. Has troller General have both ruled that these investigations on the Federal Trade Commission, in the course of its life, benefited their own motion are legal. trade? Mr. WOOD. Yes. Mr. WOOD. Well, that is a pretty broad question, and I Mr. KELLY. In the report of the gentleman's subcommittee suspect that everal instances might be cited. I can see where I notice a statement here which strikes me, which states that it could be a great agency for good if they would confine them­ the attention of the Comptroller General has also been called seh·es to the purposes for which they were organized. to these rna tters, and it is hoped that " further expenditures of I expect that the commission had much to do with the cessa- Federal funds for unlawful investigations may be prohibited.'' tion of the Pittsburgh-plus proposition. There have been no unlawful investigations, have there? Mr. VINSON of Kentucky. Will the gentleman yield? Mr. WOOD. Yes; half of them have been unlawful. Mr. WOOD. Certainly. Mr. KELLY. But the Comptroller General and the Attorney Mr. VINSON of Kentucky. As I understand, the gentleman General say not. is objecting to the commission instituting inquiries on their own Mr. WOOD. I shall modify the statement that I made. I motion? do not think there have been any since we adopted this restric­ Mr. WOOD. No; I am not. tion, except this, that they did carry out those that were already Mr. VINSON of Kentucky. I refer to economic inquiries. in motion at that time, and the Comptroller General paid them Mr. WOOD. I am objecting to instituting anything on their because of the fact that they were authorized by the resolu­ . own motion unless they have a prima facie case that it is a tions. violation of the antitrust law. Mr. KELLY. But the Comptroller General does not usually Mr. VINSON of Kentucky. I want to call attention that pay anything that he is not fully convinced of himself. since 1921 the commission has only initiated or put into motion Mr. WOOD. As I say, he was authorized. I would not say nine inquiries of that kind-the anthracite-coal price in 1923; that they were unlawful in every respect, because they were cooperation in foreign countries, 1924; terminal elevators, 1924; authorized by resolution, and they were put in by the fact lumber associations, 1926 ; Pan Handle Petroleum, 1926 ; and of the resolution, but they were clearly outside of the field for four they have inltiated this year-the resale-price question, which this commission was created. the price-sale bases, the blue-sky, and the duPont investigations. Mr. SUMMERS of Washington. Mr. Chairman, will the gen­ Mr. WOOD. To show you how absolutely futile some of their tleman yield? actions are take this blue-sky investigation, to which the gen­ Mr. WOOD. Yes. tleman refer~. Of course, we are all interested in blue-sky Mr. SUMMERS of Washington. The gentleman from Penn­ legislation. The only thing they expected to do was to find sylvania speaks of this as the report of the committee. This out the action of the several States on the blue-sky proposition. does not purport to be the report of the committee. This is a They have a man now on the Pacific coast investigating the law report from Mr. WooD, "from the Committee on Appropriations." with reference to blue sky. If you go into the law library, you This is the report of the chairman of the subcommittee, and not can get all that information, all that would be of any interest the committee's report, because, of course, the committee never to this Congress for legislative purposes. saw this until after it "f\·as submitted.· Yet we are spending thousands of dollars on that proposition. Mr. BYRNS. If it is the committee's report, then there are I think in one of these resolutions the gentleman expressed the a great many on the committee, I will say, that do not agree purpose that the clerks not being otherwise employed we are with it. going to do this thing. Mr. KELLY. That clears up the statement, then, that this Mr. BYRNS. Will the gentleman yield? is not the committee~s report? Mr. WOOD. I will yield to the gentleman. Mr. BYRNS. The gentleman said a moment ago that he Mr. SUMl\IERS of Washington. And if the gentleman would was not opposed to the Federal Trade Commission making in­ yield, I would say that this is not my view. This does not quiry and initiating investigations providing it was for viola­ express my view in regard to the matter. tion of the antitrust law. The gentleman is falling into the Mr. WOOD. The gentleman from Washington [Mr. SUM­ same error that Mr. Humphrey has fallen into, because he MERS] might have either concurred in it or not, if he had been repeatedly calls it an antitrust statute. The statute itself in there. I do not know whether he would or not, but be was not the authority given to the Federal Trade Commission under there. subsection (a) of section 6 does not in any sense refer to any Mr. WASON. And, if the gentleman wilf yield, I am a trust or unlawful combination, but gives the commi88ion the member of that committee, and this is the first time that I right to initiate investigations concerning the practices and have ever heard any objections to the report. methods of corporations. ' ~fr. WOOD. I expect the gentleman from Washinbrton would Mr. WOOD. If the gentleman will go further and read the have either concurred in it or expressed his opinion at the decisions of the Supreme Court on that statute he will see that time it was adopted, if he had been there. 1808 - CONGRESS! ON AL RECORD-HOUSE JANUARY 20 Mr. SlJM]IERS of Washi;ngton. Mr. Chairman, will the gen­ Bt4tul of prl•4f71 -valuation of Iteam railroad$ DooembeT 81, t!J?:f tleman yield? Pereenta:re ot· .Mr. WOOD. Yes. F' . completion Mr. SUMMERS of Washington. This matter was discussed UJe~d 1w:ork ------100 T~taertiv~mg _r~e poti:r:ts ------·------100 in the whole committee when the subcommittee reported the e Va.1Ua OD------100 bill to it-not tbe wording of the report, but the new wording that was inserted in the law, and attention was called to the Mileage, Percent- Percent- fact that it was somewhat different from what had been agreed used age of age of upon in the subcommittee. Cases total main total number Mr. WOOD. No; it is no different at all from what was traek mileage ot cases a,areed on in subcommittee, and I want to say in passing, and then I am done with this thing, so far as 1 am concerned, of be in­ Hearings: each individual thls Congress ought to as much (a) Completed------645 173,073 73.8 87.4 terested in pl.'otecting the Treasury of the United Sta-tes a8 (b) Partly completed ______(c) Not yet reached______86 51, 191 21.8 11.5 I am, and each individual member of this committee, and of 9 10,430 4.4 1.1 Total ______.______the C<>ngress can know, if he will, that we have been wasting (d) 740 234,694 100.0 100. 0 thousandS of dollars in this activity that has neve:~; amounted to anything. Final(a) re];lrts: by mal default______295 8,543 3. 5 28..4 · Mr. SUMMERS of Washington. That is not what we are (b) Final by decision ______347 52,243 2L5 33.5 discussing now. (l') adopted ______Total 642 Mr. WOOD. I am not sure whether the gentleman knows (d) Yet to be adopted ______60, 786 25.0 61.9 what we are discussing or not. 393 182,451 75.0 38.1 Mr. VINSON of Kentucky. Mr. Chairman, will the gentle­ (e) TotaL.------1, 03!i 243,237 100.0 100.0 man yield? 1\!r. WOOD. Yes. To bring the primary valuations of steam railroads to date Mr. VINSON of Kentucky. In regard to the proviso and the th~ C?mmittet; has again adopted a program in making appro: limitation now in the bill, I do not think the gentleman from pl"la.ti~ !"h1ch will enable the commission to complete this Indiana would say that the subcommittee agreed upon the work W1tlnn the next three years. The following statement language contained in that limitation. shows the status of this work at the present time: Mr. WOOD. I do not know why they did not agree to it. Mr. VINSON of Kentucky. I will ten the gentleman why. Status of valvatio1~ order No. s, December 15, 1.921 It was because the subcommittee agreed on an amendment by the inclusion of the word " economic " before the word ''in­ Aggre­ Average Number gate Mile­ vestigation," which appears here in line 21, of page 17 of the of roads ·oo years bill, and never agreed to the inclusion of the words " including mileage ~ars) economic investigations," and I feel certain that the gentle­ man ·from Indiana will not stand on the floor and say that that Field examinations have been completed. is not the amendment he proposed. as follows: Class 1------69 62,710 6.94 435,392 •Mr. WOOD. Mr. C1lairman, I feel that the gentleman is ab­ Others.------.------___ ------Ha 5,153 6.16 31,781 solutely earnest and honest in the statement that he makes, Totnl completed. ______but I feel also that I am at least entitled to the same respect 214 67,863 6.88 467,173 when I say that the language is exactly as I supposed it was Field examinations are now in proUess, ss to be. follows: Mr. VINSON of Kentucky. Does tbe gentleman not recall Class 1. ------·------_____ 32 80,778 8.90 719,040 Others------~------15 826 8.29 6,846 using the word, saying that he wanted to insert one word'! Total in progress ______Mr. WOOD. The word "economic." It is the difference be­ 47 81,604 8.90 725,886 tween tweedledee and tweedledum, as to whether you put· the word in before or a:fter the comma. I don't care. You can VETERA!iS' BUREAU take the comma out, if you want to. Let us now proceed. Next I come to the Interstate Com- Fox the 'Veterans' Bureau for the ensuing fiscal year the com­ merce Commission. mittee recommends appropriation in accordance with th& - INTERSTATE COMMERCJ!J COMMISSION Budg~t es~tes. The total amount recommended to be ap­ propriated Is $485,560,000, a decrease of $7,240 000 as compared The committee recommends appropriations for the Interstate with the appropriations for the current fiscal year.' Commerce Commission, in accordance witll the estimates sub­ For military and naval compensation an appropriation of mitted in the Budget, with but two exceptions. For the $195,000,000 is recommended. On October 31 1927 there were Bureau of Locomotive Inspection the committee recommends 247,165 total-disability claims and 86,727 death clalms a grand that the sum of $493,856 be appropirated for the year 1929. total of 333,892. DiAbur ements for t11a t month am~nnted to Tbis sum equals the appropriations for the current year, but $15,792,333. For the fiscal year 1929 it is estimated there will exceeds the Budget e. timate by $2,408. For printing and bind­ be a. total of $341,178 compensation claims, involving an ex­ ing the sum of • 265,000 is recommended to be- appropriated, penditure of $195,000,000. which sum is $10,000 in excess of that e timated in the Budget. The work of the c6mmission is increasing and the volumes of For ~djul;;~ed compen ation. an ~ppropriation of $112,000,000 decisions are essential not only to the work of the commission is proVJndent pay : ~mount appropriated------$38, 629. 398. 00 $2.-'564,500 is recommended tA be appropriated. The sum is Net expenditures ------24, 135. 0.:?.2. 85 $103,900 more than the amount available for similar purposes for the current fl cal year and is made nece ~ sary by the in­ t:ne.xpended balance------=------14, 494, 375. 15 creasing number of formal cases being :filed before the commis- ion. For the past several years the committee- ha increased Adjusted service certificate fnnd : this appropriation to provide for sufficient personnel to enable Amount appropriated------448, 000, 000. 00 Inve&'ted interest ------10, ?,~~· ogQ. OG the commi sion to keep pace with the increased volume of work, Credited interest------1, - -cJ, 6- •. 38 but it has been found difficult to obtain competent employees, and the committee is ef the opinion that the sum recommended • . 4~0,115 , 627.38 is sufficient to meet the actual needs of the commission for the Net expenditures ------t.5, HSO, 393. 84 ensuing fiscal year. UnexpendE>() balance------404, 935, 233. 54 For the Bureau of Valuation the committee recommends the Stirn of $2,200,000 :tor 1929. Cnder the three-year p1·ogram In aecordance with the estimate submitted in the Budget, the adopted by the committee in making appropriations for the com­ committee recommends an ap~1ropriation of $106,";'50,000 for pletion of the primary valuation work of the railroads. it is military and naval iru nrance. The following statement indi­ gratifying for tbe c:ommittee to be enabled to make tbe follow- cates the forms of converted insurance in force on various dates ing statement: · together with the amount involved: ~ 1928 CONGR.ESSIONAL. RECORD-HOUSE 1809

amounts av~ilable for the current year, and it is hoped that In force June 30, 1928 Insurance issued since with this additional appropliation th'e investigations and reports June 30, 19~ Converted insurance· of the commi._o::sion may be made and completed within reason­ able periods. Number Amount Number Amount SHIPPING BOARD Appropriations for the Shipping Board are recommended in Ordinary life ______86,084 $4ro, 821, 951. 72 56, 771 $312, 435, 103. ()() accordance with the Budget estimates and aggregate $288,750. 20-payment life ______134, 134 590, 324, 855. 69 41, 55.'\ 181, 533, 413. 00 It was developed during the hearings that approximately 269 20-year endowment______111,232 323, 897, 304. 15 28,150 92, 980, 507. 00 employees with salaries aggregating $733,980 were engaged upon 30-year endowment ______28,954 121, 871, 511. 93 7,683 35, 449, 118. 00 Endowment, age 62 ______25,509 125, 879, 272. 45 10,585 50, 543, 583. 00 work of the Shipping Board, but were carried upon the rolls 30-payment life. _------21,347 110, 290, 152. 13 8,272 42, 459, 056. ()() of the Merchant Fleet Corporation. and paid from money avail­ 5-year com·ertible term ____ 104,916 724, 269, 413. ()() E.rtended insurance ______---16;297- ----39;984.;616:34- able for the expenses of the corporation. To prevent such ------... --- ... ------details in the future, the committee recommends the following Total converted in- provision be made a part of the paragraph making appropri:l­ surance. ------_ 423,557 I. 773,075, 664. 31 257,9321 1, 439,670, 193. ()() tions for the Shipping Board : Term insurance ______130,103 1, 008, 511, 344. ()() ------·----- ProvWed, That the annual estimates of the Shipping Board for the Total in force .. _____ 553,660 2, 781, 587, 008. 31 ------I------fiscal year 1930 shall include the salaries of all employees whose serv­ ice with the board has become permanent through detail from the . Merchant F leet Corporation. Ket terminations since In force Oct. 31, 19Z7 June 30, 1926 The committee recommends that the salary of the secretary Converted insurance to the board be fixed at $7,500 so long as the position is retained Number Amount Number Amount by the pre ·ent incumbent, and in the event of a change in in­ cumbency, compensation for that position sllall he in accordance with the classification act of 1923. Ordinary life·----~------4,309 $22, 315, 509. 85 138, 546 $750, 947, 544. 87 20-payment life ______3, 629 14, 579, 245. 65 172,060 757, 279, 022. 94 MERCHAj\"T FLEET CORPORATION 20-year endowment- ______5,163 14, 475, 189. 18 134,219 402, 402, 621. 97 The committee invites especial attention to pages 606-813, 30-year endowment__----- 787 3, 199, 248. 20 35,850 154, 121,381. 73 Endowment, age 62_ ------713 3, 340, 094. 82 35,381 173, 082, 760. 63 inclu ive, of the hearings on this bill, which relate to the 30-payment life ______002 3, 085, 701. 82 29,017 149,663, 506. 31 Shipping Board and the :Merchant Fleet Corporation. The ac­ 6-year convertible term~-- 264 1, 838, 606. 00 104,652 722, 430, 807. ()() Extended insurance ______tivities of the various bureaus of the board and the corporation, 1, 442 2, 343, 94 7. 85 14,855 37, 640, 668. 49 personnel, claims, and operating data and information are fully Total con>erted in- set forth, and perhaps better than ever before set out the surance. _ ------16, 009 65, 177, 543. 37 1 664,580 3, 147, 568, 313. 94 status of our merchant marine. In order to briefly place before the Congress the more per­ Term insurance reinstatements since June 30, 1926, 125,364; $42.3,051,349. tinent features of the physical operation of the merchant TARIFF COMMISSION maline, the following statement has been prepared, which sets forth the personnel employed, operating data and results, The committee recommends that the sum of $754,000 be. ap­ the status of the construction loan, Dieseli~ation, insurance, propriated for the expenses of the Tariff Commission for the and liquidation funds, vesseLs sold and the laid-up fleet, and ensuing fiscal year. This sum is $68,000 in excess of the the number and nature of all claims:

Comparison of mtmber of employee8 ana annual pay roll, Jtme 30, 191?1,, June SO, 19lJ, J·une SO, 1926, Jwne so, 19£1, atld No~; ember so, 1927 [Arranged t.o conform with outline of organization as ol November 30, 1921] June 30, 1924 June 30, 1925 June 30, 192{i I June 30, 1927 Nov. 30, 19'21 Number of · Annual Number of Annual Number of Annual Number of Annual Number of employees Annual payroll employees pay roll employees pay roll employees pay roll employees pay roll U. S. SHlPPINO BOARD U.S. Shipping Board pay rolL ______90 $277,120 89 $265,720 1!Jl $260,560 'i6 $233,220 U. S. Shipping Board employees paid by Mer- 76 $234, 360 chant Fleet Corporation: Legal department_------193 646,061 134 473,740 108 388,920 122 40!,4!0 122 103 120 265,760 416,100 Other offices .. ----__ ------.----_------199,920 119 260,980 140 30!, 600 147 317,880 TotaL---_------296 254 739,500 227 649,900 262 709,040 Employees assigned to other Government de- 269 733,980 0 10,620 partments.------'"·os: I 6 9 25,192 8 24.360 8 24, Wl Total, U.S. Shipping Board ______1, 015,810 386 1,123,101 f 349 323 935,652 346 966,620 1 353 992,940 H:ERCBANT i'LEET CORPORATION Vice president and general manager______11 64,860 7 43,840 5 30,420 11 49,660 Vice president-administration: 9 46,000 Vice president's office ______2 14, ()()() 2 13,000 2 14,160 7 31,620 Executive department- 4 23,660 Personnel division (including central 15 25,030 9 17,520 7 13.680 21 32,100 28 45, 76() 40 83,280 33 68,640 st:~f:~Ccii'ViSion~::::::::::::::::::::Ship sales djvision ______30 62,.WO 29 64, 560 29 64, 3~0 17 66.600 14 41,520 14 42.300 14 34,380 Investigation division ____ ------42, 660 13 31,500 Advertising division______26 70,660 15 7 16,640 ------...... ______38 77.840 9 27,700 5 11,880 7 19, 140 Field offices-executive ______214 323,487 11 32,100 372,483 173 141 2i1,097 158 301,625 166 310,927 Total executive department______350 685,893 253 521,527 Secretary's office ______------204 418,057 229 451,805 247 484.607 84 120.560 71 104,480 59 85,560 66 96,660 Finance department ______295,120 73 108.600 156 410,780 112 109 269,205 107 267,040 105 267.40() General comptroller's department ______526 1, 108,996 403 856,910 323 701,710 301 656,880 Insurance department ______72,300 290 633,641) 34 76,020 32 26 65,820 28 74,520 28 77,300 Total, vice president-administra- tion ______------1,152 2, 416,249 873 1, 863,337 'i23 1, 554, 512 Yice pr('sident-operations: 738 1, 578,525 747 1, 595,207 Vice president's office ______3 28,500 3 21.980 3 24,780 3 2!,780 Operations department. __ -----______1,075 1,950, 582 606 1, 105,265 ------266- ----537;326' Maintenance and repair department______308 609, 629 310 621, 5(1J H6 429,340 97 296,620 128 4()5, 240 132 410, 060 134 418,360 Traffic department_------140 365,780 138 371,760 86 223,440 105 275,490 113 287, 25() Supply departmenL------.------187 392,788 255 460,573 172 322, iiiJ 219 416,332 Reserve fleet division______1,838 207 400, Oll6 1, 733,922 1,904 I. 7~679 1,!M8 1, 795, 172 l, 267 1, 258,676 1, 230 1, 218,808 Total vice president-operations ______3,389 4,900,912 3,003 3, 982,877 2,600 3, 283,951 2,03! 2, 994,967 1,997 2,976, 713 Total Merchant Fleet Corporation ______4,552 7, 382,021 8,883 5, 890,054 3, 328 4,868, 883 2, 783 4, 623, 152 2, 753 4, 617.920 UNITED STATES LINES

Unittld States Lines __ ------670 1, 079,321 694 1, 133,667 645 1,139,11::$ 612 1, 046,579 640 1, 070,496 Grand total ______---- ____ _ 6, 608 9, 584,443 4,926 8, 039,561 4, 296 6, 943,648 3, 741 6,636, 351 3, 7461 6, 681,356 1810 CONGRESSIONAL RECORD_-HOUSE JANUARY 20 OoflJiporisrm of numoe:r uf er.n.vloyee-s and annitla pay ro U:' June so_, 19!f, June so, 19f5, JuM M, 19!6, June so, 19'?1, mMX Not-ember so, 19!1--continued

Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal ye.ar Fiscal year 19.23 1924 1m 1926 1927 1928, Budget 1929, estimate

OPERATING DATA.

~umber of ships in operation (average during fiscaJ.-year): Cargo------347 338 299 238 282 266 266 Passenger and cargo_------l1 14 14 11 5 5 5 United States Lines.------11 10 6 6 5 5 6 Tankers. __ ----__ ------17 21 14 7 9 9 9 Total.---__ ---_----_------392 383 333 262 301 285 286 Total tonnage of ships in operation (based on average number shown above), dead- tons ______3, 378,342 3, 3:59,583 2,9'10,9'8 2, 345,630 2, 688,833 2, 536,088 2, 548,648 1 Number of cargo and passenger and cargo services main- tained at end of fiscal year------78 71 61 50 49 48 48 t Total nmnber of terminations per year (excluding tugs)_ 1,848 1,686 1,569 1,215 1,424 1,275 1,336

OPE:&ATING RESULTS

Total vessel revenue_------$96, 468, 843. 06 $103, 625, 416. .83 $100, 460, 150. 07 $81, 038, 731. 58 $86, 062. 174. 86 $19, 172, 249. 00 $84, 725, 000. 00 Other operating revenue (net) ______780,026.57 692,374.66 503,601.49 899, 15L 25 1, 286, 198. 08 795,000.00 800,000.00 Total revenue.------97,248,869.63 104,317,791. 49 l1oo, 963,751. 56 81, 937, 882. 83 87,348,372.94 79, 967, 249. 00 85, 525, 000. 00 Total vessel operating expenses ______140,173,947. 17 141, ()(6,616. 33 128, 319, 166. 18 97,700,710. 35 98, 835, 841. 87 91, 780, 711. 00 96, 725, 000. 00 Other operating expenses------42,106. 98 4, 467,569. 75 2, 708, 373. 62 3, 843, 781. 23 4, 438, 942. 95 2, 676, 000. 00 2, 200, 000. 00 Total expenses·------140,216,054. 15 145,514,186. 08 131,027,539. 80 101,544,491. 58 103,274,784.82 94,456, 711. 00 98,925,000. 00 lleserve.------.------2, 510,538. 00 Deficit ror year.. ------42,967,184. 52 41,196,394. 59 ao, 063,788.24 19,606,608. 75 15,926,411.88 11, ooo, ooo. oo ---i3;400:ooo:oo Appropriation for year_------50,000,000.00 50,000,000. 00 30,000,000. 00 24,000,000.00 13,900,000. 00 17,000,000. 00 13,400,000. oo Special fund to cover losses of lines taken back from pur- chasers: Amount of appropriation______------10,000,000.00 1 tO, 000,000.00 1 5, 000,000.00 Balance of appropriation at end of fiscal year______------10,000,000.00 2 5, 000,000. 00 5, 000,000. 00

1 Reappropriated. t $5,000,000 authorized for operating losses, fiscal year 1928, by act of Feb. 11, 1927.

Fiscal Year Fiscal year Fiscal year Fiscal year Fiscal year 1923 19?...4 1925 1926 1927

OPERATING li'UNDS (INCLUDnlG INSURANCE RESERVES) Operating balance carried forward at end of fiscal year ____ ------"--- $40,996,657.01 $43,319,050.80 $40,656,393.72 $41,615, 43-i. -42 $38, 114,851:01 Liabilities carried by balance carried forward ___ ------40, 996,657. 01 ~ 826,470. 63 -40,656,393.72 41,615,434.42 38, 114,851. 01

CONSTRUCTION LOAN FUND

Balance available for use at end of fiscal year------50,000,000.00 60,881,931.62 57, 424, 003. 52 60, 925, 269. 97 75, 203, 465. 77 Outstanding loans at end of year------400,000.00 5, 140, 000. 00 6, 910, 000. 33 9,550 801.66 Amounts in suspense at end of year (pending legislative approval)------18, 564, 447. 86 19, 367, 504. 65 (I) 1------~------~------l--~~---~--~--- Total construction loan fund______50,000,000.00 61,281,931.62 81, 128, 451. 38 rn, 202, 774. 95 84. 754, 267. 43 l======f==~===p======~~~~=l=~~~ DIEBELIZATION l'UND Balance at end of year------(1) (1) 8, 217,160. 20 5, Z31, 417.57 1, 824, 722. 10 ' INSCRANCE RESERVES Marine insurance: Reserve at end of year ______------3, 436, 232. 29 3, 669,668. 71 6, 391, 397. 56 7, 136, 096. 32 6, 097,020.79 Charges to reserve during year_------(3) 6, 343, 318. 81 •• 651, 153. 34 2, 933, 699. 51 3,897, 247.08 Protection and indemnity insurance: Reserve at end of year·------6, 414,217. 61 5, 312, 541. 38 4, 971, 157.80 •• 670, 257. 72 4, 396, 596. 35 Charges to reserve during year------(3) 2, 993, 4.10. 55 4, 472,836.49 1, 746, Z33. 37 1, 792, 277. 12

LIQUIDATION J'UNDS

Total receipts from liquidation of assets------43,442,385.61 23,090,661. 10 10,373,643. 17 13,965,547,64 9, 385,757. 72 · Distribution of receipts: Liquidation expenses (including administrative expenses, laid-up fleet, etc.)______(4) (I) 3, 996,800.55 3, 432,308.23 3, 000,000.00 Transfers to construction loan fund------43,442,385.61 11,281,931.62 6, 376,842.62 ------16,918,997. 13 Receipts from sales in fiscal year 1926 in excess of appropriation for liquidation expenses held in suspense until use approved by Congress, Mar. 4, 1927------~------• 5, 013,160.12 ------·-· Receipts from sales, including interest on transactions prior to June 5, 1925, held in sus- 5 T=:r~~1~C:~~;~ r~~g~~~s.~aitir~:---~===~==:::::::::::::::::::::::::::: ======~======--ii;sQ8;729~48- :::::::::::::::: __ _~~-~~-~~~~- ======I!ALE OF VESSELS Number of vessels sold: Individn2lly. ------149 24 47 107 50 In groups for restricted operati<>n as lines______------10 5 42 2 For scrapping------o 237 18 •a 1!)9 --·------.. -- 1------I------~------I------:------Total vessels sold_.------__ ---- 383 52 55 348 oz 2 1 4 Number of lines sold ____ ------_------I======F======F======r-======F======______------Total sales price of vessels sold------l=$3=0~,1=3=8~, 906=.=96==F~=~==I,=~:=:===f~:=::::::::;::;===~=~==== $7, 045, 684. 58 $8, 995, 729. 09 $19, 666, 059. 70 $6,990,937.00 LAID-UP FLEET

Number of vessels laid up at end of fiscal year------­ 937 924 914 580 506 Tonnage of vessels laid up at end of fiscal year (dead-weight tons>------5,949,122 5,862, 726 5,850, 273 4, 295,754 3, 768,001 Laid-up expenses during year------$4, 418, 335. 59 $2, 915, 814. 23 $2, 867, 577. 68 $2, 474, 35ii. 29 $2, 123, 116. 69

SPECIAL CLAll{S APPB.OPB.IATION

Balance at end of fiscal year------7 $6,517,924.25 $5,034,687.40 $4, 596,144. 79 $3, 570,237.96 $1, 927, 767. 12 Settlements during year from appropriation------~-- $1,483,236.85 $438,542. 61 $1,025,906.83 $1, 642, 470. 84

tAct of :Mar. 4, 1927, authorized inclusion of part of suspense items in construction loan fund. t Fund not authorized until fiscal year 1925. a Reserve not set up until end of fiscal year 1923. • Liquidation expenses paid from general funds. No specific authorization or appropriation for liquidation expenses before fiscal year 1925. • Act of Mar. 4,1927, authorized transfer of these amounts to construction loan fund. These amounts are included in the total of $16,918,997.13, shown as transfers to con• struction loan fund during fiseal year 1927. • Wooden vessels. 7 Balance set up at end of fiscal year 1923 to cover estimated settlement cost of outstanding clailllll payable from the special appropriation. 1928 CONGRESSIONAL RECORD-HOUSE 1811 Comparis07~ of number ot emp.luyees and annual vav ron, JuM SO, 1JJZ~, June :JO, 19%5, Ju1~e so, 1926, Jfme 80, J.Jr.n, tznd Noveaba.· so, 19!'1'--Continued

Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year 1923 1924 1925 1926 192'7

CLADU! AGAINST THE U.S. SffiPPING BOARD (EXCLUDING CO"CR-T OJ' CLAIMS CASES) Number of claims at end of year: Admiralty cases ••••••••••••••••••••• ------·-·-··-······------······------1,664 1,038 560 393 328 Legal cases ______------.------•• ------•••• ------•••••• - 290 266 243 270 162 :r>iiscellaneous cases .• --••• ------­ 111 94 74 48 48 Unpaid awards •••• ------·· ------13 10 Total number of claims._.···-······------······· ··----- 2, 065 1, 398 877 72iiS-cases~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ss, ~g; :~:: ' ~Z:: ff~: fs ~: =: ~ri: gf 258,005.58 57,919.51 rnP,aid awards.------819,303.10 110,385.76 Total amount claimed ______------·-···------116.483,909.26 95,858,782.94 72,880,338.42 54. 249, 808. 03 44, 244. El3. 84

NoTE.-These totals include claims which are payable !rom th'! special claims appropriation, as well as claims which, when settled. will be paid from other available funds. 'l.'o provide for operating losses incurred by the Merchant who is, I suppose, one of the best lawyers in that State, repre­ Fleet Corporation the committee recommends the sum of $12,- senting the line that he was attorney for, to say that they 000 000 for the fiscal year 1929. This is $1,400,000 less than the came to my office and told me of the possible desire of that e:stimate submitted in the Budget. It was adduced during the committee to come before the committee and relate their hearings that certain economies might ~ effected through. re­ troubles. After hearing in a summary way what they had on ductions in fuel and supply costs and the sale of several lmes their minds, I said : of vessels. In addition the committee deducted the sum of It strikes me that you gentlemen ought to get together and decide $350,000, which approximates the annual earne?- interest on_ upon whether there should be 4 sailings to Calcutta instead of 16. various funds under the control of the corporation. To com­ pensate for this latter reduction, however, a new section has There seemed to be a difference of opinion among the gentle­ been added to the paragraph making appropriations for the men and the Shipping Board, and I thought there should be :Fleet Corporation, as follows : some conference between these conflicting interests in order that something might be agreed upon and for the purpose of (e) All interest earned o.n the ftmds of the United States Shipping getting a business connection between the American line as Boaru Merchant Fleet Corporation iS to accrue to these funds and is opposed to a connection between the British lines and the made available for the purposes hereinbefore set forth subject to the American line. The interest of Mr. Miller was an American lhnita.tlons herein establisl1ed. line. They wanted an additional trip, making 15 or 16 in all.

?tfr. McDUFFIE. Mr. Chairman1 will the gentleman yield? It occurred to me that possibly an arrangement might be made 1\Ir. WOOD. Yes. between them. It was with that idea in mind that I suggested Mr. McDUFFIE. I am sure the gentleman is interested in that there should be a conference between them, and for that establishing a permanent merchant marine, just as much so as purpose I called upon Mr. O'Connor and General Dalton and I am. Perhaps we differ as to policy and as to the treatment arranged for a meeting at 1 o'clock in the afternoon, at which by Congress of this activity. I am wondering if the gentleman's Mr. O'Connor and Mr. Plummer and Mr. Smith represented committee has not made a mistake in cutting the Budget esti­ the Shipping Board. But the result of it was that nothing mate a million dollars. I can not find in the hearings any place came of it, and nothing was ever said or refel'red to about a where a single member of the Shipping Board has sugg~ted, cut; and I am happy to say to the committee, that in order or agreed on, or appeared to be satisfied, with the action of the that there might not be any mislmderstanding as to the atti­ eommittee in cutting the Budget estimate a million dollars. tude of these gentlemen and of this committee, I asked Chair­ The estimate of the board was $14,300,000. The President's man O'Connor and Vice Chairman Plummer to eome to my Budget cut that amount to $13,400,000 and the committee now office this morning. Mr. WASON, Mr. VINSON of Kentucky, 1\Ir. cuts that a million dollars. CULLEN, and myself were present; and these gentlemen stated It is true that the hearings show something of a saving in that it had never occ-urred to them that this reduction was fuel. It does appear that some of the witnesses evidently in consequence of or because of that meeting. assumed that all conditions affecting shipping will be as good Mr. McDUFFIE. I have nQt heard anybody charging that in the next year as they were in the past--of which we have on the floor. I thought the 'gentleman from Maine made a no assurance--did not demur; but I call the gentleman's at­ splendid and courageous statement. I think he was very fair tention to the statement of Chairman O'Connor, at page 781 to the chairman and to the committee, and I think that per­ of your hearings, where he asked the committee not to cut the haps the cha.hwan is unduly exercised when he takes the e ·timate of the Budget. Will the gentleman give us some idea position that he must defend himself and the committee even as to how he expects to help the merchant marine by cutting before a charge is made. The chairman ordered the Shipping this appropriation even below the estimate prepared and ap­ Board members to come to his office. proved by the Budget? 1\Ir. WOOD. No; he did not order anything of the kind. He Mr. WOOD. I will be glad to answer the question. I may invited them. say in passing that yesterday the gentleman from Maine [Mr. Mr. 1\IcDUFFIE. Well, you requested them to come. You BEEDY] made a speeeh in which he called attention to the fact requested these gentlemen to appear in your office before they that some time during the hearings a committee of gentlemen, appeared before your committee to present their estima~ of he-aded by ex-Governor Miller, of New York, came to this town funds needed for carrying on the activities of the Shipping and had an interview with me and afterwards with members Board and Fleet CorJ)oration. of the Shipping Board on account of the differences arising The chairman knew, I assume, that this gentleman to whom be-tween them with respect to certain sailings in which the Fleet you refer and this distinguished gentleman from New York, Corporation had a line of vessels, and the inference was de­ ex-Governor 1\Iiller, a great lawyer, who seems to think he can duced from what was said that as the result of that interview enjoin the Sbipping Board from entering into the territory the appropriations for the Shipping Board were reduced in this of our chief competitor under the British flag. These gentlemen sum of $1,400,000. I felt at the time that it was very fair in came up here at the request of the chairman, and the chairman him, and I felt also that there was not a member of the com­ must have known that they-- mittee but who was in agreement with me as to what tlle appro­ 1\fr. WOOD. What chairman? priation should be, who entertained for a moment the idea Mr. McDUFFiE. I mean the gentleman from Indiana, my that the reduction had anything to do with that. I wish to friend [Mr. Wooo]. eommend the gentleman from Maine [Mr. BEEDY] on his state­ :Mr. WOOD. You mean when Mr. O'Connor came up? ment of what occurred, and the extracts he put in disclosed Mr. McDUFFIE. Yes ; Mr. O'Connor, General Dalton, 1\Ir. what occUITed at that meeting. Plummer, and Mr. Smith, three members of the Shipping Board. It is only fair, however, to the gentlemen present on th'at Surely the chairman knew that these distinguished gentlemen oC<'asion, headed by ex-Governor Miller, of New York, who is had already been before the Shipping Board and had thrashed recogn:ized as one of the foremost dtizens of that State, and out their matters more than once before the Shipping Board. 1812 CONGRESS! ON AL RECORD-HOUSE JANUARY 20 l wish to be fatr In any Statement about the incident. I that after two or three years, when the boats we now have will have stated no conclusion the gentleman might see fit to defend be obsolete, and we will have faded away from the sea. To my just now ; but is not the Shipping Board the place for these mind the greatest encouragement and the greatest guarantee parties to adjust their differences and not the office of the for a permanent merchant marine is to get these vessels, as chairman of the Subcommittee on Appropriations who has so soon as possible, into the hands of responsible operators who much to do with providing funds for the Shipping Board? are bent upon the maintenance of a merchant marine under the Mr. WOOD. I will say, in answer to the gentleman from supervision of the Government of the United States. Alabama, that these gentlemen came here ostensibly for the Mr. McDUFFIEl. May I suggest to the gentleman that the purpose of appearing before the committee. After having heard more we pare these appropriations the more quickly will this their statements it occurred to me that their differences were be done. Is that the policy under which the committee is such that they ought to be composed without airing their proceeding? troubles before the committee. I thought that would be in­ 1\fr. WOOD. There is a whole lot that might be said pro finitely better, and with that idea in view this conference was and con upon that question. I say here-and perhaps it is held. Let me say to the gentleman that I think it is better unfortunate we have to discuss this-that there is a divided now than a lawsuit and I think it is better now than having opinion with reference to the futm:e of our merchant marine. a rate war, costing the United States more than $1,000,000 a There are a few peo.ple, even having their representation upon year, that these gentlemen get together under one flag and not the Shipping Board, who are in favor of Government ownership. under a divided flag. But the great mass of the people of the United States are l\Ir. l\IoDUFFIEl. I agree with the gentleman entirely. What opposed to it and they subscribe to the doctrine that the less sort of a lawsuit has the gentleman reference to? the Government has to do with business the better it is for the .Mr. WOOD. I will say it was stated upon that occasion, people and for the Government. Now, then, with that divided and it was stated here yesterday by the gentleman from Maine opinion repre.~ented upon the board, I do not know how long [Mr. BEEDY], that they are proposing to bring a lawsuit under it may be until we will carry out the letter of the merchant section 7 of the merchant marine act, which provides that one marine act which you will agree with me is ultimately to place line carrying the American flag shall not enter into competition all of these vessels in the hands of private owners. with another American line. If these vessels or these lines are disposed of at the earliest Mr. l\IcDUFFIEl. Does the gentleman think there is any possible moment, before the ships themselves have become ground for such a lawsuit? decadent and decayed, I expect the gentleman will agree that Mr. WOOD. I am not deciding that law question at all, if they were placed in the hands of private owners under such but there is a chance of having a lawsuit, and I want to avOid restrictions and such requirements as the Shipping Board has that if possi}}le. the right to make, it would be infinitely better than to permit Mr. McDUFFIE. I do not want to burden the gentleman or them to rot away without replacement, becaru;e we would soon take up too much time, but the gentleman knows that any have nothing left. money he appropriates for the Shipping Board will not be It is gratifying to know that we have reduced the cost of wasted, judging the future by the past, and the gentleman knows operation from about $50,000,000 to $17,000,000~ or perhaps that any money that is not used will be covered into the Treas­ $14,000,000. ury, except that which is needed to pay outstanding obligations Mr. McDUFFIE. About $16,000,000. unuer the language of the law. That being so, what is the Mr. WOOD. And the cost has been reduced in some degree object in eliminating $1,400,000 from the estimate of the Budget? by retrenchment in operation, but the vast portion of the reduc­ Mr. WOOD. I will answer that. The hearings in this case tion has come from the sale and disposition of these lines. ·disclose that with the disposition of the west coast lines there We have not a single cargo line but what is operating to-day will be more than $1,000,000 saved in that operation, because at an expense, and it is now proposed to sell the West Coast the loss of operation covered by the last appropriation amounted Line, where we lost $1,100,000 last year. The Roosevelt Line to $1,100,000 in round figures. Now, then, with the sale of cer­ that the gentlemen from New York came to inquire about is tain other lines it may amount to twice $1,000,000, and they losing UB more than $1,100,~00 a year ; and one of the things will save more upon the purchase of oil than $1,400,000 in the that occurred to me was that if we could sell these lines tl1 next year. There is no troub~e about this and the gentleman some responsible agency that was bound, under the require­ need not be exercised. I appreciate the interest he has in the ments and specifications of the Shipping Board, to maintain: merchant marine; I appreciate the interest he has ever mani­ them for a certain period of years, it would be infinitely better fested in upholding the Shipping Board, and he has rendered than to be paying out $1,000,000 each year as a consequence of valuable support in that direction; but two or three years ago their operation. the gentleman will remember, when we made a cut upon this Mr. CULLEN. Will the gentleman from Indiana yield? appropriation to cover these expenses, he and other gentlemen Mr. WOOD. I yield. here thought we had made too much of a cut. At that time it .Mr. CULLEN. I would like to clear up the situation in so was agreed tentatively, and it was so expressed and is so far as it relates to the appropriations of the Shipping Boa.ru. expressed now, that in the event the appropl'iation we made was There was no disposition on the part of any of the members not sufficient to cover these losses they would not oo hurt ·of the subcommittee having in charge the appropriations of because of the fact that the deficiency bill could cover anything the Shipping Board to take away from them one dollar that that might be needed. they asked for. They came before the committee and the com­ Mr. 1\foDUFFIEl. Let me inten.·upt the gentleman to make mittee gave them everything they wanted. this observation, or to ask the gentleman if in his honest opinion In regard to the reduction of $1,400,000, it developed at the the very fact that the Congress itself cuts the President's Budget hearings that this amount of money might be saved on fuel, will not have its effect upon the future operations of the Ship­ and it was even suggested, I think through the purchasing ping Board and its opportunities to handle m&re of the world's agent of the Shipping Board-! think the chairman of the commerce? subcommittee and my colleague Mr. VINSON of Kentucky will Is not the psychology of it bad? Will not our competitors bear me out in this-that they could pos-·ibly save that amount say, " Over there in America, even the Congress does not agree of money plus the sale of some vessels that were out on the with the President's estimate "? and the President certainly coast. bas not shown any great amount of enthusiasm over this prop­ I do not think it is fair to come in here and criticize the osition, and will not our competitors say to shippers everywhel'e subcommittee. I am only a minority member, but I believe I on earth, that Congress itself is withholding from the United speak for my colleague the gentleman from Kentucky [1\!r. States merchant marine the funds asketi for and· which are VINSON] when I say that the committee was honestly and sin­ deemed necessary for successful operation? cerely giving to the Shipping Board every dollar that they · 1\!r. WOOD. I think jru;t the converse of that is true. It needed for operating and other expenses. was the contemplation of the merchant marine act as soon as Mr. McDUFFIE. Will- the gentleman from New York per· possible and under the most advantageous circumstances to get mit-- the merchant marine out of Government contl'ol ·and into pri­ Mr. ClJLLllli.~. Yes. vate control. I believe that the sooner we get all of these lines Mr. McDUFFIE. May I suggest to the gentleman there ts no into the hands of private corporations or individuals that much effort or intention or pmpose to criticize in the spirit the gen. sooner will we establish as a permanent fact to all the people tleman thinks we are criticizing, or that I am criticizing. I of the earth that we are going to maintain a merchant marine. am sure the committee wants to do what is right and has done N'o merchant marine has ever been successfully established and its best, but the best of us make mistakes. maintained in this country except under private ownership. Mr. CULLEN. Right. The governments of Europe to-day are only hoping that we will Mr. McDUFFIE. It is no reflection on the committee if a keep dilly-dallying along as we have been dilly-dallying along Member of the House seeks to get a little information or offers ever sinGe the close of the war without any definite policy, and a suggestion to the co!!!ffi.ittee. I hope the gentleman does not 1928 CONGRESSIONAL RECORD-HOUSE 1813 feel I am being unfair to the committee in simply calling atten­ to state that we are not criticizing the subcommittee. Some of tion to the fact that the last words of the chairman of the Ship­ us, however, have convictions and opinions on this subject, ping Board when he left this committee were, in substance, and we think we know something about this problem, and I "Please give us the amount we have in our Budget estimate." respectfully submit that we are entitled to express our opinion That statement is on page 781 of the hearings. without being charged with criticizing the committee. The Mr. VINSON of Kentucky. Will my colleague yield? committee is not infallible, and neither are we. The suggestion Mr. CULLEN. Yes. made by the gentleman from New York is wholly unjustified. 1\Ir. VINSON of Kentucky. · While it may be true that the Another thing. It is admitted by the chairman of the sub­ chairman of the Shipping Board made that statement as he committee and others that this reduction of $1,400,000 from the passed out of the room, I will submit that a fair interpretation Budget estimate submitted to the House by the President is of the hearing, with all the pages of evidence, will disclose that predicated on a possible contingency. I want to ask the gentle­ 99% per cent of the hearing indicated that what we have done man from Indiana in all fairness if it is not rather unusual for was in consonance with their ideas. an appropriation to be cut down on the possibility of some oc­ 1\Ir. CULLEN. And in addition to that, if the gentleman will · i Urrence which if it does occur will warrant a reduction? yield me a moment-- Mr. WOOD. If this was to be the end of the Congress of 1\Ir. WOOD. Yes. the United States and the Shipping Board was to continue Mr. CULLEN. As I said before, I stand ready to provide without hope of relief otherwise, I think the gentleman's con­ further funds to keep the Shipping Board provided with the tention would be a good one; but it is the purpose of Congress, money necessary to continue their operating expenses, but when or ought to be, to save as much as possible without curtailing the purchasing agent comes along and says that there might any activity that is worthy. be a possible saving in so far as coal and oil are concerned, Four years ago we had the same question here. It was then there was no other course left. announced on the floor that in the event the appropriation 1\Ir. McDUFFIE. But were not the savings in oil conditioned should prove insufficient a deficiency appropriation would be upon the ale of the West Coast Line? made. We are making that now. There is no disposition on 1\Ir. CULLEN. Yes; that is true. the part of the subcommittee or the general committee to crip­ 1\Ir. McDUFFIE. Suppose we do not sell that line or sup­ ple the Shipping Board or the American merchant ma1ine. I pose, if you please, we have a coal strike and we have no skips wish to commend the gentlemen who have been operating this to move the cotton of the South and the grain of the West. board for their prudence in the reductio.n of expenditure, and Under this paring process the board will not have money it is through them we are able to make the retrenchment we enough to put spot ships in the Gulf and other ports to move are now making. It was said by some member of the Ship. this additional commerce by reason of the cutting down of the ping Board that "We are making such excellent showing that appropriations. we are afraid yon won't give us anything." 1\Ir. WOOD. 1\Iay I a sk the gentleman, has the Government Mr. DAVIS. I want to indorse what the gentleman says of the United States ever failed to meet the emergency he about the showing they have made. They are making a splen­ refers to? did record of increased efficiency, increased earnings, and at 1\Ir. McDUFFIE. Becau e it has had money enough; and let the same time I'educing expenses. I think that in itself is me suggest to the gentleman, the gentleman said last year sufficient warrant that they will not spend any more money $12,000,000 would be enough to get along on, and I call the than is required. The gentleman from Indiana himself knows gentleman's attention to the fact that already they have ex­ that this is a tremendous proposition. They have to arrange pended more than that for this year's operation. If we can the program, they have to make contracts ; they can not operate judge the future by the past, when the fi scal year is up they such a tremendous enterprise on a month-to-month basis on the will have expended about $16,000,000, and yet the gentleman possibility that they may be able Ot come back and get a defi­ said last year that $12,000,000 was enough. Now, the gentle­ ciency appropriation, especially in the face of the statute that man might again be mistaken. prohibits an executive department from exceeding its appro­ Mr. 'WOOD. Yes:· but we have not been hurt, have we? priation. Mr. CULLEN. If the gentleman will yield, I want it to go in Mr. WOOD. T11ey will have more than ample money to carry the RECORD that, so far as I am personally concerned. and I them past and beyond the next Congress before the fiscal year think my colleague, the gentleman from Kentucky [Mr. YIN­ for which the appropriation is made. There is no questi<>n but sox]. will agree, there is no disposition on the part of the sub­ they will have money enough, and if worst comes to worst there committee, including its minority members, to take one dollar is another Congress that can make agditional appropriations. away from the Shipping Board, or to attempt in any way by There are two items here which m my opinion would have reducing its appropriations to cripple it in any form, shape, or warranted us in making a $2.000,000 reduction. manner. Mr. DAVIS. ·But both of them are predicated upon con­ 1\Ir. 1\IcDUFFIE. I am sure of that. tingencies. Suppose neither of the contingencies occur, and Mr. BEEDY. Will the gentleman yield to me a moment, suppose in addition to that, as the gentleman from Alabama please? suggested and as has occurred on two different occasions, there 1\lr. WOOD. Yes. should be a vast accumulation of wheat or cotton or other com- . l\Ir. BEEDY. I want to express my appreciation of the senti­ modities for which tbey must furnish transportation. ment to which he has given utterance. I am very much grati­ 1\ir. WOOD. They have funds enough to take care of that; fied as one interested in the work the Shipping Board is trying they have a construction fund of $80,000,000. to do. Mr. DAVIS. But that fund is not available for operation. The gentleman a moment ago said, when it was ~tnted that Mr. WOOD. It is available for private operators to supply there might be saved in fuel a million dollars, that there was the emergency that the gentleman is talking about. nothing el ·e for the committee to do but to cut down the ap­ 1\Ir. DAYIS. They are only authorized to use that fund for propriation a million dollars. Does not the gentleman under­ making loaiL'l for• ·hip construction and for Dieselizing ships. stand with me that the saving of fuel was gone over carefully 'l~h e y are not authorized to make any character of recondition­ by the Director of the Budget when he recommended that the ing under the construction loan fund, except to Dieselize the Shipping Board ought to have 13,000,000 to carry on with? Shipping Board vessels. Is not that correct? 1\Ir. WOOD. I will say to the gentleman from Maine that 1\Ir. ·wooD. They can Dieselize; yes. there are two items that are amply sustained by the evidence l\Ir. DAYIS. I beg the gentleman's pardon. They are au­ that warrants the committee in making a reduction. One is thorized to keep their ships in repair, but outside of Dieseliza­ the selling of the ·west Coast Line, and the other the reduction tion it can only be paid for out of the funds that we are an­ of the cost of oil. nually appropriating for the operation of the ships. 1\Ir. BEEDY. As long as the committee is in sympathy with Mr. WOOD. It is the opinion of the board that out of the the work tbat the Shipping Board is doing and stands ready funds they are deriving they can take a portion of it and even to give them the money they need in order to comply with the apply it to the reconditioning of the Mount Venwn and the spirit of the act and acquire a major portion of the commerce, M onticello. I am myself content. Mr. WHITE of Maine. 1\Ir. Chairman, will the gentleman 1\Ir. WOOD. The committee has always been disposed to do yield? that, and we have stood by the Shipping Board sometime. when Mr. WOOD. Yes. it was a pretty big job. · 1\Ir. WHITE of 1\Iaine. 1\Ir. Chairman, I understand very Mr. DA YIS. Will the gentleman yield? clearly from the testimony oi' the Shipping Board b('fore the Mr. WOOD. I will. gentleman's committee. that they have just the contrary opinion, 1\Ir. DAVIS. With respect to the observation of the gentle­ that they could not do it. I venture tbe opinion that no one man from New York that Members of the Hou e were criti­ ''ho is familiar with the construction loan fund, with its origin cizing the committee because they differed with them, I want and with the changes that have been made in that construe- 1814 CONGRESSIONAL RECORD-HOUSE JANUARY 20 tion loan fund, through legislation coming out of the Merchant ditlon that they could reach out and get $2,000,000 to add to Marine Committee, can have any such idle notion of the law the $10,000,000 that we were to JU'ovide. · as that. llr. DAVIS. I want some member of the committee to tell Mr. DAVIS. And another thing-I appreciate the interest us where they indicated they could get it. of the gentleman and I appreciate his desire to econonilze. I Mr. VINSON of Kentucky. As far as I was concerned, I was do not want one cent more approptiated than wil1 probably be satisfied that they were in good faith when they made that needed, but I ask the gentleman if he does not think that it statement. I thought they were going to save it in the operat­ places an improper pressure upon the Shipping Board to put ing expense. them in the attitude that, before they will have a sufficient Mr. WOOD. I think if the gentleman will read the amount of funds on band to continue their operations as they bearings-- · are now doing, they must seli some of their lines? l.Ir. DAVIS. I have read them, but I do not remember any l\Ir. WOOD. Oh, no; the action of the committee was predi­ reference to that feature of it. cated upon the fact that they are going to sell some of the Mr. VINSON of Kentucky. The gentleman does not mean lines, and they ought to sell some of the lines. to ay that he does not see in the hearings where they said Mr. DAVIS. I am familiar with that proposed sale, and I they could get the $2,000,000? want to say that they are far from a sale, and I doubt very :Mr. DAVIS. I am sure that I saw no reference to where they much whether it will be consummated. It bas certainly not could sa>e it, from operation or sale of vessels or elsewhere. reached any meeting of minds of the parties yet, and I doubt Mr. BRIGGS. Mr. Obn.irman, will the gentleman yield for a ve1·y much whether it will. quertion in this conn~tion? lUr. WOOD. Suppose it does not. We will know whether it Mr. WOOD. Yes. is going to be a sale or not before this Congress adjourns, will Mr. BRIGGS. In order that the RECORD may be straight about we not? the assmance of the chairman, it is my understanding that the Mr. DAVIS. Probably so. chairman gives the Congress the assurance that in the e.-ent Mr. WOOD. Of course we will. The advertisements are that this amount provided for the operation of the ships should made, and the time limit is fixed. If the emergency which the prove insufficient a deficiency appropriation would be brought gentleman is talking about and fearing possibly may happen, in to cover that deficiency, so that the Shipping Board and or does happen, we will be here. the' Merchant Fleet Corporation will not have their activities Mr. DAVIS. I want to ask the gentleman a question or two and necessary duties interfered with, so that they can not be further, if be will permit. performed. • Mr. VINSON of Kentucky. Mr Chairman, before the gentle­ Mr. WOOD. I individually subscribe to that, and I think man leaves that will be permit a statement on that point? every member of the committee will subscrihe to it. Mr. DAVIS. As far as I am concerned, I will Mr. BRIGGS. I want that particularly in the RECORD, because ~Ir. VI..., SON of Kentucky. Referring to the decrease in .-ery frequently during the easonal mo.-ement of crops in the the appropriation, I ask yon if the Shipping Board did not United States, in the summer season, when the Congress is not evidence an earnest desire to secure the provision which would in session, it falls upon me to strive to get additional ships permit of the reconditioning of the Mount Venwn and the for the moyement of grain from the West which happens to go Monticello, and was not a very vivid picture painted to the through ports of the Southwest and for cotton of the South. committee that not only had the operating expense been cut I bave bad a tremendous amount of difficulty from time to down in the past, but that the operating expense is being cut time. For instance. as the chairman knows, last year the down now, and that while they wanted provision made to British coal strike occurred-! mean in 1926-and it required secure $10,000,000 from this construction loan fund, they putting into service an additional nlliDber of American shipS estimated it would require' $2,000,000 additional to recondition by the Shipping Board to the extent of nearly 100. Without the e two ves. els, and when we called their attention to that tho e ships we could not have moved the commerce of the fact, they said they had the place where they thought they United States to its destination, and it is a. matter of great Ct1n­ could get the additional $2,000,000. Is not that so? cern that they sho.uld have enough money on hand to provide :Mr. WOOD. That is what they said. for the reconditioning of and operation of these ves els. There­ Mr. DAVIS. That has no reference to the matter under fore it is a matter of gratification to me to recetre the a sur­ discu sion. ance of the chairman. Mr. VINSON of Kentucky. If the gentleman will permit, it .Mr. WOOD. I would like to extend and in ei~t as a part ot would show that they were saving money in operating expenses my remarks a statement showing the Jines operated and oper... and had been doing it and were doing it, and were in such con- ating results: statemeflt of rtvenu~!, expensu; and losses, by lina, ncludh!g United Statu Lines and tankers, fiscal year 19S7

Nnmberof ships as or Number of Name of operator Line June 30, voyages Re>enue Expense Losses or profits ' 1927

28 $1, 504, 746.46 $1, 7i9, 281. 24 $27 4, 534. 78 Admiral_ Orien.tal Lif:le ': _-----,.------­ American Oriental Mail Line______7 Columbm Pacific Shippmg Co. ------­ Oregon Oriental Line______10 39 2, 390,700.33 2,. 738, 530. 03 ~7. 779.70 American .Australia Orient Line______19 25 2, 083, 946. 43 2, 453, 566. 09 369,619.66 Swayne & Hoyt'------­ 2, 989, 652. 12 3, 713, 134. 90 723,482.78 (].H. Sprague & Son (lnc.>------American Republics Line------·-- 13 36 Yankee Line------·------7 35 1, 560, 791. 10 1, 893, 336. 67 332, 5-15. 57 Rogers & Webb------·------10 59 2, 409, 823. 00 3, 025, 853. 81 616,030.81 South Atl~tic S~aJ!1Sbit> Line------American Palmetto Line______Cosmopolitan Sb1ppmg Co ______America France Line---·------9 65 2, 597, 678. 39 2, 932,657.15 334,978.76 :Black Diamond Steamship Co ______American Diamond Line&.--~·----- 17 91 4, 308, 380. 33 4, 924, 532. 25 616, Hil. 92 American Scantic Line______7 28 I, 807,574.55 2, 047, 232. 24 239,657.69 Moore & MeCormack----·------Zl 2, 703, 493. 27 2, 765, 676. 62 62, 183.35 A. H. Bull & CO------}unerican West African Line______10 Atlantic Gulf & Oriental teamship Co ______American Pioneer Line______22 37 4, 664,857. 69 5, 573, 875. 56 909,017.87 J. H. Winchester&: Co.------­ American Merchant Lines.------5 27 1, 165, 614. 81 1, 483, 229. 99 317,615. 18 American India Line------·-- 5 12 1, 292,504.20 I, 866, 448. 98 573,944.78 Roosevelt Steamship Co------·------Atlantic Australian Line______10 13 1, 027,029. 01 1, 649, 127. 95 622,098.94 Do .. ------·-- Oriole Lines______18 109 3, 719, 398. 61 5, 222, 716. 17 1, 503, 317. 56 ConsolidatedExport Steamship Navigation Co ______CO------_ Export Steamship Co ______------2 108,426.58 117,628.71 9, 202.13 American Dixie Line______21 128 6, 009, 034. 88 7, 143,416.42 1, 134, 381. M United Gulf Steamship Co._·------1, 657, 155. 23 1, 981, 454. 26 324,299.03 Do. __ --- ___ ------American Premier Line______10 39 Lykes Bros. Ripley Steamship Co ______Southern States Line:------·------Zl 141 5, 930, 329. 94 7, 455, 659. 41 l. 525, 329. 47 Texas Star Line------9 45 1, 945, 265. 26 2, 359, 969. 69 414,704.43 MississippiDo._------Shipping Co. (Inc.). ______Gull Brazil River Plate Line______14 12 977,204.81 1, 014, 525.70 37,320.89 Mississippi Valley European Line_____ 6 31 1, 007, 329. 32 1, 645, 797. 33 78,468.01 Do._------­ American Delta Line ______------· 18 1, 280, 199. 15 1, 464,541. 47 184,342.32 Do •• ---- __ :.------Gulf West Medite:uanean Line______8 32 1, 401, 998. 54 1, 624, 239. 20 222,240.66 Tampa Inter-Ocean Steamship Co.------·-- Mobile Oceanic Line______12 68 2, 922,217.00 3, 636,718. 'XI 714,501.27 American Dispatch Line ______------12 964,434.13 1, 124, 102. 68 159,668.65 :~~~t!=~So~~==: :::::::::::-::::::::::: 10 855,239.43 1, 096, 623. 68 241,384.25 Struthers & American Far East Line-·------­ BarrY--·-----·------Pacific .Australia Line------·------8 789', 615.90 845,247.37 55,631.47 Swayne & Hoyt------­ a 318,540.58 3i5,098. 56 56, ()57. 98 Do.-.---_---·------Pacific Argentine Brazil Line .• ------1 :.--:.:-~--:.:-~--:.:-~-·:.:-.l~· -__.:.... 1.___ ..:._ __1---:-...:_ _ _:_.l ----~---:- 1,174 62, 953, 231. 05 75, 954, 221. 40 13,000,990.35 Total freighters.------~ :.-:.:--~--:.:-~--:.:-~--=-~!---=-=--:-- t---=-=::-::-=-==-=-=-1---:-.~-:-::-::-:-:-:--...:_=-:-:-~=-=--:-:: I 90,836.42 7. H. Winchester & Co.------American Merchant Lines (passe;nger)_ 51 52 3,005,29'2.56 2. 914,456.14 I

1 Indicates profits. 2 These. lines have been ad>ertised for sale. No inactive vessel expense included. . . . . There have been discussions relative to the possible sale of the American ~Iercba.nt Lines, Amencan West .African Lme, and the Amenca·France Line. 1928 CONGRESSIONAL RECORD-HOUSE 1815 Mr. DAVIS. Mr. Chairman, will the gentleman yield there? Mr. WOOD. My understanding is that they are to be cabin Mr. WOOD. Yes. ships. They are large vessels and serviceable vessels, and .they Mr. DAVIS. Was any information given to the committee will give us a sailing at least once a week from this side and as to how much the interest will be under the new section (e) 1 from the other side as well. To my mind it will serve another Mr. WOOD. It varies between $340,000 and $400,000. purpose, too. Anybody going to Europe and going to these Mr. DAVIS. In the next paragraph there is a reappropria­ great capitals over there where all these competitive ocean lines tion of any funds left over from the last time. Can the have their offices will hear constant talking about the ships of gentleman tell us what that amount was, if anything? the United States trading on the seas. Besides the investment, Mr. WOOD. Five million dollars. I think it is important to show ow· competitors on the other Mr. DAVIS. And that will be available in addition to the side that we are on the ocean to stay. I would like to have $12,000,000? two new vessels ; but feeling that we are not able to get l\lr. WOOD. Yes. them, the advisability of reconditioning the two ships named l\lr. WHITE of 1\Iaine. Mr. Chairman, will the gentleman seems to be indicated, because they will fill in the breach, and yield right there? in my opinion they will extend the possibilities of a sale of Mr. WOOD. Yes. these North Atlantic lines to private ownership, because when l\Ir. WHITE of Maine. This interest that you are proposing these two vessels are completed we shall have rounded out a to transfer to these funds now goes into the miscellaneous line of carrying vessels that will be complete. Without them it receipts of the Treasury? would. be detrimental; and that would be taken into con­ Mr. WOOD. Yes. sideration by any one seeking to buy these lines. The CHAIRMAN. The time of the gentleman from Indiana Mr. DAVIS. Assuming that this authorization is to be has expired. made, does not the gentleman think there ought to be some 1\Ir. WASON. Mr. Chairman, I ask unanimous consent that safeguards thrown around them, as in what is known as the the gentleman's time be extended one hour. Dieselization act, to prevent these ships from being transferred The CHAIRMAN. Is there objection to the request of the to foreign registry or being sold at a ridiculously low price, gentleman from New Hampshire? such as has been true in other instances? There was no objection. In other words, other ships have been reconditioned at large 1\Ir. WOOD. I want to call attention to a new paragraph expense and then sold at a nominal percentage of the recondi­ recommended: by the committee relating to the reconditioning tioning cost. Does not the gentleman think that in view of the of the steamships Mount Vernon and Monticello (formerly Aga­ facts there ought to be some safeguards of that kind adopted? memnon), which is as follows: Mr. WOOD. I believe the vessels should be reconditioned. But the understanding of the board is, and I think it ought to For the reconditioning of the steamships Mount Vernon and Monti­ be, that in the event these vessels are reconditioned and a sale cello at a total cost not in excess of $12,000,000, not to exceed $10,- is made, the same rules should apply as those we made to appl_y 000,000 is made available from the construction loan fund and shall with reference to the reconditioning of the Leviathan, namely, be reimbursed to such fund with interest at such rate and within such that the reconditioning cost should be met by the purchaser, less period as the board may determine, but not exceeding 10 years after the wear and tear caused by the time of operation. the date of commission of such reconditioyed vessels. 1\Ir. DAVIS. That might be the policy of the present board, These Yessels have been very carefully surveyed, and the cost but the present board may change, and some other board may of complete reconditioning and installation of geared turbines come in and authorize the sale at a nominal price, or sell them and water-tube boilers, enabling them to maintain a speed of 20 to some one who will transfer them to a foreign register. knots is estimated at $12,000,000. The committee believes that 1\Ir. WOOD. I am in favor of adding such a provision as the if more than $10,000,000 is necessary, which sum is authorized gentleman states as a safeguard. by the paragraph just above set forth, it can be obtained from Mr. Chairman, during the general debate last evening when other funds at the disposition of the Fleet Corporation. Very the gentleman from Kentucky [Mr. VINSON] had the floor we careful estimates indicate that each vessel would earn approxi­ entered a discussion relating to the reconditioning of two steam­ mately $400,000 per annum after reconditioning, and, in addition, ships, the Mount Vernon and the Monticello, and the estimated would provide the United States Lines with a more balanced results of operations. Apparently we discussed this matter fleet, enabling the establishment of a weekly sailing service to from different angles, and I desire at this time to make a state­ European ports. A detailed statement relating to the costs of ment for the RECORD which will make this matter clear. reconditioning, operating revenues, expenses, and characteristics It has been estimated that if these vessels are reconditioned of these vessels will be found on pages 699-710, inclusive, of the and placed in operation each vessel will obtain a gross revenue bearings. of $3,927,903. Against this sum must be charged an operating Now, there is quite diversity of opinion as to whether or expense, which includes voyage expenses, maintenance and re­ 1not these vessels should be reconditioned. When I came back pairs, advertising, and a proportionate share of the adminis­ from Europe I was firmly convinced that we ought to have trative cost, aggregating $2,649,093. This sum deducted from two new vessels to round out our North Atlantic fleet. Ap­ the gross revenues leaves a gross income of $1,278,809 per year. parently it is not possible to have two new vessels. Instead, This is the figure to which the gentleman from Kentucky re­ it is suggested that we recondition these two vessels with the ferred, and is correct as far as it goes. Howe>er, there must money indicated. Then they will be practically as good as be taken into consideration the fact that these vessels are to be new. You know they are German vessels, and everybody who reconditioned at a cost of $6,000,000 each. To ascertain, there­ has had to do with the examination of these vessels, that were fore, the net revenue of each vessel per year it is necessary to taken from Germany, knows how superior they are. An ob­ set aside certain sums for the amortization of the loan made for jection is made to the reconditioning from the fact that if reconditioning and lnterest at 4lh p~r cent per annum. they are reconditioned they will be slow. But we have the To repay the loan of •'6,000,000 on each vessel the sum of statement of one of the best ship engineers in the United $600,000 must be set aside for a period of 10 years. Interest at States that the speed will be practically from 22 to 23 knots 41h per cent per annum on the reconditioning cost amounts to per hour. These engineers are firmly of the opinion that if $270,000 per year. ThEse two sum , aggregating $870,000, must these two vessels are reconditioned we will ha>e accomplished be deducted from the gross revenues of $1,278,809 per year, and our purpose. Those who advocate the building of two new leaves the sum of $408,809 per annum as the net revenues from ves ·els base their statement upon the fact that two new vessels each of these ve sels. This is the figure referred to in the would last twice as long ordinarily as if these two older vessels report accompanying the bill, and the figure to which I referred were to be reconditioned. That may be true, or it may not. yesterday ut thousands and millions, carried not upon our vessels, because :$35,000,000 upon the taxpayers. The result. aside :from this steady we had no vessels to can·y them, but carried by foreign vessels drain upon the Treasury, would be the disappearance of privately owned to fight battles in foreign lands ; these vessels, not supported by 'American shipping in the foreign trade. convoys of ours, but by convoys of foreign countries. The coastwise merchant marlne is adequate, capably handled, and We also witnessed another beautiful spectacle. When Japan most valuable for emergency defense purposes. It does not cost the was threatening war against this country and Theodore Roose­ United States Government anything_ velt sent the fleet around the world, we did not have a collier No estimate of a subsidy for foreign-service vessels would cost the to furnish them coal, and had to depend upon foreign vessels Government one-half as much as it would lose annually in interest and to furnish such coal. Do we want this to occur again? depreciation under the ·Jones Governm.€nt-operation plan, not counting I think the last great demonstration, which ought to prove the loss under Government ope1·ation. It is absurd, therefore, to sup­ convincing to every person in the .United States of the necessity pose that Congress will enact the Jones bill or that the President will of an adequate merchant marine, was furnished by the Geneva approve it. The Commerce Committee of the SenAte has done well to convention. press the subject forward, but it could have saved time by preparing a England has 100 merchant marine vessels to-day that can bill that would have some hope of enactment and approval. be converted overnight into cruisers, each one of them armed What the country wants is a merchant marine plivately owned and with guns of considerable caliber. Therefore she was right­ operated, which will not be a drain upon the Treasury, but nevertheless fully interested in seeing that nothing might interfere with under the jurisdiction of the Government in ease of war emergency. the carrying out of her plan. The United States was wise not Surely Congress should be able to draft a bill tba t would meet these to enter into the intligue that was fostered there, and we should requirements. profit by the experience thus gained and establish a merchant I feel that is expressive of the great popular sentiment of the marine, which is always the stl·ong right arm of the Navy, to United States. To my mind it is unthinkable that this Gov­ support us if the occasion ever requires it. ernment of ours, the greatest upon the face of the earth, should We are spending $250,000,000 or $300,000,000 a year upon a not have a merchant mru·ine commensurate with her impor­ Navy and in building new ships, and not 1 out of 100 will ever tance. [Applause.] Countries are only made known to other fire a shot at an enemy, and nine-tenths of these vessels will countries by reason of their transportation facilities. Civiliza­ become obsolete and of no use before they have ever been fired tion has never been extended except through commerce. We upon. may not need this agency for the purpose of civilization, but Mr. ROMJUE. May I ask the gentleman a question? we do need it for the purpose of expanding our trade. [Ap­ 1\Ir. WOOD. Yes. plause.] How can we hope to expand for the increasing pro­ Mr. ROMJUE. I am very much intere ted in the discussion duction of the United States except through an adequate the gentleman is making, and I think one of the greatest bene­ agency? If we are to expand, it must be across the sea into factions that could come to this country would be a strong mer­ some foreign land. What country is going to represent us and chant marine. The newspaper article read just a moment ago the best interests of our people in expanding that trade? Cer­ seemed to make an appeal for a privately owned merchant tainly England is not going to do it ; Germany is not going to marine, one that would not be a drain upon the Treasury. I ~o it; Italy is not going to do it; and all of these powers are am hoping the gentleman will explain ·bow this may be pos- 1928 CONGRESSIONAL RECORD-HOUSE 1817 sible. I hope it is possible, and I would be glad to see it American vessels in the movement of American exports and brought about. imports. This section has never been given effect. Mr. WOOD. I am going to explain as best I can the plan Thus we see that two of the major provisions for encourage­ adopted which looks to that end in the futm·e. ment of American shipment are absolutely dead letters. There I want to say, in passing, I am encouraged through having were, no doubt, some valid objections to both. That is not been reliably inf(}rmed that for the first time in more than 50 the point. · The point is that this aid and encouragement deemed years a group of American citizens are prepared to invest a by Congress to be absolutely essential to the carrying out of large amount of money in establishing a new ocean service the policy of transferring the ships to private hands for perma­ across the Atlantic, provided some reasonable and long-term nent operation in the interest of greater American commerce provisions are met. I understand that their plans d(} not de­ and national defense has been withheld. The problem now is pend on a ~'Ubsidy and that the full details will be laid before to find other means of providing equivalent aid and encourage­ the Shipping Board in a week or two. ment. Valuable time, seven years of it, has been lost dm·ing l\Ir. LEHLBACH. Will the gentleman permit a question which our competitors have been building new. and better right there? and more economical ships. They have been extending their Mr. WOOD. Yes. routes, perfecting their connections for obtaining freight in Mr. LEBLBACH. Does that refer to passenger or freight competitive markets, and some of them have been doing it service? with capital borrowed in the . United States. Mr. WOOD. I understand it refers to passenger and fl·eight Congress in 1920 not only realized that some aid and en­ service. couragement was necessary for the successful operation of the The reason new shipping legislation is necessary at this time war-built vessels, which the board was directed to sell under is that the merchant marine act of 192(}-Jones Act-was never suitable conditions, but it saw clearly that new, more modern, given full effect. Several of the most important features of and more economical vessels must be built, and since the con­ that act have been suspended or nuHified and it has failed of struction of such tonnage in American yards would cost far its declared purpose to establish a successful merchant marine more than vessels built by our competitors in Europe and in by the transfer of the war-built merchant fleet to private hands. the Orient, Congress sought to encourage new construction. To realize the present problem, it is necessary to go back to A first-class merchant marine has never been built up without 1920. a healthy shipbuilding industry. In the golden age of Ameri~ At that time the Government had on its hands a vast fleet can shipping, just before and just after the Civil War, it was of ships built to meet the emergency of the war and the build­ Yankee shipbuilders as well as Yankee skippers who made it ing of which helped to win the war because it demonstrated possible for 90 per cent of American commerce to be carried that the United States was providing itself with the means to under the American flag. transport to Europe whatever number of troops was necessary Section 11 of the mel'chant marine act provides for the to bring the war to a victorious close. building up, out of money derived from sales and operations, But after the war there was a world-wide commercial de· of a construction loan fund to be used in loaning money at low pression which produced a depression in shipping and it quickly rates of interest to American citizens desiring to construct became apparent that neither the United States Shipping Board, new ships of the best and most efficient types. The purpose operating the vessels itself, as it did in the beginning, nor pri­ of this was to insm·e the new merchant marine being kept up vate shipping concerns could find occupation for their tonnage. to date. Unfortunately a subsequent enactment by Congress Congress deliberated long and carefully, and the result was forbade loans to be made at less than 414, per cent, and this the merchant marine act of 1920. In an unusually specific and was so high that such a loan would represent very little saving broad enacting clause this act laid down a national shipping to the prospective builder of a ship that it would not any­ policy. It declared that the United States- where near offset the difference between construction costs should have a merchant marine of the best equipped and most suitable abroad and here. So this provision has been practically a types of ves els sufficient to carry the greater part of its commerce and dead letter so far as bringing about the construction of new to serve as a naval or military auxiliary in time of war or national vessels for foreign trade by private shipowners. emergency, ultimately to be owned and oprrated privately by citizens It will be seen from the foregoing that while the merchant of the United States. marine act had a powerful purpose,- the mechanism whereby that purpose was to be translated into action has been largely The act declared : paralyzed. It is hereby declared to be the policy of the United States to do what­ Another section of the merchant marine act of 1920 pt·ovided ever may be necessary to develop and encourage the maintenance of such that the Shipping Board and the Po_stmaster General might a merchant marine. make such contract as seemed advisable for the carrying of And the Shipping Board was enjoined "to keep · always in the mails on American lines. Fortunately this pro.-ision has view this purpose and object as the primary end to be attained."· been carried out and a number of such contracts are in effect, This was a big order and Congress sought not only to give the but they are dependent on renewal from year to year, and upon board wide discretion but it also recognized that a successful the granting of the necessary funds by Congress from year and going American merchant marine could not be created with­ to year. Shipowners never know when thi · encouragement out some form or forms of practical assistance and advantage may be withdrawn. They are unable to make their plans for to offset the lower wage scales and lower operating costs of the futm·e with any assurance that the contract will be con­ other shipping countl'ies, many of which grant subsidies and tinued. In this respect we are even behind the conditions most of which enjoy the advantages naturally arising from prior obtaining under the old ocean mail act of 1891, pursuant to establishment and long experience in world trade. Congress which contracts for 10 years were entered into. looked around for means of employing our own American com­ The United States long ago recognized the wisdom of en­ merce in such a way that it would be aided by the American couraging construction of vessels of superior speed for the more merchant marine and should, at the same time, contribute to rapid, regular, and frequent carriage of the mails. If this the deve)opment of that merchant marine. It was recognized policy is to be effected it should be brought up to date and that if American exporters and importers could be drawn into long-term conh·acts authorized. a more general employment of American ships the development Mr. DAVIS. Will the gentleman yield? of an American merchant marine would be assured, but, first, it Mr. WOOD. Yes. ·was necessary that us good service be provided under the Amer­ Mr. DAVIS. I wish to remind the gentleman that the 1891 ican flag as under foreign flags. Without some encouragement act is still in effect, just as it bas been all the time; and the American shipping interests would not buy the ships and the reason the contracts are restricted to one year is because of necessary capital for new lines would not be forthcoming. the action of the Committee on Appropriati(}ns. The Jones Act, therefore, provided a number of expedients Mr. WOOD. It is be~m~e of the contro\erted point as to for indirect aid to American shipping. Section 21 provided for whether or not they have the authority. extension of coastwi ·e trading laws to the Philippines. This Mr. DAVIS. But the point is that the 1891 act which au­ was designed to restrict the carriage of merchandise between thorizes long contracts is the law now. It is n(}t necessary to the Philippines and the United States to American vessels. enact any new legislative provision. Up to date this has not been done, and American vessels enjoy Mr. BLA~"D. If the gentleman will permit, that was carried no advantage over foreign vessels in this trade between the into effect by contract and then th(}se contracts were annulled United States and our most important insular possession. by action of the Committee on Appropriations in the P08t Office Section 28 provided that railroads might, under certain con­ bill of last year. ditions, make a lower rate on freight destined for shipment 1\Ir. WHITE of Maine. And, if the gentleman will yield in American vessels than that to be shipped through foreign further, contract~ were not only contemplated by the 1891 act;.. ves ·e~s. 'l'his was intended to establish a preference for but the merchant marine act of 1920 reaffirmed the intention of 1818 CONGRESSIONAL RECORD-HOUSE JANU.ARY 20 the Congress that the Postmaster General might enter Into supremacy but primarily to compensate for shipping losses in­ contracts covering longer terms. curred by submarine warfare and to assist in the ending of Mr. WOOD. The practice t~day is for one-year contracts. hostilities.· This is evidenced by the noncompetitive types of Mr. WIDTE of 1\faine. That came from the action of the ships that were authorized and constructed, and without fear Committee on Appropriations. of contradiction the United States embarked on that stupendous Mr. WOOD. There is urgent need for legislation that will shipbuilding program for no other reason than that of meeting permit new construction in American shipyards which are an existing emergency. - almost destitute of work. American-built ships will cost any. When we agreed to the terms of the W a..'3hington Arms Con­ where from 40 to 60 per cent more than ships built in foreign ference it was generally understood that our Navy would be of yards. Congress sought to help out on this situation by per. the equivalent strength of Great Britain. Now, after five years mitting the loaning of funds at low rates of interest. The legis. we find ourselves co~siderably below the ratio agreed upon: lation now proposed in the Wood bill for the Government to and from the standpomt of sea power still further outranked. assume the difference between foreign and domestic costs might We have sacrificed world naval supremacy and world maritime well be described as a bill to IIUlke good what Congress held commercial supremacy; and in addition, through private loans forth but did not fulfill in the Jones Merchant Marine Act of our former allies have obtained $12,000,000,000, no small por· 1920. It is doubtful if there is a parallel in American history tion of which is obviously being used in the upbuilding of of a great measure like the merchant marine act of 1920 being European navies, as well as their merchant fleets, with which largely nullified in administration. Pending legislation for long. America must compete for world trade in time of peace and term mail conb.·acts we could do no more than to render effective tight against in time of war. the purpo e of the American marine act. . That our private loans are being used for the construction ot The problem of the American merchant marine is not merely new ships is best evidenced by the circular which I have here, a problem of getting the Government out of the shipping busi· and which offers for sale to the American public 20-year gold ness. Privately owned American shipping companies, which bonds of the North German-Lloyd Co., of Bremen, in the sum built tonnage at enormous prices during the war period, deserve of $20,000,000. These bonds were offered at 94 with accrued some encouragement. They are up again t a powerful form of interest to date of delivery, to yield about 6.55 per cent to competition and this competition is biding its time, and if the maturity._ I should like to quote a. portion Qf this proposal United States Government does nothing to support its shipping form, which reads in part as follows: a formidable attack will sooner or later be launched against Principal and interest payable in New York City at the option of every American line. The American companies which have the holder either at the office of Kuhn, Loeb & Co. or the principal bought ships and services from the Shipping Board are in dire office hnse new ships. In the offer of the tation facilities. Cunard Co. it is of exceedingly great interest to note that "The During the World War the United States constructed a huge relations between the British Government and the Cunard merchant fleet, not for the purpose of acquiring commercial Steamship Co. ha,ve always been close as is evidenced by the 192S CONGRESSIONAL RECORD-HOUSE 1819 ad\ance of 1905--1907 by t11e British Government, at 2% per graph (c) a total of 280 vessels aggregating 1,960,402 dead­ cent, of £2,600,000 for the construction of the Mauretania and weight tons. In other words, there would be 306 ships which Lusitania. The British Government has a nominal interest in might be sold in connection with lines of service already estab­ the stock of the company." lished and whose tonnage would not be removed from the regis­ Wlio can say what the inte1·est of the British Government try books because it is engaged in foreign competitive trade. is in this company, but, gentlemen, rest assured that it is There would be 205 vessels offered for sale which might be re­ sufficient to prevent the Cunard Co. from ever being driven off paired for possible use and which, if unsold at the expiration the sea . of one year after enactment of tl1e bill. would be classed as the I also have here a copy of an offer by the British Foreign 280 vessels, aggregating 1,960,402 dead-weight tons, as surplus & Colonial Corporation (Ltd.), placing upon the British market vessels, whose documentation would be canceled. With the some $10,000,000 of cumulative preference shares to yield 6% Government-owned fleet classed in this manner it is possible to per cent per annum. This loan was floated by the White Star obtain a better undeFstanding of om· status in the maritime Line (Ltd.), and was largely oversubscribed. affairs of the world, and · it is with no feeling of pride that I Perhaps the lack of shipbuilding in the United States, or announce to you that we are a poor sixth in the number of the intense activities of European countries, caused one of Great ve sels engaged in foreign commerce to-day. BLitain"s leading newspapers to refer to our merchant marine The second title and principal feature of the bill I have in the following manner : introduced relates to the construction of new vessels. Before Our companies have long found it possible to do with the American entering into an explanation of this feature of the bill I wish merchant marine what the Admiralty are urged to do with the American to direct your attention to world shipbuilding activities as they Navy-dismiss it from their calculations! exist at the present time. The number of ships of 2,000 gross tons or over built or now unde1· construction for transoceanic Gentlemen, the time has come when we must embark upon a service from and including the year 1921 shows that for every shipbuilding program. Our ships must not be driven from the ship of this class built in the United States, Great Britain has seas ! The merchant marine is not a political plaything, but built 41, Germany 12, Italy 5, and France and Japan each ap­ is vital to the existence of every section of the country, and the proximately 4. Entirely aside from the number of ships being welfare of every citizen ! built it should be noted that all of this large number of foreign­ I have introduced a bill to promote, encourage, and develop built ships are of the 'latest types, equipped with up-to-date an American merchant marine in connection with the agricul- propulsive machinery, and in general of higher speed than . tural and indu trial commerce of the United States, provide vessels built before and during the war period. for the national defense, the transportation of foreign mails, The report of Lloyd's Register of Shipping for the quarter th9 e tablishment of a merchant marine training school. and ending September 30, 1927, shows that there were 663 merchant for other purposes. I do not claim it a panacea for all the vessels of 100 g-ross tons and over with a total of 3,074,057 gross ills affecting our merchant marine, but its enactment will do tons under construction in the world at the close of the quarter. much to regain to the United States that maritime prestige Of this tonnage about one-half was under construction in Great we once so proudly claimed. Britain. Germany was second, with 516,245 tons; Italy third, , The first title of this bill relates to the Government-owned with 208,420 tons ; Holland fourth, with 163,824 tons ; France vessels we now have which were constructed or obtained dur­ fifth, with 130,914 tons; Denmark sixth, with 96,150 tons ; and ing the wa1·. Out of a total of 791 ships, aggregating 6,342,888 the United States a poor seventh, with a total of 20 ships of dead-weight tons, less than half, or but 306 vessels, aggregating 91,070 gross tons. I might add that for the year ending Decem­ 2,720,233 dead-weight tons, are actively engaged in the foreign ber 31, 1927, the United States has been reduced to the eighth tmde. The remaining 485 inactive ships aggregate 3,622,655 place, one of the Scandinavian countries having passed us dead-weight tons, and may be set out in three groups, as during the last quarter of the year. follows: Not only are foreign nations building more ships than are In the fiTst reserve are 205 vessels of 1,662,253 dead-weight being constructed in the United States but they are enabled to tons. These vessels are not immediately available for over­ build them much cheaper, because labor and living conditions sea · service, but could be made so within a reasonable length are not comparable to those in the United States. In order to of time at varying expenditures for repairs. In the second place before you the difficulties besetting American shipowners reserve are 151 vessels of 1,000,000 tons, which at a very con­ in so far as the operation of ships in the foreign trade is con­ siderable expense for repail·s could be made available in an cerned it is first necessary to consider the differences in the emergency. In the third reserve are 129 vessels of 960,4()2 costs of construction. dead-weight tons, which even to-day are considered surplus by Fixed charges against capital invested aggregate 18 per cent the Shipping Board and fit only for the purpose of being per annum, as follows: Interest, 6 per cent; depreciation, 5 scrapped. 1 per cent; repairs, 2 per cent; ::md insurance, 5 per cent. Inas­ As I have previously stated, the ships we now have were much as American construction costs exceed the construction constructed during the war period. only too often without re­ costs in foreign countries, the fixed annual operating expenses gard to economy of operation, speed, or possible subsequent use. will exceed the operating expenses of foreign vessels. In addi­ And now, with newer and faster tonnage being thrown into this tion the higher American wage and subsistence expenses must great. mercantile-marine struggle by other nations, it will be considered to accurately present the annual operating differ­ be but a few years when the ships now being operated will be ential. There is presented herewith a summary of capital and unable to compete in world trade. operating differentials of typical American vessels compared My bill provides that all vessels unnecessary for the main­ with similar British vessels, and the figures given represent the tenance of service on lines already established shall be re­ annual average difference on a 20-year basis : moYed from the registry of commercial tonnage. The very Type of vessel, freig-hter (coal) : fact that these vessels were constructed as a war measure Amer;tcan cost, 8,360 dead-weight tons, at $95 per dead- should preclude them from being classed as commercial ships Weight ton______$7!)4,:?00 . to-day; and while they perhaps are capable of carrying cargo Briti~hweight cost, ton ______8,360 dead-weight tons, at $57 per (feud- _ in time of a national emergency I do not think it advisable to 476,520 place them upon the scrap heap. It is proposed in the bill Capital differentiaL------817,680 that all vessels removed from the registry of commercial ton­ Average annual fixed charge on $317,680 higher cost of nage shall be maintained so long as practicable and economical construction______48,446 to do so as vessels of the public service of a nonmerchant class. Wage differential, $1,758.82 per month______21, 107 In this service they would be available for the transportation Subsistence differential, $271.80 per month______3, 262 ---- of commodities in time of need and yet would not reflect as Total per annum______72, 815 a part of the competitive commercial vessels of the American The average annual differential of $72,815 represents 9.17 per cent of merchant marine. It is provided, of course, that before any such vessel shall have its documentation canceled it shall be the amount American owner has invested in his vessel. offered for sale, but in the event it remains unsold at the ex­ Ty~e of vessel, freighter (oil) : American .cost, 10,000 dead-weight tons, at $125 per piTation of one rear from the date of enactment it shall no dead-welght ton ______$1, 250, 000 longer be regarded as a Yessel of the merchant marine of the British cost, 10,000 dead-weight tons, at $80 per dead- United States. weight ton______800,000 This feature of the bill carried into effect on the 791 vessels Capital differentiaL ______:______450,000 now owned by the Government would present the following Average annual fixed charge on $450,000 higher cost of picture: construction______68.62~ Under paragraph (a) of section 1 of the bill we would have Wage differential, $1,937 per month______12. 444 306 vessels of 2,720,233 dead-weight tons. Under paragraph (b) Subsistence different1al, $198 per month______2, 376 ----- 205 vessels of 1,662,253 dead-weight tons. And under para·· Total per annum------83, 445 182.0 CONGR.ESSION AL R.ECORD-HOUSE The nverage annual diiicrentlal of $83,445 represents 6.67 per cent of tion in such form as will enable American owners to obtain tlle amount American owner has invested in his vesseL vessels at a cost compa1·able with the cost of such vessels to Type--freight nnd passenger (oil burner) : foreign operators. My bill offers an indirect form of protection American cost, 11,900 gross tons------$3, 375, 000 to those engaged in the world-wide competition for foreign British cost, 11,600 gross tons______2, :!50, 000 commerce, and it is only just that this aid and protection be Capital differentiaL------­ 1,125,000 extended to OUI' shipowners. The major portion of our agriculture and industry is pro­ Average annual fixed charge on $1,125,000 higher con­ struction cost------171,562 tected against the competition of commodities originating in Wag~ ditreren.tial, $1 926.i!5 per month ______23,116 foreign countries. The merchant vesNels engaged in the coast~ Sub IStence differential,1 $t89.41 per month______-----9,473 wise trade are also protected against foreign competition and Total per annum------204, 151 yet at the present time our only means of transportati~n by which our products are placed in the markets of the world is The average annual differential of $204,151 represents 6.05 per cent compelled to compete in a ruthless commercial struggle for of tile amount American owner has invested in his vessel. existence, handicappeu primarily by higher construction cost Type of vessel-tanker (Diesel) : maintenance and operation expenses, and without any aid o; American cost, 10,144 dead-weight tons, at 130 per 318 720 protection from the Government If we are to have a merchant Br?~i~~-~~1~\J~1~4"dead::-weigllt-toils,-8.T$86-Pir-liea'i1= st. · marine, privately owned and operated, the time has come when weight ton------862,384 we mu t afford to the American shipowner the protection now CapibU differentuU------~------­ 456.336 extended to oUI· industries, enabling them to begin operations in a highly competitive field with equalized capital charges. Average annual fixed chllrge on $456,336 higher con­ ~he effect is in 69,591 entire of my bill to place vessels engaged for­ Wagestruction differential, cost------$1,444.30 per month ______17,332 eign trade 2n the same category with vessels operated in our Subsistence diiierential, $300.60 per month ______3,607 protected coastwise service. The third proposal contained in my bill relates to the estnb­ Total per annum------90, 350 lishment of a merchant-marine training school providin"'0 for The average annual differential of $90,350 represents 6.85 per cent appointments from every section of the United States a pre­ of the amount American owner has invested in his vessel. scribed course of training with compensation and th~ estab-­ Fl·om the above statement it is readily seen that American lishment of a retirement fund, thus assuring a::. annuity to any owners are handicapped in the operation of vessels in the for­ young man who desires to follow the sea. Graduates of this eign trade primarily by higher construction costs and, in addi­ school would be qualified and induced to stay in the merchant tion, the -wage and subsistence expenses. This increased capital marine, making it their career, not unlike the graduates of he charge, together with its corresponding increased fixed operat­ Naval Academy. It is further provided that upon graduation ing expense, points the way to render a substantial remedy and assignment to a vessel in the merchant service the train­ for the major problem affecting the Ame1ican merchant marine, ing-school graduate shall become a member of the Naval Re­ and that is to extend to American owners and operators some serve, with a rating similar to that held in the merchant erv, means by which they may obtain a vessel at a cost equal to ice. In this connection I may add very properly that through that of their closest competitor, which in this instance happens reliable sources information has reached me to the effect that to be Great Britain, and the only feasible way to extend that aid the Navy Department is now engaged in the preparation of a is at the time of construction. · plan the purpo e of which is to augment the Naval Reserve Title II of my bill provides that when the Shipping Board the men enlisted therein to serve in the merchant-maline . erv~ is furnished with copies of contracts entered into by an op­ ice. It is admitted by everyone familiar with marine activities erator and shipbuilder, indicating they are read"y to proceed that trained personnel is a great and .immediate es entia!, and upon the construction of a new vessel, the board shall enter rega1·dless of the manner in which this personnel is trained it into contracts with each of the parties, receiving from the is a primary asset in our national defense. ' operator a guaranty that the newly constructed vessel will be To-day we find our shipyards have fallen into decay, skilled maintained in a stipulated service for a term of not less than personnel trained and experienced in shipbuilding has already 10 years. It may be that this stipulation should provide that undertaken new liries of endeavor. The time has come when the newly constructed vessel shall be maintained in the foreign we must embark upon a mercantile-marine program that will trade only, as distinguished from the use of the vessel in a establish this country in the eyes of the world. We must have specified line of service, but that is a matter for the proper ships for our foreign trade, and they must be American ships, committee to decide. constructed with American products and American labor. The But whether this new vessel is to be operated on a given line prompt enactment of a bill to this end is imperative. We or merely in the foreign service, this guaranty is the require­ would be derelict in our duty if we failed to provide for our ment of the Government for the interest it shall have in the merchant marine. The establishment and maintenance of a VE:'S. el, which is to be provided in the conb.'act with the ship­ sea power adequate to provide for our national defense and builder, whereby the Government undertakes to pay for the an uninterrupted transportation service for our commerce is costs of labor and material only, which may be in excess of the our greatest heritage to po terity. [Applause.] costs for like items entering into the construction cost of a MESSAGE FROM THE PRESIDENT OF THE UNITED STATES similar ship in foreign countries. In other words, the Govern~ The committee informally rose; and Mr. TILsoN having as­ ment is willing to undertake a portion of the costs of construc­ sumed the chair as Speaker pro tempore, a message in writing tion in return for a guaranteed service for a term of years. A from the President of the United States wa presented to the recapture provision will enable the Government to resell or House of Representatives by Mr. Latta, one of his secretaries. operate until a satisfactory resale can be made of any vessel in The committee resumed its session. default. Under this proposal the cost to the Government is ascertain­ INDEPENDENT OFFICES APPROPRIATION BILL, 1929 able at once, and the total cost in any one year will be much Mr. CULLEN. Mr. Chairman, I yield 15 minutes to the gen­ less than is being expended at the present time under govern­ tleman from Louisiana [Mr. O'CoNNOR]. mental operation of the merchant marine. To illustrate the Mr. O'CONNOR of Louisiana. Mr. Chairman and gentlemen manner in which the financing scheme contained in my bill of the committee, I hope that the members of the Committee would aid the private owner and operator, I wish to make the of the Whole House will be patient with the Members wl10 following comment : Let us take a v~el which costs $1,000,000 live in the Mississippi Valley and who will probably for many in the United States. This same vessel would cost but $600,000 days to come sing songs of sorrow a.ncl lament about the in Great Britain. In order to provide the capital for the con­ catash·ophe through which we have just passed. These calam­ struction of such a ship, loans would have to be made in each ities soften and subdue the people, and as one man said beau­ instance, and when the entire cost is ascertained, taking into tifully brings them nearer my God to Thee. consideration that portion of the cost to be borne by the G-ov­ Probably there has been no parallel in modern hi tory of the ernment, the ves el would cost the American owner· approxi- golgotha, the crucifixion, which the people of the Mississippi mately $720,000. The exact amount would depend on the rate Valley during 1927 underwent. But the people of that section of interest the owner would have to pay, and if the money apparently have become used to trial and misfortune and were borrowed from the Government at 2 per cent, as provided calamity, at least the people in the lower reaches of the Missis­ in my bill, the actual cost would be $717,000. The cost of a sippi River. similar vessel to a British owner would be substantially the The people of the State in which I was born and real'ed have same, although his interest rates might be in excess of those been bowed down by many griefs for almost three-quarters of charged under the terms of my bill. a century. Of course, it is a matter of history that the city The statement I prepared detailing capital and operating of New Orleans bowed to the conquerer's yoke and suffered the differentials clearly shows the need for constructive legisla- fate of eve17 conquered city during the Civil War. 1V28 ~ CONGR . ESSIONAL r~CORD-HOUSE 1821 After that came these tremen

L....~--115 182·2 CONGRESSIONAL R-ECORD-HOUSE And if he be really wise he ;will sense a new and larger The soft-coal industry is suffering because of an oversupply opportunity in Latin-American requirements and his own abil­ or SUI'Plus. There are too many mines and too many miners, ity to serve, and set about placing his house in order to take just as there are too many farms and too many farme1·s. advantage of the new era that has dawned. We have a large surplus of soft coal, as well as a large sur­ First, he will turn his attention to the great central region, plus of farm products. We are producing more farm products the Mississippi Valley, and put an end to the waste and ruin and more soft coal than our country can consume. We produce and delayed development by controlling the floods. and consume annually in this country more than 500,000,000 Next, he will set about making those waters serve his people tons of coni. About 60,000,000 tons of soft coal are produced well. in the State of Kentucky anuually. We ha"Ve been trying to Finally, he will, through improved navigation, low-cost power, take care of the surplus production in agriculture, but we ha"Ve checked-soil erosion, irrigation, and safety from floods, encour­ made no effort to take care of the surplus of the soft coal­ age the development of industi·ies for the use of Latin America's mining industry. raw products. In this way, through an improved economic We produce more than twice as much coal as Great Britain, environment he will promote the development of an ever­ yet Great Britain ships to other countries about 20 times as growing buying power, both at home and in the world's new much as the United States ships to other countries. markets of greatest promise. We must increase our overseas markets. With pmper ship­ But Mexico, Central and South America are rather European ping facilities, we hould ship to tile following countries as well in their tastes and reactions. What can Uncle Sam do to open as others the coal required by them : the way for a clearer understanding between the peoples of all Tons the New World countries and for the development of friendships ·Azores------30, 000 based on confidence and good will? ~adeira------~------50. OOU One thing he can do is to open the door to the same kind of ItalyCanaries______------12, OOU,OOO485, OUO free-will intercourse that exists between his own States and Serb-Croa~Slovene------16~000 cities. Greece------650,000 In the interest of New World comity and good will he can Rumania ------~------+- 40, 000 build and present, as an evidence of his friendship, a hard­ Palestine~~~t:~======::::::::::::::::::::::::=:::=~~===~, etc ______.:_____ ~g8:88850, 000 surfaced highway from Canada, through the United States, to Mexico, Central and South America, giving each and every ~~~~~~~~~~:~~~~~~~~~~~~~==~~~:::======~ 2.ggg:ggg country in the New World automobile access to every other Algeria------~--- 1,200,000 countrv. Intercourse would then develop rapidly. Alnerican ~oro~co------100, 000 French West Africa------100. 000 capital would soon build wonderful resort hotels in the moun­ Spanish and French Mediterranean ports------2, 000, 000 tains to the southward. Contacts would develop confidence. Brazil------Argentina ______... ______3,250,2,000,000000 Within a generation the people of Argentina, of Costa Rica, of 1\Iexico, and of the United States would understand each other Urugu~·------500,000 just about as well as the people of Iowa and _of Louisiana now Total------25, 1DO, OOO underl'!tand each other. Our average exports of coal overseas for the years of 1922- Lindbergh has won the hearts of all Latin America, has wiped 1925 were 3,278,788 tons. The average export of coal per year out a lot of misunderstanding, and has paved the way for Pan from Gr~at Britain for the same period was 64,031,000 ton . . American comity and good will. "When he returns he will On e.ccount of the coal strike in Great Britain in 1926-27, we have, at least in his mind's eye, a map of Pan American air-mail shipped overseas 19.320,022 tons, and for that same year Great routes. A few millions annually voted by the United States Britain shipped O\erseas 20,596,000 tons. But this large ton­ Congress for such a service would help mightily. nage of American coal in 1926-27 was not carried in American Subsidized steamship lines between the United States and ves els. During the fiscal year of 1922 we sent overseas in southern ports would in the end pay large dividends, directly and American vessels 228,670 gross tons of coal. This dropped to indirectly. 30,352 tons in 1923 and jumped to 80,034 tons in 1924, and The gift of a thousand scholarships in United States colleges dropped to 16,440 tons in 1926, and in April, 1927, only 105 tons and universities to de-serving young men and women in the of coke and coal were sent overseas in American vessels. 'Ve several southern Republics would, in terms of New World comity, can readily see that, so far as the !:lhipping of coal o\erseas is be worth many times the annual million dollars it would cost concerned, the American Shipping Board vessels have been the- Federal Treasury. either driven or taken out of the busine-ss. In fact, there ap­ Uncle Sam could do no better with his surplus wealth than pears to be none of our American \essels engaged in carrying to lli:e orne of it to improve the economic position of his own · American coal to foreign ports. people and to enable his natural friends and fellow Americans AMERICAN COAL AXD COKE DISCRIMINATED AGAI~ST to the southward to develop their own economic opportunities. During the World 1\:rar and just following the war the United By all means let us urge Uncle Sam to look beyond the near States Government constructed a great fleet of vessels to aid iu horizon and find there a new inspiration and a new goal. the prosecution of the war and to be used in our merchant­ l\lr. WASON. Mr. Chairman, I yield 20 minutes to the gen­ marine activities following the war. Since the war se\eral tleman from Kentucky [Mr. RoBSION]. hundreds of the vessels have been operated in the merchant­ The CHAIRMAN. The gentleman from Kentucky is recog­ marine service by the Government or under contract with nized for 20 minutes. others. Nearly 500 of these ships are now idle and have been Mr. ROBSION of Kentucky. Mr. Chairman and colleagues idle !!lince their construction. 'l'hese ve-~sels, all told, cost the of the House, I wish to express my appreciation of the splen­ United States Government something like $3,000,000,000. These did and forward-looking program of Chairman WooD for the vessels in operation haye been carrying cotton, lumlJer, petro­ building and maintenance of a me-rchant marine. I wish to leunl, grain, flour, nnd many other American products, but •ery congratulate the Democrats of the House on their selection of little coal. my colleague from Kentucky, Hon. FRED VINsoN, as a Demo­ The following is a list of products and the number of tons cratic member of this subcommittee. He is able, honest, and carried in United States Shipping Board vessels for the montll courteous, and will render most effic-ient service as a member of April, 1927, according to the United States Shipping Board of the committee. re}!orts: Much has been said on the floor of the Honse and a number Tons of measures voted looking to the relief of agriculture. The Coal and coke------10~ income on in""estments in agriculture and the wages paid to Vehicles------10, 110 those- who labor in agriculture are entirely too mall and are Vegetables ------2-!, 112 Phosphates------30, 715 not comparable to the income and wages received on invest­ Cotton, raW------55,001 ments and for those who labor in man:r other industries. I Petroleum, etc------7 4, 5:>0 have never failed to speak and vote for those measures in­ GrainLumber an------·d flour______1639~., 198273 tended to promote the welfare of the American farmers. No All other exports------69,930 great industry in this country can suffer without its ill effects being reflected in every other industry. If agriculture is pros­ Total------~------521,000 perous, it brings prosperity to other industries ; and on the It will be seen that 521,000 tons were carried in United States other hand, if agriculture is depressed, this depression reflects Shipping Board vessels for the month of April. 1927, but only itself in other trades and callings. But with all the distress 105 tons of coal and coke. It is admitted that the United State,; of agriculture there is another great industry in this country Shipping Board loses money on every ton of American products that has been and is now in deeper distres~ thnn agriculture, shipped in these ve sels, but there is no good rea on why coal and that is the ·oft-coal industry. and coke should lJe discriminated against. The Department of 1928 CON GRESS! ON AL RECORD-HOUSE 1823 Commerce spends large sums every year in finding new markets of the world. This will make us friends and bring prosperity and in making new friends for American product . They have to our people. found the new markets for American coal, and it has been dem­ I realize that this will cost some money. We passed the onstrated that American coal is preferred to the British coal. American merchant marine act in 1920 and did lose con iderable It is of higher quality. money in competing with the ships of other countries while $1JOOOJOOO FOR COAL SHIPS in 1924 it cost the Government $41,000,000, but in 1927 with When this bill is read for amendments, I shall offer- an a large number of additional ships put into service the loss is amendment striking out $12,000,000 on page 34 and line 15, and $16,000,000, and this bill for the year of 1929 contemplates a loss insert $13,000,000. This $1,000,000 is to be used to I'econncerned. There was a time in the earlier, possibly better New York is governed by the market at Liverpool. The same is days of the Republic when the great bulk, almost 90 per cent, true of wheat. It may be that now and then, because of some of our foreign commerce was carried in Americ_an ships, when local shortage, that the tariff on whea.t may be of some benefit the American flag was constantly seen on every sea. .And then to the farmers living immediately south of the Canadian line. that carrying trade dropped and dropped until our flag had Generally speaking, it can not be of any benefit to the wheat almost faded from the seas. producers of my State and the great :Middle West. As above In recent years, under the policy declared in our merchant stated, the plice is governed by the price at Liverpool, and marine law and utilizing a portion of the vast fleet, we created wheat producers of my State ship no wheat to local points during the war, we resumed our place in the sun in the carry­ south of the Canadian border in competition with Canadian ing trade of the world so that as much as 40 per cent of our wheat. Let me illustrate it this way : Suppose there are two commerce was carried in American ships, but later, year by farmers, one who lives in the vicinity of Alexandria, across the year, that proportion has been steadily dropping, till to-day Potomac in the State of Virginia and the other over on the east it is 25 per cent, and unless something is done to halt that side of the Potomac in the District of Columbia, who both raise decline the history of the earlier day will be repeated, and wheat and the market is governed by the price of wheat at but a small fraction of that great commerce carliecl in ships Baltimore, Md. Can anyone successfully argue that a. tariff pre­ owned by and operated by our citizens. The question is to-day, venting wheat cr~ing the Potomac from Virginia into the Dis­ not merely what we are to do to 'keep our merchant marine trict of Columbia would effect the price of wheat in the District alive, but the far greater question, whether we shall have any of Columbia? Frequently, because of some local condition, there merchant marine at all. That is the issue I believe we should may be a shortage of wheat in some locality, but the keneral meet in this Congress. The people of this coufitry, my friends, price of wheat is governed by the price fixed at Liverpool and whether they dwell on the seaboard or in the interior, demand the tariff against the importation of Canadian wheat, generally and insist that we shall have a merchant marine adequate speaking, has no influence upon the price of wheat in Okl,ahoma for the transportation of the greater part of our overseas com­ or the great Middle West. merce; that the American flag shall be kept flying on American If the western Representatives are really honest about the ships on every important trade route. Also, I believe, tbat it tariff benefiting the farmers, why do not they place an addi­ is their wish that the policy declared in the merchant marine tional duty on farm products? Everyone knows that the condi­ act that all our Government-owned vessels suitable for over­ tion of the farmers is one verging on bankruptcy. Congress has seas traffic should be transferred to private ownership as soon concentrated its attention upon beneficial legislation for them. as possible, and that we should get the Government out_ of The Republican Congress tried the tariff remedy by the emer­ this business. So our problem to-day is bow our merchant gency tariff act of 1921 and the depression continued without marine shall be put on a permanent basis under private oper­ relief. The truth is it is pure bunk. If Congress were to place ation. Thei'e are still far too many of the ships of our great a duty of 25 cents or 50 cents a pound on cotton, does anyone Government fleet directly operated by the Government or by think it would advance the price? Of course not, and no one operating-agents for the Government under guarantees against is foolish enough to suggest it. My opponent in 1924, because lo&'S. Notwithstanding that great fleet of cargo and passenger of an advanced price of cotton, due to ravages of tbe boll weevil ships of all sizes and tonnage, 13,000,000 tons in all, created and weather conditions, urged that it was due to a tariff on at a cost of $6,000,000,000 to the American taxpayers, as I cotton when everyone knows that there was no duty on it. have said, a diminishing proportion is being carried in the Several years ago there was a duty on long-staple cotton, but American flag ships. That is not all, for to-day, in fact since even this was repealed prior to 1924. the war, practically no ships for overseas service have been Finally, I can not follow the reasoning of anyone who advo­ or are being- constructed or laid down in our shipyards. They cates to the depressed farmers and small business men of tbe are idle and closed down, whereas abroad there bas been the great Middle West that a tariff tax on the things they are com­ greatest activity in overseas construction. The foreigner is pelled to purchase adds to their happiness and prosperity. If I rapidly replacing his older ships with new and improved am not permitted to question the sincerity of those who ad­ vessels, while we, faced with the fact that our ships must vance such an argument, I challenge both their intelligence and inevitably wear out, become obsolete or unsuitable for any their conclusions. The.ltariff issue is threadbare. The people trade, are standing still and. making no provision in this regard. of the country, through rural mail service, are educating them­ We all know, for the facts and experience have shown, that selves upon public questions. You can not deceive them longer we can not have an overseas merchant marine unless the Gov­ with the argument that the payment of more tariff taxes for ernment-that is to say, the people and the taxpayers-give it the benefit of the multimillionaire manufacturers of the East substantial assistance and support. Without such assistance is in their interest. I have frequently thought that if every we can not meet the foreign competition. Without such assist­ article of merchandise exposed for sale upon which there is a ance the merchant marine can never be put on a permanent tariff duty were marked so as to show the purchaser the addi­ basis. Without such assistimce we can not meet the foreign tional amount paid because of the tariff duty, like stamp taxes competition, and our merchant marine m'ust languish and are 1·equired to be placed upon many articles of commerce, it eventually expire. would have few, if any, advocates or defenders outside of the The form that such assistance shall take seems fairly well manufacturing districts of the East, and certainly none who agreed, namely, first to assist in the financing for construction, 1826 CONGRESSIONAL RECORD-HOUSE JANUARY 20 with Government credits or loans at so low a rate of interest as only, since more than 90 per cent of those who patronize the to make up by a lesser interest charge in some degree for the ships on the North Atlantic lane are our enterprising and difference in the cost of construction and of operatipn here knowledge and pleasure seeking countrymen and countrywomen. and abroad, and next, by offering more liberal and more per­ So there are two questions for us to consider. First, shall we manent contracts for the carriage of the mails than ha-ve yet permit foreigners to well-nigh monopolize this lucrative trans­ been accorded. Now, in a bill I have introduced (H. R. 8914), portation? What are we to do with the United States Lines, I ha\e attempted to apply this principle and to accomplish the to get it on a permanent basi under private operation? desired re ult with the one line we have in the North Atlantic. The answer to the first is by improving and extending the Now a word. The North Atlantic lane leads from all our north­ service of the United States Lines and building on that basis ern ports to the ports of northern Europe. Thousands of our till sufficient accommodation is created to take care of the people cross and recross that route each year. Thou ands of im­ bulk of the trade. The second is to offer such reasonable in­ migrants reach our shores by that route. Is it not, to say the ducements as to insure the United States Lines being taken least, desirable that the thousands of our countrymen who will over and operated on a permanent basis. T.here can be no go abroad each year and spend their millions on the other side better time than right now, at this session, to solve these ques­ should be affordeu the privilege of b·aveling under the flag of tions. The first step should be to provide for the construction their own country? Is it not also, to say the least, desirable of at least two absolutely first-class and up-to-date fast pas· that a large, if not the greater, portion of the millions required senger steamships of at least 35,000 tons burden, to be built in for their transportation should be contributed to the prosperity our own shipyards. This I believe to be es ential, whether the of their own country, to the support of all the industries that line is to be under private or under Government operation. go into ship construction and operation, rather than to replenish Next, to provide for more liberal mail contracts. With these the coffers of foreign shipowners and foreign shipbuilders? We inducements and with the excellent showing this line has re­ may certainly assume that the -vast majority of these Americans cently made a re!3ponsible pUl'chaser should be found. It is are good Americans, who prefer to patronize and travel on doing well to-day. It did better last year than the year before. ships under their own flag, provided, of course, they are fur­ With all its present handicaps it now takes in more than it pays nished with ·a service equal in speed, safety, and comfort to out. The results reflect great credit on the Shipping Board. the foreign ships. Oh ! I know it is the fashion to assert that But, nevertheless, the effort should be made to relieve the vast numbers of American travelers decline to patronize Ameli­ Government of the operation of this line. can-flag ships on account of their arid condition. But, in the It seems to be conceded on all sides that we can not have aggregate, that class of foolish travelers is really insignificant new ship construction unless there is some Government assist­ and this contention is disproved by the fact that oui· line--the ance. What form sh6uld this assistance take? Possibly a American-flag line-now runs at full capacity during the tourist direct subsidy is not to be considered, but we can at least offer season. That demonstrates that the demand for American ships to provide them with a certain proportion of the cost of con­ will keep pace with the extent of the service furnished. In struction through the form of Government loans at a rate of fact, that so small a proportion of the total of first-class interest low enough, in some way, to equalize the higher cost passengers is carried in American ships and that that trade of operation and construction abroad. Furthermore, we can is almost monopolized by the foreign companies ~ is due princi­ give them more reasonable and more lucrative mail contracts. pally to lack of American-ship capacity. Now, this only first­ It seems to be conceded by all hands that something should be class line on the North Atlantic is known as the United States done to afford American ship operators a more favorable form Lines. It is operated by our Government through the Shipping of foreign-mail contracts so that these contracts can be more Board. It is, as I understand, the only line still directly permanent and the remuneration at a higher rate. operated by the Shipping Board. Strictly, it is not a first­ My bill directs the Shipping Board to offer this line for sale. class line at all, in the sense that it equals the best service The terms of sale must provide that the purchaser shall build afforded by the great British, French, and German lines. Its two high-class passenger and cargo vessels. of sufficient size six ships are all now fairly old, three of them seized German and speed to augment the efficiency of the present fleet, such ships, built before the w-ar, reconditioned, with the exception new s.Qips to be operated in the North Atlantic service with the of the Leviath.an-by no means up to the standard of the newer other vessels of the line. The board would be authorized to foreign ships. Only two of its ships-the President Harding loan from the existing construction loan fund, now standing at and the P.residen,t RooseveLt-are American-built. While we about $70,000,000, a liberal proportion, not to exceed $30,000,000, have made no additions to this passenger line, in fact have of the construction cost of these two ships, to carry interest at built no new first-class passenger ships for overseas trade, the the rate of not less than 2 per cent. The Postmaster General foreign lines have put a large amount of ·new tonnage into this would be authorized to enter into contracts of not exceeding service since the war, with splendid, great, fast steamships­ 10 years with the owners or operators at a rate not in excess the last word in speed, safety, comfort, and convenience. By of $12 a mile for the actual number of miles traveled on the end of this year 13 more will be finished or laid down. each outward voyage, which is undoubtedly a more liberal mail The White Star is bringing out one boat of 25,000 tons, and subvention than has as yet been accorded under our law for is reported to have ordered another of 60,000 tons. The Cunard carriage of the foreign mail. 'l'he plans of the ships must be it is reported are about to build anotller vessel of like propor­ approved by the Navy as suitable for naval auxiliary. But tions. The North German Lloyd are building two 46,000 tons, the bill also provides that, in case no advantage is taken of with speed of 26 knots. The Hamburg-American, the Swedish­ such an offer by the Government, on reasonable terms, within American, Norwegian-American, Holland-Americap, and Scan­ six months, that the Shipping Board itself shall thereupon pro­ dinavian all have building programs. They are proposing to ceed to construct these two ships at a cost for each of not to scrap their old or middle-aged vessels, because the big, fast exceed $15,000,000, to be operated in the North Atlantic service boats have been found to be more profitable and economical. as part of the United States Lines. But I firmly believe that The big White Star Line Cunard boats will have a speed of that alternative will prove unnecessary, and that if the Congress 26 knots, to make the voyage in less than five days, and will will authorize the sale of this line, with these advantageous cost, it is said, about $15,000,000 apiece. And we have abso­ features, the right purchaser will soon come forward to take lutely no present program for the United States Lines, except over and relieve the Government from the operation of this possibly the reconditioning of two other old German-built boats, line under the reasonable assurance that at least one first-class to be brought up to a speed of only 20 knots. And our only American line will be, from now on, permanently operated on fast ~hip, the German-built Let-iathan., has a speed of but 24 this our most important trade and passenger route. At least, knots. So you can see if we are to stay in this North Atlantic this bill, if passed, will give notice that we propose to always trade at all some provision should be made without further keep at least one line in thi.s service. Moreover, it will put delay for replacement of the old boats we are now running so new heart and life into our shipbuilding industries, and fur­ as to balance the fleet to afford at least one fast American ship nish our shipbuilders the opportunity to demonstrate that we per week. on this side can turn out as fine, as fast, as safe, and as com­ I shall insert in my remarks a statement furnished me by modious ocean liners as can be built on the Clyde or elsewhere the Bureau of Research of the Shipping Board-a statistical in the world. And if this line so supplemented, shall prove to statement analyzing the first-class trans-Atlantic traffic and the be successful and profitable, then either it may be further vessel tonnage employed in that traffic in 1927 ; also the ves­ expanded or new lines flying the same flag created so sels in the trans-.A:tlantic passenger traffic built abroad since the that in the days that are to come all American tourists and war and the tonnage and speed of the United States Lines pas­ shippers, all who are so patriotically minded as to prefer to senger vessels. It shows that but 12 per cent of the first-class travel and ship abroad under the American :flag, will have passengers are carried by the United States Lines, which has that opportunity. And maybe we may so advance the day but 9 per cent of the tonnage engaged in the traffic. when we shall behold the flag flying from the taffrail of But let us consider for whom is all this trans--Atlantic trans­ the great majority of ocean liners that enter and clear from portation furnished? Practically for Americans, and Americans our North Atlantic ports. And all I am asking is that we shall 1928 CONGRESS! ON AL RECORD-HOUSE 1827 speed that day by taking some effective ·action in this Congress Mr. LANKFORD. No ; this is my farm bill ; if the people on the subject. [APJ)lause.] knew fully about this bill you would be receiving many com­ United State• Shtpp1ng Board, l>ureau of research, aivi~·i011 of &tatisttca munications in favor of it. Mr. BLANTON. I am getting so mwy communications from Number Per cent my district about a Lankford bill that I did not know but that this might be the one. Mr. LANKFORD. No; that is about a supposed bill that First-cia-~ trans-Atlantic passenger traffic, fiscal year 1927: In United States Lines vessels______19,991 12.20 they think I introduced. I have introduced no l}ill with such vicious conditions as are urged by the opponents of my Sunday ln foreign vessel~------· .-1«_,0_35_1- __ffl_ · _·so_ rest bilL Total ___ ------·------_ ----~1=64='=020=!==1=00=.=00 l\1r. BLANTON. It does not affect Texas. Vessel tonnage employed in tmns-Atl8Iltic passenger traffic: Mr. LANKFORD. No; it does not, except in so far as the United States 129,392 9. 25 Nation's Capital is a model for good or bad. Foreign lines ______Lines.-·------1,_26_9_, 48_2 -1--oo_.7_5 :Mr. BLANTON. Then, why are they so concerned about it? Total ___ ------1, 398,874 100..00 Mr. LANKFORD. I do not fully know, but if they read the bill many who are now opposed to it will withdraw their objec­ Vessels in trans-Atlantic passc11ger trade built since World War tions wd be in favor of it. It was my intention to talk of farm legislation at this time and discuss Sunday legislation on another occa ion; but since Name ~ Tonnage Speed my friend from Texas has called attention to my bill to pro­ vide one day of rest out of every seven in the Nation's Capital, I will make a few observations concerning that measure. French Line: 23 Forty-six States in our country have some kind of Sunday lieParis. de FranOO------______------____ _ 1926 ~500 1921 34,569. 22 laws. Two States and the Nation's Capital have absolutely Oceanic Steam Navigation Co. (White Star Line): Homeric______---______--_------192i 34,351 20 none. Most people back in our districts believe we have some Laurentic______1927 16,500 16 Sunday law here and are dumfounded when they find that Cunard Line: Carinthia______1925 20,'%17 North German Lloyd: Columbus ______16 their Capital-the seat of government of the greatest Christian 1922 32,354 20 Nation on earth-has no Sunday law whatever. Hamburg·AlbertAmeriean Ballin ______Line: _ Deutschland______• ______1923 20,815 16 I feel that our people, whom we represent, want and expect 1923 20,602 16 the Nation's Capital to be fairly representative of the senti­ Hamburg __ _.------1925 21,133 1926 21,000 i~ ment of the great majority of the people of the country in the New York------·------matter of Sunday laws and other legislation. Congress makes Unitea States IAne& passenger vessels the laws for the District of Columbia just as the mayor and __.._ board ot aldermen make the laws for the various cities of th~ countr-y. Then, if we are to represent our people, we should Name 6~~ Tonnage Speed enact for the District of Columbia such fair and reasonable laws as are for the best interest of the people here and as will represent the wishes of the great majority of the people of the , Leviathan ______------1914 59,956 24 Republic ______------1907 17,910 14 Nation. President Harding______1921 13,869 14 But why are the people of the States so very much con- President Roosevelt------1922 13.869 14 George Washington______1918 cerned about a bill to provide for a reasonable Sunday ob- 23,788 18 servance here? I will tell you. Congress must take sides ------_!_--!..---....:...--- either for or against Sunday desecration here. Our failm·e to SMppitlg Boord veasel.B not m ser1.1ice pass a Sunday law is being construed as an indorsement by Congress of the Sunday movie, Sunday theater, Sunday dance Name hall, Sunday night club, and all other forms of Sunday dese­ cration. The movie and theater interests, backed up. by those who wish to tear down the Christian Sunday and the variollil Agamemnon (now Montioollo)------1902 19,361 20 atheistic organizations, are making campaigns in the various Mount Vernon ______------___ -----__ 1906 18,372 22 in America, reconditioning __ ------__ ------_ 1905 21,1« 1~ States to destroy all Sunqay legislation the States, and are pointing to Washington as a model of ~unday desecration. They are saying, "See what your Congress thinks of Sunday Mr. CULLEN. Mr. Chah'man, I yield 10 minutes to the gen­ in Washington wd elsewhere." tleman fl·om Georgia [Mr. LANKFORD]. 'Vashington is now used as a model of Sunday desecration Mr. LANKFORD. Mr. Chairman and gentlemen of the com­ by those who hate om· Christianity and deny the existence of a mittee, I have spent much time thls week attending hearings God. Would it oot be better for us to pass a reasonable Sun­ Qn. the McNary-Haugen bill. before the Committee on Agricul­ day law here and let it be used by those who are in the great ture of the House. The merits of various agricultural relief majority in this country and who do not want to commercialize bills are being urged and the contest will wax stronger as the Sunday, but who recognize it as a clay of rest and who believe days go by; but, Mr. Chah·man, I a.m still for my own bill, and that Christianity is the chief corner stone of our civilization all the while I am growing stronger in the faith. Faith in a and that faith in the Great Architect of the Universe is the measure must be backed by merit or fail. foundation of all law, all law enforcement, and of all good Let me tell yo~ what I contend will be accomplished by my government? bill, then please read it, together with the arguments I have For my part, I much prefer for the Nation's Capital to be a made in support of it, and Usten to my repeated arguments in model of righteousness rather than a Sodom of ungodliness. future in support of it, and I feel sure you will become con­ Let me say this : Many people throughout the country are vinced of the absolute soundness of the measure in every re­ being misled into signing petitions against my bill on the idea spect. that it will interfere with religious freedom, bring about a To my mind this bill will bring about the necessary control of union of church wd state, and deprive some one of some production and marketing, thus insuring at all times a profit­ sacred right. I would not introduce any such a bill. able price to the producers of basic agricultural commodities, Some people have strange ideas of religious b·eedom. They such as cotton and tobacco. By consent of the farmers it will seem to think that closing a Sunday dance hall. a Sunday night place their production and marketing in tlle hands of their club, or gambling den interferes with their religious freedom. friends. consisting of appointees by the governors of the com­ Neither do I see how tbe closing of these dens of iniquity would modity growing States, acting in the capacity of commodity bring about the union of church and state. councils. For the \ery life of me I can not understand how the sacred After the bill has b~ome a law it can not become operative right of religious freedom can be twisted and contorted into as to any particular collllliodity unless three-fourths of the pro­ meaning the regular continuous Sunday infliction on the public ducers of the commodity so desire, and can not stay in effect of the obscenity of the modem movie and theater, the profanity longer than one year unless 85 per cent of the farmers produc­ of the night clubs, and the vulgarity of the modern dance hall. ing the particular commodity approve the operation at the end No, l\Ir. Chairman, I would not introduce any bill to interfere of the year, and then must die during the next year unless at with proper religious freedom or to deprive anyone of a con­ least 95 per c-ent of the producers of the commodity in question stitutional right. If I should introduce any such a bill it would are friends oi the plan by that time. be set aside promptly by the Supreme Court. l\Iy bill is fair Mr. BLANTON. This is not the bill upon which I am get­ and is constitutional, and tbe opponents know it is constitu­ ting communications every day. tionaL That is why they are fighting it so bitterly. They know 1828 OONGRESSION AL RECORD-HOUSE J A.NU.ABY 20 the Supreme Court will let it stand, and they want to com­ Under this bill the rights and privileges of the farmer are mercialize Sunday in Washington and use the Sunday desecra­ definitely set out. So far as possible, the bill is definite in its tion here as an argument for the ultimate destruction of Sunday terms. The rights of all parties concerned can be easily ascer­ laws throughout the Nation. tained by a reading of the bill. But I did not intend to say so much about Sunday legislation There is no equalization fee or tax of any klnd provided in the at this time. I have made this speech on two subjects, which bill There is no need for any. The bill simply enables the means that I shall in the very near future make several more farmers to control their production and marketing by mutual on farm relief and at least one extended speech ~n Sunday contract and thereby become independent in the matter of deter­ legislation. mining the price of the product of their own labor. Just now let me say a few more words on my bill to create The farmers will gladly join in the control of their produc­ the farmers finance corporation. tion and marketing, for it will mean an additional price for the The bill is drawn in behalf of the individual farmer, and for commodity which they are holding as well as a good price for all farmers and in behalf of no one else, and yet it is fair to all. their new production. It is not at all compulsory and must stand or fall by its own The farmer will make the same money out of any particular strength. commodity with much less effort and labor on less land. There­ The farmer, under the bill, can hold his product and while so fore he can more easily diversify his crop and make more doing can bonow on the commodity the average in full for money out of other products. which the commodity has sold during the last 10 years. The farmer will not have to put up any collateral in addition to the The farmer will have the privilege of borrowing, if be wishes commodity and will not be liable for any part of the loan not to exercise the right. He will be bound only to help in the paid by the sale of the commodity, and therefore will be guaran­ control of marketing, production, and price adjustments, and teed the average price for which the product has sold during will have the benefit of the loan privileges if be needs money the last 10 years. He can not lose, for the commodity under in order to carry his commodity until a better price is assured. my plan will not drop below this loan value, and the Govern­ Under the plan suggested by this bill the farmer will in no ment's corporation, which makes the loan, can not lose, for the sense be a pensioner of the Government. I feel the Government plan provides a control of both production and marketing so as owes them a debt that can never be paid, but be that as it may to hold off the market at all times so much of the product as the Government will get back eve1·y penny advanced to the might depress the market, thus putting on the market only so farmers' finance corporation under this bill. To my mind the much of the product as can be absorbed at a profitable price to bill is so sound economically that only the Government will not the consumer. In this way every cent of the loan will be repaid lose any money, but in a short time the farmers will become with interest. All expenses will be paid and the farmer receive so thoroughly independent they can borrow from banks, trust a rea onable and fair price for his product. companies, and other financial agencies any amount of money By this method an overproduction will not in the least de­ needed for the orderly marketing of their crops. pres the· market. An o'\"erproduction can not depress the In conclusion, let me say, Come on, let us pass a real farm bill market if it is known definitely that it is not for sale. Under and let the farmers tell us what we have done for them rather this plan the overproduction will not go on the market, but will than our telling them what great things we hope to do in their be held by the producers until there is a demand for it at such behalf. [Applause.] a price as the farmers themselves decide is fair and reasonable. l\lr. WASON. Mr. Chairman, I yield 10 minutes to the gen­ The farmers, of course, will act through their authorized agents, tleman from Tennessee [Mr. TAYLOR]. the commodity councils. Mr. TAYLOR of Tennessee. Mr. Chairman and my col­ There will be no need for worry over crop reports, weather leagues, notice was given by my distinguished colleague from conditions, price predictions, or the probability of an overpro­ Kentucky, Judge RonsiON, in the course of his eloquent ad­ duction. The farmer will be able to hold his commodity by dress this afternoon that when the bill under consideration is borrowing the full a'\"erage price of the commodity, thus holding taken up under the five-minute rule an amendment will be it off the market until it can be sold at a price named by him offered in the inie1·est of agriculture and the coal industry of and his friends. He can name his own price and get it, just this country. In view of the fact that much bas already been like other folks are now doing. Of course, the price fixed by said on the subject of agricultural depression, I shall confine him could not be unreasonable. It could be and should be, my remarks almost exclusively to the relief which it is hoped though, for the real value of the commodity. No one could this amenclment will bring to the great coal industry of America. steal the commodity from him or get it for less than its real In my judgment, Mr. Chairman, this amendment possesses value. very great merit, because it is common knowledge that the There would be very little, if any, gambling in futures, for coal business of this country to-day is in a very grave condi­ cotton could not go below the minimum fixed by the loan value. tion due, to some extent perhaps, to overproduction and to the It might go up, but could not go down. In fact, there would be development and use of hydroelectric energy and to tlw use of very little fluctuation of price. The fanner could look the world oil as a fuel, which is to-day coal's greatest competitor. With in the face and say, "How much cotton do you want at 25 cents the further development of water power this competition will per pound? " and could get it unless conditions beyond the naturally and inevitably become more acute and more devastat­ United States controlled the price slightly one way or the other. ing to the coal industry. Mr. Chairman, I do not offer this sug­ Heretofore the production in this country has controlled the gestion, however, as an argument against the promotion of price. For many years in future the farmers of this country hydroelectric possibilities, but simply to call attention to the can control their own prices if they will control their :nroduc­ importance of providing a means to protect the great cbal indus­ tion, and with that control put on the market only so much try, which employs, feeds, and clothes millions of our fellow cotton or other commodity as the demands of the market call citizens. While the district that I have the honor to represent for and will ab orb at a reasonable price. is not essentially a coal-mining district, yet coal mining is one This bill gives the farmers perfect control of their production of its major industries. Mr. Chairman, I do not think I have and marketing and therefore gives them perfect control of ever seen the coal business of my section in such a sorrowful prices within reasonable bounds. We need not worry about the plight as it is to-day, and as it has been during the past two price of farm products if we will only help the farmer solve his or three years. Our mines are running on short shifts, and only production and marketing problems. three or four days per week, with the inevitable result that the So it is seen the bill solves all controversies with respect to miner and his wife and children are suffering great hardship. cotton gambling, cotton reports, insurance of fair prices, and This is undoubtedly due to some extent to unequal competi­ price fixing. The bill enables the farmers to fix their prices as tion and to overproduction, but both of the e evils can be cured other industries are doing to-day. and eliminated if we can only find a market for our normal This bill is a wonderful improvement over the debenture plan, output. Statistics show that we produce in the United States which would only help the exporter of cotton on the theory that more than twice the tonnage of coal that is mined in Great some unknown, insignificant part of this help might some way Britain, yet Great Britain exports almost 20 times the tonnage finally find its way to the producer of cotton or other basic com­ we export. Our average annual production of coal is 513,772,000 modity. It is likewise far, far better than the other plans, tons, whereas the average of Great Britain is 229,965,000 tons. which only set up agencies to speculate on the farmer and make The average yearly export of the United States from 1922 to money for themselves, and may or may not help the price level 1925, was 3,967,660 tons, while during the same period Great for the farmer throughout any given period. Let us help the Britain's average yearly export was 76,706,000. During the farmer directly, not indirectly. There is very little, if any, coal strike in Great Britain of 1926, the United States exported merit in most of the proposals to help the farmer by helping 19,320,022 tons of coal, while Great Britain exported only the other fellow live off the farmer on the theory that they may 20,596,000 tons. This is a practical demonstration of what can help the farmer nt least to exist. . be done under favorable conditions. 1928 CONGRESSIONAL R.ECORD-=-HOUSE 1829 Mr. Chairman, the amendment which will be submitted will I hope, Mr. Na.so~, that the in'"estigation will be a thorough one be designed to impro-ve coal mining conditions and agricultural and will result, in so far as possible, in preventing such another conditions in this country by providing an additional million awful catastrophe which robbed me of a loving son. dollars in the appropriation fo-r the United States Shipping You assured me that you would look after all details for me, but I Board to be used to provide at least 10 -vessels peculiarly especially urge that you insist that the personal belongings of Roger, equippeu for coal transportation and to absorb whate\er deficit and any records that he may have left, be carefully preserved. may result from competition in foreign markets in the ale of Especially, please see that I get his locker. This means much to me. the surplus production in this country of wheat, corn, lumber, Roger was an I had. He had served in the Navy 14 years and cotton, and coal. Thus it will be observed that this amendment loved tbe life, but he was never too far away from home but that he will no-t only benefit the coal industry, but will likewise and to kept in close -touch with me and saw that I was wen provi(led for. a corresponding degree benefit the other commodities men­ He was a wonderful son. tioned. Mr. Chairman, this amendment will not only benefit Hoping to hear from you soon, I am gratefully yours, the coal operator and the coal miner, but it will be a blessing MlSlHE G. SHORT. also to the farmer. We descant here daily, long and loud 1\Iay I add, 1\Ir. Chairman, that if anywhere there is a.ny­ about the plight of the farmer and the predicament of the coai o~e . who, in the propose(} investigations growing out of the operator ai1'tl coal miner. Here is an opportunity to do some­ sinkmg of the S-4 is inclined to play politics, this letter from thing more than engage in idle talk. Let us adopt this amend­ -this old mother should put him to shame. [Applause.] ment when it is presented and do sometl1ing practicable and Mr. CULLEN. Mr. Chairman, I yield 10 minutes to the substantial to relie-ve these two great natipnal ind'ustries. gentleman from Alabama [Mr. McDUFFIE]. [Applause.] The CHAIRUAN. The gentleman from Alabama is recog­ Mr. Chairman, what our country ne€ds as much as anything nized for 10 minutes. else to--day is a well-financed, well-equipped, well-organized, and Mr. "McDUFFIE. Mr. Chairman and gentlemen of the com­ formidable merchant marine, as has been emphasized many mittee, I shall not assume to speak as an expert on the merchant times during this debate. Such an agency would do more to marine, and I will not detain the committee long. I do wish, solve our agricultural and industrial problems than anything however, to make one or two observations with reference to the else. The greatest asset of the British Empire to-day is her Shipping Board. Its progress, as shown within tl1e last year, wonderful merchant fleet that carries her commerce to every in the way of cm·tailing expenses and at the same time carrying nook and corner of the globe. I want to see American ships more tonnage, maintaining all the while the regularly estab­ :flying the American flag sailing the seven seas bearing American ~hed lines, has excited our admiration. They are just begin­ commerce, because this will contribute more to American pros­ rung to learn the business, which they bad to do, because, as perity than anything else just now. While this amendment does was shown by the chairman of the subcommittee to-day our not necessarily commit us to a merchant-marine policy, neverthe­ flag had practically vanished from the seas. ' less it is a gesture in that direction, and as such it should Along about 1900 to 1910 we were carrying less than 9 per receive the cordial support of every true friend of the farmer, c~nt of our foreign co~erce. We were therefore in the posi­ every real friend of labor, every genuine friend of industry, tion, after the late war, of the pioneer in a new field. We had and every sincer~ friend of American prospel'ity in this to learn all over how to conduct a merchant marine. Now, . Chamber. [Applause.] within 10 years we are beginning to make a showing, and I I Mr. HARE. Will the gentleman yield? congratulate the board and those who have had the manage- I 1\!r. TAYLOR of Tennessee. I will. ment of the merchant marlne upon the showing they have made. I Mr. HARE. I am very much interested in the g~tleman's Something was said in the course of debate about the com- ~· statement, and I am very much impressed with the statement mittee's attitude toward the merchant marine. It was even where he shows that there has been such a material reduction suggested that the committee should not be criticized for what in the export of coal from the United States, and an increase in Great Britain. Can the gentleman assign the reason for that they had done becau,<;e they were so thoroughly in harmony reduction of export coal from the United States? ~ith everybody in their views upon the merchant marine; that Mr. TAYLOR of Tennessee. I think the gentleman misunder­ IS, those who wanted to have a real merchant marine. I repeat, stood me. I said that during the coal strike of 1926 in Great I think every member of this committee wants to see a fully Britain our export of coal increased matelially. Of course, developed American merchant marine. The chairman of the after the strike was settled we came back to the norllli'll exporta­ subcommittee very graphically described the situation confr'ont­ tion. The adoption of this amendment will mean a great ing us, and every man to-day has protested against anything revival for the coal industry :in this country similar to that of that would hinder the me·chant marine. Some have urged con­ 1926. [Applause.] struction of additional ships, and much enthusiasm has been Mr. CULLEN. Mr. Chairman, I yield five minutes to the shown on this :floor. gentleman from Missouri [Mr. NELSON]. This subcommittee, regardless of its attitude, can make ami& The CHAIRMAN. The gentleman from Missouri is recog­ take, and I ~aim it made a serio-us mistake when, in listening nized for five minutes. to the enthusiasm of those who had testified about the savings Mr. NELSON of Missouri. Mr. Chairman and gentlemen of of the past year, they failed to ascertain that the board itself the committee, back in the beautiful vine-clad city of Boon­ and those charged with the respon ~ ibility of running these ships ville, Mo., in the district that I have the honor to represent wanted $13,40Q,OOO at least, the amount approved by the lives a brave but broken-hearted mother, Mrs. Minnie G. Short: Budget; and tlie thing that impressed me most with respect to whose only son, Roger Leslie Short, lost his life in the sinking this action of the committee in making that cut in the Budget of the S-4. His body has not been recovered. He died in the ~timate-the thing that I fear, or the result that I fear, is that line of duty. Its cut of more than a million dollars in the estimate will be used Only yesterday I received a letter from this old mother. ~Y our competitors, who will tell all the shippers e-verywhere It is not a complaining letter. It is an instructive letter· and m the world that the United States is no longer enthusiastic in in the brief time allotted to me I wish to read it. It is 'filled building up the merchant marine. They, our foreign competi­ with mother love, the strongest and most sacred love in all tors, would say, "The American flag will finally fade from the the world. I read : seas. Here is proof of it: They have not the backing nor proper support of the people of America." If I could have my way, I would add that million, and I Bon. W. L. NELSON~ Washtngton, D. 0. would immediately write a law providing for the construction DEAR MR. NELSON : As the mother of Torpedoman Roger Leslie Short, of additional up-to-date modern cargo ships. I would put such ' I am, of course, intensely interested in any discus ion concerning the statutes on the books and appropriate enough money to show S--~ and the investigation growing out of the disaster, and feel that I all the world that, instead of vanishing from the seas, we pro­ must write you some of the things that are in my heart. pose to sail the American :flag upon all the high seas; and we Nothing can bring back my precious boy to me, I know that· but are there to stay. · I hope that out of all this discussion there will come something' that The President is right when he says that our American manu­ will make it safer for the other brave boys who go to sea for Uncle facturers and importers are not giving proper support to the Sam. I wish you could read some of the letters I have receiv-ed from American merchant marine. I was astounded to read in the other mothers who have boys in the Navy, and whose hearts are always hearings a statement by Co;mmissioner Plummer, who quoted filled with dread. They know my sorrow, and I know their dread of some representative of an American manufacturing company. what may happen to their boys. I know these dear mothers feel as They were discussing the Isthmian Line, referred to by the I do ; they are not thinking about blaming anyone ; t~y are con­ gentleman from Maine [Mr. . BEEDY], who has rendered a dis­ cerned with the incre&sed safety of our American boys who are on tinct service to the me·chant marine and the country, involv­ their country's ships. ing the extension of our service in a new field from which there ·1830 CONGRESSIONAL RECORD-HOUSE JAXUARY 20 were 700,000 tons of burlap · and bagging coming to this country. the que tion as to how an officer or soldier in the United States The Isthmian Line was making only 4 sailings out of a total Army or Navy could be consigned to St. Elizabeth Hospital for of 69. When it was proposed that the Shipping Board go in the Insane. As I recall the statement of the gentleman-and that field for some of that immense tonnage in accordance with he is usually very accurate and, I will say, one of the most the terms of the law, to the effect that we should establish a industrious and efficient Members of this House, and will be merchant marine to carry at least a major portion of our much mi sed here when he goes over to take his new seat in ·foreign tonnage, this manufacturer said, according to Mr. the Senate-he stated that by the scratch of a pen the Sec­ Plummer: retary of War or the Navy could commit a man to the insane Yon would not get a ton of our business if you would carry it !or hospital at St. Elizabeths. I serYed ns a member of the nothing. Military Affairs Committee for some years and during that time gave some study to Army regulations. I expressed the That was the attitude of an American manufacturer. thought that the gentleman's statement was in error. I sug­ Mr. BEEDY. \Vill the gentleman permit an interruption? gested that a board would have to pass upon a man's insanity 1\Ir. McDUFFIE. Certainly. before he could be consigned to an insane ho pital such as Mr. BEEDY. ·what is the name of the manufactm·er who St. Elizabeths. I secured from the War Department the made that statement? regulation and rule of the Army upon this matter,·and I want Mr. McDUFFIE. The record does not disclose his name, but to read into the RECORD that part which applies to the consign­ Mr. Plummer stated be was the representative of an American' ment of an officer or a soldier to St. Elizabeths. It is as manufactm·ing company. He told us in so many words. He follows: said: You would not get a ton o! our business if you would carry it for b. Board of medical officers to examine t he insane : ~o person in the nothing. military service will be transferred to a hospital for the treatment of the insane, or discharged from the service because of insanity, .except Mr. BEEDY. That is certainly an astounding statement for after a critical examination by a board consisting of at least two an American to make, and I hope the gentleman from Alabama medical officers, of whom one shall, if pract icable, be a specialist in will get his name and put it in the RECORD. nervous and mental diseases: Provided, That in cases of emergency Mr. McDUFFIE. I would like to haYe his name go in the and where no military hospital is available or suitable for the purpose, RECORD. Here is the reply Mr. Plummer made. He said: natives of Porto Rico or of the Philippine Islands may be placed tem­ You had better strike the "American" off your name and look up the porarily for observation and treatment in an institution for the treat­ tariff protection that you are getting at the same time. ment o! those suffering from mental disorders, upon the certificate of at 1\Ir. BEEDY. I am in hearty accord with the statement least one medical officer, appointed by the commanding officer. Ex­ made by Mr. Plummer. amination by the board will preferably be made in hospital, and report Mr. McDUFFIE. l\lr. WooD then asked 1\.Ir. Plummer will not be submitted until after the person being examined shall have whether he had communicated with chambers of commerce been observed for a reasonable period of time. The report will con­ throughout the country and tried to enlist their ai(J. and sup­ tain the diagnosis, a detailed account of the medical history of the port in arousing some interest on the part of manufacturers in case, the board's opinion as to whether the insanity existed prior to behalf of our merchant flag. The commissioner said yes and entry into the service, whether inctllTed in line 'Of duty, whether due he had many nice letters from these organizations. Somehow to his own willful misconduct, or to causes not incident to the set>vice, and in some way, gentlemen, we must arouse the interest of our or whether it is of service origin under section 300 of the war risk own people in our merchant flag. Those who have control of insurance act, as amended ; a statement as to whether the patient, if the overseas tonnage, and especially those enjoying a beneficent discharged from the service, can be released from military control high protective tariff, should rally to the support of the flag. without danger to himself or others; and the board's recommendation I agree with the statement that we would like to ha"Ve the e for or against the patient's transfer for treatment to a designated ships operated by private enterprise. That is not the primary institution. When the board recommends the discharge or transfer of purpose of the merchant marine laws, but in the :final analysis an enlisted man, its report will be accompanied by a certificate of dis­ I think the average American prefers not to have the Goyern­ ability prepared on the proper form. The report and all papers con­ ment in any sort of business. This is not the first instance, nected therewith will be execn.ted in duplicate however, where the American Government has pioneered in • business. It has to lead the way and blaze the trail, so to The insane who may l>e admitted to St. Elizabeths are defined speak, and it has done that in many ins~ances, and wr! properly in the following : so. It loaned its money and granted 1ts land to build up the 6. Classes o! insane who may be admitted to St. Elizabeths Hos· great transcontinental raili·oads, and I !!ay very properly, be­ pital: Insane of the following classes, who may not be entitled to cause they have made of this Nation the wonderful Nation it compen~ ation, care, and treatment under the provisions of th·e war risl! is. by bringing the East to the West and the West to the East, insurance act, as amended, may be transferred to St. Elizabeths Hos· and developing a great empire west of the Mississippi Ri'\"er. pital, Washington, D. C. : , We are pioneering in inland waterway transportation at the a. Officers, members of the Army Nurse Corps, contract surgeons, expense of the Government. · warrant officers, warrant officers of the Army Mine Planter Si!rvice, The CHAIRMAN. The- time of the gentleman from Alabama Army field clerks, field clerks of the Quartermaster Corps and en· has expired. listed men who become insane while in the military service ; civilian Mr. CULLEN. Mr. Chairman, I yield the gentleman two employees of the Quartermaster Corps or Finance Department who additional minutes. become insane during such employment; persons who, while in the Mr. McDUFFIE. 1\lr. Chairman, there are many instances service of the United States in the Army, have been admitted to St. which. might be cited showing that the Government has had to Elizabeths Hospital, and have been thereafter discharged from it on pioneer in order to get results and to demonstrate to our people the supposition that they have recovered their reason, and have, within the feasibility of various enterprises and activities so necessary three years after such .discharge, become again insane from causes for the welfare of the country as a whole. existing at the time of such discharge, and have no adequate means So my plea is not to cut these appropriations and thereby of support; the indigent insane persons who have been in the Army and force the sale of these ships. This saving, of which we heard have been discharged therefrom on account of disability arising from to-day, is predicated upon the fact that we will sell ships on such insanity, or who have become insane within three years after the west coast. It is a conditional saving. In our effort to their discharge from the Army, from causes which arose during and get the Government out of business do not let us destroy the were produced by service in the .Army. most important activity in all the Federal Government and fail to get our commerce to all the nations of the world, but The next paragraph which I want to read is that which de­ let us lend our support here in Congress with all our en­ fines exactly the terms and procedure necessary before a .,oldier thusiasm; let us so act our part tn this Congress in providing in the Army can be confined in St. Elizabeths Hospital. funds for the merchant marine that the whole world may know 7. Procedure for transfer of the insane to St. Elizabeths Hospital. that the American merchant flag will not leave the seas, but a. Authority: Authority for the transfer of noncompensable insaue it is there to stay on and on. [Applause.] to this hospital will be secured from the War Department as pre cribed Mr. CULLEN. Mr. Chairman, I yield :five minutes to the in paragraph 4b(1). gentleman from Nebra ka [l\lr. SHALLENBERGER]. Mr. SHALLENBERGER. Mr. Chairman and gentlemen, I I now want to read the language which provides how the listened with interest, as I always do, to the discussion of the insane soldier can be assigned to St. Elizabeths Hospital. very distinguished Member from . Texas [Mr. BLANTON) con­ b. Noncompensable insane: (1) When entitled to care and treatment cerning ·his colloquy with the gentleman from Dlinois. I also at the expense of the United States.-Request for authority to transfer had a slight colloquy with the gentleman from Texas when or discharge a noncompensable insane patient who is entitled to care we were discussing the last appropriation bill. It was upon and treatment at the expense of the United States (par. 2b(1), nc- 1928 CONGRESSIONAL...... RECORD-HOuSE 1831 companied by the report of' the Board of Medical Officers lEta?. tb) to commit a man to the insane asylum at St. Elizabeths with­ and all papers therewith, including the medical certificate required by out a proper hearing. There must be a finding by a board • the Department of the Interlor, will be forwarded through military of qualified medical officers and go through the other military channels to The Adjutant General. If the request is approved, the channels which protect t!: soldier in his rights if his mental necessa:ry orders will be issued by the War Department. condition is challenged. The scratch of the pen which the The procedure is that first the man comes before a board of Secretary of War puts upon the order is a mere formality and competent medical examiners and they make a finding in the does not have anything to do with the actual reasons for con­ case. The matter then goes through military channels to The signing the man to the hospital at St. Elizabeths. The finding Adjutant General of the Army, who must approve it. It then of the medical board is absolutely essential. goes, at last, to the Secretary of War for the order to which The CHAIRMAN. The Clerk will read the bilL the gentleman from Texas referred. No arbitrary order by the The Clerk read down to and including line 3 on page 2. Secretary of War consigning a soldier to St. Elizabeths without Mr. WASON. 1\Ir. Chairman, I move that the committee do trial and finding by a medical board is possible. now rise. Mr. BLANTON. Will the gentleman yield ·z Mr. CULLEN. Mr. Chairman, pending that motion and be­ Mr. SHALLENBERGER. I now yield to the gentleman from fore we rise, may I submit an inquiry? Will this bill be the Texas. business to be taken up on Monday? Mr. TILSON. Yes; it is expected this bill shall continue Mr. BLANTON. That order, after all, is a mere scratch of under consideration on Monday, until it is finished. the pen of the Secretary of War. Mr. SHALLENBERGER. Yes. The Secretary merely gives Mr. BLANTON. And we will not have a meeting to-morrow1 the written order carry out the findings and order of the Mr. TILSON. We will see a little later. If we can get con­ to sent, perhaps not. medical board. The motion was agreed to. 1\Ir. BLANTON. And that order is what Doctor White re­ Accordingly the co-mmittee rose; and the Speaker pro tempore ceives as his authority for holding that man for life. [lli. TILsoN] having resumed the chair, Mr. DowELL, Chairman Mr. SIM..LLENBERGER. Yes. of the Committee of the Whole House on the state of the Union Mr. BLANTON. And then he does hold him for life on that reported that the committee having had under consideratio~ scratch of tl:).e pen. Now, if our dh;tinguished friend, the former the bill H. R. 9481, th~ independent offices appropriation bill,_ Governor of Nebraska, will look at the CoNGRESSIONAL RECORD, had come to no resolution thereon. the gentleman will find I eited the other day a case from the Navy-and the Navy has the same rules as the Army-where a ADJOU&NM~T OVER. Navy board was organized with two doctors on it. Without . 1\Ir. MAPES. Mr. ·speaker, at the request of the gentleman giving the man any bearing-Lieutenant Commander Sandlin­ from Connecticut, the Republican leader, I ask unanimous con­ they found him in "a paranoid state" on a superficial examina­ sent that when the House adjourn to-day it stand adjourned tion and confined him to St. Elizabeths Hospital. When they until Monday next. had their so-called bearing these doctors refused to even let his The SP~AKER pro tempore. The gentleman from Michigan wife be present when they examined him, and they allowed him asks unammous consent that when the House adjourns to-day no witness. When I forced the Navy to give tbis man a hearing it shall stand adjourned to meet on Monday next. Is there I produced evidence there, and I want the distinguished gentle­ objection? man from Nebraska [Mr. SHALLENBERGER] to read that evidence. Mr. GAR~TER of Texas. Reserving the right to object, I It is of such a conclusive nature that it leads to but one con­ would like to ask the spokesman for the leader wh~ther or not clusion--his sanity. he has any business in which the country might be interested This evidence convinced four members of the board out of the to consider to-morrow? In view of the fact that the Republican five that the man was not insane; but the man who was chair­ ?rganization has no business in which the American people is man of the board, the fifth member, still held he was insane rnterested, and that probably whatever business it might have notwithstanding the fact that the board, on a four-to-<>ne voOO: would not be particularly interesting to the American people released the man, and he ls released now and going about I will not object. ' ·his own business. This is what I meant by a mere scratch Mr. MAPES. The gentleman from Michigan does not speak of the pen. for the Republican organization. Mr. SHALLENBERGER. Yes. Mr. GARNER of Texas. No; but he speaks for the Republi­ Mr. BLANTON. It is done, after all, by a scratch of the can leader. pen. Mr. WOOD. I might add that the Republican administra tion Mr. SHALLENBERGER. If the gentleman has finished his has accomplished so much that we think it needs a rest. speech, I would like to say a word in the time I have left. [Laughter.] _ It is true, as the gentleman says, it takes the order of the Mr. GARNER of Texas. I think it needs a rest from the Secretary of War to finally complete the consignment of a Republican administration. man to the insane asylum, but, as I have called to his attention, Mr. BLANTON. And I think they will get it. [Laughter.] the procedure is the same as it is in civil life, and before a MARION LETCHER. man is declared insane or before the Secretary of War can The SPEAKER pro tempore laid before the House the follow­ scratch that pen of his they have got to go through all this ing message from the President of the United States, which was procedm·e I have referred to to protect the man who is under read and, with accompanying papers, referred to the Committee examination as to his mental condition. Therefore, I submit I on Foreign Affairs. was COlTect in what I said the other day. To the Oongress of the Un-ited Sta:tes: The CltAIRMAN. The time of the gentleman from Ne­ braska has expired. I transmit herewith a report from the Secretary of State rec­ :au: BLANTON. I hope the gentleman from New Yot·k will ommending an appropriation for the relief of Mr. Marion yield two minutes more, as I would like to ask the gentleman Letcher, American Consul General at Copenhagen, Denmark. a further question. • It appears that on February 18, 1927, while Mr. Letcher was Mr. CULLEN. I yield the gentleman two minutes more. t~e responsible officer in charge, the office of the Consulate Gen­ Mr. BLANTON. Mn.y I say to the distinguished gentleman eral at Copenhagen was burglarized and official moneys in a from Nebrask>a that since I have raised this question, the de­ total equivalent to $252.93, for which Mr. Letcher is accountable partments are getting uneasy about their power. They have were stolen. Notwithstanding the efforts of Mr. Letcher, aided had Secretary Work prepare two special bills, and within by the local police. no recovery has been made. the last two days they have been sent to Senator CAPPER, The conclusion reached by the Secretary of State has my chairman of the Committee on the District of Columbia of approval and I recommend that the Congress authorize an ap­ the Senate, to be introduced in the Senate. Do you know what p:~:opriation of $252.93 to be paid to Mr. Letcher. those bills do? One of them is to take away the writ of habeas CALVIN COOLIDGE. corpus, so that they can not get a writ of habeas corpus granted THE :WHITE Hous:m, by courts, which would be unconstitutional. The effect of January fO, 1928. the other bill is to provide that they shall not be entitled in ENROLLED BILL SIGNED 8llY case to a trial before a jury. This takes away from th~e Mr. CAMPBELL, from the Committee on Enrolled Bills re­ people the two most valuable rights they have under our bill ported that they had examined and found truly enrolled a' bill of rights. And we must defeat both of them. of the following title, when the Speaker signed the same : . Mr. SHALLENBERGER. Gentlemen of the committee tbe H. R. 6053. An act to extend the times for commencing and thing which I wanted particularly to call to your att~tion completing the construction of a brid.,o-e across the Tennessee was that the Secretary of War or the Secretary of the Navy River on the Linden-Lexington road, in Perry and Decatur has no such t!,uthority as was claimed, DQ:t: ~e ~rbit;raey power Counties, Tenn. · 1832 CONGRESSIONAL REQ_qRD-HOUSE JA.XUA..RY 20 ~ ADJOURN ME~T REPORTS OF COMMITTEES OK PUBLIC BILLS AND i\Ir. WASON. 1\fr. Speaker, I move that the House do now RESOLUTIOXS adjourn. Under clause 2 of Rule XIII, The motion was agreed to; accordingly (at 5 o'clock and 6 Mr. ROY G. FITZGERALD: Committee on World War minute:' p. m.) the House, in accordance with its previous Veterans' Legislation. H. R. 500. A bill making eligible for order, adjourned until Monday, January 23, 1928, at 12 o'clock retirement under certain conditions officers and former officers noon. of the World War, other than officers of the Regulary Army, who incurred physical disability in line of duty while in the COMMITTEE HEARINGS service of the United States during the World War; without l\lr. TILSON submitted the following tentative list of com­ amendment (Rept. No. 326). Referred to the Committee of mittee llearings scheduled for Saturday, January 21, 1928, as the Whole House on the state of the Union. reported to the floor leader by clerks of the several committees : 1.\Ir. ELLIOTT: Committee on Public Buildings and Groundf.l. COMMITTEE ON AGRICULTURE S. 1968. An act to aut~orize the Sec:r_etary of Agriculture to (10 a. m.) pay for the use and occupancy by the Department of Agriculhne To c tablish a Federal farm board to aid in the orderly of the Bieber Building, 1358 B Street SW., Washington, D. C., marketing and in tlle control and disposition of the surplus of and for other purposes; without amendment (Rept. No. 327). Refer1·ed to the Committee of the Whole House on the state of agricultural commodities in interstate and foreign commerce the Union. (H. R. 7940). COMMITTEE O:'if .APPROPRIATION 1\Ir. WINTER : Committee on the Public Lands. H. R. 6G8-!. A bill to amend section 2455 of the Revised Statutes of the (10 a. m.) United States, as amended, relating to i olated tracts of public . Treasury and Post Office Departments appropriation bilL land; with amendment (Rept. No. 328). Referred to the Com­ ( 10.30 a. m.) mittee of the Whole House on the state of the Union. Di trict of Columbia appropriation bill. Mr. ELLIOTT: Committee on Public Buildings and" Grounu ~ . Agriculture Department appropriation bill. H. R. 7472. A bill to grant to ~he town of Cicero, Cook Countt, War Deparbnent appropriation bill. ill., an easement over cm·tam Government property; with amendment ( Rept. No. 329). Referred to the Committee of the COMMITTEE ON INDIAN AFFAIRS Whole House on the state of the Union. ( 10.30 a. m.) l\fr. WHITE of Colorado : Committee on the Public Lands. To authorize the Secretary of the Interior to execute an H. R. 8744. A bill to accept the cession by the State of Colorado agreement with the Middle Rio Grande conservancy district of exclusive jurisdiction over the lands embraced within the providing for conservation, irrigation, drainage, and flood con­ 1.\le. a Verde National Pru·k, and for other purpose ; without trol for the Pueblo Indian lands in the Rio Grande Valley, amendment (Rept. No. 330). Refened to the Committee of the N. l\Iex. (H. R. 70). Whole Hou e on the state of the Union. COMMITTEE ON FLOOD CONTROL l\fr. SI:r\TNOTT : Committee on the Public Lands. H. R. 9031. (10 a. m.---caucus room) · A bill to provide further for the disposal of abandoned military reservations in the Territory of Alaska, including Signal Corp.· A meeting to hear the Hon. Gifford Pinchot, Governor of the stations and rights of way; without amendment (Rept. No. 331). State of Pennsylvania; Col. W. T. Wooten. chairman of the Referred to the Committee of the Whole Hou e on the state of spillwa ys board; Alva L. Reynold~. Long Beach. Calif.; and the linion. Millard F. Bowen discuss projects for the control of the flood 1.\Ir. 1\IORROW: Committee on the Public Lands. S. J. Res. water · of the Mississippi River. 38. A joint resolution giving and granting co-nsent to an amend­ ( 2 p. m.---: ·A bill (H. R. 9761) to extend the time for tion of heroism of members of the 1908-9 Peary Arctic Club completing the construction of a bridge across the Monongahela North Polar Expedition, under command of Rear Admiral River at or near Pittsburgh, Pa.; to the Committee .on Inter- Robert E. Peary, United States Navy; to the Committee on the state and Foreign Commerce. _ Library. By Mr. ZIHLMAN: A bill (H. R. 9762) to regulate the com­ By Mr. GRAHAM (by request): A bill (H. R. 9784) for the mitment to· and discharge from St. Elizabeths Hospital of per­ issuance and execution of warrants in criminal cases and to sons certified by heads of departments and establishments ; to authorize bail; to the Committee on the Judiciary. the Committee on the District of Columbia. Also (by request), a bill (H. R. 9785) to amend section 1025 By 1\Ir. MEAD: A bill (H. R. 9763) granting allowances for of the Rertsed Statutes of the United States ; to the Committee rent, fuel, light, and equipment to postmasters of the fourth ~n the Judiciary. class, and for other purposes ; to the Committee on the . Post Also (by request), a bill (H. R. 9786) to amend an act en.,. Office and Post Roads. titled "An act to make persons charged with crimes and By 1\Ir. WELLER: A bill (H. R. 9764) to establish a national offenses competent witnesses in United States and Territorial conservatory of music for the education of pupils in music in courts," approved March 16, 1878, with respect to the com­ all its branches, vocal and instrumental, and for other purposes; petency of husband and wife to testify for or against each to the Committee· on Education. other; to the Committee on the Judiciary. By Mr. DICKINSON of Iowa: A bill (H. R. 9765) to amend By Mr. RATHBONE: Joint resolution (H. J. Res. 174) pro­ the tariff act of 1922; to the Committee on Ways and Means. viding a wreath to be placed at the Lincoln Memorial com­ By M1·. ENGLAND: A bill (H. R. 9766) to classify certain memorative of the anniversary of the birth of President Lin­ positions in the Railway 1\Iail Service; to the Committee on the coln ; to the Committee on the Library. Post Office and Post Roads. By Mr. TAYLOR of Colorado: Joint resolution (H. J. Res. By Mr. GIBSON: A bill (H. R. 9767) to -authorize an appro­ 175) to change the name of the Ancon Hospital in the Panama priation for the relief of the State of Vermont on account of Canal Zone to the General Gorgas Hospital ; to the Committee roads and bridges damaged or destroyed by the recent fiood ; on Military Affairs. to the Committee on Roads. By Mr. SCHNEIDER: Joint resolution (H. J. Res. 176) By Mr. GRAHAM: A bill (H. R. 9768) establishing a di~ion of identification under the jurisdiction of the bureau of mves­ granting consent of Congress to an agreement or compact en­ tigation of the De-partment of Justice; to the Committee on the tered into between the State of Wisconsin and the State of Judiciary. · Michigan for the construction, maintenance, and operation of a By 1\Ir. HAWLEY: A bill (H. R. 9769) to authorize the con­ highway bridge across the Menominee River; to the Committee struction of a statue to Theodore Roosevelt on Battle Rock, at on Interstate and Foregin Commerce. Port Orford, Oreg.; to the Committee on the Library. By Mr. LARSEN: Resolution (H. Res. 95) authorizing and Also, a bill (H. R. 9770) authorizing the construction

• "1836 CONGRESSIONAL RECORD-- HOUSE JANUABY 20 any other compulsory Sunday observance legislation; to the Sunday observance legislation ; to the Committee on the Dis­ Committee on the District of Columbia. trict of Columbia. 2154. Also, petition of numerous citizens of Foster County, 2175. Also, petition of 14 citizens of Wells County, N. Dak., N. Dak., a-gainst the enactment of House bill 78, or any other against the enactment of House bill 78, or any other compulsory compulsory Sunday observance legislation; to the Committee on Sunday observance legislation; to the Committee on the Dis­ the District of Columbia. tlict of Columbia. 2155. Also, petition of numerous citizens of Barnes County, 2176. Also, petition of nine citizens of Wens and Sheriuan N. Dak., against the enactment of House bill 78, or any other Counties, N. Dak., against the enactment of House bill 78, or compulsory Sunday observance legislation; to the Committee on any other compulsory Sunday observance legislation; to the the District of Columbia. Committee on the District of Columbia. 2156. Also, petition of numerous citizens of Valley City, 2177. Also, petition of two citizens of Hastings and five citi­ N. Dak., against the enactment of House bill 78, or any other zens of Kathryn, N. Dak., against the enactment of Hou e bill compulsory Sunday observance legislation; to the Committee on 78, or any other compulsory Sunday observance legislation; to the DistTict of Columbia. the Committee on the District of Columbia. 2157. Also, petition of numerous citizens of Valley City, 2178. Also, petition of six citizens of Wells County, N. Dak., N. Dak., against the enactment of House bill 78, or any other against the enactment of House bill 78, or any other compulsory compulsory Sunday observance legislation ; to the Committee on Sunday observance legislation; to the Committee on the District the District of Columbia. of Columbia.

2158. Also1 petition of numerous citizens of Valley City, 2179. Also, petition of 11 citizens of Wells County, N. Dak., N. Dak., against the enactment of House bill 78, or any other against the enactment of House bill 78, or any other Sunday compulsory Sunday observance legislation ; to the Committee on observance legislation ; to the Committee on the District of the District of Columbia. Columbia. 2159. Also, petition of numerous citizens of Kidder County, 2180. Also, petition of eight citizens of Wells County, N. Dak., N. Dak., against the enactment of House bill 78, or any other against the enactment of House bill 78, or any other compulsory compulsory Sunday observance legislation; to the Committee on Sund·ay observance legislation; to the Committee on the District the Dlstrict of Columbia. of Columbia. 2160. Also, petition of numerous citizens of Kidder County, 2181. Also, petition of 10 citizens of Sheridan County, N. Dak., N. Dak., against the enactment of House bill 78, or any other against the enactment of House bill 78, or any other compulsory compulsory Sunday observance legislation ; to the Committee on Sunday observance legislation; to the Committee on the District the District of Columbia. of Columbia. 2161. Also, petition of numerous citizens of Kidder County, 2182. Also, petition of 10 citizens of McClusky, N. Dak., N. Dak., against the enactment of House bill 78, or any other against the enactment of House bill 78, or any other compul­ compulsory Sunday ob ervance legislation; to the Committee on sory Sunday observance legislation; to the Committee on the the District of Columbia. · · · District of Columbia. 2162. Also, petition of numerous citizens of Stutsman County, 2183. Also, petition of 15 citizens of Martin, N. Dak., against N. Dak., against the ·enactment of House bill 78, or any other the enactment of House bill 78, or any other compulsory Sunday compulsory Sunday observance legislation; to the Committee on observance legislation ; to the Committee on the District of ·the District of Columbia. Columbia. 2163. Also, petition of numerous citizens of Pittibone, James­ 2184. Also, petition of numerous citizens of Wells County, town, Woodworth, Heaton, and Sykeston, N. Dak., against the N. Dak., against the enactment of House bill 78, or any other enactment of House bill 78, or any other compulsory Sunday compulsory Sunday ob ervance legislation; to the Committee on the District of Columbia. observance legislation; to the Committee on the District of 2185. By Mr. HAWLEY: Petition of residents of Toledo, Columbia. Lane County, Bandon, Yamhill County, Canary, Corvallis, Lin­ 2164. Also, petition of the Erling Skjalgson Lodge, No. 163, coln County, Salem, Aurora, Donald, Gaston, Beaverton, ?tiarion Sons of Norway, Rolette, N. Dak., in favor of the recommenda­ County, Silverton, Clackamas County, Brownsville, Siletz, tion of the Commi ·s-ioner General of Immigration; to the Com­ Hillsboro, Tillamook, Washington County, Sheridan, Molalla, mittee on Immigration and Naturalization. and Forest Grove, all ~n the State of Oregon, and 16 petitions 2165. Also, petition of numerous citizens of Woodworth, N. of r ·dents of first congressional district of Oregon, praying Dak., against the enactment of House bill 78, or any other com­ Congress to oppo-se the Lankford Sunday observance bill ; to pulsory Sunday observance legislation; to the CommitteE> on the the Committee on the District of Columbia. District of Columbia. · 2186. Also, petition of residents of Coos County, Oreg., to 2166. Also, petition of six citizens o-f Harvey, N. Dak., against Congress, to _increase the pensions of Civil War veterans and the enactment of House bill 78, or any other compulsory Sunday their widows; to the Committee on Invalid Pensions. observance legislation ; to the Committee on the District of 2187. By Mr. HILL of Washington: Petition of Willard Fay Columbia. and 40 other persons of Colville, Wash., protesting against the 2167. Also, petition of nulterous citizens of Wells . County, passage of House bill 78, and all other compulsory Sunday N. Dak., againBt the enactment of House bill 78, or any other observance bills ; to the Committee on the District of Columbia. compulsory Sunday observance legislation ; to the Committee 218S. Also, petition of C. D. Robison and 23 others of Omak, on the District of Columbia. Wash., protesting _the passage of House bill 78, and all similar 2168. Also, petition of numerous citizens of Wells County, bills; to the Committee on the District of Columbia. N. Dak., against the enactment of House bill 78, or any other 2189. Also, petition of Peter Larson and 58 others, of Spo­ :compulsory Sunday observance legislation; to the Committee kane, Wash., protesting against the passage of House bill 78, on the District of Columbia. and all similar pro-posed legislation; to tbe Committee on the 2169. Also, petition of numerous citizens of Wells County, District of Columbia. N. Dak., against the enactment of Hou8e bill 78, or any other 2190. Also, petition of C. A. Price and 25 others, of Spokane, compulsory Sunday observance legislation ; to the Committee Wash., protesting against the passage of House bill 78, and on the District of Columbia. all other compulsory Sunday observance bills ; to the Committee 2170. Also, petition of numerous citizens of Wells County, on· the District of Columbia. N. Dak., against the enactment of House bill 78, or any other 2191. Also, petition of John G. Snyder and 84 others, of Spo­ compulsory Sunday observance legislation ; to the Committee kane, Wash., protesting against House bill 78, and all other on the District of Columbia. proposed legislation compelling Sunday observance; to the Com­ 2171. Also, petition of seven citizens of Harvey, N. Dak., mittee on the District of Columbia. against the enactment of House bill 78, or any other compulsory 2192. Also, petition of P. W. Heber and 14 others of Hunters Sunday observance legislation; to the Committee on the Dis­ and Fruitland, State of Washington, protesting against the pas­ trict of Columbia. sage of House bill 78, and all o-ther proposed legislation to 2172. Also, petition of eight citizens of Harvey and tWo citi­ compel Sunday observance ; to the Committee on the District of zens of Woodworth, N. Dak., against the enactment of House Columbia. · bill 78, or any other Sunday observance legi latiou; to the 2193. Also, petition of Nellie Carpenter and 18 others of Committee on the District of Columbia. Fruitland, Wash., protesting against House bill 78, and all other 2173. Also, petition of nine citizens of Wells County, N. Dak., proposed legislation to compel Sunday observance; to the Com­ against the enactment of House bill 78, or any other Sunday mittee on the District of Columbia. observance legislation; to the Colllp1ittee on the District of 2194. Also, petition of G. B. Ruble and 31 others of Colville, · Columbia. , . Wasb., protesting against House blll 78, and oll other proposed 2174. Also, petition of 12 citizens of Wells Cpunty, N. Dak., legislation to compel Sunday observance; to the Committee on ·against the enactment of House bill 78, or any other co:mpu.Isory the Distrjct of Columbia.

• 1928 CONGRESSIONAL -RECORD-HOUSE 1837 2195. Also, petition of C. R. Peebles, of Okanogan, Wash., and immigration act of 1924, known as the national origin clause; 125 others of Okanogan County, said State, protesting against to the Committee on Immigration and Naturalization. House bill 78, and all other proposed legislation to compel 2218. By Mr. MORROW : Petition of citizens of Hagerman, Sunday observance ; to the Committee on the District of N. Mex., protesting against House bill 78, compulsory Sunday Columbia. . . observance for the Distlict of Columbia ; to the Committee on 2196. Also, petition of B. A. Belknap and four others of Kettle the District of Columbia. Falls, Wash., protesting against House bill 78, and all other -2219. By Mr. NELSON of Wisconsin : Petition signed by proposed legislation to compel Sunday observance; to the Com­ 0. R. Henning and others, of l\Iadison, Wis., protesting against mittee on the District of Columbia. the enactment of any Sunday observance legislation; to the 2197. Also, petition of Mrs. Roy Leonard of Riverside, Wash., Committee on the District of Columbia. and 53 others of Okanogan, Wash., protesting against House 2220. Also, petition signed by Martin Gilbert and others, bill 78, and all other proposed legislation to compel Sunday of Madison, Wis., protesting against the enactment of any Sun­ observance ; to the Committee on the District of Columbia. day observance legislation; to the Committee on the District of 2198. Also, petition of J. E. Dola'n, of Oroville, Wash., and 23 Columbia. • others of Okanogan County, Wash., protesting against House 2221. By Mr. O'CON~ELL: Petition of the Brown-Lipe­ bill 78, and all other proposed legislation to compel Sunday Chapin Co., Syracuse, N. Y., favoring the passage of House bill observance; to the Committee on the District of Columbia. 8927; to the Committee on the Judiciary. 2199. Also, petition of L. 1\f. Farrens, of Tonasket, Wash., 2222. Also, petition of the American Brown-Boveri Electric and 124 other persons of Okanogan County, Wash., protesting Corporation, protesting against the appropriation carried in against House bill 78, and all other proposed legislation to House bill 9481, independent offices appropriation bill, for the compel Sunday observance; to the Committee on the District of reconstructing of the steamships known as Mount Vernon and Columbia. MonticeUo; to the Committee on Appropriations. 2200. Also, petition of H. B. Shute and 61 other persons of 2223. By Mr. REED of New York: Petition of residents of Stevens County, State of Washington, protesting against the Olean, Wellsville, and Bolivar, N. Y., protesting against House passage of House bill 78, and all other compulsory Sunday ob­ bill 78 ; to the Committee on the District of Columbia. servance bills; to the Committee on the District of Columbia. 2224. By Mr. ROl\fJUE: Petition of Earl Cox and other resi­ 2201. By Mr. KADING: Petition signed by citizens of She­ dents of Clark County, Mo., opposing the passage of House bill boygan, Wis.; advocating legislation increasing pension for Civil 78, relative to Sunday observance; to the Committee on the War veterans and their widows ; to the Committee on Invalid District of Columbia. Pensions. 2225. Also, petition of J. L. Dooley and others, of Schuyler 2202. By Mr. KNUTSON: Petition signed by Abraham John­ County, Mo., protesting against legislation as proposed in House son and others, protesting against compulsory Sunday observ­ bill 78; to the Committee on the District of Columbia. ance legislation; to the Committee on the District of Columbia. 2226. By Mr. ROWBOTI'OM: Petition of Elizabeth Dowdell 2203. Also, petition of Euphemia Brady, of Verndale, Minn., and others, of Boonville, Ind., that bill granting increase of and others, urging action on Civil War pension bill; to the pension to Civil War widows be enacted in a law at this session Committee on Invalid Pensions. of Congress; to the Committee on Iu-valid Pensions. 2204. Also, petition signed by Mrs. Byron B Potter, and 2227. By Mr. SANDERS of New York: Petition of Myron C. others, protesting against compulsory Sunday observance leg­ Fish and 15 other citizens of Rochester, N. Y., protesting islation ; to the Committee on the District of Columbia. against the Lankfm·d bill (H. R. 78), compulsory Sunday observ­ 2205. Also, petition. presented by W. L. Dunston and others, ance; to the Committee on the District of Columbia. protesting against compulsory Sunday observance legislation; 2228. Also, petition of Mrs. Clara Curry and 12 other citizens of to the Committee on the District of Columbia. Batavia, N. Y., protesting against the Lankford bill (H. R. 78), 2206. Also, petition presented by Ina Maguire and others, compulsory Sunday observance ; to the Committee on the District pertaining to the compulsory Sunday obse1·vance legislation; to of Columbia. the Committee on the Pistrict of Columbia. 2229. Also, petition of John J. Baker and 92 citizens of 2207. Also, petition presented by Paul England and others, Rochester, N. Y., protesting against the Lankford bill (H. R. protesting against the compulsory Sunday observance legis­ 78), compulsory Sunday observance; to the Committee on the lation: to the Committee on the District of Columbia. Distl'ict of Columbia. · 2208. Also, petition presented by Peter Cook and others, pro­ 2230. By Mr. STEELE: Petition of 126 citizens of Atlanta, testing against compulsory Sunday observance legislation ; to Fulton County, Ga., prote ting against the passage of legislation the Committee on the District of Columbia. enforcing compulsory Sunday observance; to the Committee on 2209. By Mr. KOPP: Petition of 202 citizens of Brighton, the District of Columbia. Iowa, protesting against the passage of the compulsory Sunday 2231. Also, petition of 55 citizens of Atlanta, Fulton County, observance legislation, and particularly House bill 78; to the Ga., ·protesting against the passage of legislation enforcing Committee on the District of Columbia. compulsory Sunday observance; to the Committee on the District 2210. By Mr. LINTHICUM: Petition of Baltimore Trust Co., of Columbia. Baltimol-e, indorsing House bill 7092, irrigation of Columbia 2232. Also, petition of 110 citizens of Atlanta, Fulton County, Basin ; to the Committee on Irrigation and Reclamation. Ga., protesting against the passage of legislation enforcing 2211. Also, petition of Johl\. S. Kelly, 1106 West Saratoga compulsory Sun