1934 CONGRESSIONAL RECORD-HOUSE 1491 Thomas J. Burns to be postmaster at Oakfield, Wis., in HOUSE OF REPRESENTATIVES place of W. F. Sommerfield. Incumbent's commission ex pired January 21, 1933. MONDAY, JANUARY 29, 1934 W. Joseph Hand to be postmaster at Random Lake, Wis., The House met at 12 o'clock noon. in place of W. E. Hoelz. Incumbent's commission expired The Chaplain, Rev. James Shera Montgomery, D.D., offered January 29, 1933. the fallowing prayer: Joseph P. Kelly to be postmaster at Richland Center, Wis., in place of E. D. Recob. Incumbent's commission expired Give ear, 0 Shepherd of Israel, and may all hearts be January 29, 1933. full of response and generous impulse. Create in us a noble Mable A. DeWitt to be postmaster at Sayner, Wis., in passion and a fine ideal of life. Thou art our Heavenly place of A. V. DeWitt. Incumbent's commission expired Father. Be Thou our ful1 assurance, our quiet hope, and our February 28, 1933. brave endurance. While there are any sorrows left, while Frank P. O'Meara to be postmaster at West Bend, Wis., in there are any yearnings unrealized, there is evidence of place of M. F. Walter. Incumbent's commission expired divine love that has not forsaken us. We praise Thee fo~ January 29, 1933. Thy all-restoring power. So long as there is a beseeching hand reaching upward, so long as it is striving to touch the Mart~n J. Williams to be postmaster at Winneconne, Wis., book of the Recording Angel with supplicating tips of out in place of G. E. King, deceased. stretched fingers, there Thou art with redeeming benedic WYOMING tion for all who dwell beneath the skies. Be with us today, Ernest A. Littleton to be postmaster at Gillette, Wyo., in merciful God. If trials overtake us, let us not despair; if place of R.R. Long, deceased. temptations meet us, let them not stain our souls. O let Thy hand be upon us and lead us to the heights of rich blessing and enlargement. Amen. CONFIRMATIONS The Journal of the proceedings of Friday, January 26, Executive nominations confirmed by the Senate January 27 1934, was read and approved. (legislative day of Jan. 23), 1934 MESSAGE FROM THE SENATE MEMBER OF THE INTERSTATE COMMERCE COMMISSION A message from the Senate, by Mr. Horne, its enrolling Walter M. W. Splawn to be Interstate Commerce Com clerk, announced that the Senate had passed, with amend missioner. ments, in which the concurrence of the House is requested, AsSISTANT DIRECTORS, BUREAU OF FOREIGN AND DOMESTIC a bill of the House of the following title: COMMERCE H.R. 6976. An act to protect the currency system of the Nathanial H. Engle to be Assistant Director, Bureau of United States, to provide for the better use of the monetary Foreign and Domestic Commerce. gold stock of the United States, and for other purposes. Henry Russell Amory to be Assistant Director, Bureau of The me~age also announced that the Senate had agreed Foreign and Domestic Commerce. to a concurrent resolution of the House of the following title: MEMBER OF THE CALIFORNIA DEBRIS COMMISSION H.Con.Res. 27. Concurrent resolution continuing in full Maj. Elroy S. J. Irvine to be a member, California Debris force and effect during the Seventy-third Congress the con Commission. current resolution of the House establishing the United States Roanoke Colony Commission. ASSISTANT COMMISSIONER OF THE GENERAL LAND OFFICE The message also announced that the Senate had passed Mrs. Antoinette Funk to be Assistant Commissioner of the a bill of the fallowing title, in which the concurrence of General Land Office. the House is requested: RECORDER OF THE GENERAL LAND OFFICE S. 2465. An act to amend the act of March 4, 1933, re lating to the regulation of banking in the District of Co Miss Ruth Lockett to be Recorder of the General Land lumbia: Office. UNITED STATES MONETARY SYSTEM ASSISTANT TO THE COMMISSIONER OF INTERNAL REVENUE Mr. SOMERS of New York. Mr. Speaker, I ask unani Wright Matthews to be assistant to the Commissioner of mous consent to take from the Speaker's desk the bill (R.R. Internal Revenue. 6976) to protect the currency system of the United States, to provide for the better use of the monetary gold stock of SUPERINTENDENT OF THE MINT the United States, and for other purposes, and agree to the A. Raymond Raff to be Superintendent of the Mint at Senate amendments. _ Philadelphia, Pa. The SPEAKER. The Clerk will report the Senate amend SECRETARY OF THE TERRITORY OF ALASKA ments. Mr. SNELL. Reserving the right to object, are the Sen Edwin W. Griffin to be Secretary of the Territory of ate amendments in print? Alaska. Mr. SOMERS of New York. I have a copy in my hand REGISTERS OF LAND OFFICES and there is another copy here, but they are rather scarce. Ellis Purlee to be register, land office, Sacramento, Calif. Mr. SNELL. Are there copies for the use of Members? Chris Bertsch to be register, land office, Bismarck, N.Dak. Mr. SOMERS of New York. They are being printed. William F. Jackson to be register, land office, The Dalles, Mr. SNELL. Does not the gentleman think-whether Oreg. there is any opposition or not-that we ought to have printed POSTMASTERS copies before the House of Senate amendments to House bills? I say that without special reference to this bill. I ARKANSAS think that on every important bill there should be copies of Thomas B. Gatling, Bearden. Senate amendments, so that we may know what we are doing. Herbert A. Whitley, Bradford. Mr. SOMERS of New York. Ordinarily I would say that Benjamin F. Love, Mountain Home. the gentleman is absolutely right. These amendments are James H. Nobles, Parkdale. printed in the Saturday RECORD. George 0. Yingling, Searcy. Mr. BYRNS. May I say that I agree with the gentleman Clyde F. Flatt, Siloam Springs. from New York; but in bringing matters of this kind Isaac H. Steed, Star City. promptly before the House, it is of the utmost importance Mabel Edith Whaley, Sulphur Springs. that action be taken on this bill. In addition to that, these 1492 _GON_GR_ESSIONAL RECORD-HOUSE JANUARY 29 amendments are very simple-the question being whether of which he is a director. Upon the request of the Secretary of the Treasury the Federal Reserve Board shall require the there should be a limitation put on the powers given to the Federal Reserve agent to transmit to the Treasurer of the United Secretary of the Treasury, and that was contended for by States so much of the gold certificates held by him as collateral those who opposed the bill. security for Federal Reserve notes as may be required for the As exclusive purpose of the redemption of such Federal Reserve notes, Mr. SNELL. I said, I do not intend to object. But but such gold certificates when deposited with the Treasurer several times this has come up, and I think that every im shall be counted and considered as if collateral security on deposit portant House bill with Senate amendments should be before with the Federal Reserve agent.' us in order that we may know what we are doing. "(6) The eighth paragraph is amended to read as follows: "'All Federal Reserve notes and all gold c.ertificates and lawful Mr. BYRNS. I agree with the gentleman, but this amend money issued to or deposited with any Federal Reserve agent under ment is very simple. the provisions of the Federal Reserve Act shall hereafter be held The Clerk read the Senate amendments, as follows: for such agent, under such rules and regulations as the Federal Reserve Board may prescribe, in the joint custody of himself and Page 2, strike out all after line 14 down to and including line the Federal Reserve bank to which he is accredited. Such agent 17, page 3, and insert: and such Federal Reserve bank shall be jointly liable for the safe "{b) Section 16 of the Federal Reserve Act, as amended, is keeping of such Federal Reserve notes, gold certificates, and lawful further amended in the following respects: money. Nothing herein contained, however, shall be construed to " ( 1) The third sentence of the first paragraph is amended to prohibit a Federal Reserve agent from depositing gold certificates read as follows: •They shall be redeemed in lawful money on with the Federal Reserve Board, to be held by such Board subject demand at the Treasury Department of the United States, in the to his order, or with the Treasurer of the United States for the city of Washington, D.C., or at any Federal Reserve bank.' purposes authorized by law.' "(2) So much of the third sentence of the second paragraph "(7) The sixteenth paragraph is amended to read as follows: as precedes the proviso is amended to read as follows: 'The col "•The Secretary of the Treasury is hereby authorized and di lateral security thus offered shall be notes, drafts, bills of ex rected to receive deposits of gold or of gold certificates with the change, or acceptances acquired under the provisions of section 13 Treasurer or any Assistant Treasurer of the United States when of this act, or bills of exchange endorsed by a member bank of tendered by any Federal Reserve bank or Federal Reserve agent any Federal Reserve district and purchased under the provisions for credit to its or his account with the Federal Reserve Board. of section 14 of this act, or bankers' acceptances purchased under The Secretary shall prescribe by regulation the form of receipt to the provisions of said section 14, or gold certificates.' be issued by the Treasurer or Assistant Treasurer to the Federal "(3) The first sentence of the third paragraph ts amended to Reserve bank or Federal Reserve agent making the deposit, and a read as follows: • Every Federal Reserve bank shall maintain re duplicate of such receipt shall be delivered to the Federal Reserve serves in gold certificates or lawful money of not less than 35 Board by the Treasurer at Washington upon proper advices from percent against its deposits and reserves in gold certificates of any Assistant Treasurer that such deposit has been made. De not less than 40 percent against its Federal Reserve notes 1n posits so made shall be held subject to the orders of the Federal actual circulation: Provided, however, That when the Federal Re Reserve Board and shall be payable in gold certificates on the serve agent holds gold certificates as collateral for Federal Reserve order of the Federal Reserve Board to any Federal Reserve bank notes issued to the bank such gold certificates shall be counted or Federal Reserve agent at the Treasury or at the Subtreasury o! as part of the reserve which such bank is required to maintain the United States nearest the place of business of such Federal against its Federal Reserve notes in actual circulation.' Reserve bank or such Federal Reserve agent. The order used by "(4) The fifth and sixth sentences of the third paragraph are the Federal Reserve Board in making such payments shall be amended to read as follows: ' Notes presented for redemption at signed by the Governor or Vice Governor, or such other officers or the Treasury of the United States shall be paid out of the redemp members as the Board may by regulation prescribe. The form o! tion fund and returned to the Federal Reserve banks through such order shall be approved by the Secretary of the Treasury.' which they were originally issued, and thereupon such Federal "(8) The eighteenth paragraph is amended to read as follows: Reserve bank shall, upon demand of the Secretary of the Treasury, " ' Deposits made under this section standing to the cred.it of reimburse such redemption fund in lawful money, or 1f such Fed any Federal Reserve bank with the Federal Reserve Board shall, eral Reserve notes have been redeemed by the Treasurer in gold at the option of said bank, be counted as part of the lawful certificates, then such funds shall be reimbursed to the extent reserve which it is required to maintain against outstanding Fed deemed necessary by the Secretary of the Treasury in gold cer eral Reserve notes, or as a part of the reserve it is required to tificates, and such Federal Reserve bank shall, so long as any of. maintain against deposits.'" its Federal Reserve notes remain outstanding, maintain with the Page 8, line 4, after "Treasury", insert "with the approval of Treasurer in gold certificates an amount sufficient 1n the judgment the President " of the Secretary to provide for all redemptions to be made by the Page 8, line 11, strike out all after " President " down to and Treasurer. Federal Reserve notes received by the Treasurer other including "act" in line 15. wise than for redemption may be exchanged for gold certificates Page 8, line 23, after "Treasury", insert "with the approval out of the redemption fund hereinafter provided and returned to of the President" the Reserve bank through which they were originally issued, or Page 9, after line 13, insert: they may be returned to such bank for the credit of the United " ( c) All the powers conferred by this section shall expire 2 States.' years after the date of enactment of this act, unless the President " (5) The fourth, fifth, and sixth paragraphs are amended to shall sooner declare the existing emergency ended and the opera tion of the stabilization fund terminated; but the President may read as follows: extend such period for not more than one additional year after " ' The Federal Reserve Board shall require each Federal Reserve such date by proclam the Government service the only men who can furnish th~ I assume this resolution will pass and that a committee scientific information as to how and where this money will be speedily appointed. I sincerely hope that it will go should be spent. Suppose that when the Government began thoroughly into this entire question and suggest that one its public-building program in 1926 it had dismissed all the of its first duties should be to see that the Government ·architects and engi:ieers in the Treasury Department. Yet bureaus dealing directly with conservation be given adequate that would not have been any more ridiculous than th~ appropriations so that they can make available to this com step which the administration seems about to take in this mittee the scientific information which will be needed if the matter. committee is to secure a complete picture of the situation If the committee about to be created is to accomplish and the remedies which are needed. anything on behalf of conservation, it will have to depend Mr. HASTINGS. The gentleman's remarks are very in for its information upon the work of the naturalists and teresting. I should like to know if the gentleman has in scientists of the Biological Survey. How foolish is it, then, mind how much should be recommended for the Biological to cripple and almost destroy this wor).c Surely no better Survey? The gentleman said it was 43 percent of the cur example of a penny-wise and pound-foolish system of rent amount. Does the gentleman have in mind what the economy could be found than this. current amount is? Let me call attention at this time to what has been done Mr. HOPE. The amount for the Gurrent year is $582,741, to that part of the appropriation for the Biological Survey and last year it was $1,356,280. which deals directly with the gathering of scientific infor Mr. HASTINGS. Is the gentleman on the subcommittee? mation concerning migratory birds and their protection. Mr. HOPE. I am not a member of the Appropriations For the current fiscal year there was appropriated $75,000 Committee. for the study of food habits of birds and animals. Of this [Here the gavel fell.] amount cash withdrawals of $71,640 were permitted. This Mr. MARTIN of Massachusetts. Mr. Speaker, I yield 10 year the Department estimated that in order to carry on minutes to the gentleman from Massachusetts [Mr. GrF- this work it should have an appropriation of $82,056. The FORDl. . Bureau of the Budget has rewmmended that this activity Mr. GIFFORD. Mr. Speaker and gentlemen, I have lis be discontinued. and that no funds be appropriated what tened with much interest to what has been said on this sub ever for that purpose. This means that all of the scientific ject. Of course, this is largely a matter concerning the work which the Bureau has been doing relative to the in western and southern sections of the country, but I wish vestigation of the food habits and economic value of migra to make a few remarks about the situation on the eastern tory and other birds, including methods for their conserva seaboard. tion, must be discontinued. It is essential, of course, that I hope that I may be called a conservationist. I represent work be done along this line in order to determine the fit the Commonwealth of Massachusetts, in part-its right arm ness for the purpose of proposed migratory breeding and extended into the sea and the islands of Marthas Vineyard nesting grounds. and Nantucket-where migratory birds are rather plentiful For biological investigation there was appropriated for the and much is made of the shooting season. I have lived to current year $85,000. This year the Bureau of the Budget learn that many of the so-called "conservationists" in our has cut the amount to $69,711, and I am advised that this section of the country own slaughter pens all the way up and will not leave any funds for the employment of naturalists down the eastern seaboard. After shooting in the northern and investigators to investigate and consider the merits of zone they simply move their trappings to the central and proposed nesting grounds and bird refuges. All the work then to the lower zones, making for themselves an almost which has been done in connection with the status of migra continual shooting- season. Those are the conservationists tory birds under the treaty with Canada, as well as the who largely contribute to the so-called "societies for the taking of the bird census in recent years, has been done preservation of wild fowl" and who help to furnish the under this fund. propaganda which goes all over the country to induce those For the protection of migratory birds there was appro who are true conservationists to insist oil the restriction of priated for the current fiscal year $198,190. This year the seasons and on the restrictions of the rights of the natives Bureau of the Budget recommends $118,210, at a time when in the localities which were settled by their forefathers in protection is more urgently needed than ever. part because game and fowl abounded there. Another very important part of the work of the Biological Some of you may be familiar with these slaughter pens . Survey is that carried on cooperatively with the States and where trained geese are sent up to betray the wild ·Ones by other governmental units for the control of predatory ani encouraging them to come down to their destruction. Such mals and injurious rodents. This work depends for its sportsmen are disappointed if one live wild goose escapes. effectiveness on its continuity. Stopping it for a year or Mr. BERLIN. Mr. Speaker, will the gentleman yield? two might undo all that has been accomplished. Yet for Mr. GIFFORD. I yield. this year the Bureau of the Budget has cut the appropria Mr. BERLIN. Has the gentleman ever shot ducks or tion for predatory animal work to $91,343, as compared with geese from a blind? $530,000 appropriated and $382,981 permitted to be with Mr. GIFFORD. No. But I have done some shooting of drawn for the current fiscal year. In connection with this wild fowl in my earlier years. appropriation, it should be said that State, county, and Mr. BERLIN. Is the gentleman familiar with the slaugh private funds expended for this work in cooperation with ter pens he speaks of on the ea5tern coast? the Government total approximately twice as much as the Mr. GIFFORD. I am very familiar with them. Federal appropriation. If the recommendations of the Mr. BERLIN. Would the gentleman state to the House Bureau of the Budget are allowed to stand, it means that where he has discovered slaughter pens on the eastern practically all of the program which has heretofore been shore? carried out must be discontinued. Mr. GIFFORD. Why, Mr. Speaker, I am just buying a In recent years the Biological Survey has carried on work tract of land to get rid of one of those slaughter pens, where· in connection with the production of fur-bearing animals. sportsmen own shooting boxes and have caretakers and are This is a most important activity, because in recent years notified by telephone and telegraph when the birds are fly the decline in the number of fur pelts of all kinds has been ing. These men use the most modern paraphernalia and are such as to create a great deal of uneasiness as to the future usually successful in annihilating large flocks of birds. They of the industry. The work which the Bureau has been are the conservationists who are urging the sort of legis doing incluctes a study of fur-market conditions and inves lation now in effect. I come from Cape Cod, where people tigation of the methods of fur storage, research in fur. [ettled many year& ago, in part because of natural advan animal production, and development of fur farming. Most tages such as the wild fowl which could be secured for food. of this work to be effective depends upon its continuity and Our people, who were accustomed to secure birds for food, to discontinue it now means a serious loss. are now-with much sarcasm--classified as " pothunters." 1934 CONGRESSIONAL RECORD-HOUSE 1503 Our laws are now so framed that they can shoot for less on the bag limit being made small. I will gladly join you than 3 months in the year and these conservationists spend in that sort of conservation, but I am opposed to giving the their holidays with us and then in effect say to us, " Do not wealthy man the entire control of the wild fowl that fly kill one of those birds until we get back next season." because of his wealth and his ownership of the land. I am Many of these men follow the shooting from zone to zone glad to raise my voice for the people who live permanently and thus shoot nearly all the time. In much of the section in my section of the country rather than for the benefit of which I represent wealthy men have· bought up the lands the outside sportsman. around ponds is good shooting localities and by virtue of that The SPEAKER. The,..time of the gentleman from Massa ownership they control the shooting of wild fowl therein. chusetts [Mr. GIFFORD J has expired. These are some of the conservationists anxious for re Mr. MARTIN of Mas~achusetts. Mr. Speaker, I yield 5 strictive laws to be passed and who spread propaganda in minutes to the gentleman from Pennsylvania [Mr. KuRTzl. favor of them. I have lived to see my own people hindered, Mr. KURTZ. Mr. Speaker, I think there is no person fined, and actually imprisoned for going out and bucking here who does not believe firmly in the preservation of wild wind and tide to get one brace of birds, which-many a life, and none within the sound of my voice who does not time-was badly needed for sustenance. If they wish to go deplore the fact that there are hunters who act as game into the fields to shoot partridge and quail they have but 1 hogs in every section of the United States, as asserted by month in which to do it, and when that month arrives there the gentleman from Massachusetts, but that is no reason come strangers in automobiles with pump guns and trained why we should not study the proper methods for the pres dogs who quickly shoot up the locality and then say, " See ervation of the game and wild life of this country, so as that you natives do not kill one of these birds until we get not only to preserve it from extinction but bring it back as back next year." it existed in the days of our primeval forests. We have a department in my State which boasts that it In Pennsylvania we have studied methods of preservation does not have to have an appropriation from the Common of game for more than 25 years. Thirty years ago it was wealth. Instead, fish and game clubs are formed in the almost impossible to see a deer on the mountains of that di.ff erent localities, often primarily for social reasons, and Commonwealth, yet today any man who desires to hunt the members are inveigled into paying from $2 to $3.25 for deer can go out and see at least 20 or 30 or possibly 100 in a hunter's license, and from the money so secured the de a single day. I was hunting on the crest of the Allegheny partment is enabled to raise quail and partridge for this 1 Mountains last year with a hunting party and more than month's shooting holiday. It has had the effect of virtually 100 deer were seen in 1 day. This has all been brought destroying the rights and liberties of my own people. about because of the conservation policy of the State of I do not want to see this wholesale shooting. I have done Pennsylvania. The wild life of Pennsylvania has been but a small amount of hunting myself. In former years I brought back in a quarter of a century after it had been have fought the wind and tide in the pursuit of wild fowl, practically destroyed, and within the confines of one little but in those days we felt exceedingly happy if we could get county of Pennsylvania 31 bears were killed the first day three or four birds. We earned them and, furthermore, we of the open season last year, and within that State there used them for food. Nowadays many of these so-called were more bears and deer killed in the last season than " sportsmen " are unhapply unless they can shoot the entire within the boundaries of any other State in the entire Na flock. Are they then to be classed as "conservationists"? tion. That is all because of the fact that the people of Now, we are to have a committee appointed to consider the Pennsylvania have studied methods of preserving wild life taking of lands in my district-investigators have already and put those methods into effect. If the native game and been there-and it was proposed to condemn one particular wild life have been destroyed in certain sections of this large tract as a bird refuge. I was called to the town in Nation, it is high time that this Congress appoint a com which this tract was located and found every citizen thereof mittee to investigate the matter in every section of the protesting against it. We have a large fish and game asso country and suggest such measures as will bring it back ciation in my section watchful of their rights and they do and protect it for the sportsman and posterity. not wish to have these large areas set aside as refuges. They know that their shooting rights have been taken away Mr. KELLY of Pennsylvania. Will the gentleman yield? and are very suspicious of these so-called " conservation Mr. KURTZ. I gladly yield to the gentleman from Penn sylvania. measures." Several years ago I was sent to Washington to interview Mr. KELLY of Pennsylvania. Is it not also true that the officials of the Department of Agricultme. That Depart the State of Pennsylvania has established some 30 game ment had drawn a line across the northern section estab refuges and sanctuaries, and has financed it entirely from lishing what area was to be used for shooting during a fixed the fees paid by hunters and the license fees? open season. Such mandatory zoning is open to grave objec Mr. KURTZ. Not only is that true, but let me say the tion because certain kinds of migratory fowl do not make Pennsylvania Game Commission has stocked every suitable their appearance therein until after the fixed season is section of Pennsylvania with every kind of game that can ended or almost closed. We have found that it is exceed be stocked. They have stocked it with wild turkeys. They ingly difficult to secure proper changes in both zones and have stocked it with rabbits. They have stocked it with open seasons. squirrels. They have stocked it with deer. They have Mr. Speaker, I do not wish to be thought unsympathetic stocked it with bears. They have set aside these preserves with the purposes of this bill. By all means let us permit and refuges where wild game is perfectly safe from the the committee to inquire into existing conditions, especially hunter and the poacher and free to live and propagate in in the West and South, where large breeding grounds have safety. This has all been done by hunters' license fees and been destroyed by reclamation and in similar ways. If it is without any tax laid upon the general public. They have desired that the Government repurchase these sections under made a special study of it, and the time has come when the plea of conserving wild life, the measure should be favor even the farmers of. Pennsylvania, in many sections, , are ably considered. But if this bill is promoted by the kind of willing to set aside 10 acres of their farm as a preserve conservationists whom I have tried to portray to you let or as a game refuge, and the birds fly into that region in us look well into it. very short order after the game season opens and are I close by saying that I used to be fond of shooting on perfectly safe. occasion. But I do not get the enjoyment out of killing We find in Pennsylvania that there is no danger of the wild life that once I did. Last year I paid for my license, extinction of game, but it is growing more plentiful in many but never used it. I sympathize with those bird lovers who regions than it has ever been before. All this in spite of are endeavoring to preserve wild life, but I have little sym the fact that Pennsylvania is one of the most thickly popu pathy for those who use slaughter pens; and if this measure lated States in the Union, and has hunters running into is something to help them, by providing more game for hundreds of thousands. Three years ago the deer became wholesale destruction, I am not enthusiastic for it. I agree so plentiful that it was absolutely necessary to permit an 1504- - CONGRESSIONAL -RECORD-HOUSE JANUARY 29 open season for antlerless deer to limit the females of the people a place to go, a place to spend this leisure in a con herd. More than 90,000 deer were killed in that 2 weeks' structive fashion. There is only one place to offer them, season in Pennsylvania. Last year there were killed within and that is the great out-of-doors. If we cannot con the confines of Pennsylvania more than 20,000 deer with serve it now, if we cannot protect it and restore it now and antlers, and the returns are not all in. So I say it is high have a coordinated program that will ultimately lead to the time for the United States of Ame1·ica, where game has establishment of refuges and sanctuaries, the balancing of been depleted, to study this question in the light of what the relationships between all sections of the country so that the Commonweath of. Pennsylvania has done and see each one can share proportionately in the outdoors, then I whether they cannot bring the game back that was so say we shall not be ready for the readjusted economic life. plentiful in the years that have gone. I hope this resolution My people out in Illinois feel that the duck-shooting sea passes. [Applause.] son starts too late and ends too early. They think it starts The SPEAKER. The time of the gentleman from Penn too early perhaps down in Arkansas and that the people of sylvania [Mr. KURTZ] has expired. Arkansas get better shooting. I shall not quarrel about it, Mr. MAR TIN of Massachusetts. Mr. Speaker, I yield 5 but this indicates that there is especial need for a commis minutes to the gentleman from Illinois [Mr. DIRKSEN]. sion such as this to study the situation and coordinate the Mr. DIRKSEN. Mr. Speaker, a year or two ago some whole program that justice and equity may be rendered to wag remarked that the Secretary of the Interior had charge every section of the Nation. [Applause.] of the polar bears; that the Secretary of Commerce had [Here the gavel fell.] charge of the cinnamon bears; that the Secretary of Agri Mr. MARTIN of ·Massachusetts. Mr. Speaker, I yield the culture had charge of the black bears; and held that inci balance of my time to the gentleman from California [Mr. dent forth to indicate the lack of coordination in govern CARTER]. mental departments. I believe that same apparent lack of Mr. CARTER of California. Mr. Speaker, I am very coordination is manifested so far as conservation and resto happy to support this resolution because I know that the ration of wild li.fe is concerned. The Secretary of Commerce wild life of this country is being exterminated rapidly. looks after the fisheries; the Secretary of Agriculture, be Two or three years ago it was my privilege to take a trip cause he is the boss of the Biological Survey, looks after the to Alaska and the Bering Sea, and I want to relate to you Federal wardens and the enforcement of the game laws; the what I think is one of the finest examples of the conserva Secretary of the Interior, by virtue of the fact that he is in tion of wild life that has ever been attempted anywhere in charge of the national parks and reserves, is in charge of the United States or, for that matter, perhaps, in the world. that particular section of wild life and the outdoors. If we You have all heard of the fur seal of Bering Sea. The fur are going to proceed on three parallel tracks in three differ seal is an animal of very peculiar habits. There are two ent departments, the ultimate result will be just exactly small islands in Bering Sea-St. Paul and St. George-the nothing, so far as wild life restoration and conservation is only place these seals ever go on land. Perhaps you will concerned. I am in full sympathy with the provisions of remember also that a few years ago we had an argument this bill which seek to make a coordinated study and bring with the Japanese sealers and the Canadian sealers. These about a coordinated program in conservation and restora men would stand off outside the 3-mile limit and catch these tion. seals as they were approaching or departing from these I was very much interested in the remarks of the gen islands. tleman from Pennsylvania [Mr. KURTZ] about conservation. The seals return to these islands each year in the month It seems we must go a little further in this program. I am of May or June, leaving the islands sometime in August. not satisfied by simply stopping stream pollution and main After the mother seal gives birth to her young seal, she taining the status quo of our outdoors. I think we should go leaves the island at times to feed. Japanese and Canadian further and say to those who pollute our streams and who sealers would stand outside the 3-mile limit and catch the have somehow destroyed our wild life that they should give mother seal as she was feeding. it back, every bit of it, and restore it to some kind of When these islands were discovered, there were some eight pristine condition. or nine million seals there, according to the best estimates; The reason for that is this: I venture to say that every but as a result of the sealing activities of Americans and body in this Chamber has had a chance somehow to contact sealers of other nationalities, this herd was reduced to about the frontier in his State, where he could go out and fish 100,000 seals and would have been exterminated had not an and bring back some fish, or where he could go out and hunt agreement been entered into with these other foreign coun and bring back some ducks. It is rather a speculative mat tries whereby this country does all the sealing there and pays ter right now. So when my family grows up I want it to be to the Government of Japan and to the Government of possible for my children to say that they, too, can be identi Canada 15 percent of the net proceeds received from the fied with the frontier and get all that life holds; but more sealing industry. The killing of the seals is under the direc important as a basis of this program that is to be detailed tion of the Com.missioner of Fisheries. By applying the ultimately by the committee is the fact that we have to principles of conservation this herd has been built up to save the outdoors because of the increasing industrial break about 2,000,000 and is increasing rapidly. The adoption of down of human life and human spirit and the necessity, this resolution is a splendid conservation movement. when we once go to a short working day and working week, [Here the gavel fell.] to be able to send out people somewhere to wash out the Mr. DRIVER. Mr. Speaker, I yield 3 minutes to the gen impurities of the spirit and somehow find a new kind of tleman from Idaho [Mr. WHITEl. life. Mr. WHITE. Mr. Speaker, there certainly is need for co Are we in this country, as a matter of fact, ready for a ordination between the several departments in the matter of permanent 6-hour day and a 5-day week unless there is some protecting the wild life and game of the country. kind of constructiYe leisure that goes with it? What are I come from the State of Idaho, a State which contains you going to do with the men who shall have that leisure the greatest area of game country left in the United States, time? Are you going to say that they should all become golf where there is the heaviest percentage of wild life, big game, players? Are you going to say they should all become base deer, beaver, and small game which needs protection from ball or football players, or players in some one of a dozen predatory animals. Only yesterday we went before the other sports? There is no playground to accommodate Director of the Budget pleading for an appropriation for them all, but there is a place for all to exercise the instinct protection of the game from destruction by predatory of pursuit, to take a fishing rod or shotgun and go out in animals. the wilderness-if there is a wilderness-and there find a I desire to place in the RECORD a few statements from men certain communion with nature. When we come to the day living in and familiar with the big-game country of Idaho. and it is not so far distant-when the days and the weeks We have in central Idaho one of the greatest big-game areas will have to be shortened, we must be able to offer to these left in the United States. A hearing was called which had '1934 CONGRESSIONAL RECORD-HOUSE 1505 for its purpose support of a movement to open a road into May we 1n conclusion say that there a.re 13,000,000 men and women who pay to the States annually for hunting and fishing this country. The facts as to the present status of the licenses over $12,000,000; that our outdoor bill connected with game in that country was brought out. hunting and fishing amounts to $650,000,000; that hunting and [Here the gavel fell.] fishing have more enthusiastic followers than baseball, golf, tennis, Mr. WHITE. Mr. Speaker, I ask unanimous consent to and other outdoor sports combined. We wish to thank you for your consideration of this resolution, revise and extend my remarks by inserting at this point because we know this new special committee, cooperating with the these statements to which I have referred. · committee on the Senate side, will permanently place conservation The SPEAKER. Is there objection to the request of the where it belongs in the hearts of our people, promoting their gentleman from Idaho? pleasure, their happiness, and their health. There was no objection. [Here the gavel fell.] Mr. WIDTE. Mr. Speaker, at a meeting held at Salmon Mr. DRIVER. Mr. Speaker, I offer an amendment. City, Idaho, last fall Mr. Menitt, of Salmon City, introduced The Clerk read as follows: Mr. Harry Golicke, who has run the Salmon River since Amendment by Mr. DRIVER: Page 2, line 8, after the word 1895, transporting supplies and machinery, and on one of his "times", strike out the words "and places" and insert in lieu trips down the river he counted 364 deer in 1 day. Mr. thereof the words " in the District of Columbia." Merritt then introduced Willard Rudd who lives on Big Mr. DRIVER. Mr. Speaker, I move the previous question Creek in the heart of the game country. Mr. Rudd stated on the amendment and the resolution to final passage. if a road were built it would protect the game, for at present, The previous question was ordered. owing to the lowering of the bounty on cats and predatory The amendment was agreed to. animals, the game is gradually being killed of!. Mr. Merritt The resolution was agreed to. then introduced Mr. William Wallace, owner of a ranch on HOUSE RESOLUTION 228 Big Creek, 50 miles below Salmon, who has lived there for several years and who is a close observer of game. To the -Mr. SABA TH. Mr. Speaker, by direction of the Rules question propounded by Mr. Merritt," Is there adequate pro Committee I desire to call up House Resolution 228. tection for the game?" Mr. Wallace stated, "I think not; The Clerk read the resolution, as follows: they have fallen of! 75 percent in 3 years." Resolved, That the Judfciary Committee of the House of Rep Let me say in conclusion, Mr. Speaker, that the wild life resentatives, authorized to inquire into and investigate the matter of appointments, conduct, proceedings, and acts of receivers, of this country is a real asset to the whole Nation. trustees, referees in bankruptcy, and receivers in equity causes Mr. DRIVER. Mr. Speaker, I ask unanimous consent that for the conservation of assets within the jurisdiction of the all Members speaking on the resolution today may have the United States district courts pursuant to House Resolution 145, shall report to the House of Representatives not later than privilege of revising and extending their remarks in the June 30, 1934, in lieu of January 31, 1934, the date specified in RECORD. such resolution. The SPEAKER. Is there objection to the request of the gentleman from Arkansas? Mr. SABATH. Mr. Speaker, I understand there is no op There was no objection. position to this resolution and that the gentlemen on the Mr. DRIVER. Mr. Speaker, I yield 3 minutes to the other side do not desire any time. gentleman from Virginia [Mr. ROBERTSON]. Mr. MARTIN of Massachusetts. We should like to have Mr. ROBERTSON. Mr. Speaker, the scope of this deba·te some time. indicates not only the importance of this subject but also Mr. SABATH. I was under the impression that the gen the importance of having a committee of the House to corre tleman on the other side did not want any time. late the conservation activities of the Nation. Mr. MARTIN of Massachusetts. I have a request from I am very familiar with the splendid work that has been one gentleman who is in favor of the resolution but would done in Pennsylvania, and I agree with my distinguished like to talk about it. colleague, the gentleman from Pennsylvania, when he says Mr. KURTZ. If there is no opposition and if there is it is time for the Nation to follow the example of his State nothing to be said on the side of the majority, there is in taking steps to conserve our great natural resources be nothing to be said over here. fore it is too late. Mr. SNELL. Will the gentleman yield? On Thursday I was invited to sit with the Senate Wild Mr. SABATH. I yield to the gentleman from New York. Life Committee at one of the largest-attended hearings I Mr. SNEIL. This is just for the pUl·pose of making a have seen in recent years. Over 400 representatives of game report. Your investigation is completed? departments and conservation agencies of the various States Mr. SABATH. No; it is not completed. There is some were there. On the following daiy a delegation presented thing to be done in the way of additional investigation. certain recommendations to the President. This is for the purpase of giving the committee a little The gentleman from Alabama [Mr. HILL] wanted to know more time to prepare and finish their report, as well as to how this committee would fit in with the Senate Wild Life take some additional evidence. Committee and the President's special committee. It would J\.Ir. MARTIN of Massachusetts. Will the gentleman be pertinent, therefore, for me to read to you the reso yield? lution that was adopted on Thursday at the hearing before Mr. SABATH. Yes. the Senate Wild Life Committee. It is addressed to the Mr. MARTIN of Massachusetts. You will come in later Speaker of the House: and ask for additional money to continue the investigation? There ls assembled in Washington today the largest conference Mr. SABATH. I think the committee will; yes. of hunters and fishermen of a representative character that has Mr. SNELL. How much money has been spent already? ever assembled before a committee of Congress, so large, in fact, Mr. SABATH. I do not know. that it required three moves to secure a room sufficiently com modious to provide for their attendance. Mr. McKEOWN. In connection with this investigation in They are representatives of the 5 great national org&nizations, Chicago we spent $1,500. We were allowed $2,000, and we representatives of the 7 outdoor magazines, representatives of have about exhausted the $2,000, but we have an enormous farming organizations, representatives of the State game and fish commissions, representatives selected to speak for the Pacific coast, record. for the Atlantic coast, for the Gulf coast, for the Canadian border, Mr. SNELL. It will not take much more? and for the Mississippi and Ohio Valleys. Mr. McKEOWN. It will take some more money. There We have just received the announcement that the Rules Com mittee of your honorable body has made a favorable report on is quite a bit of examination, but it can be done with a very R.R. 173, to create a wild life conservation committee similar to small amount of money. We have investigators now mak that which has been so successfully functioning on the Senate ing the investigation; then we will go to Chicago and take side. the testimony. There are three big insurance companies This is one of the most cheering messages we have had. We want to congratulate the committee and recommend that we have to look into. This involves insurance receiverships, the report of the Rules Committee be adopted. as well as some other receiverships that have taken place 1506 _CONGRESSIONAL RECORD-HOUSE JANUARY 29 there and which the people of Chicago and the bar are that when the next resolution comes in, if the House should interested in. agree to give to the Committee on the Judiciary $7,500, even Mr. WARREN. I think the gentleman should tell the this amount of money will not be spent in the investigation; House that he is going to ask for another $7,500 to complete but in view of the importance to the country of the work his investigation. that has been done and in view of the complaints that have Mr. SNELL. That is more than the original amount? come from all over the country with regard to what is hap Mr. WARREN. That is correct. pening in regard to receiverships, it does seem proper that Mr. McKEOWN. I can give you a full report of that while the matter is now being proceeded with the committee when the proper time comes. ought to be equipped with sufficient funds, economically, to Mr. SNELL. What was the amount originally granted for complete the investigation deemed necessary. the investigation? Mr. SNELL. I am willing to take the statement of the Mr. McKEOWN. There was $5,000 granted to the com gentleman from Texas along those lines, but it is entirely mittee. I was allowed $2,000 to make the investigation in different from what has been brought out in the discussion Chicago. Out of that $2,000 we expended $1,500 which in here and what was originally reported to me. I think we vestigated 27 large receiverships in Chicago, besides the in ought to have the whole story and should know that we are formation that I have gathered from other sources in Chi starting and continuing a further investigation because the cago. This included an investigation of the acts of one gentleman thinks it is necessary. judge. We did not think it was right to go beyond the Mr. SUMNERS of Texas. We are not going to spend one amount allowed, although we think it is necessary to con cent more than we are absolutely compelled to spend; but, tinue this investigation. as the gentleman from New York knows, there has been a Mr. SNELL. There is more to it than the gentleman from good deal of complaint in the last few ye_ars about what is Illinois [Mr. SABATH] stated. He said this was to complete happening with reference to these estates and with reference the report. The gentleman is going to ask for more money to equity and bankruptcy receiverships. . to complete your investigations? Mr. SNELL. I know there has been a good deal of trouble Mr. McKEOWN. This is to complete the investigation. along that line. Mr. SNELL. I think it is important to know that. Mr. SUMNERS of Texas. We are trying to do our best, as Mr. SABATH. I stated to the gentleman from New York a result of this investigation, to see if some beneficial legis when he asked whether this was merely for the purpose of lation cannot be enacted. making a final report, that such was not the case; that Mr. SNELL. And I hope the gentleman can continue the there was more work to be done by the committee. investigation with as careful expenditures as have been made Mr. SNELL. There is more work to be done than has so far. already been perfarmed and you are going to ask for more Mr. SUMNERS of Texas. We are going to do our best. money? Mr. SABATH. They have been very careful, I can assure Mr. SABA TH. I do not know. I am not a member of the the gentleman from New York. committee. Mr. MARTIN of Massachusetts. If the gentleman is going Mr. SUMNERS of Texas. May I say to the gentleman to consume any time, we want a little time on this side. from New York that this is the situation, as I understand it: Mr. SABATH. No; I am not going to use any further The last Congress directed the Committee on the Judiciary time. to make an investigation of equity and bankruptcy receiver Mr. Speaker, I move the previous question on the adoption ships, and the House, out of the contingent fund, allocated of the resolution. $5,000 for the purpose of making that investigation. An The previous question was ordered. investigation was made in New York with regard to this The resolution was agreed to. matter, and I assume the gentleman from New York is On motion of Mr. SABATH, a motion to reconsider the vote familiar with it. by which the resolution was agreed to was laid on the table. About $2,000 was allocated to the subcommittee making Mr. GUYER. Mr. Speaker, I ask unanimous consent to the New York investigation and $2,000 allocated to the sub proceed for 25 minutes. committee making the Chicago investigation. There were The SPEAKER. Is there objection to the request of the some other rather small incidental expenses. This entire gentleman from Kansas? amount of money has not been expended. I believe that There was no objection. these two committees perhaps made as much disclosure and covered as much territory as any subcommittee of this House APPRECIATION OF JOHN JAMES INGALLS with the amount of money expended. Mr. GUYER. Mr. Speaker, it is with some trepidation There are a number of other places making suggestions to that I ask to consume this time, but on the seventy-third the Committee on the Judiciary that the situation in their anniversary of the admission of Kansas into the Union of respective communities ought to be examined. The commit States, I deem it not inappropriate to call attention briefly tee is of the opinion that Chicago is a more or less typical to the one hundredth anniversary of the birth of the most community, and that a completion of the investigation in commanding and dominant figure in Kansas history. John Chicago would probably give to the House a rather clear James Ingalls was born December 29, 1833, so on this Kan picture of the whole procedure with regard to equity and sas day I want to speak of his brilliant and colorful career, bankruptcy receiverships, and that out of that investigation to summons once more from the past the shadow of his the House might be able to determine whether any addi colossal figure. tional legislation would be helpful in protecting the estates in In his twenty-fifth year, just from Williams College and equity and bankruptcy receiverships. admitted to the bar, this aristocratic patrician from New Mr. SNELL. As I understand it, you have your whole England flung himself into the wilderness of Kansas, where investigation well started? The statement was. made to me destiny was so soon to embrace him. Kansas was yet a Ter that this did not amount to anything; that it is just simply ritory in 1858 when he came to the bluffs overlooking the to give the committee an opportunity to complete its report. Missouri. At that time Kansas was a raging battleground But, on the other hand, we find out it is going to cost more where history was being written in a scarlet flood of vio money to complete it and to go along for the next 3 months lence. Kansas City, in the disguise of Westport Landing, than has been spent already. I think the House should was a sentinel on the border of a vast prairie sea. Blue have a complete picture of the whole matter at this time. grass, that signal and symbol of civilization, which Ingalls Mr. SUMNERS of Texas. Yes; and I am trying to give immortalized in imperishable prose, had not yet invaded fu~ - the valleys of the Kaw and the Marais des Cygnes. Kansas The gentleman from Illinois [Mr. SABATH], coming from was a virgin parallelogram of unfettered civilization, knock Chicago, probably got the information he has with respect ing at the gates of the Union for admission to the sisterhood to the Chicago situation. The committee very much hopes of States. 1934 CONGRESSIONAL RECORD-HOUSE 1507 He came with that vanguard of State builders who pre optimist. He entertained grave doubts about the reforma ceded the later migration after the Civil War. He did not tion and purification of our political system. In the latter drift over th~e dusty, shadowy paths known as the Santa part of his senatorial career he uttered that debate-provok Fe and Oregon Trails, over which Anglo-Saxon civilization ing epigram: staggered out upon the great American desert to found an The purification of politics is an iridescent dream. • • • empire, the two most romantic and historic trails that ever The Decalogue and the Golden Rule have no place in a political mapped the frontiers of the earth. He did not come with campaign. those pioneers in that endless, white-crowned caravan that It was the sincere and deliberate judgment of a practical swept west after the Civil War. They came to break the man in whose political career there was no breath of scandal . virgin sod; he came to build a civilization and to ad.om it and who was never afraid to state what he deemed a demon with the ornaments of cultme and refinement. They came strated truth. with brawny arms to push the frontier back toward the set Ingalls was poet, orator, essayist, and statesman. It has ting sun; he came to hold high the torch of a statelier em often been said that if Ingalls had devoted himself solely to pire than that of commerce. They came to sow and reap; literature he would have attracted the attention and received he came to coin a loftier mintage than that of money. the homage of the whole world. As it is he has received the He had not been in the Territory a year when he was help admiration of the English-speaking world for at least three ing to write the Wyandotte Constitution, which is still the of his superlative compositions: The inimitable prose poem, organic law of Kansas. Its lucid English and excellence of " Blue Grass "; his unsurpassed eulogies; and his incompar form attest his effort. He came to Kansas when the hatreds able sonnet," Opportunity.'' Upon the rugged granite boul born of what was termed the " border ruffian warfare " were der which marks his last resting place is a bronze plaque still white hot. It only smouldered when the Wyandotte bearing this epitaph, a part of a sentence from his master Constitutional Convention convened in 1859. Ingalls be piece of prose: longed to that era of passion, and its bitterness colored many When the fitful fever ls ended, and the foolish wrangle of the of his fiery utterances long thereafter. As a member of the market and forum is closed, grass heals over the scar which our descent into the bosom of the earth has made, and the carpet of other Chamber his withering sarcasm and cutting satire the infant becomes the blanket of the dead. made him enemies as well as friends. Here in Washington for 2 decades he was the most colorful and interesting In the limit of this brief and faltering appreciation I have figure in the public life of the Capital. space for only one paragraph of " Blue Grass ", the gemlike, In repartee, Ingalls was quick as an electric flash. In ex polished beauty of which gives a; hint of its character: change of wit he never came out second. In satire he .was Grass is the forgiveness of Nature--her constant benediction. Fields trampled with battle, saturated with blood, torn with the without competition. In the rough-and-tumble fisticUtr of ruts of cannon, grow green again with grass, and carnage is for- ... debate and parliamentary combat he had no match in his gotten. Streets abandoned by traffic become grass-grown like time. The exchanges of wit in which he played a part are rural lanes, and are obliterated. Forests decay, harvests perish, flowers vanish, but grass is immortal. Beleaguered by the sullen an imperishable portion of our parliamentary literature. hosts of winter, it withdraws into the impregnable fortress of its Ingalls became involved in a controversy with a Member subterranean vitality, and emerges upon the first solicitation of from Delaware, who probably had invested in some early spring. Sown by the winds, by wandering birds, propagated by the subtle horticulture of the elements which are its ministers municipal bonds of Kansas which were of doubtful value. and servants, it softens the rude outline of the world. Its tena The Member delivered a scathing denunciation of Kansas. cious fibers hold the earth in its place, and prevent its soluble com Ingalls then painted an earthly paradise of that "grassy ponents from washing into the wasting sea. It invades the soll quadrangle " known as Kansas, and, turning to the Member tude of deserts, cllmbs the inaccessible slopes and forbidding pinnacles of mountains, modifies climates, and determines the irom Delaware, exclaimed: "And this from the· gentleman history, character, and destiny of nations. Unobtrusive and whose State has three counties when the tide is out and two patient, it has immortal vigor and aggression. Banished from when it is in.'' [Laughter.] the thoroughfare and the field, it abides its time to return, and when vigilance is relaxed, or the dynasty has perished, it silent.Iy In some argument with a Member from Pennsylvania the resumes the throne from which it has been expelled, but which Member from the Keystone State made a rather vicious at it never abdicates. It bears no blazonry of bloom to charm the tack on Kansas and Kansas people, to which Ingalls retorted, senses with fragrance or splendor, but its homely hue is more enchanting than the lily or the rose. It yields no fruit in earth "Pennsylvania has produced but two great men-Benjamin or air, and yet should its harvest fall for a single year, famine Franklin, of Massachusetts, and Albert Gallatin, of Switzer would depopulate the world. land.'' [Laughter.] Shakespeare did everything better than anyone else- In 1890 Ingalls' political sun set amid the clouds of Shakespeare who opened wide the portals of the human Populism, and in that celebrated campaign against LJ.galls, mind and soul and invited all the earth for guest; Shake Mrs. Mary Elizabeth Lease, the Amazon of American poli speare ·who whispered into the vocabularies of the world the tics, was his bitterest assailant. Her tongue was quite as sweetest words that ever filtered through the hearts of men. sharp as that of Ingalls' though it lacked the refinement and Shakespeare did everything else better than anyone else, subtlety. She asked no quarter and gave none. So far as until Ingalls wrote "Opportunity." "Opportunity" is the I know, Ingalls never referred to her personally. He was master sonnet of the English tongue. We may not entirely above all things a gentleman. Kansas never heard such agree with its seeming fatalistic philosophy, but the stately bitter philippics as she hurled at Ingalls. Even after his march of its majestic music sets all the orchestras of the defeat for the Senate in 1891, she did not cease to attack soul to singing: him. A newspaper correspondent mentioned it to Ingalls, OPPORTUNITY and his reply was," No one but a woman and an Indian ever Master of human destinies am I I scalp the dead." [Laughter.] Fame, love, and fortune on my footsteps wait. He engaged in a wordy battle with a Member from In Cities and fields I walk; I penetrate Deserts and seas remote, and passing QY diana known as "the tall sycamore of the Wabash." In Hovel and mart and palace, soon or late the war of words it was said that the Indianian, who was I knock unbidden once at every gate! usually quite able to take care of himself, took the second If sleeping, wake; if feasting, rise before I turn away. It is the hour of fate, prize. At any rate, Ingalls' old friend, Col. E. F. Ware, who And they who follow me reach every state wrote under the nom de plume of "Ironquill '', sent Ingalls Mortals desire, and conquer every foe a telegram of congratulations which served also as a lucid Save death; but those who doubt or hestltate. and expressive description of the combat: Condemned to failure, penury, and woe, Seek me in vain and uselessly implore. Lurid air, I answer not, and I return no more. Cyclone dense, Wabash hair, [Applause.] Hide on fence. APPOINTMENT OF SPEAKER PRO TEMPORE Sendor Ingalls was not, as some judged him, a cynic. The SPEAKER. The Chair is unable to be present the However, it might be said that he was not an unheeding rest of the afternoon and appoints the gentleman from 1508 CONGRESSIONAL RECORD-HOUSE JANUARY 29 Maryland [Mr. GOLDSBOROUGH] as Speaker pro tempore for It is with humiliation and bleeding pride to learn, realize, today. and know that the first and initial steps of this conspiracy GOLD REVALUATION were not only taken from the shores of our own land but Mr. GRAY. Mr. Speaker, I ask unanimous consent to taken by and through the means and the instrumentalities of address the House for 15 minutes. our own money and financial system. In every step taken The SPEAKER pro tempore. Is there objection? m this movement, organized and starting in our own country, There was no objection. under a secret gentlemen's agreement, can be seen the deft, Mr. GRAY. Mr. Speaker, this is the day I have long crafty hand of an international gold conspiracy moving in looked to, hoped for, prayed for, spoke for, and striven for, precision and money-mad method, directing the execution of since the 26th day of February, 1923. a deep laid plot, not only for the prostration and subjugation On that day the report of the secret bankers' meeting of our own helpless, unsuspecting people but of the peoples of of May 18, 1920, as published in the Manufacturers' Record, the earth and the economic world. The precise nature and of Baltimore, April 22, 1923, was printed in the CONGRES form of this agreement may never have been reduced to writ SIONAL RECORD, and by Senator Gooding, of Idaho, made a ing and may never be known to the outside world under Senate document. which the unsuspecting nations were left writhing in panic On that day the curtain was drawn and for the first time or depression and were led to repeat in hopeless despair the world looked in upon the secret conclave of conspiring " the cause of this :panic is a mystery." financiers and international bankers. I quote here from a statement issued from the Royal Bank Few men today will realize the significance and grave of Canada, commenting upon the world industrial crisis, and import of the measure for the revaluation of gold passed showing the time of its beginning: here today to relieve the strain upon gold for money, the The de:fiation (contraction of money) in 1920-21 brought into sharp relief the problem of world finance, the control of the gen evil it is to remedy, the wrong it is to undo, the crushing eral price level. burden it is to lift, the crime it is to expiate, and the want and suffering from which to relieve. It was the organized This was the date of the secret bankers' meeting, the date demand upon gold to increase the value of gold as basic of the rise of the discount rate, the date of the fall of values money and thereby the value of money based on gold, and and the price level, the beginning date of our panic or in turn to increase and multiply the value of bonds and depression and from which the world panic fallowed. war-debt claims, held by international financiers and bank The British committee, appointed by the King and Ex ers, which brought the fall of values, the price level, and chequer of Finance and Industry to investigate and report the wage scale, the failure of earnings and income from upon the cause of the industrial depression in England, industry, the destruction of the buying and consuming known as the McMillan report, states: power of the people, and, finally and ultimately, the blight Unfortunately on these two sets of abnormal difficulties there of this panic not only here upon our own defenseless people has supervened, starting in the United States, a business slump of but upon the helpless people of other nations. more than normal type, though of quite unusual dimensions. This panic or industrial depression is a part of a world This great English committee, appointed to investigate and wide crisis brought under an organized plan and deliberately report upon industry and finance in England, investigated, carried out with the object, purpose, and intent to multiply found, and reported to His Majesty the King and Parlia and pile high the burden of war debts upon the people of ment that this panic began in America. the world. The fi,rst and initial step to carry out this great Under pretense of world currency reform, sound money financial conspiracy was ordered, taken, and directed from and an honest dollar, the international financiers and bank our own shores of America by our own manipulating bank ers have increased, doubled, and multiplied the value of their ers, using our own Federal Reserve System to force the war-debt holdings by multiplying the value of the money change of money and the fall of values out upon the war in which these bonds are stipulated to be paid. The dev worn, weary nations and the helpless, defenseless people of astating panic resulting here from the invasion and viola all the nations of the world. tion of our own money system has followed in the trail and The international bankers and money lenders from all wake of a like destruction and contraction of the currency Europe assembled in America, either in person or by their and basic money in every nation of Europe and the world. agents, entered into a secret gentlemen's agreement to Its progress can be followed and traced from the shores of corner and monopolize the world's gold supply and by an our own America, step by step, leading out upon the earth organized concerted demand to increase and multiply the like an advancing plague, scourge, or blight, each nation value of gold and thereby the bonds and claims in which surrendering its power over money and yielding to the paid. And following and as a part of the plot, a secret greedy demands of an insatiable money monopoly for the bankers' meeting was held on May 18, 1920, in Washington, retirement and destruction of basic money and under which D.C., in the very shadows of this Capitol, and behind closed to corner gold and monopolize the world's supply of doors and curtains a resolution was passed calling upon the money. Federal Reserve Board to contract and withdraw from cir From the piracy and vandalism of our own Federal Re culation the money and credits of the cow1try. Following serve money system, we read from the footprint traces of the passage of this secret resolution the Federal Reserve this world conspiring money power leaving the shores of our Board, now a private banking octopus, in servient, grovel own land for the subjugation of foreign peoples, lurking in ing obedience entered upon a course of secret currency the cloak and guise of world currency reform and the movements, raising high the discount rate and operating mysteries of money and finance. We find its finger prints the open market facilities for the retirement of currency impressed by its strangle hold upon the throats of the peo and credit. ple of every World War nation in withering panic or depres This secret bankers' meeting held by the international sion. Under this w.orld financial conspiracy the destinies of financiers and bankers was the prelude and signal for a con the people of the world have been determined in secret con certed criminal onslaught upon the welfare of the peaceful ference abroad, first at Brussels in 1920, and following at and defenseless, the confiding, unsuspecting people of the Geneva in 1921, by grasping misers and Shylocks in money world. This secret concerted action was taken under a mad avarice, gluttony, and greed. By this changed and world-wide conspiracy to force down the commodity price perverted money system known as the international gold level and to rear upon the ruins and debris of property and standard, the relentless pound of flesh was provided for commodity values a so-called " international gold standard " and exacted i,n the bond, to be taken from the gasping, for the pillage and plunder of the people of the earth. And writhing bodies of the helpless, suffering humanity of the following the contraction of money here, the fall of values earth. and the price level, the volume and supply of money was Mr. FISH. Will the gentleman yi.eld? contracted and values and the price level were made to fall The SPEAKER pro tempore. Does the gentleman from in every World War country of the world. Indiana yield to the gentleman from New York? 1934 CONGRESSIONAL RECORD-HOUSE 1509 Mr. GRAY. I suggest that the gentleman be patient until tax- and debt-paying power, destroying the buying and con be can get the drift of my remarks, when he can probably suming power of the peoples of the nations of the world propound his interrogatory more intelligently, both for his greater than the English people could bear, and England has question and my answer. been f creed herself to go off the Black Friday gold standard The SPEAKER pro tempore. The gentleman from In to save her people from ruin and bankruptcy, to save her in diana declines to yield. dustries from utter annihilation. Mr. GRAY. The great American financiers, from the mil One by one the great nations of the world, in all, 34 lions filched from the American people and from the untold countries and governments, preceding and following in the millions made profiteering from the great World War, have lead of England, have found the strain of the international bonded the governments of all Europe in private loans in gold standard was greater than their burdened people could bewildering sums. Under pretense of world currency re bear. And all have thrown off the yoke of this international form, sound money, and an honest dollar, the international gold monopoly to safeguard their people from the crushing financiers and bankers have increased, doubled, and multi burdens of taxes, debts, and World War bonds imposed by plied the value of their war debts and claims by multiply this perverted money standard. And the United States of ing the value of the money in which these bonds are paid. America has been left standing out for years like a lone With dividends and interest called for and made payment Casabianca clinging to a sinking, burning ship amid the in international exchange, in monopolized gold and money, flames of private insolvency and national bankruptcy guard the gold in payment of which has been ft.owing to America ing the brazen idol of gold. And finally the United States in great swollen streams and to the coffers of the interna today, after suffering in distress for 12 long years, has been tional bankers, until almost one half of the gold of the compelled to find, with other nations, that the strain of the world has come to these American money kings, while one international gold standard is too beavY for our own people fourth of the gold of the world has gone to France in pay to bear. ment of German reparations, until other countries are de And calling a new administration in power, the one first prived of basic money and robbed of their gold for redemp preliminary step has been taken to lift from the staggering, tion and reserve, and until the fair name of America has reeling bodies of the people, the galling, crushing burdens of been made synonymous and used as a byword for " Shylock " gold piled high and fastened upon them by the vandals of and" miser", until Captain Fecht, of the Army Air Service, finance for profit and gain. says that the United States today is the most hated and The horrors of the great World War fade away as trivial, despised nation upon the face of the earth; and until insignificant, as compared with the want, suffering, and dis America has come to be looked upon as a grasping money tress, and all the anguish and the heartaches brought on by changer, who would sacrifice peace and friendly relations, this panic and paralysis of industry brought upon the honor, and every grace of life for money profit and sordid people of the earth by this criminal money conspiracy of the gain; and until, if we further allow th~e manipulating organized world money power to satisfy the morbid cravings financiers to parade under our fair name under the cloak of men for money, gold, and sordid gain; and until the of the Stars and Stripes and to hold themselves out before breaking of the sunlight and the glad hosannas and rejoic the world as representing the American people, we will have ing of returning peace and civil life have been darkened by aroused and engendered the animosity, antagonism, and re the blight of the panic and their gladdened voices hushed venge of the people of the world against us, and all the and drowned out by the cries, sobs, and moans of the fam armies and all the navies and all the aircraft we can build, ished, the destitute, and the dying; and until this money con organize, and recruit will not save us from invasion, from spiracy with its beginning and inception in our own land has annihilation and destruction before the nations organized become a horror without a parallel, and calling for venge for retaliation and to avenge the pillage of their people. ance and punishment by the Almighty as a crime against [Applause.] civilization and the human race. [Applause.] Viscount Rothermere, famous British publisher and chief Mr. FISH. Mr. Speaker, will the gentleman now yield? proprietor of the London Daily Mail and the London Eve Mr. GRAY. Yes. ning News, on September 27, 1931, said: Mr. FISH. I have been waiting very patiently to get the We were fools to force the pound up to the gold level 6 years drift of the gentleman's argument without a great deal of ago. It benefited . the bankers by restoring prestige to our cur rency and all the international money lending and the money enlightenment. Will the gentleman please answer this dealings that go with it. question? He refers to the war debt. Is it not a fact that And the American people have been fools to allow money the gold devaluation bill we have just passed has reduced the war debt by 40 percent. pirates and manipulating financiers to hold the dollar tide to monopclized gold for 12 long, trying, cruel years, crush Mr. GRAY. I thank the gentleman for his suggestion, ing and holding down values and the price level, withhold and if I could be granted more time I would be glad to ing earnings and income from industry, destroying the tax-, answer his question. Mr. WEIDEMAN. Mr. Speaker, I ask unanimous consent debt-, and interest-paying power and the buying and con suming power of the people. The American people have that the gentleman's time be extended 5 minutes. been fools to stand idly, by worshiping the brazen image of Mr. GRAY. Mr. Speaker, the war debts have been multi gold while industry has been prostrated and paralyzed, while plied three and four fold upon the nations of the world home owners have been ejected and dispossessed, while banks by this international gold standard. Germany has paid a and business have been forced into insolvency, and while great part of her war debt, and yet today she owes, meas debts have been multiplied upon the people until they have ured in commodities, labor, and labor products, in which, and been forced into bankruptcy or to yield to foreclosure pro oniy in which, it can be paid, more than she owed before ceedings for relief. she had paid a single mark. You cannot collect the war The report of the English committee appointed to inves debts under the international gold standard. The same tigate finance and industry in reporting June 19, 1931, and reason that the farmers cannot pay their mortgages is the heretofore quoted, states: reason that the foreign nations cannot pay their war debts. We can foreclose against the farmers by calling out the This brings up to the question whether adherence to an "inter national standard " may involve the payment of too heavy a price police and militia to defend the sheriff a-t the sale and make in the shape of domestic instability. Many countries today and them pay three and four times what they stipulated to pay, former times have found such continued adherence involves a but we cannot foreclose against the nations of the world greater strain than they can bear. without war. [Applause.] Since that report was made, June 19, 1931, England her Mr. FISH. Is the gentleman in favor of canceling the self has found the strain of this international gold standard war debts? doubling taxes and debt burdens upon the people, doubling Mr. GRAY. I am not. [Applause.] I want every man the international war debt upon the world, destroying the to pay his debts-what he contracted to pay. But I do not L:XXVIII--96 1510 CONGRESSIONAL RECORD-HOUSE JANUARY 29 want to call upon a man to pay four times what he agreed mittee came to the unanimous agreement that neither of to pay. The farmer who borrowed $5,000, when he could the claimants was entitled to a seat in this House. have paid his mortgage with 3,500 bushels of corn, has since It might be well for me to state to you the undisputed facts been called upon to give up over 9,000 bushels of corn to with reference to this controversy. Mr. Bolivar Kemp died pay the mortgage. [Applause.] I do not want war. I on the 19th day of June 1933, after the Congress adjourned want to restore the buying and consuming power of farm last June. It was insisted, both by the representatives of products and commodities so the farmers can pay and save Mr. Sanders and of Mrs. Kemp, that immediately after his them from bankruptcy and insolvency. I want to restore to death various parties in the State of Louisiana and in the peoples of the world the debt-paying power of commodi- this congressional district, sought an opportunity to be ties, labor, and the products of labor, so they can pay every come a candidate to succeed Mr. Kemp. Many thousand dollar that they agreed to pay, maintain our self-respect citizens in that district petitioned the chief executive of and friendly relations. It· is the only way war debts can· that State to .call. immediately an election to fill this va- . ever be pa~d. [Applam:e.J cancy. For a while the chief executive of the State offered . The SPEP....KER pro tempore. The time of the gentleman I no excuse for not calling the special election. Afterward from Indiana EMr. GRAY] has expired. he announced he would call it soon, and at another time Mr. KELLER. Mr. Speaker, I ask ·unanimous consent to he announced that he did not know that an election was address the body for 20 m!nutes. really necessary, and that he was waiting for some other The SPEAKER pro tempore. Is there objection to the eventuality to happen. At all events, no election was called, request of the gentleman from Illinois? no election was attempted to be called by the chief execu- Mr. KERR. Mr. Speaker, I am com~elled to object. I tive of that State, until on the 27th day of November, more intend to present a privileged resolution. than 5 months after there became a vacancy in this body, CONTESTED ELECTION-SANDERS AGAINST KEMP and more than 5 months after the death of Mr. Kemp, Mr. KERR. Mr. Speaker, r call up a privileged resolution. and just prior to the time when the citizens of the district The Clerk read as follows: had threatened to hold a mass meeting to endeavor, under the laws of the State of Louisiana, to fill the vacancy. House Resolution 231 Then, Mr. Speaker, on the 27th day of November the chief Resolved, That there was no valid election for Representative in t' f t t the House of Representatives of the Seventy-third Congress from execu ive 0 hat Sta e issued a proclamation, entrusted the· Sixth Congressional Distrfct of the stat~ of Louisiana en the it to . the executive committee of the Sixth District, and 5th day of December, or the 27th da.y of December, 1933, and that· that committee, outside .of the district, in the city of New ~either Mrs. Bolivar E. Kemp nor J. Y. Sanders, Jr., is entitled to Orleans, called an election pursuant to this proclamation a seat therein; and be it further. Resolved, That the Speaker communicate to the Governor of the of the Governor, or at least announced that there would State of Louisiana that there is a vacancy in the representation of be an election, and undertook to name a candidate to be that State in the Sixth Congressional District thereof. voted on at that election. Mr. KERR. Mr. Speaker, I ask unanimous consent that That election was called to be had on the 5th day of the time to discuss this resolution may be extended to December, just 7 days after the proclamation was handed 1 % hours, one half the time to be controlled by myself and by the Chief Executive of Louisiana to the district com one half by the gentleman from Massachusetts [Mr. mittee, which met in New Orleans, outside of the district. GIFFORD]. T'nat election, pursuant to that proclamation, was held on The SPEAKER pro tempore. Is there objection to the the 5th of December, and more than 5,000 people partici- request of the gentleman from North Carolina [Mr. KERR]? pated in the election. Five thousand or more of those votes Mr. DOWELL. Mr. Speak.er, a parliamentary inquiry. were cast for Mrs. Kemp. On the 28th of November, 1 day The SPEAKER pro tempore. The gentreman will state it. after the meeting of the district executive committee which Mr. DOWE.LL. As I understand it, this contest is one to nominated Mrs. Kemp, the citizens' mass meeting which had determine-wh'O, if anyone, is entitled to a seat.- I note in the been called. met in the district and undertook to fix a day resolution there is a provision for notifying the ·Governor of . f.or an election, and did fix a day for the election. They the State· relative to this contest. It occurs to me that fixed it at 30 days thereafter, or. on.the 27th day of Decem this House has no power other than to determine the one ber, and at that election more than 15,000 votes were cast, question who, if anyone, is entitled to a seat. When that is and about 15,000 votes were cast for Mr. Sanders. determined, this House has performed its function and has The question which the committee had to decide was passed upon that question, and I am raising that question whether there was any legal authority for either of these because apparently there is something further in the-resolu- elections. tion. As you know, the Constitution of the United States vests The SPEAKER pro tempore. The Chair rules that, fol- in Congress the power to designate the number of Repre lowing the decision of the House on the question of whether sentatives each State shall have in the Congress of the or not there is a vacancy, it is proper to notify the Gov- United States, but vests in the States themselves the author ernor of Louisian~ of the action of the House. ity to determine the manner, the time, and the place of the Is there objection to the request of the gentleman from election of these Representatives. The Constitution reserves North Carolina [M:r. KERR]? to Congress, however, the right to change the rules and There was no objection. regulations made by the States in respect to the election of Mr. -KERR. Mr. Speaker,· I yield myself 15· minutes. its Members. The Constitution of .the United States further. Mr. Speaker, this matter which is presented to you now. provides-that where there is a vacancy in the office of Rep- is a matter of great importance. Your committee has pa~ resentative in Congress it. shall be the duty of the chief, tiently investigated it and has come to a conclusion in executive of the State where the vacancy occurs to call an respect to it, as evidenced in the report to this House, and election, and pursuant to the laws of the State to fill the has submitted a resolution, which was read by the Clerk. vacancy. You are conscious, gentlemen, of the importance of this Your committee is of opinion that there are just two matter in two aspects. First, it involves the right of a statutes in the State of Louisiana involved in the determi Member of this House who presents a prima facie case, natiop of the legality of Mrs. Kemp's nomination and through a certificate of the secretary of state, to take his election. seat in this Congress; aind, second, it involves further the Section 2 of the election law of Louisiana provides for question of determining the legality of the elections, both notice to be given by the Governor when a general election of which were claimed to be legal by Mrs. Kemp and Mr. is to be held, and this notice must be given at least 30 days Sanders. before the election is held. The same election law provides We are fortunate, Mr. Speaker, in having the facts about that there shall be supervisors of election and that the the two elections undisputed. We heard the contestants and supervisors themselves shall give at least 15 days' notice of a heard the relative contentions made by both, and the -com- · general election. 1934 CONGRESSIONAL RECORD-HOUSE 1~11 Section 6 of the election law of Louisia~ pi:ovides that If:aud; and how _was it so connected with the general elec where a vacancy in the office of Representative m Congress t1on as to make it a part thereof? · occurs it shall be the duty of the Governor to call an elec- Mr. KERR. That question is raised, and I shall discuss tion according to law to fill the vacancy. So, to repeat, it later. The provision to which the gentleman refers is the Constitution of the United States provides that the Gov- found in section 31 of the primary law, and I shall discuss ernor shall call an election to fill the vacancy in the office it in just a. minute. · of Representative in Congress, and the statute, the mandate, [Here -the gavel fell.] of the State of Louisiana provides that where theTe is such Mr. KERR. Mr. Speaker, I yield myself 5 additional a vacancy the Governor must issue his proclamation and minutes. call an election according to law to fill the vacancy. Your committee was impelled to conclude from undisputed Section 48 of the election law provides that all nomina- facts that there had to be a primary nomination for a candi tions of political parties shall be made as provided in the date to succeed Mr. Kemp. The statute provided that any primary law of the State of Louisiana; and so the Governor, other nomination was illegal. The election was called to fill armed with the authority vested in him by the Constitution a vacancy. The primary law states that notice had to be of the United States and directed by the statutes of his given. The people must be given notice and the district State, was required to fill this vacancy and to fill it accord- executive committee must be given at least 10 days' notice ing to the laws of his State. of that election. I may say in passing that the Constitution reserved to the In the case before us there was no such notice given. This States the right to elect Representatives in Congress in the executive committee met in the city of New Orleans, de manner provided by the laws of the State, but the Consti- clared that the election must be held through the proclama- . tution did not take from Congress entirely the right to tion of the Governor, and undertook to hold it in 7 days, change rules and regulations which may be made by the and also undertook to name a candidate to be voted for states in respect to the election of Representatives in at that election. Congress. Mr. COX. Did the Governor, in his proclamation, fix the The primary election law of the State of Louisiana pro date at which the election should be held? vides that all nominations for candidate for Representative in Congress shall be made by a direct primary election·. The Mr. KERR. No, sir; he did not. The statute itself fixed the date. The statute said that the date shall not be less law is explicit; it does not equivocate. It goes further and states that any other method shall be illegal. than 10 days after the notice has been issued by the Gov I call attention to this feature of the Louisiana law, Mr. ernor. The Governor should have given reasonable notice Speaker: The rights of the people of Louisiana to think of this special election, and that notice should have allowed about an election and to determine whom they shall vote the district comrriittee to call a primary to be held in not for as their candidate were well safeguarded in another less than 10 days after this notice in order that the people section of the primary law of that State which provides that of the district could pass upon and select a nominee in that district. a. district committee~ a committee which has the function of calling the primary election to nominate candidates for the Mr. JOHNSON of Texas. Will the gentleman yield? office of Representative in Congress to be voted for in the Mr. KERR. I yield. general election, shall give at least 9 weeks' notice of that Mr. JOHNSON of Texas. Was the action of your com- election to the people of the State. I think the framers of mittee unanimous? this law realized that the primary determined clearly who Mr. KERR. Yes; it was. should represent the State of Louisiana in the Congress of Mr. COX. Is the language of the statute mandatory that the United States and that the general election was per 10 days' notice "shall" be given? functory in that it merely confirmed what had been done Mr. KERR. If the gentleman asks me personally, I say at the primary; so the legislature in passing this primary it was not directory. It says, "shall." It used the expres law made it imperative that when a candidate was to be sion " shall." When you con....tjder the importance of se selected at a primary the district committee having the lecting a candidate in a State of this kind, where there is no jurisdiction to call the primary must give at least 9 weeks' contest except in the primary, I think the spirit of the law notice of the intention to hold a primary for a genera.I was that it was mandatory and that the people of the dis election. trict should pass on whom they wanted for their candidate. The law provided furtber that when a special election The contention of Mrs. Kemp with respect to this elec and I call particular attention to this provision of the pri tion was that this committee had a right under certain mary law of Louisiana.--that in the case of a vacancy in eventualities to name her. The committee did not agree the office of Representative in Congress from the State of with her. There were certain exceptions in section 31 of Louisiana and where a special election is held to fill the primary law which your committee did not think covered vacancy the district committee shall fix the date at which the contention of Mrs. Kemp where a nomination had been a primary election shall be held to nominate candidates, held and the nominee should die, then the committee might which date shall not be less than 10 days after the election name a candidate. If the nominee had died within a few shall have been ordered. In other words, the law contem days of the· election, the committee would have the right to plates that a sufficient notice-a reasonable notice, I take name the candidate. There were two other situations which i~hall be given both in selecting a candidate at the pri section 31 would take care of. · One was where,no one filed mary and in electing a candidate at the general election. to be nominated the committee could name somebody and The statute itself states that 5 weeks is a reasonable notice; tender the nomination. The other exception was to cover but when it comes to the question of selecting a candidate an eventuality of this kind where there was only one man to fill a vacancy under the primary law of the State of announced as a candidate. Then the committee would have Louisiana, it was provided that the primary must be held the right to name a candidate; in other words, it was im not less than 10 days after the election was called by the perative. It was mandatory on the part of the Governor party who had the right to call it; of course, much more to call this election so that the people could have the op time could be given. portunity of selecting their candidate. Mr. COX. :Mr. Speaker, will the gentleman yield for a [Here the gavel fell.] · question at this point? Mr. KERR. I yield myself an additional 3 minutes. Mr. KERR. I yield. Mr. COX. If an election had been ordered and no pri Mr. COX. Is there not a provision in the Louisiana law mary had been held, or if a primary had been held and no with regard to receiving a nomination or winning a nomi nominee offered and the whole matter had gone by default, nation other than by a primary election; and, if so, then then do I understand that the gentleman concedes this what was there in the nomination which was given by the district committee would have had the right to have sup executive committee that partakes of the nature of legal plied a nominee in the general election? . 1512 CONGRESSIONAL RECORD-HOUSE JANUARY 29 . Mr. KERR. I think that is what section 31 was intended old-age pens~on legislation. It is a problem that has engrossed the to safeguard. acute attent10n of not only those upon whom it would confer im ~ediat~ and direct benefits but which has engaged the minute If it was possible for the chief executive of the State to inspect10n of outstanding economists, students of political science. violate the laws of that State and not comply with them, and experts in matters of taxation. Old-age pension reform on a then it would be possible for him to abort and make null Nation-wide basis, with the Federal Government in the role of tl_le gr~at provider,. is actually becoming a topic of universal the primary laws which provide for th~ manner in which d1scuss1on and meetmg with national favor. candidates should be elected, because all he would have to Practically every recognized and leading country of the world -do would be to simply-protract the giving of notice and wait has consented to its humane social precepts and has adopted this until it was too late to name a byprimary candidate; then formula for old-age security. As a precursor of contentment to that charming and vital element of aged people, its precepts are .the machinery that might be in control of some faction in founded on principles of the highest order. As a solution to one the State could name whomever they pleased, and this would of the greatest economic problems that ever inspired counsel witl1 have the effect of practically aborting and nullifying, if you the profound minds of this Nation, along the lines of social wel please, the election laws of the State of Louisiana insofar as fare and economic feasibility, this proposal of old-age pensions on a national basis, knows no peer. I sorrowfully allude to th~ giving the people of the State an opportunity to name their present awkward, haphazard, insufficient method of taking care of candidate. the old people of America. It is truly tragic. These people who have passed the meridian of life, who have really given their all, Mr. COX. Could the committee in this instance have poor though it may have been in some instance, by the present fixed a later date for the holding of the election? system are scuffed about in makeshift fashion, exposed to the . Mr. KERR. I do not know that it makes any difference heartless circumstance and cruel poverty of the most infamous whether the committee could have fixed a later date or not. institution in America, the poorhouse. Some of these aged peo ple are victims of our fallible and indefensible economic system. The point is that the chief executive-the Governor-by Many of them once owned considerable accumulation of worldly waiting and not giving the voters of the district a chance goods. A great number of them have seen their savings swept • to elect a candidate, made it impossible for them to hold a ~way overnight as a result of ill-founded trust and abiding faith m our system of fraudulent banking, in manipulated insurance primary. companies, and by exploited building and loan associations. They Mr. COX. Does not that meet the case that the gentle are due something more than dependency upon the local commu man has referred to as an exception; that is, if the election nity, an overburdened, overtaxed relative, or the squalid disgrace was called at a time that made impossible the holding of a fulness of the poorhouse. Until recent months, the old people of America have truly been primary election, then it was within the province of the the forgotten men. They have surely been a neglected and committee to make the nomination itself? forgotten people. This fact has been indelibly established by the Mr. KERR. No. The committee had no right under the past 4 years of economic hardship, chaotic depression, personal suffering, and rancorous unemployment. We have come to a point law to participate in any kind of action which deprived the of realization that something must be done to withdraw this people of the State of Louisiana of nominating a candidate. burden of old-age dependency from the local community, the al [Here the gavel fell.1 ready overtaxed responsibilities of relatives,• and the nauseating Mr. KERR. I yield myself an additional minute. frailty of the poorhouse. We have come to realize the pressing need for a plan to sufficiently provide for the comfort, the physical As to the election of Mr. Sanders and as to the legality relief, and the mental surcease of our old people. of Mr. Sanders' election, the committee was unanimous in Predicated upon that pressing national necessity, one of my col its opinion that the attempted election was a nullity; that leagues, the Honorable WESLEY E. DISNEY, who represents the First Congressional District of Oklahoma in the National Congress, there was no machinery provided for such election that his has drafted and introduced in the House of Representatives House friends participated in in an endeavor to make him a Mem bill 7019, which provides old-age compensation to citizens of the ber of this Qongress. The Members of this House are United States. This bill is approved and sponsored by the Na familiar with the fact that there must be some legal ma tional Old-Age Pension Association, of which Dr. J. E. Pope, of Tulsa, Okla., is president. The organization maintains offices in chinery in order to hold an election. In this case there was Washington, and under the personal direction of Dr. Pope is con no machinery at all. The voters and citizens had a right to ducting a campaign in behalf of this legislation. I wish to briefly meet, but unfortunately the legislature had ·not provided discms the major provision of this program. It provides that every person who has reached the age of 65, who has been a citi any way for their holding an election. There was no elec zen of the United States for a period of 20 consecutive years, and tion machinery provided. It was the opinion of the com who does not have an annual income above $360 shall receive mittee that Mr. Sanders was not legally elected. from the Federal Government for the remainder of his life the sum of $30 per month. If the pensioner has other income, then OLD-AGE PENSIONS the amount of the pension. plus the annual income, shall not exceed a total of- $360 per year. This b.ill also provides that at Mr. McKEOWN. Mr. Speaker, I _ask unanimous consent the death of the pensioner any accumulated estate shall become to include in the RECORD a-radio address of my colleague, Mr. the property of the United States Government. It further pro ROGERS of Oklahoma. vides that no person shall be paid a pension who draws com pensation, salary, or remuneration for labor or work in any The SPEAKER pro tempore. Is there any objection to the position of competitive earning. Agriculture shall not be deemed request of the gentleman from Oklahoma? competitive earning where the total land cultivated does not There was no objection. exceed 5 acres and where none of the products grown on said Mr. McKEOWN. Mr. SpP.aker, under the leave to extend acreage are sold, traded, or bartered. The measure proposes old-age pensions without necessitating my remarks in the RECORD, I include the following: additional taxation hardship on the taxpaying American public. Dr. PoPE. Standing almost within the shadow of the National It provides that one half of 1 percent of all salaries of people Capitol, here in Washington, my mind races far to the South petween the ages of 21 and 45, inclusive, shall be deposited with west--nearly 2,000 mlles--<>ut there under the friendly stars where the Postal Savings Division of the Postal Department. This fund lies the State of Oklahoma, the State we love, the people we love. will be known as the "old-age pension fund", and will go to And to the thousands of Oklahomans listening to my voice at this pay the $30-per-month pension to those deserving this relief. moment I bring a message of joy-for tonight we present another The provisions of the· old-age pension act shall be adminis outstanding character, another Member of the National Congress, tered by a director of pensions, who shall be appointed by the a man chosen by the people, another patriot who cannot be influ President of the United States. The director of pensions shall enced by star-chamber sessions, and who cannot be cowed by the be empowered to set up the necessary machinery and to formu dirty and insinuating threats of the well-fed bureaucrat and hold late the necesf?ary organiza.tion with which to carry out the ers of high-salaried jobs at the expense of the Government while provisions of this measure. old people are going hungry. Ladies and gentlemen of America, I A special board is provided that makes it possible, in the event present to you now that clean and courageous young statesman, our the fund becomes too great for the demand, to scale down the Congressman at large from Oklahoma, the Honorable WILL RoGERS. amount of the percent of the salary tax on the people between the ages of 21 and 45. ADDRESS OF HON. WILL ROGERS OF OKLAHOMA No person shall receive benefits from enactment of this legisla Mr. Ro GERS. Thank you, Dr. Pope. Good evening, my fellow tion who, within 5 years previous to making application for Fed Americans. Today a vital question of national legislation, involv eral compensation, deprived himself directly or indirectly of any ing a great principle of public welfare and social righteousness, has property for the purpose of qualifying for benefits under this act. taken hold and is thrusting the healthy roots of its just cause deep No person shall be allowed to draw a pension who is an inmate into the consciousness of our national life. Every day manifests a of an insane asylum, of a charitable institution, or who is under growing sentiment in the congressional atmosphere of Capitol Hill penal sentence in any jail or prison. favoring this important reform. Congressmen and Senators are Emb6died in this far-reaching humane plan of national old-age freely di$cussing thls vital question. The President and the first pem;ions is a schedule that will provide security for the aged lady, Mrs. Roosevelt, have on previous occasions expressed their at and at the same time will add no hardship to the taxpaying public. titude in terms of approbation. I refer to the question of Federal It is another way to spread the wealth of this Nation. It is an 1934 CONGRESSIONAL RECORD-HOUSE 1513 open road to happiness and contentment ill old age, whereas today There was the question of prima facie ev1dence and the old age iB a nightmare and a dreaded plight to thousands who are question of having a party set aside, where no fraud on the unable to care for themselves. As an example of the extreme anxiety, discomfort, poverty part of the party involved had been proven. stricken circumstance suffered by these lonely and forgotten peo If that had been the sole question, I would have stuck it ple, I wish to indulge your attention to ~xcerpts from a recent out for a long time, but, as the committee looked at it, two letter received from one for whom the Disney measure proposes relief. I quote from the letter: " Here I sit in a lonesome shack questions had to be determined simultaneously; that is, both like a million more poor old. folk. I can get no job. I wonder the ultimate right and the prima facie right. After having where my next food will come from. I am saddened with our gone into the question of the ultimate right, of course, I was plight and I pray to God that Congress will remember. W~ have a good fell ow and went along with the committee, and I am no Federal relief, and many times we have actually gone without food. Will you direct your energy toward some method of relief in that peculiar position today. However, I enjoy the idea for those of us who are hungry and cold and who are unable to that you desire to know all the facts and I should like to ask provide for ourselves?" Fellow Americans, this is a dramatic plea. you to explore into them with me. What will be our response? We revel in the supposition that we are endowed in America Could I not be allowed to assume that the Governor of with a democratic form of government. We are prone to enjoy Louisiana is honest, not having proven him otherwise; that tn our public addresses, forays back to those inspiring and historic he had a decent motive until proven otherwise? I should events that gave birth to the Declaration of Independence and to like to have looked him in the eye and asked him questions that great manifesto, the Constitution. of the United States. We swell with joy when we direct attention to America as a land of so that I might determine in my own mind whether he was opportunity, where the Stars and Stripes proclaim that lib~rty and honest or otherwise in the matter. Must I depend upon the democracy shall never die, where resides that noble heritage of newspapers to determine the question of motive? miQ.dle-class Americans, the greatest human element known to man. Rich with lofty purpose, these represent our most cherished It is the duty of the Governor to call a special election, traditions. But, now, the picture 1s not so promising and yet the but often Governors do not do this. Only by accident did future leavens with more encouragement. Looking back 100 my Governor call the special election that sent me here, and years we see that with the rise of Andrew Jackson, that proud, I would not have complained if he had thought that the fiery, and illustrious statesman, came the rise of the common man; universal suffrage and democracy; the people taking charge of the expense was too great or the necessity not sufficient. I Government. Today, with the inception of 1934, led by Franklin would not have complained about that, but even though the D. Roosevelt, we have the rescue of the forgotten man; progress Constitution states that it is their duty, Governors often do and security; the Government taking charge of the people. Under the esteemed leadership of our beloved President, though he has not hasten to call special elections, and this Governor states served only a few short ~onths, many infamous practices have that he said: been checkmated. But, fellow Americans, the program has just We will call a special election when we have the necessity for begun-a great harvest lies in the offing. another election. Our parishes are so poor that many of them America, for several decades, has steadily traveled the ill-fated should not be forced to pay the expenses of this particular election. highway that leads to the station of irreconcilable contradiction, economic autocracy, and political democracy. We have been Was he honest? Was he sincere? I do not know. rapidly resolving our society to one of the extremely rich and I looked into the primary law of the State of Louisiana the extremely poor, master and servant, owner and serf. We have been approaching an oligarchy where those who owned the and I imagine it was carefully drawn. The attorney general productive wealth of the Nation, dominated the Government. of the State of Louisiana came here and said that the America has been money-mad. Sympathy, understanding, and Governor acted wholly upon his advice. The attorney gen personal interest in our fellow men has been the exception in stead of the rule. During these money-glutted years we tried, eral appeared like an honest man. He assumed the respon each to go his own way alone. The past years of depression have sibility, but the members of the committee did not question served to impress upon our consciousness that these many years him very much, to my great surprise. There was an oppor of greed and money lust have ended with a terrible lesson: That tunity to find out whether there was any intention to wealth evaporates and leaves men stark and with naked hearts. It is for us to see that this terrible rebuke has not been in vain. defraud, but they let him go, and I hoped the members of It is for us to see that we ·rebuild the fallen structure on the the congressional delegation from the State of Louisiana rock of brotherhood. The severe econcmic stress that we have would come before the committee. I suggested that they be experienced has called upon us for all the fortitude, strength, invited. Hot potato! They did not want to get into it. I and sympathy that we could muster. Out of the wreckage now, we ·see that we can only help ow·selves by helping others. Out of do not know that I blame them. [Laughter.] It would have this period of social readjustment we can rise triumphant. But been informative for the gentleman from Massachusetts to we must remember our forgotten people. learn a little more about how they caITy on their elections Supplementing the program initiated by our beloved Roosevelt, we can and must enact Federal legislation providing pensions for in the State of Louisiana. the aged, thus solving with one sweeping stroke myriad social Mr. SANDLIN. Will the gentleman yield? and economic problems. We can and will build a stronger Mr. GIFFORD. I am glad to yield to the gentleman from America; more virile citizenry, and a sounder civilization, when, Louisiana. out of the chaotic past comes the realization that it is not only a. duty but a privilege to be our brother's keeper. Mr. SANDLIN. I may state for myself that I had no hesi tancy about appearing before that committee or any other CONTESTED ELECTION-SANDER AGAINST KEMP committee to let them know how I stood on any question, Mr. GIFFORD. Mr. Speaker, I yield myself 10 minutes. but the committee announced that they wanted to decide As a minority member of this committee I had a great this question purely on legal grounds and that they did deal of difficulty in joining with the committee in this report. not want any politics injected into the matter. It is difficult ·1 am not an attorney, for which I am rather glad, because at this time for anyone from the State of Louisiana, be . he a sometimes I think I can render a more impartial judgment. Representative or a private citizen, to discuss any matter We all know that if you have a case at law and hire a good without discussing the political situation in Louisiana. We lawyer the other side has no trouble in hiring a lawyer who will discuss that, I will say to my friend, at another time and is just as active and who is apparently just as sincere in his in another forum. belief as to the rights involved. There is no trouble in Mr. GIFFORD. I was reminded, day in and day out at getting a two-party lawsuit started at any time. the hearing, that this is a legal question. I must not ques Having myself been chairman of this committee and bei!lg tion whether intention to defraud was there or not, and yet intensely in earnest on the subject of what we do as a prece the papers are full of these things and it would not have dent, I listened very carefully for several days to the testi been a bad idea to find out something about them. mony offered and finally yielded to what was probably the Mr. DIES. Will the gentleman yield for a brief question? better judgment of the attorneys, especially the very able Mr. GIFFORD. I yield. attorney on the minority side. But this matter has been Mr. DIES. Is the gentleman for or against the report? worrying me a good deal, and I am very glad that the House Mr. GIFFORD. I am with the report, but does not the thinks it wise to discuss it at this time and to demand a gentleman want to know how the matter was carried on little information- thereon. I read a good deal about the and would not the gentleman like to have my comments State of Louis:ana and begged the committee to have cer about it? tain people from that State brought before our committee Mr. DIES. Yes. in order that I might cross-question them and pry into Mr. GIFFORD. With my unwillingness, which I ex their minds to see if I could find a proper motive. pressed plainly, I finally conformed to the majority report, 1514 CONGRESSIONAL RECORD-HOUSE JANUARY 29 not thinking it "would come upon the floor; but being of that Mr. GIFFORD. I think so. From what evidence we had spineless minority over here that you hear about, I offer before our committee, Mrs. Kemp was the one that the myself as an exhibit. [Laughter.] people wanted. She was not tainted with fraud." That is Mr. PERKINS. Will the gentleman yield for a question? what worries me; it is unfair to Mrs. Kemp. Mr. GIFFORD. Certainly. Mr. COX. If the action of the committee was equivalent Mr. PERKINS. In other words, the gentleman thought to a legal nomination, and the result was that Mrs. Kemp's the judgment of the committee was better than his own name was put on the ticket at the special election and it judgment? was not tainted with fraud, how does the gentleman support Mr. GIFFORD. Absolutely. It was like being on a jury a resolution saying that there was no election? with a lack of evidence, and I kept saying that I did not have Mr. GIFFORD. Oh, there was other evidence. There was enough evidence and that I wished to have more. It looked evidence of the conditions there. There was the investiga bad enough, but in the absence of people who were respon tion by another body; but I do feel badly that this House sible I could not help it. on the first day did not seat Mrs. Kemp. It should have Now, here is section 31, carefully drawn by the lawYers of done so on the prima facie case. the State of Louisiana, distinctly conveying an idea. Mr. BLANCHARD. Will the gentleman yield? I would like to read this because it is very important: Mr. GIFFORD. I yield. Or in any other event wherein the party shall have no nominee Mr. BLANCHARD. House Resolution 202 provides that selected, under the provisions of this act, the committee calling the question of prima facie as well as the final right of Mrs. the primary- Kemp and Mr. Sanders shall be referred to the committee. What this means is the committee having power to call May I ask if any determination of the prima facie right of the primary. It does not mean the committee that had either individual had been determined by this committee? called the primary, at all. Some committee had to have Mr. GIFFORD. Read the report and the gentleman will the power and if the Governor saw fit to call an election see. We had to decide both questions simultaneously. If within 5 days, when they could not call a primary, it has we had taken up that question, never would I have given in to be assumed that somebody in the State of Louisiana an inch to her prima facie right to a seat, but I had to go could have a party candidate. This is surely the intent of through several days of hearing, and with all the evidence the law of the State of Louisiana. before us it appeared that there was no proper election held. Mr. COX. Will the gentleman yield? Then I cheerfully acquiesced in the 'decision. I am glad that · Mr. GIFFORD. Yes. some of this is disclosed. It is very interesting. It is inter Mr. COX. In the opinion of the gentleman was that esting to me. I should have liked to have the delegation say election a legal election? what they thought. I should like to have had the members Mr. GIFFORD. Well, Mr. Speaker, under the reading of that committee who filled that vacancy before us, and of this law I ~hould have to say, probably not. [Laughter.] above all I should like to have had the Governor there to Mr. COX. Then what circumstances surrounding the hear what he had to say about it. holding of the election does the gentleman off er as the Mr. KERR. Mr. Speaker, I yield 10 minutes to the gen reason for its illegality? tleman from Louisiana [Mr. DEARl. Mr. GIFFORD. My objection is that when an outside Mr. DEAR. Mr. Speaker and Members of the House, I faction threatened that it would call a mass meeting of the rise to ask the Members of this House to support the reso citizens and hold an election on a certain aate-which they lution which the Committee on Elections has reported by did and it was held within less than 30 days-then the Gov unanimous vote. The matter that now confronts us for ernor said, "All right; if you threaten me with that, I decision involves no personalities nor any of the factional will do my duty and I will call upon my attorney general differences which unfortunately exist in the State of Lou and if he says I can beat you to it, I will call one as early as isiana. It is true that this contest is a result of those December 7." political conditions in Louisiana, but it makes little differ Mind you, after January 1 there are no voters in Louisi ence with this body whether or not either of the contesting ana. Everyone has to be registered again and therefore parties is successful, but otherwise the decision which we they have got to hold the election before January 1. arrive at today is of the greatest importance. This is a Mr. COX. Exactly; and was not that offered as the judicial question involving both facts and law, and the de reason for calling the election at the particular time at cision of this House will be a precedent for its future guid which it was held? ance. Before discussing the law, I shall briefly review the Mr. GIFFORD. Both parties had made requests to call salient facts disclosed by the hearing before the committee. it before that. Hon. Bolivar E. Kemp died on June 19, 1933. Shortly Mr. COX. Was there any evidence offered before your thereafter five candidates appeared seeking the nomination committee to the effect that another elector of the district to fill the unexpired term for the Sixth Congressional Dis wanted to become a candidate for election? trict of Louisiana, which Mr. Kemp had represented. It Mr. GIFFORD. Yes. Mrs. Kemp was a popular candi had always been the custom in Louisiana, as well as else date. She had a number of signatures asking her to run. where, to immediately take steps to fill such a vacancy be It looked as if the committee in :filling the vacancy selected. cause of its importance not only to the citizens of the dis the candidate the people wanted, but they would not bring trict but to the State at large. Early action by the Gov in any evidence to show that there were other candidates ernor to call an election was confidently expected. How that the people wanted or not. ever, in this instance the Governor would not call an elec Mr. COX. The committee in giving Mrs. Kemp the ad tion, though he was requested to do so by the citizens, by vantage did not deny the right to any one else to participate. the press, and by the candidates, including the present con Mr. GIFFORD. They claimed the voters in Louisiana had testants. All wanted an election, except the Governor, who the right to write the name on the ballot. In my State there remained as silent as the tomb, and no information could have been some wonderful victories by writing in names on be had as to what his intentions were. Finally, one of the the ballot. A mayor of Boston, who served a time in this candidates, Mr. Whitman, sought by legal process to force House, was defeated, by stickers placed upon the ballot, by the Governor to call an election, but without avail, as the Mr. Tague. But here in Louisiana they say that a man has court had no authority or jurisdiction in such matters. The got to walk up and be able to write. If he is not able to agitation for an election was great, and by September 1 it write, he may have someone assist him do so, and his assist had developed into a popular clamor. On September 15 ant may tell him how to vote as well. the Associated Press carried the information that it was Mr. COX. In the gentleman's opinion, did the action of the intention of the Governor to call such an election. Yet the committee in nominating Mrs. Kemp as a candidate it was never called. As nothing was being done and, the operate as a nomination from the Democratic Party? continued inactivity of the Governor clearly indicated it was 1934 CONGRESSIONAL RECORD-HOUSE 1515 not his intention to give the people of the district a Con Mr. TARVER. Was any evidence ever developed as to gressman, the people themselves selected a committee to when those tickets were printed; whether before action had interview the Governor, at which time the committee, by the Democratic committee, OT afterwards? headed by former United States Senator Edward J. Gay, Mr. DEAR. There was some evidence, I understand, in a presented a petition signed by more than 10,000 voters of civil suit in Louisiana, stating that the tickets had been the district urging that an election be called. This petition previously printed with the name left blank, and the prin was respectfully presented on November 14 and requested an ter filled in the form and rushed them out. They knew answer from the Governor by November 18 as to what his there would be an injunction to stop this, and in order to intentions were. This was necessary because of the fact circumvent the court and the law they had the tickets al that the time was getting short in which to hold an election ready printed and when the injunction was issued they in order to give the district representation in the Congress said, "We are sorry, but you have enjoined us from doing which would meet on January 3, 1934. something we have ah·eady done." November 18 passed and the Governor made no reply of Mr. BLANCHARD. Will the gentleman yield? any kind. On November 20 the committee met and, acting Mr. DEAR. I yield. under the law, called a mass meeting of citizens to assemble Mr. BLANCHARD. I take it the gentleman will discuss in the city of Baton Rouge on November 28 to take some section 31 and the language which reads as follows: " or action in the matter. On November 24 the Governor gave in any other event wherein the party shall have no nominee out a long interview, in which he stated unequivocably that ~elected under the provisions of this act." he would not call an election, and, in giving reasons for such Mr. DEAR. With pleasure. action, he said, in part: Mr. WHITTINGTON. Will the gentleman yield? I intend to call an election in the Sixth District and to fill Mr. DEAR. Yes; I yield. vacancies in other offices 1n the State when it will be of any Mr. WHITTINGTON. What was the statutory provision benefit to the people or when it may be convenient. Just now as to the time the Governor was required to give for this the newspapers are busy telling us that the President and his special boards are running the country, and we have less than no election? Is there any time requirement for the holding of use for a Congress. Why are they clamoring for another Con an election in Louisiana, and if so, what is it? gressman so hard if that is true? Mr. DEAR. I will answer the gentleman from Mississippi There can be nothing so very urgent for another Member of first and then I will answer the gentleman from Wisconsin~ Congress from Louisiana to serve just a few months, when the present Congress is a majority over 100 Democratic. The regular The general election law provides two things-- congressional election for them all will occur 1n the coming Mr. WHl'r'l'INGTON. I am talking about special elec summer. tions, now. The citizens of the district concluded that after 5 months' Mr. DEAR. It provides for two kinds of general elec deliberation the Governor had come to the solemn and defi tions; one, the fixed general election and the special nite conclusion to which he had given utterance, and they general election. The statute provides that in calling a gen prepared to assemble on the 28th and to proceed to call eral election the Governor must give at least 30 days' notice. an election. However, a surprise came on the 27th. On That was given to you as the law by the learned chairman that day certain members of the Democratic Congressional of the committee. Executive Committee who were political friends of the Gov Mr. WHITTINGTON. I do not so understand, _and that ernor met outside of the congressional d.istrict in the city of is not in the report, that there must be 30 days' notice given New Orle~ns. obviously by a preconceived plan. To the of a special election. members not friendly to the scheme of things a teJegram was Mr. DEAR. It says he shall give notice "according to sent at 11 o'clock on the m,orning of the 27th, stating that law", and the only law is the general election law which the committee would meet that afternoon at 4 o'clock in says not less than 30 days. · New Orleans. Of course, it was not passible for those mem The SPEAKER pro tempore. The time of the gentleman bers to attend, because of the tact that they lived a long from Louisiana [Mr. DEAR] has expired. distance from the city. At that meeting a proclamation of Mr. COX. Will the gentleman yield. the Governor calling a general election for December 5, Mr. KERR. Mr. Speaker, I yield the gentleman 2 addi 7 days hence, was read for the first time. When, where, and tional minutes. how this proclamation was prepared has not yet become Mr. DEAR. I yield to the gentleman from Georgia. known. _ Mr. COX. The gentleman, of course, concedes that there At the committee meeting it was decided that it was is a provision in the law for the executive committee making impossible to call a primary election within the 7 days, and a nominati-0n, is there not, where there has been no primary? contrary to and in violation of the election laws of the Mr. DEAR. No. State, the committee took upon itself a right to place the Mr. COX. Either where there has been no primary, or name of the Democratic nominee upan the ticket to be used where there has been a primary without anyone offering? in the general election which the Governor had called. It Mr. DEAR. Yes; but first there must be called a primary. developed that even the tickets had already been printed, The time must be fixed for filing notice of intention of be and during the following night and day they were distributed, coming a candidate--everybody must be given a chance. If and the public press on the 28th carried the Governor,s after calling the primary and no one qualifies, the committee proclamation. may then place upon the ballot the Democratic nominee, Mr. MONTET. Mr. Speaker, will the gentleman yield? but not otherwise. Mr. DEAR. Yes; with pleasure. Mr. CROSSER. Will the gentleman yield? Mr. MONTET. The gentleman stated that on the night Mr. DEAR. I yield. of the 27th the tickets were distributed in the district. Will Mr. CROSSER. Does it not provide that in any event if the gentleman tell us if the name of Mrs. Kemp was printed there fails to be a nominee, the committee may name a on those tickets as the Democratic nominee? nominee? Mr. DEAR. Oh, yes. That was the whole purpose of the Mr. DEAR. No. The committee must first call the pri meeting. This committee, for the first time in the history mary, and until it does so it is pawerless. of Louisiana, placed on the ticket a Democratic nominee to Mr. CROSSER. Does it provide that as a condition prece be voted upon in the general election without first having dent? called a Democratic primary. This was contrary to the law, Mr. DEAR. Yes, sir. It says it specifically, and a high in violation of the law, and contrary to a custom the people school student could grasp the meaning of that language, of Louisiana have followed throughout its history. That it seems to me. It says " the committee calling the elec ticket with that name upon it was distributed. tion." There first must be a call, and there must be a time Mr. TARVER. Will the gentleman yield? fixed foi: them to qualify. Then, if no one qualifies, the com Mr. DEAR. I yield. mittee can do that, and in no other instance. 1516 CONGRESSIONAL. RECORD-HOUSE JANUARY 29 Mr. BLANCHARD. Will the gentleman yield further? other a special general election to fill a vacancy caused by Mr. DEAR. I yield. death or otherwise between the regular general elections. Mr. BLANCHARD. Does not the language read: For a candidate to participate in either of the two general In any other event wherein the party shall have no noµiinee elections provided by Act 130 of 1916, the candidate must selected under the provisions of this act, the committee calling be nominated in accordance with Act 97 of 1922, known as the primary shall select the nominee for any position named in the the "primary law of the State of Louisiana." Section 1 of call of the ~ommittee, and shall have full authority to certify said name. that act provides that nominations for Members of the House of Representatives in Congress of the United States Mr. DEAR. Yes; that confirms what I said. Now, if I and other officials therein named shall be made by direct have time I want to say a few words in regard to this citi primary election and that a nomination of any person for zens' meeting. said office or offices in any other manner shall be illegal, The SPEAKER pro tempore. The time of the gentleman and the secretary of state is prohibited from placing on the from Louisiana [Mr. DEAR] has again expired. official ballot the name of any person as a candidate for Mr. KERR. I yield the gentleman 2 additional minutes, any political party not nominated in accordance with the Mr. Speaker. provisions of the primary law:· Section 9 of the same act Mr. DEAR. Now, mark you, on November 24, no election provides specifically for the holding of primary elections to would be called, said the Governor, but during the following nominate candidates to participate in. special general elec 3 days the proclamation was drafted, the friendly members tions and that the primary must be held not less than 10 of the executive committee were notified to meet, and the days after the calling of the special general election. tickets were printed, seemingly in secret, for no one had any The action of the Governor of the State of · Louisiana in information as to what was taking place until 11 o'clock on calling a special general election and giving oruy 7 days' the 27th. On the 24th the Governor had decided not to act, notice thereof was in direct violation of Act 130 of 1916, and on the 27th he was acting with lightning speed. Why it which provides that no less than 30 days must elapse be was necessary that it all be kept a secret is a matter known tween the calling and the holding of every general election. only to them. Perhaps they knew that an effort would be The Democratic congressional executive committee in plac made in the courts to prevent the diabolical attempt to carry ing the name of Mrs. Kemp upon the official ballot as the out the illegal acts, and it was undoubtedly for that reason Democratic nominee was in absolute violation of the pri that so much mystery was attached to the meeting, and pre mary law, which provides that no nomination shall be made cautions taken to pril}t and distribute the tickets before the of any party to take part in a general election except by courts could take action. direct primary election and that it cannot be held as a The tickets carried thereon the name of Mrs. Kemp as " snap " election, but that 10 days must elapse between the the Democratic nominee. By this time the citizenship was ordering of a general election and the holding of the thoroughly aroused and injunctions issued. Nevertheless in primary. all but 3 of the 12 parishes comprising the district the I understand that the Governor and other authorities who election was held after a fashion by commissioners who were proceeded as they did in this hurried election with only hurriedly and illegally obtained for that purpose. No com 7 days' notice attempt to justify their acts under section 31 missioners were selected and names published as required of the primary law, which reads as follows: by law. In that election Mrs. Kemp received 4,801 votes. That all vacancies caused by death or resignation or otherwise The citizens assembled on the 28th as intended. They among the nominees selected by any political party, under the selected a committee and set up the machinery for holding provisions of this act, shall be filled by the committee, which has an election, and fixed December 27 as the date on which it jurisdiction• over the calling and ordering of the said primary was to be held. Commissioners were selected and the mat election; and in the event that no person shall have applied to become a candidate for a political ofllce within the time fixed by ter carried on pursuant to provisions of law covering the law, or the call of the committee ordering the primary, or in any holding of elections in Louisiana. That election was open other event wherein the party shall have no nominee selected to anyone who wished to e!lter. Only one candidate, Mr. under the provisions of this act, the committee calling the primary shall select the nominee for any position named in the call of the Sanders, qualified for that election. The election was held committee and shall have full authority to certify said name as and Mr. Sanders received approximately 15,000 votes. the nominee of the said party: Provided, however, That wherever, Those are the facts in the main. The two candidates pre for any reason, any contest filed in court shall not be finally sented their credentials to this House. Under the circum decided in time to print· the name of the nominee of the party upon the ticket at election, then the political party committee stances both were requested to stand aside and not take the shall certify the name of the person who is the contestee in the oath. The entire matter was submitted to the Committee suit filed, and the name of the said contestee shall be printed on Elections, which has reported that neither was legally upon the ticket as the nominee of said political party, and no elected and consequently was not entitled to a seat in the court shall have jurisdiction to enjoin such action. House of Representatives. The above section of the law has been interpreted and There are two principal statutes in the State of Louisiana followed religiously for many years, and at no time has it covering elections. One is Act 130 of 1916, as amended, ever received the interpretation placed upon it by the Gov which provides for the calling of all general elections. The ernor in this instance. At no time was it ever imagined other is Act 97 of 1922, as amended, which provides for the under any circumstances or conditions that any committee holding of primaries to name candidates who participate in could place upon a ballot a nominee to be voted upon in any the general elections. Article 1, section 4, of the Constitu general election until the primary· had first been called and tion of the United States provides that the legislatures of a time fixed for candidates to file their notices of intention. the different States shall provide the times, places, and man This section is a saving clause in the law and has been ner of electing Senators and Representatives. These stat always so interpreted. In the event of death or resignation utes fix the time, place, and manner of such elections in among the nominees after the primary or in the event that compliance with the constitutional provision. Section 3 of no one qualifies to run in the primary, then in that event. Act 130 of 1916 provides that the Governor shall issue his and that only, is the committee authorized or permitted to proclamation giving notice of the general election at least 30 place upon the ballot the name of the nominee. days prior to holding the same, and that the board of super This is clearly the meaning of the section and is the con visors of election shall give 15 days' notice " of every general struction _placed upon it by the people of Louisiana since the election" by proper advertisement. This section shall be day it was written. Under this section the committee call read, of course, in connection with section 6 of the same act ing and ordering the primary has authority to select the which provides in the case of a vacancy in the office of Rep nominee for any position named in the call of the com resentative in Congress between the general elections that it mittee; clearly indicating that there must be first a call shall be the duty of the Governor to call a general election before it is authorized to name such a nominee. This inter to fill the vacancy. The statute deals with general elections pretation is so clear that it is difficult to understand why only. In other words, the statute provides for two general anyone would even argue to the contrary. Surely under this elections, one being a regular general election and the section no justification could be found for the action of the 1934 CONGRESSIONAL .RECORD-HOUSE 1517 committee in placing the name of Mrs. Kemp upon the ticket ing in the city of Baton Rouge on November 28, 1933, was without ever calling the primary. In this instance the pri without legal sanction. That is untrue. Section 3 of the mary law was completely ignored; and if permitted once, it Act 130 of 1916, being the general election law, after pro may be expected that in the future this right of the people viding for the proclamation of the Governor and the notice to select their nominee will again be flaunted, a condition by the board of supervisors of elections, and the time in which must never be sanctioned or permitted. which each shall be given~ further provides as follows: In this case the committee sought to justify its illegal ac But no default by the Governor or parish board of supervisors tion on the ground that there was not time within the 7 days of election to issue said proclamation shall deprive the people of their right to hold an election as fixed by law or vitiate such before the general election in which to call a primary. That election whon held. would not clothe the act with legality; but this situation, of course, was brought about by the inaction of the Governor, This provision was a saving clam:e in the law to give the who had more than 5 months to call the election, and if the people a right to select and send to Congress a Representa time was too short, it was because of the negligence and tive where the Governor refused to issue such writs of elec laches of the Governor. The Governor could not legally tion as provided for in the Constitution of the United States bring about this condition and then take advantage of his and the laws of the State. The citizens availed themselves own laches to try to make valid his subsequent illegal acts. of this provision of the law and met in mass meeting to It is, therefore, very clear that both the nomination and carry out the authority granted therein and set up the election of Mrs. Kemp was in violation of every provision election machinery and held the election. From the report of law in the state of Louisiana which apply to an election of the Committee on Elections of this House it is clearly to fill a vacancy in Congress. It is very clear that the calling indicated that the committee is of the opinion that the of a surprise election in '1 days, the complete ignoring of the people of the Sixth District had the legal right to assemble primary election law, the violation of the provisions of the for the purpose of calling an election under the conditions general election law providing for 30 days' notice and for and circumstances of this case. However, the difficulty ex 15 days' notice by the supervisors of elections, and the fur perienced by the committee was that no machinery was ther violation of the Louisiana statute providing for absentee provided by the laws of Louisiana to carry out this author voting renders the election a farce, a fraud on the rights of ity. Had the law provided such machinery and it had been the people of the Sixth District, and ruthlessly deprived them followed by the citizens in holding the election, the .commit of the right to select their Representative in Congress as the tee would have found, no doubt, that Mr. Sanders was law provides. Therefore the credentials of Mrs. Kemp, based legally elected and would have recommended that he be upon the same, are absolutely illegal, null, and void, and she seated. has no right to a seat in the House of Representatives. I am fully aware of the importance of establishing prece In the discussion of this case before the Elections Com dents in such matters before the House of Representatives mittee and also by some Members of the House, it has been and we all agree that no precedent should be established assumed that in the surprise election of December 5 that where an unauthorized and illegal mass meeting of citizens the voters could have voted for their choice by writing in might have a legal excuse to attack before this House a valid the name of an independent candidate in the space provided and legal election. Nevertheless, I am of the opinion that for on the ticket. This is clearly in error, for under the laws the action of the mass meeting and the resulting election of Louisiana it is practically impossible, as a practical matter, finds sanction within the laws of Louisiana. to be elected as an independent candidate. Act 130 of 1916 They were authorized by the law referred to to hold an was amended by Act 160 of · 1932·. Under this amendment election as fixed by law. What election is fixed by law? if a person desired to vote for a person other than the nomi In speaking of elections under the Louisiana law a general nee, he must in his own handwriting write the name of such election is understood and the very statute in which we person with a pencil having a black lead and stamped with find this authority deals only with general elections. There the official stamp in the white square in the voting place are only two elections, therefore, embraced in that phrase, at the right of the name so written. However, before that "fixed by law", one being the general election which is can be done the candidate must file a statement with the held regularly upon a fixed date, and the other a special clerk of the district court of the parish in which he lives at general election fixed by the same statute -in section 9 least 3 days before the general election, in which statement thereof. Naturally, because the special election by its very he shall give his consent to be voted for, particularly nam nature cannot be fixed as to date, nevertheless is provided ing the office, and shall write his name just as the voter must for in the statute as a general election and fixed by the write it on the ticket. That statement is publishM and a statute. The people, therefore, had the right under this pro copy sent to the board of supervisors of elections, and shall vision to hold only the special election which was fixed by be sent with the election supplies to the voting places where this particular statute, to wit, the special general election. such candidate may be voted for. The law further provides In other words they were not authorized to hold a primary that no ballot shall be counted which is cast for any person or any other election, except this one, and that election they whose name does not appear upon the printed ballot or who proceeded to hold. It was not contemplated that party does not become a candidate as indicated. Under this law, nominees would be voted for in this election. This pro if the name is no_t written with a pencil having a black lead, vision of the law is an exception and in this election anyone it would be a spoiled ballot. Further, if the name was not could run in his own right and not as the nominee of any spelled just as written in the statement made to the clerk party. If that were not true it was a vain and useless of court it would again be a spoiled ballot. This and other grant of authority, for should the Governor, who controls requirements make it an impossibility as a practical matter the election machinery, refuse to call an election, the ma to elect anyone as an independent candidate. chinery would not be put into operation to call a primary. In this case there were several considerations which oper This was the difficulty, however, confronting the commit ated against anyone attempting to run as an independent tee, which is composed of very learned lawyers who have candidate. In the first place, such independent candidates, concluded that although authority was granted for the hold though denouncing this election farce, nevertheless would ing of the election, there was no adequate machinery carry make themselves a party to it by participating in it as ing it into effect. However, on this question many lawyers independents. Even though it were possible under the law differ in opinion, and with all due deference to the findings to successfully offer as independent candidates, yet this con of the committee, and with full knowledge of the importance sideration was sufficient to prevent anyone among the inde in establishing precedents before the House, I am of the pendents to offer as a candidate in that election. opinion that the election of Mr. Sanders was in compliance The next question involves the legal right of Mr. J. Y. with the laws of the State of Louisiana, and that the citi:.. Sanders, Jr., who was elected by the citizens' election to a zens having been authorized by statute to hold an election, seat in the House of Representatives. In considering this that necessarily the right was granted to do all things neces matter, a great many assume that the citizens' mass meet- sary to carry out and exercise the authority so granted. 1518 CONGRESSIONAL RECORD-HOUSE JANUARY 29 They could, therefore, set up the necessary election machin- witnesses. First, this was a legal problem; we could de ery, as was done. termine the whole matter upon the law of Louisiana. Now, · The action of the Governor and the executive congres- that law is a very well considered piece of work. Let me sional committee in this case was unlike anything that has call your attention to the very first paragraph of the heretofore happened in the history of the State since the primary law and see if you have any serious doubt in your hectic days of the carpetbag rule. It is to be hoped that mind after reading it: the Legislature of Louisiana will by proper legislation remove Be it enacted by the Legislature of Louisiana, That all political the difficulties found by the Committee on Elections of the parties shall make all nominations for candidates for the United House so that this situation may not again arise from that States ~enate, Members of the House of Representatives in the St t Congress of the United States • • • by direct primary elec- a e. . . . tions. That any nomination, of any person for any of the . The Constitut10n of the Umted States guarantees to our aforesaid mentioned offices by any other method shall be people-a republican for~ of government and this guaranty_ 1 illegal. . • • • was refened to by a. grea~ Senator-fro~ the State of Massa-· - That would seem to establish a pretty strong position that chusetts a.s a_ sleeping gi3:nt. The- ~ight 0.f the peop.le to . the only possible' way you can ·nominate for the ·office of· ~ave a vo 1_ce m the select10n of their pubhc officials is an Representative in Congress in Louisiana is by a direct mherent nght won by them upon a thousand battlefields primary by untold sacrifices willingly made in order that we might Mr. COX M s k . th ti · ? enjoy that privilege. When that right is trampled upon and · · r. pea er, WI11 e gen e~an yield. . ruthlessly taken from the people as was attempted in this' Mr. PERKINS. I shall be pleased to y~eld after I fimsh case, a natural resentment arises in the soul of every patri- my statement, but I hope th: ~entleman will ~et me ~roceed, otic citizen. When this travesty was attempted on the citi- because, perhaps, I may anticipate the question he IS about zens of the Sixth Congressional District of Louisiana there to ask. was immediately a storm of protest, and it met with T.he only argument I have h~ard that a~tempts to set asi~e sympathy throughout the State. Mass meetings were held or ~nterpret .the a~t as m~anmg. somethm~ other t~an its over the State protesting and denouncing the action of the plai~ ~ords imply is that m section 31, which contains the Governor and the congressional executive committee which provlSlon: sought to destroy the people's rights. The citizens of the That all vacancies caused by death or resignation or otherwise Sixth Congressional District meant to preserve and to exer- among the nominees selected by any political party under the · thi · h t · h~ ~ t t th dy provisions of this act shall be filled by the committee which has cise s in eren _rig "• anu. o pi:eserve i ey were rea - jurisdiction over the ·ca111ng and ordering of said primary election,· to bear arms. Before the courts they were helpless because and in the event . that no person shall become a candidate for the courts themselves were powerless in the matter. These office within the time fixed by law by the call of the c::immittee citizens, patriotic and devoted to the cause of good govern- ~rdering the primary. ment, did not take up arms for they had confidence in the Here is what they say-- justice of the House of Representatives in the Congress of Mr. cox. And does not that answer the gentleman-- the United States. They have rested their case_here with a Mr. PERKINS. Mr. Speaker, I cannot yield. 1 hope the sense of security that here justice will be done and their gentleman from Georgia will permit me to finish because rights as American citizens will be respected and fully pro- both of us have had sufficient experience in court to know tected. The citizens of the Sixth Congressional District and that the first word does not contain a complete answer. sympathetic neighbors of the State look to this body today Here is what they say makes a difference: to disapprove and rebuke the travesty committed upon them Or in any other event wherein the party shall have no nominee on December 5, 1933, by those whose very duty it was under selected under the provisions of this act the committee calling their oaths to carry out faithfully and honestly the laws of the primary shall select the nominee for any position named 1n Louisiana. That faith and confidence in this body has not the call of the committee and shall have full authority to certify been misplaced. This is a Government where the people· said name as the nominee of the party. rule and their rights will ·be respected and preserved. · They say the language-" the committee calling the pri [Here the gavel fell.l mary" should be construed as merely words of designation Mr. GIFFQRD. Mr. Speaker, I yield 10 minutes to the referring to each particular committee, whether it be the gentleman from New Jersey [Mr. PERKINS]. State committee or the congressional committee. Mr. PERKINS. Mr. Speaker, some criticism has been Mark you, Mr. Speaker, it reads: leveled at the committee because it did not make two de The committee calling the primary shall select the nominee for cisions, one deciding the prima facie right, and the second any position _named in the call of the committee. deciding the ultimate right; and I fancy before this discus sion is over further criticism will be leveled against the So, if there be no call of the committee there never could committee. be any position named in the call of the committee. It is, The committee did decide the prjma facie right and it therefore, perfectly clear under the law of Louisiana that did decide the ultimate right. It may be said that there there is only one way by which you can nominate for the was produced before the committee the certificate signed office of Representative in Congress; that is, by direct by the Governor and the secretary of state and that certifi primary. cate, therefore, was prima facie evidence of the right. Now, I shall not go into the local political factional fights No, I do. not think we can come to -that conclusion. . The down there. As far as I am concerned they are both right; House of Representatives, which referred this question to but ! _may say that when there is no legal primary called i.ts committee for determination, had· this certificate before there cannot be a legal election. The general election law it, and it must have meant there was something further to sets up a method of holding an election after a legal primary be gone into by the committee. is called and held. The Governor, of course, has the power Now, there could be no prima facie right unless there to call an election. You might say: "Suppose the Governor were a legal election. A mere certificate would not establish called an election and the primary committee, or the com prima facie right; there would have to be underlying that mittee having authority to call a primary, did not act; certificate a legal election. So when the committee exam would this nulEfy the election? " ined into this question it did so on this proposition: Was The law on this subject, section 6 of the general election there or was there not a legal election held in Louisiana? law of Louisiana, reads as follows: We determined, and I think the membership of the House Be it further enacted- will reach the same conclusion if it examines carefully into And so forth- the law of Louisiana, that there was no leg~l election what In case of a vacancy in said office of Representative in \Jongress ever, either of Mrs. Kemp or of Mr. Sanders. between the general elections it shall be the duty of the Governor One of the Members from my . side of the House. made by proclamation to cause an· election to be held according to law amusing criticism of the failure of the committee to call to fill such vacancy. / 1934 CONGRESSIONAL RECORD-HOUSE 1519 Now the words "according to law" mean in accordance North Carolina [Mr. KERR] for delaying the report or Elec with what? In accordance not only with the general elec tion Committee No. 3 to the House until such time as I had tion law but in aecordance with the primary law. an opportunity to be present. First, I want to convey a What was the fact? The fact was that the Governor had very definite statement to this Congress that I am not in months in which to call this election but delayed until his terested one iota in the factional fight between any parties hand was forced by his adversaries. This is what we then within the Sixth Congressional District of Louisiana. My find taking place so far as the time element is concerned: sole interest in this particular case was simply for the pres On the 27th of November, having waited five or more months, ervation, as I see it, of the House rules and precedents. I the Governor called for an election to take place--when? will not attempt to enter into a discussion or amplify on the In 7 or 8 days. Then this committee ordinarily having the law covering this particular case, not being a lawyer. The power to call the primary election found itself short of time, legal aspects of this case were fully discussed on the floor so it assumed to nominate. It did not attempt to follow of this House a few days ago by the gentleman from Mis the primary law; it assumed unto itself the power to nomi sissippi [Mr. COLLINS]. nate. If they had the right to nominate, do you not see The resolution provided for two distinct propositions: what could happen? The whole general election law and One was that the committee should determine the prima primary election law could be set aside by a little arrange facie right of Mrs. Boliver E. Kemp and Hon. J. Y. Sanders, ment between the Governor and the committee; the Gover Jr., to be sworn and seated as a Member of this Congress; nor could call an election to take place in 2 daiys and the and, second, to determine the final right of these two aspir committee could meet the same day and say they had not ants and contestants to a seat in this body. The committee sufficient time to call a primary election, and therefore they ignored the question of prima facie right of either to be could nominate a candidate. The actual time element was seated as a sitting Member and reported on the final right this: On the 27th of November the Governor called for an only. This committee, consisting of the Honorable JOHN H. election on the 5th of the following month, and on the same KERR, of North Carolina, the Honorable JOHN H. McDUFFIE, day the committee met outside of the district, although I of Alabama, the Honorable BEN CRAVENS, of Arkansas, the do not suppose that made it illegal, but it was outside of the Honorable ALFRED F. BEITER, of New York, and the Hon district so the people in the district could not have knowl orable E. M. OWEN, of Georgia, all Democrats and men edge of it, and the committee might as well have been sit whom I have the honor to call my friends, and the Hon ting up in New York as far as that is concerned. I suppose orable CHARLES L. GIFFORD, of Massachusetts, the Hon they might have had power to go outside their territory. orable RANDOLPH PERKINS, of New Jersey, and the Honorable They did not call a primary election; but they made the JAMES W. WADSWORTH, of New York, the last three named nomination and on the same day 78,000 ballots were printed. being Republican members of the committee, all of whom I Once I was unfortunate enough to be in the printing busi have explicit confidence in, has unanimously reported to this ness. I have printed millions of ballots, and I have never House that it is their decision that there was no valid elec been able to get them out the same day that the call was tion for Representative in the House of Representatives of made. the Seventy-third Congress from the Sixth Congressional So far as my participation in the determination and judg District of Louisiana, and that neither Mrs. Kemp nor Mr. ment of this committee is concerned, I am determining it Sanders, Jr., is entitled to a seat therein. Knowing the entirely on the law of Louisiana and not upon other ques- · temper of the House in connection with this matter, I shall' tions of fact in the case. There was a very hot contest vote to uphold the action of the committee [applause], down there in Louisiana and the Governor's hand was prob realizing full well that the Sixth Congressional District will ably forced, but it is not for me to determine the right or be without representation in this Congress for at least the the wrong of the various contentions. I can determine what balance of this session, because under any circumstances an the law of Louisiana says. We know that for 5 months the election before the middle of April is impossible. Further, Governor did not call an election and refused to call one, since the Sixth Congressional District borders on the First although he had been petitioned by thirty or forty thousand Congressional District of Louisiana, which I have the honor persons to do so. He did not do so. Then he fin¢; if he to represent, I would not be amiss in saying that some of does not act the other fell ow will, and, of course, when we the burdens of that district have been borne by me and my find we are forced to do something we try to get there first. staff, and I will cheerfully continue to serve those who call This is what the Governor did, and I do not blame him. I upon me, just as I have done in the past. [Applause.] suppose that was good politics from his standpoint. He Mr. GIFFORD. Mr. Speaker, I yield the balance of my knew the primary law; at least his attorney general knew time to the gentleman from Georgia [Mr. Cox]. the primary law. The Governor knew that the primary law Mr. COX. Mr. Speaker, I have no particular interest in could not be observed within the 7 days and we have a the pending case. There is, however, something in me that right to use our own judgment and say that probably it makes me sympathize with the under dog and I find myself was his intention not to have a primary. I do not know at this moment extending a helping hand to the widow who that it makes any particular difference so far as the action is not being dealt with generously at least. The committee of the Governor was concerned, or what was in the Gov report in this case has penalized her for alleged derelictions ernor's mind. The only question is, What is written on the on the part of the Governor of Louisiana. There is nothing statute books of Louisiana? We know he did not intend to disclosed in the discussion thus f~r that convinces me that let these other chaps get into the primary, so he called an the holding of a primary election is a condition precedent to election quick, and, as I said a moment ago, the Governor the holding of a general election in the State of Louisiana. could call for an election and this district congressional You may figure it as you please, but there is the concession committee had a right to make the nomination, but there made on the part of those who are recommending that the was not time enough for them to make a nomination and widow be turned out that there is provision in the law for for an election. action on the part of district executive committees similar The question might be asked, Why did not these outsiders to what was done in this case. make a contest in connection with that primary? If there You know and I know that primaries are party procedures is going to be in Louisiana anything like an honest election, and that the holding of a legal election is not dependent it is within the province of this House to see that the Mem upon party action, through primaries or otherwise. Here bers or the persons sent here have been elected according to we find that the Governor of the State, for reason satisfac the laws of Louisiana and not in accordance with some tory to himself and by which Mrs. Kemp should not be bound, snap judgment arranged contrary to those laws. delayed for months the calling of an election, and when the Mr. GIFFORD. Mr. Speaker, I yield 10 minutes to the proclamation was issued, conditions in the State were such gentleman from Louisiana [Mr. FERNANDEZ]. that the election could not be postponed a day longer than Mr. FERNANDEZ. Mr. Speaker, I wish to extend my the day on which it was held, and those here who are con thanks and profound appreciation to the gentleman from ducting this drive against the widow are insisting that 1520 CONGRESSIONAL RECORD-HOUSE JANUARY 29 .because there had not been a primary election she should on." The Negro boy said, "Mr. Preacher, you may know ·not be given a seat in this House on the basis of the certifi .all about the Bible, but you don't know a damn thing about cate which she holds from the Governor. At the same time an alligator." [Laughter.] they concede, as they are obliged to concede, because any My friend from Georgia may understand the laws of the other contention would be in contradiction of reason and great State of Georgia, but from his talk here we are con common sense, that if there is no provision in the law for vinced that he is completely ignorant of the laws of the the committee, as was done in this instance, of its own voli State of Louisiana. [Laughter and applause.] tion giving a nomination, and if the nomination ·were not I have been a Member of this House 13 years. My col legal, then it was not binding upon a soul, and any other league, Mr. WILSON, has been here a longer time. Mr. elector within the district might; with complete freedom, MONTET and Mr. DEAR have been here a number of years have ·participated in the election as a candidate for the and they are all lawyers and are supporting this resolution . . favor of the people of the district. · If there is any law that a Member of Congress ought to When the confession is made that nothing was done to have some knowledge of, if he does not know any other, it shut out other ambitious citizens of ·the district or to pre is the election law, because they have to study it every 2 vent them from becoming candidates in the election, and years when they run for reelection. We have to be familiar when the further concession is made that there was nothing with the provisions of that law and therefore I say it is illegal in the action of the committee, that there was -no reasonable to assume that if there is any law that a Member fraud practiced on the part of -Mrs. Kemp, and is not claim of Congress is familiar with, it is the election law of his ing the fruits of any fraud, when she became a candidate State. in the election and received a majority of the votes that We appreciate the big heart of the gentleman from were cast, then if it were a legal election, as is conceded, Georgia in sympathizing with the lady who is the contestee, she is entitled to a seat in this House, and the challenge but there are no personalities involved in this question. The now is to the understanding and to the sense of fair play Members of the House are not concerned with the political of the Members of this House in this contest as between the issues in the great State of Louisiana, but when acts are widow and one who comes here as the nominee of a rump committed by any faction in the State of Louisiana that election as to which shall be seated. touch or involve the integrity of this House, then you do Mr. MONTET. Will the gentleman yield? have the right to investigate conditions in that State. Mr. COX. I yield. I tell you on my own responsibility, as a Member of this Mr. MONTET. The gentleman makes the statement, as House and as one who practiced law for years in the State I gather it, it is conceded that the district committee had of Louisiana and was a district judge for 10 years, that the authority to make this nomination. I wish to state that report of the members of the distinguished committee that if the gentleman is under that impression, he did not cor investigated this case, all of whom are lawyers except one, rectly gather the statements made by the chairman of the and that one supporting the report of this committee, is committee, the gentleman from Louisiana [Mr. DEAR], and proper. others, all of whom very forcefully state that the committee The report, in my opinion, is absolutely correct. We ·under those circwnstances had no such authority. should send the case back to the State of Louisiana and let Mr. COX. I have read the law, but let us treat this case them have a legal election, and if they send someone else as if no action was taken on the part of any executive com- · here who is not elected according to law send that one back mittee giving a nomination, then the field was open for all again. [Applause.] that wanted to enter, and if Mrs. Kemp being the only one Mr. MONTET. Will the gentleman yield? that entered, then this House should uphold the result of Mr. SANDLIN. I yield. the election. Mr. MONTET. The gentleman stated that there were Mr. KERR. Will the gentleman yield? four lawyers· Members of the House in the Louisiana delega Mr. COX. I yield. tion. Is it not a fact that those four Members are unani Mr. KERR. Then the gentleman thinks there is no use mous in the opinion that the election of Mrs. Kemp was having any machinery or that it is necessary to comply absolutely illegal? with the law at all, if you simply give an opportunity to Mr. SANDLIN. That is true. I do not believe any one of . get to the ballQt box? the four would advocate the position taken on the floor by Mr. COX. Not at all, sir. Here is what I am contending: the gentleman from Georgia. The holding of a primary is not a condition precedent to .Mr .. MARTIN of Colorado. Will the gentleman yield? the holding ·or a special election, and, particularly so, as Mr. SANDLIN. I yield.- this was a special election called to fill an existing vacancy. . . Mr. MARTIN of · Colorado. Was the election legally Mr. KERR. The gentleman is arguing that in the face called? of the fact that the statute law of the State of Louisiana Mr. SANDLIN. It was not; you can wipe out the primary states that there is no nominee unless there is a nomination for sake of the argument and rest this contest on the ille in the primary. gality of the general election. The gentleman from Georgia Mr. COX. That contention is not sound, and every Mem- says they did not have to have a primary. Our law provides . ber of this House must recognize this when it is contended that one shall be held. that the holding of a primary is a condition precedent to Mr. MARTIN of Colorado. The gentleman claims that the the holding of a general election. Primaries are party activ primary and the election were both illegal? ities, and in this case there was the giving of a nomination Mr. SANDLIN. Absolutely. The election that was called by the committee, but disregard that altogether and say for December 5 should have no standing in this House. there was no nomination, still Mrs. Kemp was a candidate Mr.· MARTIN of Colorado. The object of my question is in the election and was elected, and this House ought to this: If the election was legal, I assume the voters would uphold her in this hour of her trial. [Applause.] have the right to go to the polls and write in the candidate's Mr. KERR. Mr. Speaker, I yield the balance of my time name. to the gentleman from Louisiana [Mr. SANDLIN]. Mr. SANDLIN. That is true, but under the circumstances Mr. SANDLIN. Mr. Speaker, I could not help from being Mrs. Kemp had the advantage. There was only 7 days, and reminded, when I heard my friend from Georgia talk, of a a candidate would have to go to each parish and serve notice negro baptizing down in our country. As the preacher was that he was going to run and ask that his name be written in just about to lead the Negro boy out to be baptized, he on the ballot. Then the voters would have to go and write pulled back and the preacher said, "What is the matter?" his name in on the ballot, while Mrs. Kemp_:s name was He said, "Don't you see that alligator there", and the already printed on the ballot. But as far as any prL-nary . preacher said, ".You need not be afraid of an alligator or was concerned, the election law says that there must be so · anything when you are going to be baptized; come right many days, not less than 10, intervene between the callin~ 1934 CONGRESSIONAL RECORD-HOUSE 1521 of the election and the election. The election was- in 7 days. ington in 1914. There was now incentive and direction in all of the States. Under this supporting supervision the Government The primary law was violated and the general election law and the States have carried forward a Nation-wide cooperative was violated. effort that has become the largest constructive enterprise of our That election should have no more force and effect than generation. as if the Governor had written out the certificate without The National Government has invested nearly $2,000,000,000 in road construction-the States a much larger sum. The total going through the form of an election. It is as worthless expenditures for highways, just before the depression came on, as if the certificate had been forged. [Applause.] reached a billion dollars in a 12-month period. The Federal Gov Mr. KERR. Mr. Speaker, I move the previous question. ernment has turned quite completely into highway building what It has collected from the motor vehicle industry-not a much The previous question was ordered. larger sum, as is sometimes stated. The SPEAKER pro tempore ADMIT LACK OF POWER succeeding fiscal years have been as follows: 1931, 27.4 and 36.6; This hope may now be dismissed. Even if the opponents of 1932, 30.2 and 38; 1933 (8 months), 38.9 and 46.9." the present Bennett government in Canada will, if pinned down "Indeed", continued Mr. Stevens, "in November 1933 the per to facts, admit they have little hope of blocking treaty approval centages rose to 47.8 and 55.8, respectively. In other words, out o! if a vote is taken here this year. every $9 worth of products exported from Canada in November, It will not be smooth sailing for the treaty, however. Recently $5 worth went to Empire countries, where the markets are always a Canadian Senator of high standing warned his comrades in open to our goods and where we enjoy preferences not accorded us commenting on the seaway scheme " to beware of Greeks bearing elsewhere." gifts." He promptly requested that his comment be withheld, If Mr. Stevens had written a whole volume, he could not have but it stands in the record. made it more clear why Canada, as represented by the Bennett To understand the course the treaty must follow in Canada a government, wants the seaway. It wants it so that Canadian raw background of Dominion legislative procedure is necessary. Pat materials may be exchanged for British coal and British manu terned closely after the system of England, Canada has a Par factured goods not produced in the Dominion as yet. liament in which the King, the Commons, and the Senate compose NO ELECTION UNTIL 1935 the Government trio. Every dollar of trade thus created reduces the .exchange of HOUSE REAL GOVERNMENT goods across the Canadian-American border. British ships will Representing the King is the Earl of Bessborough, Governor carry the goods, British capital will finance the deals, British and General, who enters in state when Parliament is opened, reads a eai;iadian workmen and farmers will get the wages. But the message from "the Government", at the present time Premier United States will supply the bulk of funds for providing the Bennett, and then retires to his mansion in Ottawa to attend to means for this exchange of goods. Why Americans, noted for his social and other duties. their shrewdness, should be willing to do this, is the thing the The House of Commons is the real government. In the beauti Canadians cannot understand. ful new parliament building, replacing one destroyed by fire some Unless there is a Nation-wide demand for a general election years ago, the lawmakers will gather late this month to resume ~ Canada, none will be held until late in 1935. The Prime Min their sessions. ~ster may call for an election earlier if he chooses, but this seems At the right of the speaker's desk sits the government party, improbable now. ranged in double desks like those of school children. Directly The demand for a new deal is reported to be growing in Can opposite is the opposition, all those units not affiliated with the ada. The Bennett government may be ousted at the next general reigning party. election. The new control may be anti-St. Lawrence. · Midway in the room on the government side sits Premier Ben But so long as Mr. Bennett is Prime Minister, there seems no nett. Directly opposite is his arch foeman, MacKenzie King, doubt that the treaty will be ratified just as soon as America acts. leader of the opposition. . The latter is a master of debate, many It is equally certain Canada will not take the initiative. regard him as certain to be the next Prime Minister. But Mr. "We have been fooled too often'', said one spokesman of the Bennett still has the power and the votes. Government in Ottawa in commenting on this possibility. "Should we approve the treaty and then have it rejected in the NATIONALISM PLATFORM United States, we would look exceedingly foolish both to our For nearly 4 years the Bennett government has remained in own people and in the eyes of the world." power on a platform of intense nationalism. Canada first, then And no true Briton, whether he lives on this or the other side the British Empire, and finally, when there is no possibility of of the Atlantic, will look foolish in statesmanship if he can trade within the Empire, American goods may be purchased. avoid it. Mr. Bennett is whole-he~d.ly for the St. Lawrence. He THE FEDERAL SECURITIES ACT comes from ~he Pr.airie Provinces, where wheat is the big c1·op. He has promised his constituents he will give them a seaway if Mr. RAYBURN. Mr. Speaker, I ask unanimous consent it is humanly possible. And Mr. Bennett is a man of his word to extend my remarks in the RECORD by printing an article deeply religious, a believer in Canada's future, which he sees ~ profiting tremendously by the opening of the seaway. published in the London Economist, which I think might Mr. Bennett sees jobs for many thousands of men as American interest the House because it is a comparison to some extent millions are spent for improvement of the seaway. For, bear in of a law on ·securities in Great Britain with the one passed mind, that the treaty says all work done within the Dominion here last spring. · shall be performed by Canadians, using Canadian material. The SPEAKER pro tempore. The gentleman from Texas FEAR A JOKER asks :unanimous consent to publish in the RECORD an article This is the part of the treaty the Canadians cannot under stand. They wonder why the United States permitted such a from the London Economist. Is there objection? clause to go into the document, whether there isn't a joker some There was no objection. where in the treaty that will be revealed after all hands have Mr. RAYBURN. Mr. Speaker, under the leave to extend signed. Today the Bennett government has ·a clear majority of 25 to 30 my remarks in the RECORD, I include the following article votes over all the opposition parties in Parliament. There seems published in the London Economist relative to the Federal absolutely no doubt the Prem.1er can deliver these votes on the Securities Act~ ?"eaty even if the opposition should unite ·against him. and this is by no means certain. , (~n December 23 we _Published an article on the Responsibilities The Canad1an Senate is pretty much a rubber stamp. Members of Directors under English Law. The following article, contributed are appointed for life. Few resign. Appointment is a coveted by a legal expert, discusses the content and the effects of the honor, usually available only in later li!e. much-debated Federal Securities Act in the United States. These Vacancies are caused almost entirely by death. In the 4 years articles will enable the reader to compare the situation in the it has been in power the Bennett government has appointed two countries in a matter of very great public importance.) enough senators to obtain a clear majority of 6 to 8 votes in A tightly drawn statute for the regulation of modern finance 1s the upper house. Once the treaty goes through the lower house inevitably a complicated organism and a. brief summary is hardly with a majority it wJll probably be debated in the Senate, but calculated to achieve accuracy. Elucidation is rendered still more students of Canadian Government cannot conceive of its defeat difficult when the meaning and effect of such legislation are en there. meshed in passionate political controversy. Such are the diffi ONLY ONE REJECTION culties confronting any consideration of one of the legislative fruits of the new deal-the Securities Act of 1933. Yet with In the entire lal>t session o! Parliament. according to senior an ocean separating us from the alarms and excursions attend clerks in the legislature, the Senate rejected but one bill adopted ing this act, its essentials ought not to elude objective analysis. by the lower house, that being due to a technicality. The American measure was avowedly based on the British Com The Governor General wlll sign the treaty as a matter of course panies Acts. But effective utilization of foreign legislative models once the Parliament approves, so there is no hope of a blockade means adaptation, not transplantation. The American draftsmen from tha.t standpoint. had to apply the investors' safeguards under English law in the Canada sees in the seaway, at least the Bennett government sees light of American methods of distribution of securities, which, as in it, an opportunity to build foreign trade. The Honorable H. H is well known, are very different from those prevailing in this Stevens, minister of trade and commerce in the Bennett cabinet· points out that with no artificial stimulants, such as those which co~n~ry. The English marketing of securities is not (pace Hatry), have been applied in the United States, Canada is coming back as it lS in the United States, a high-pressure machinery, operating along recovery road at a rapid rate. through a vast network of intermediaries to force securities upon cooks. waiters, and housewives. Also, regard must be had to the He shows that for the first 8 months of 1933 exports of Canadian important practical difi'erences in legal administration between a products totaled $386,007,000, an increase of 14.6 percent over those federated continent and a relatively simple legal unit like England. s~e of the period of 1932. November 1933 exports totaled $60,- Finally, the Securities A~t can be read understandingly only in 384,590, bemg the largest o! any month since December 1930. the context of the appalling disclosures before the Senate Banking INCREASE CONSISTENT Committee of the practices of American investment houses and In commenting on this fact Mr. Stevens said: bank affiliates during the years of prosperity-practices indulged " Especially remarkable is the consistent increase · In the pro in not by mere "fly-by-nights " but by certain leaders of American portion of our exports of Canadian products that go to the mother finance. country and other Empire countries. Whereas in the fiscal year The first effort of the Federal Government to regulate the capi ended 1930 only 25.2 percent of Canadian products exported were tal market has modest objectives. It is accurately described as consigned to the United Kingdom, and the Empire percentages in "An act to provide full and fair disclosure of the character of 1524 CONGRESSIONAL RECORD-HOUSE JANUARY 29 securities sold tn interstate and foreign commerce and through Senator CouzENs for concrete examples of issues prevented by the mails, and to prevent frauds in the sale thereof • • • ." act, he took refuge in the reply, "I am not in the securities The registration statement, to be filed with the Federal Trade business at all." Commission (sec. 6) is the counterpart of the British require Defenders of the act properly point out that, while neither rails ment for a truthful prospectus as the prerequisite to the solicita nor municipals are within the contested provisions of the a.ct, tion of public subscriptions (sec. 5). The categories of informa there has been likewise a drought in rails and municipal financing. tion (subject to appropriate administrative dispensation) to be What .financing there has been the Government (through R.F.C. furnished by the registration statement are enumerated in sched and P.W.A.), not private capital, has done. This 1s all the more ules A and B respectively. But the act would be merely exhorta significant, for here-deferred maintenance and equipment and tion without the sanctions of adequate recovery by the victims of municipal public works-ts the most promising field for capital disobedience to its provisions. expenditure. Yet the Pennsylvania Railroad, a first-class risk, has The nature of this civil Uabil1ty has been made the battle cry had to borrow $80,000,000 from the Government for its electrifi against the statute. Close attention to the text of the act, in its cation. San Francisco recently attempted to sell $13,000,000 bonds American setting, becomes essential to appreciate the merits of for publ!c improvement. The only private bid it could obtain, the controversy. As originally introduced into the House of Rep at 6-percent interest, was denounced by Secretary Ickes as "un resentatives and as it first passed the Senate, the Securities Act conscionable." The Port of New York Authority has had a sim imposed absolute liability without opportunity for exculpation ilar experience. After vain efforts to enlist private money, the for representations made by those under duty to disclose. Con authority was loaned $40,000,000 to build a new HudSon River gress thereby merely reflected widespread public opinion, arising tunnel. And of many impending maturities one is bound to say from the financial revelations, that those responsible for financial that they affect companies that are candidates not for refunding statements ought to be obliged to act at their peril, since they but for reorganization. were in a position to verify their statements and the innocent Nor is there any reason to believe that there will be a whole investor was not. But this drastic proposal eventually yielded to sale resignation of directors, fearful of undue responsibility. Some the much more moderate measure that finally emerged from the American directors--probably a considerable percentage-should House and received the President's signature. resign. Too many are either "fronts" or lawyers who should be In a word, absolute liability was eliminated, and "the standard advisers and not on the board, or men who are not single of reasonableness " required of a " person occupying a fiduciary minded because of conflicting interests. ~ Directors of responsib111ty relationship" was imposed. Barring only the issuer, who obtai.ned will not shrink from their responsibility. the fruits of an unfair bargain, all those who shared in the A fierce drive is now being made against the act. Big financial process of misleading the investor by "an untrue statement of a law firms and newspapers that enjoyed a large volume of finan material fact" or the omission "to state a material fact" (sec. cial advertising ha'le led a vigorous campaign purporting to urge II (a)) are relieved of liability upon proof that they made reason " minor " or " clarifying amendments." Of course, even the most able investigation into the facts which they helped to disseminate, carefully drawn statute can, after 8 months, be made more letter and that they had "reasonable ground to believe and did believe perfect. But the Securities Act is on the way to becoming a at the time" in the truth and adequacy of the disclosure (sec. symbol of the new deal. Congress is not likely to open up a II (b) (3)). In basing liability on "an untrue statement of a statute only recently passed without a dissenting vote in either material fact" the American legislation takes over the English House in response to what is universally regarded as a Wall Street law, which wisely shuts the door to evasion by laying down the campaign. Nor is the President more likely to yield on one of broad standard of duty to disclose, 1n the language of Lord his chief measures, particularly since he ls well aware that, 1f Davey's committee, "everything which could reasonably infi.uence the act is now opened to amendment, it ts as apt to be stiffened the mind of an investor of average prudence.". And in covering as ·to be weakened. A different move by the President seems material omissions, the American draftsmen translated the lesson more probable. If the capital market is unwilling or unable to do of the Kylsant case into explicit language. needed financing on decent terms, the Government will itself But there are divergences between the American act and its establish a financing agency. If this should happen, it is hardly English pattern. They concern the burden of proof thrown on to be expected that private banking will retire from the field. tbe investor, once a material misrepresentation is established, and the range of persons suable for such misrepresentation. The FINLAND DEBT SETTLEMENT American act, unlike the British, holds liable all who shared in the process of misleading the investor-including accountants and Mr. CULKIN. Mr. Speaker, I ask unanimous consent to any other expert "whose profession gives authority to a state extend my own remarks in the RECORD upon the subject of ment made by him", and "underwriters", the term including a the Fililand Debt Settlement. series of intermediate sellers. And to succeed in his suit, either for recission, i.e., return of the security, or for damages, limited The SPEAKER pro tempore. The gentleman from New to the original offering price (sec. II (g)), the American buyer York asks unanimous consent to extend his own remarks in need not prove his own reliance upon the misrepresentation nor the RECORD upon the question of the Finland debt settle trace the amount of his damage directly resulting from such ment. Is there objection? misrepresentation. The variants in the two acts are due to differ ences, alluded to above, between the English and the American There .was no- objection. security markets. Mr. CULKIN. Mr. Speaker, I have introduced a bill today Contrasted with a sal~ of securities concentrated largely within to reduce the annual interest charge of the Republic of Fin a small area and among professionally informed buyers appears American frenzied finance, operating through many interme land on its war debt to 1.5 percent. This is in recognition of diaries--a Nation-wide enterprise of high-pressure salesmanship. the outstanding and conspicuous example this young nation As a practical matter, the big uninformed mass of small buyers has given to the other 18 debtor countries who have de throughout the country relies not upon any company statements but upon the market opinion created by the big buyers in New faulted on what we are pleased to call the "war debts." York. To require the ordinary investor to prove direct rel!ance This description of these obligations is not correct. Much upon some material misrepresentation would practically deny him of the money loaned to them they used for internal rehabili a remedy. On the other hand, the act provides for contribution, inter, etc., among all who are potentially liable. Furthermore, all tation. A large part of these funds were used by these who are participants in a fiotation can arrange for an equitable various countries in the construction of highways, railroads, distribution of the risk of loss, just as they provide for their and port development. This fact makes the existing re respective shares in the profits. · pudiation all the more shameful. The present interest But it is urged that, however reasonable the act may be and unreasonable the fears it engenders, these fears are, in fact, pre charge, as fixed for Finland by H.R. 5557, Sixty-eighth Con venting new issues and necessary refunding, thereby gravely re gress, is 3 percent. Let me say that Finland funded her debt tarding recovery. To which it 1s answered that the substantial early and agreed to pay the sum of $8,282,000 in 62 years. lack of financing since the act came into force ts due to a combi nation of economic factors wholly unrelated to the Securities Act, She did not wait to drive the hard bargain, such as la belle and which, indeed, that a.ct was in part designed to help correct in France and certain other debtor countries subsequently put time. Among these factors a.re excessive plant equipment render over. ing impossible the vast, predepression industrial fiotations; de REPUDIATORS ACTING IN CONCERT preciation in the credit of many companies, and unwillingness of others to incur, for the present, new heavy fixed charges; monetary For the information of the House, permit me to state that uncertainties; the lack of institutional and private savings for the amount of the entire war indebtedness, principal and investment; and the general banker shyness of the public. Doubt interest, as funded over a period of 62 years is $22,188,486, less honest fears and, even more, the so-called" bankers' strike·'' the conscious withholding of some financing in the hope of forcing ooo. As you well know, France, Austria, Belgium, Czecho relaxation of the Securities Ac~may have Testrained -some :fiota slovakia, Estoriia, Germany, Great Britain, Greece, Hungary, tions. But there is certainly lacking proof that the Securities Act Italy, Latvia, Lithuania, Poland, Ru.mania, Yugoslavia, is re,,ilponsible for the doldrums of the capital market. One of the in counsel for J. P. Morgan & Co. recently wrote that "it is still too Armenia, and Russia are default. Finland alone has early to p1'ove conclusively with figures either that it is or is not steadfastly mairi.tained her national integrity by paying on the fault of the act that no American companies of any size are this indebtedness. It is stated on excellent authority that doing any capital financing." And when Mr. Winthrop Aldrich, Finland is more or less outlawed by the other debtor coun the head of the Chase National Bank, after suggesting to the Senate Banking Committee the other day that the Securities Act tries for the reason that she has refused to join in this may" impede a revival of a normal capital market", was asked by concert of repudiation. 1934 CONGRESSIONAL RECORD-HOUSE 1525 It is pertinent at this time to state that the approximate greatest editorial writers in the country entitled " Financial annual disbursements for armament of the countries in de Fairy Tales." Is there objection? f a ult is $2,000,000,000 per year. One quarter of this dis Mr. HOWARD. Mr. Speaker, I might add that the name bursement would be sutficient to carry on the engagements of this writer is Harvey Newbranch, of the Omaha World made by the defaulting nations on the various debt settle Herald. ments. In the debt settlements we wiped out the sum of The SPEAKER pro tempore. Is there objection? approximately $iO,OOO,OOO,OOO, for which · we gave them a There was no objection. receipt in full. Mr. HOWARD. Mr. Speaker, under the gracious privilege The House is fully aware that certain internationalists of accorded me a few days ago to do so by the consent of the the banking group tried to bring about the cancellation of whole House, I shall be privileged now to talk a little about this indebtedness. It is a fact that certain quasi-publicists. fairy tales. Not for a moment shall I here repeat the speaking both in America and Europe, have encouraged fairy tales of Alice in Wonderland nor the fairy tales of these debtors to repudiate. But in the last analysis this Munchausen, but it will be my desire to draw to the atten repudiation on the part of these nationS is the definite result tion of the American people two financial fairy tales more of a conspiracy entered into by the defaulting nations under extravagant and more wonderful than any fairy tale ever the leadership of the Republic of France. It cannot be related by fond mother to listening child, and yet both repeated too often that under the Treaty of Versailles we these financial fairy tales are absolutely true, their truth took none of the spoils of war. We received not a dollar in established firmly upon the rock of a positive fact. reparations and not a square foot of land. Our defaulting Mr. Speaker, sometimes I am at utter loss to dig down debtors, on the other hand, were tremendously benefited by into my own vocabulary and bring up words and sentences the acquisition of the German colonies or in other material to properly portray a given subject, and so I find myself ways. this morning when I attempt to properly paint a true word GOODS SOLD AND DELIVERED picture of two financial fairy tales greater in volume than . We must not let the world forget that -much of the money John Law ever dreamed of engineering. But in the absence that was loaned to France and the other defaulting nations of words and sentences of my own, and by a gracious per was received by them after the armistice. Some of it was mission of the House to do so, I am privileged to incorporate involved in the sale to France for $400,000,000 of property, in my remarks this morning an editorial article recently food, building material, railroad equipment, and other types written by one of the three premier editorial writers in of property valued at $2,000,000,000. This sum of $400,000,000 the world today-Harvey Newbranch, editor of the Omaha was subsequently merged into the war-debt settlement, and World Herald. The full text of the article to which I refer of course has never been paid. . The collection of this indebt runs as follows: edness except at the point of the bayonet is probably impos · Newspaper readers who stlll are not quite ha.rd-bolled gasped sible; but we of the prese.nt generation should not permit the other day at the fairy. tale of Charles W. Deeds. As a boy of our children and, so far as we can keep the story alive, 23, back in 1926, he made a modest $40 investment in an aircraft stock. And 3 years later those two $20 bills-perhaps they had future generations to forget this repudiation. The fact is not even been gold certificates-had grown to a value of $5,624,640! that our people for many generations will be paying the Was it such miracles President Roosevelt bad in mind when obligations which these debtors ha:ve repudiated. he distinguished between " fair profits " for business and industry and unconscionable profits? NATIONAL INTEGRITY . A few days later another chapter of the story was told, even It is my belief that integrity is just as vital in a nation as more miraculous. . in an individual. The wholesome example given these de . F. B. Rentschler invested in that same aircraft stock. His brother later became president of a great New York bank. The faulting nations by Finland is my reason for offering this president of the bank at that time was Charles E. Mitchell, with amendment to the existing law. whose name Senate investigations have since made the reading THE REPUBLIC OF FINLAND public very familiar. What happened to F. B. Rentschler and his investment? Finland is in the far North. It has an area of about He purchased 1,375 shares for $275. He sold 110 shares for $22. 133-,000 square miles and a population estimated at 3,611,791. Then there was a 79-to-1 stock dividend. Then these shares, that It already has one of the best common-school systems of any had been multiplied 80 times, were exchanged for 219,604 shares of United Aircraft stock, then quoted at 97. The $275 investment n_ation in the world. Ninety-three percent of its population had grown to $21,301,588! At the peak of the market, in 1929, over 15 years of age are literate. Its people are remarkable the shares could have been sold for more than 35 millions. athletes. This race has written a bright chapter in the. his - Rentschler, however, did not do quite that well. He sold 159,604 shares at a profit of $9,414,868.36. He bas left 60,000 shares, worth, tory of the nations' struggle for racial freedom and integrity. at present prices, more than $2,000,000. . They have had a long fight to maintain their nationalism. But that was by_ no means the whole of Rentschler's good for For centuries they were a subject people under the domina tune. He was an officer of the company. In 1929 he received tion of Sweden and Russia. This gallant young republic $429,99~ in salary and bonuses; in 1930, $343,000; in 1931, $244,- 247; in 1932, $199,100; in 1933, before he went otf the salary list was born on December 9, 1917, and a constitutional f.orm of in September, $98,646, and $2,130 in director's fees. government established. Since then this people have bat Where did these enormous salary and bonus checks, these tran tled bravely and successfully against the introduction of scendent stock profits, come from? Out of whose pockets? Cer bolshevism and communistic influence. tainly out of someone's, or a lot of someones'. We know where a part of them came from. They came out of This young and struggling sister republic deserves our en the Treasury of the United States-the repository of taxpayers' couragement. Her refusal to join in the concert of nations funds-for the Government paid the company $40,000,000 in sub who have repudiated their just debtS' to America indicates sidies during that time for the aid and encouragement of the infant aviation industry. How much of that went into the the high integrity of this government. This is a refiection of Rentschler pocket, bow much into other pockets, ineluding young the national character. The passage of this bill will place Deeds', ts simply one of the mysteries of bookkeeping. Finland on the same plane in the matter of interest pay If any of us have shuddered, mildly or severely, because the President of the United States bas shown some interest in the ments as the favorite defaulting nations. I hope the House possibility of llmtting profits and limiting salaries, perhaps the will act favorably on this legislation. Deeds fairy tale and the Rentschler fairy tale, with the subsidy appendix, may bring a measure of reassurance. THE GENISIS OF RADICALISM Furthermore, these fairy tales may throw some light upon the Mr. HOWARD. Mr. Speaker, I ask unanimous consent moot problem of what really caused the depression. to extend my own remarks in the RECORD and to incorporate Here 1s an investment of $40 mounting to more than $5,000,000 therein a remarkable writing by one of 'the world's greatest in 3 years' time; another of $275 reaching a peak of $35,000,000. ~d the Federal Government itself donating $40,000,000 to help editorial writers here in America upon the subject of Finan make such fantastic profits· possible and to help make possible cial Fairy Tales. annual salary and bonus checks reaching as high as $400,000. The SPEAKER pro tempore. · The gentleman from Ne That money wasn't picked otf of bushes. It was not snatched out of thin air. It came out of the work and sweat, the savings braska asks unanimous consent to extend his own remarks and the self-denial, of the people of this country. There ts no in the RECORD and insert therein an article from one of the where else lt could .come !rom.. LXXVIlI-97 1526 CONGRESSIONAL RECORD-HOUSE JANUARY 29 And. of course, this fairy tale has to deal with the affairs of but has been done for the dairy farmer with the resultant low prices. two corporations which became one. That one is by no means I have looked over this plan and enclose a copy of it. among the largest of the many giants of industry and finance that I think in the main the plan is very good and should be brought were doing so exceedingly well by themselves, their officers, their forcefully to the attention of the Secretary of Agriculture. There stockholders, and their relatives and friends. may be some details of it that need modification, but in looking Together they succeeded in milking the country of wealth and it over I do not see at the outset any inherent weaknesses in it. incomes, concentrating them into a relatively few hands. What Yours sincerely, they gained. others lost. Those who lost had their buying power T. H. SANDERSON. sharply reduced, if not cut off entirely. Those who gained got A DAIRY INDUSTRY PROGRAM ADOPTED AND APPROVED BY THE WIS more than they would spend or could possibly spend. Conse CONSIN STATE CHAMBER OF COMMERCE AND THE WISCONSIN COUNCIL quently the effective demand for goods and commodities fell off. OF AGRICULTURE AT A JOINT MEETING HELD AT WAUSAU, WIS., ON With failing demand prices tobogganed, and surpluses began to JANUARY 20, 1934 pile up. The rest of the sad story tells itself. ' Sometimes it may seem that the Government at Washington ls (A) A VOLUNTARY CONTROL PLAN FOR DAIRY PRODUCTS ON A DUTTER-FAT getting pretty radical. It is interfering with business, putting BASIS a curb on sturdy individualism, converting private rights and lib I. Features of a central plan that are essential to meet present erties into public power. But before criticism grows too un situation: • sparing it is well to stop and think of the conditions that came (a) Program must make dairying relatively more profitable to into being which must now be corrected, and of what those con established dairymen who cooperate in the program. ditions did to the daily lives, the security and happiness of the (b) Must bring about. a positive check, if not an actual de whole American people. crease, in the sales from farms. The evils that all but wrecked a great Nation cannot be put ( c) Must discourage, rather than encourage, farmers engaged down with a wooden lath or by a timid, compromising leadership. in other types of farming from becoming dairymen. (d) Must be voluntary on the part of participating farmers, If the foregoing two financial fairy tales are true (and and if possible, permit farmer to use his discretion as to methods there is evidence at hand to establish the exact truth of of accomplishing the required reduction. both of them), then the average American citizen may now Il. Taxes to provide money for benefit payments: (a) Levy a processing tax ' collected on a butter-fat basis on well imagine how near this Republic of ours was to the all milk and milk products sold from the far m. jumping-off place prior to that day in March 1933 when a (b) Levy a compensating tax on dairy substitutes. master hand laid hold upon the chariot of the Republic and ( c) The above processing and compensating taxes to be suffi cient to finance adequate benefit payment. quickly swerved it away from the brink of a precipice of Il!. Benefit payments to be paid to cooperating farmers: revolution yawningly awaiting a governmental victim. (a) Benefit payments must be limited to contracting producers. Mr. Speaker, I feel that I am rendering a real service to who actually effect reduction in sales. my country by being privileged to carry the Newbranch story (b) The method shall be by placing limitations on sales rather than on production, numbers of cows, or number of acres, because of two financial fairy tales to the eyes of the American it permits dairymen to curb sales by culling low producers, dis-. people generally; and if my supply of money would enable posing of diseased cows, less intensive feeding, or any other me to do so, I would not rest until I should have placed a method that they may choose peculiar to their own individual copy of the CONGRESSIONAL RECORD containing this remark farming business. IV. Allocation and control of sales: able Newbranch article in the hands of the civics class in (a) A base allotment would be established from marketing every public and parochial high school in America, there to records of creameries, cheese factories, condensaries, and milk be studied as a textbook superior to any other which today plants covering a period of 5 years. Adjustments of base allot ments to compensate for abnormal production conditions. deals with the criminal conduct of predatory corporate (b) Producer-distributors must furnish satisfactory evidence wealth. The rule is that fairy tales are told to children to of past production to obtain base allotment. soothe. them. I wish the Newbranch story of two financial ( c) All sales of milk or milk products will be measured in terms of pounds .of butter fat. tales could be told to the e~r of every worthy American (d) Control agencies would concern themselves with only those citizen to the end that he or she might be aroused to new who applied for benefits and submit evidence of proper adjust- determination to do his or her part in effort to loosen the ment of sales. - · · grasp of those mighty moneyed interests which for so long (B) SUPPLEMENTARY MEASURES FOR BENEFIT OF DAIRY INDUSTRY have chokingly held the throat of the Republic, dictating I. American dairy farmers must be given preference in the financial policies for the welfare ·of organized wealth, and domestic market if they are to reduce sales. (a) Prevent importations of dairy products, fats, and oils. to the hurt of unorganized humanity. (b) Provide adequate internal taxes on dairy substitutes. DAIRY INDUSTRY PROGRAM OF WISCONSIN n. Emphasize bovine-disease eradication. (a) Offer an incentive to farmers to eradicate bovine tubercu Mr. HENNEY. Mr. Speaker, I ask unanimous consent to losis and Bang's disease through sufficient indemnity to be paid extend my remarks in the RECORD by including a letter upon proof of slaughter. from a friend of mine, Mr. Sanderson, an attorney of Wis (b) Sufficient funds for carrying out such eradication pro grams should be drawn from appropriation to Department of consin,. together with a resolution adopted ~nd approved by Agriculture, similar to procedure now followed in paying in the Wisconsin State Chamber of Commerce and the Wis demnities for tuberculosis eradication. consin Council of Agriculture at a joint meeting held on the III. Special emergency relief. (a) It is desirable that Congress appropriate a special fund of subject of the Dairy Industry· Program of Wisconsin. at least $250,000,000 for an emergency-relief program that w111 The SPEAKER pro tempore. Is there objection? fit into the general plan of production control so as to permit There was no objection. the dairy farmer to dispose of dairy animals a.s a means of reduc Mr. HENNEY. Mr. Speaker, under leave to extend my ing sales, such fund to be raised from- other sources than a processing tax. remarks in the RECORD I include the following: IV. Purchase and distribution of dairy products for relief. PORTAGE, WIB., January 26, 1934. (a) Purchase of dairy products to be distributed to persons on Dr. C. W. HENNEY, relief should be continued and, 11'. possible, used as a market Member of Congress, Washington, D.C. stabilization feature through the making of purchases on the DEAR DR. HENNEY: I received your letter and I thank you for open market rather than on bids. the prompt attention you have given niy inquiries. I note that (b) All dairy products should be included in the purchasing the Wisconsin' Chamber of Commerce and ·the Wisconsin Council program whenever advisable. of Agriculture at a recent joint meeting adopted a plan for the V. Develop a merchandising plan for dairy products. control of dairy products which they wish to recommend to the (a) Give consideration to a program of increasing consump Federal Government. tion of dairy products through an educational advertising pro The Wisconsin Council of Agriculture has on it very experienced gram designed to create a lasting health and appetite appeal men in the agriculture industry in the State, including agricul with the consuming public for dairy products. tural leaders in the University of Wisconsin. I presume that this (b) Develop uniform and adequate Federal standards of butter plan was unanimously endorsed at a joint meeting of the Wis fat content of dairy products with a view to improving quality consin Chamber of Commerce and the Council of Agriculture, and and increasing consumption. I presume you already have notice of what happened. (c) Conduct research for finding new and more extensive uses As you know butter is now selling at less than 20 cents a pound of dairy products. when, as a matter of fact, before t~e war along about 1908 -to (The Wisconsin State Chamber of Commerce has affiliated with 1912 it sold in the wintertime at a price of 30 to 35 cents a it about 60 of the largest and most influential chambers of com pound. The present price, of course, is confiscatory to American merce and trade associations. The Wisconsin Council of Agri agriculture. culture is composed of the oldest, broadly recognized, and most The cotton farmer of the South has obtained very large bene experienced of the important farm organizations of Wisconsin. fits from the agriculture relief program and a fairly good program Other important farm organizations were independently repre has been enacted for wheat and corn. very little comparatively sented. By agreement the Wisconsin State Chamber of Com- 1934 CONGRESSIONAL RECORD-HOUSE 1527 merce appointed a committee consisting of Messrs. K. S. I would support with all my power the best farm aid laws, Reynolds, H. S. Wells, and W. H. Gharrity. The Wisconsin Coun including debentures if that should be necessary. cil of Agriculture appointed a committee consisting of Messrs. The laws and ideals I championed as State senator are the best Herman Ihde, Charles Dineen, and C. G. Huppert. These two possible guarantee of the kind of laws I will stand for as Con committees met jointly as a committee on planning in connection gressman. with the fifth annual meeting of the Wisconsin State Chamber SENATOR KELLER'S RECORD OF SERVICE IN THE STATE SENATE OF of Commerce, held at Wausau on Jan. 20, 1934. After hearing ILLINOIS, 1913 TO 1917 a great number of representatives of both business and agricul ture and perusing a great many written plans for the relief of Chairman of committee on roads, bridges, and highways, which the dairy industry, the committee made the above report, which wrote the hard roads law for Illinois. was unanimously adopted by the joint gathering of business Originated and wrote the semimonthly pay law. Worked incessantly for the 8-hour law. ~~ _i!.n~ !~mers.) Fought hard for old-age pensions. COMMITTEE ON RIVERS AND HARBORS--LEAVE TO SIT DURING Championed the farmers' cooperative law. SESSIONS OF THE HOUSE Helped put over the power headlight law. Stood for "1 day's rest in 7 " bill. Mr. McDUFFIE. Mr. Speaker, the gentleman from Texas Stood for the miners' bills and safety laws. [Mr. MANSFIELD], Chairman of the Committee on Rivers Directed the voting on and cast the deciding vote for the and Harbors, has requested me to ask unanimous consent woman's suffrage law of Illinois. that that committee may sit during the sessions of the Voted to ratify the income-tax amendment (the sixteenth) to the Federal Constitution. House for the purpose of holding hearings. Voted for the ratification of the seventeenth amendment to the The SPEAKER pro tempore. The Chairman of the Com Federal Constitution, providing for the election of United States mittee· on Rivers and Harbors asks unanimous consent that Senators. that committee be allowed to sit during the sessions of the Was chairman of the elections committee in the forty-ninth general assembly. (The only Democrat chosen chairman of any House for the purpose of holding hearings. Is there objec committee at that session.) tion? Held two senate election contests. Established the precedent Mr. SNELL. Mr. Speaker, reserving the right to object, of counting votes according to the rules laid down by the Su preme Court, preventing further thefts of Senate seats. does the gentleman mean for the entire session of the Secured the appropriation for the beautiful auditorium build House? ing for the Southern Illinois Normal University at Carbondale, Ill. Mr. McDUFFIE. I hope not. I hope it will not take any Stood, and stands, for the establishment of the University of longer than probably 2 or 3 weeks. Southern Illinois, in connection with the Southern Illinois Normal · Mr. SNELL. The majority leader sometimes objects to University at Carbondale. having committees sit during the entire sessions of the UNEMPLOYMENT House. Unemployment is the most important question that has ever Mr. BYRNS. I know that this is a very important and faced the industrial world. No other question approaches it. The busy committee, and personally I shall not object. happiness and prosperity of our whole Nation is at stake. It means as much to the farmer, the business man, and the profes Mr. SNELL. Then I shall not. sional man as it does to the laboring man. The success and happi The SPEAKER pro tempore. Is there objection? ness of all these depend on the solution of this one question. If There was no objection. we solve it rationally and permanently, as we can do, it means 50 years of unbroken pr.asperity for the whole American people. LEAVE TO ADDRESS THE HOUSE On January l, 1930, there were 3,000,000 men in enforced idle Mr. KELLER. Mr. Speaker, I ask unanimous consent ness in the United States. That many more were working part that I may be permitted to address the House for 20 min.utes. time. If we accept 2,000,000 of this number be chargeable to the debacle in the stock market in November and to the seasonal un The SPEAKER pro tempore. Is there objection? employment, this leaves 1,000,000 normally idle at this time of There was no objection. year. It is the case of this mUlion who would have been idle any Mr. KELLER. Four years ago on the evening of this day way, which constitutes the great problem of American economics and which must be settled by political action. in the county courthouse at Marion in Williamson County, The American people are by far the richest people in the world. Ill., I delivered an address on Unemployment, its Cause and We are no longer a debtor nation, borrowing capital to work on. Cure that resulted in sending me to Congress, November We have paid our debts to the rest of the world and have our 1930, and again to reelect me in 1932. It is my object here selves loaned the world many billions besides. We by far excel the rest of the world in industrial development. Mass production today to ask unanimous consent of this body of my col is an American achievement. The wealth of all our people taken leagues to insert that speech in the CONGRESSIONAL RECORD together exceeds the inconceivable sum of $400,000,000,000. Our just as it was printed at that time and to add to that some people have a normal yearly income of nearly a hundred billion comments on the same subject. dollars. This is the age of machinery-the use of power to do the work The SPEAKER pro tempore. Is there objection to the of men. Today one American using labor-saving machinery pro request of the gentleman from Illinois [Mr. KELLER]? duces on an average 30 times as much as his Revolutionary an There was no objection. cestor. Wealth has increased just as ability to produce has in creased. No people have ever made things as we make them. The matter referred to is as follows: Science and invention have touched the storehouses of nature and MY PLATFORM AS A CANDIDATE FOR CONGRESS an age of miracles is here. Wish for whatever we will today and I stand for: it becomes a reality tomorrow. Yet with all our wealth, with all Jobs for every man and woman who want work. our achievement, with all our confidence in our ab111ty to do For the use of this labor in a great program of permanent na great things, we sit by with folded hands and accept periods of tional improvements, including the following: depression as though they were necessary evils, and wait supinely . First. Of all rivers for all purposes to the fullest extent prac for them to pass. We never seem to ask what is the use of ticable. going through several years of poverty, misfortune, bankruptcy, Second. For digging all those canals which our commercial and crime, when we ought to know that the exercise of intelli uses require. gence can cure the condition. · And more important still, we ought Third. For harbor improvements to keep abreast of the needs also to know that the exercise of unselfish forethought can en of our expanding commerce. tirely forestall these periods of depression. We can do both these Fourth. For a series of national buildings adequate to all our very things---cure this depression and prevent the return of de needs--including "hospitals for the best care possible for our pressions. That is the great task we have set for ourselves. suffering soldiery. We must understand that when a condition so general as the · Fifth. For the building of a great system ·of purely national present hard times exists that there is one general cause for interstate trunkline motor roads connecting up all parts of our it which overshadows all others, and which alone ought to be con Union with our State highways. sidered and removed first. The direct cause of the present wide Sixth. For restoring the income tax rates sufficiently to pay for spread business depression is unemployment. There is one simple all the above permanent national improvements. remedy-jobs for all our idle workers. I stand for carrying out in letter and in spirit the agreements • When labor-saving machinery first came into use, the basic we made with our soldiers-to put and keep those injured in as cause of our present unemployment was born. America. for the good condition economically as they would be in if they had not past hundred years has been growing by leaps and bounds into been injured. this wonderful age of machinery. The physical power of man was I stand for the iUpport of the entire Constitution. no longer sufficient to do what he wanted done. Small waterfalls I stand for laws compelling the granting of service pensions answered his requirements first. Then the steam boiler and steam by all companies engaged in interstate commerce which have not engine came and named this "The Age of Steam." A quarter of already adopted this plan. a million men were put to work producing coal to feed the mouths I would prevent by law the discharge of any man, or the denial of these giants. Electricity came to distribute this power. The of labor to any man or woman on account of age, by any com internal-combustion engine came to supplement steam. Great panies engaged in interstate commerce. rivers are picked up and dropped over dams, turning their :floods 1528 CONGRESSIONAL RECORD-HOUSE JANUARY 29 into electric current. And all these tremendous sources of power income taxes ought not to be lowered unless the tax on property are devoted to saving the physical labor of men for transporta values can be lowered proportionately. Unle~ this balance is ap tion, manufacture, agriculture, lighting, and every conceivable proximated we destroy the idea of equalization in taxation, which service. Taken altogether, it is therefore well named, "Labor lies at the foundation of the whole plan of the tax on net profits. saving machinery." It has set a new measure of productivity. There are, therefore, two principal kinds of taxes with which The most important single result has been to so cheapen every we have to deal-property tax and income tax. thing manufactured by quantity production that all those things, Property tax is the tax levied on real estate and personal prop the cost of which originally prevented their purchase, have now erty for the use of the State, counties, townships, municipalities, come into very general use. This makes such conditions of living and schools. Property taxes must be paid whether the property is possible to the average man as were undreamed of a hundred years earning money or not. If it is not paid, the property is sold to ago. Men with steady labor in any American industry live better pay the taxes. Everybody pays property taxes whether he owns than the kings of a hundred and fifty years ago. It is only natural property or not. That is all added into the rents of all kinds. and right that men shall seek to continue that constantly increas Income tax is the tax laid by the United States Government and ing betterment of living conditions, and we are going to do that by some States on the net income of corporations and individuals. very thing. The corporations all pay at the same rate on whatever amount But we ought at the same time to see clearly that if the they make clean and clear of all expenses. Individuals who make increased use of constantly improving labor-saving machinery were an amount clean and clear of all expenses of $4,000 a year or more to result only in throwing men out of employment, with no other pay an income tax to the Government. labor to be had, that starvation would stare these men in the face. Everybody pays income taxes, too, whether directly to the Gov .. Now America ts not -going to let anybody starve who is willing ernment or not, because the corporations and individuals who do to work. Since it is so clearly to the benefit of all that men pay directly to the Government simply put that much extra onto shall continue to be thrown out of work by labor-saving every item of purchase or service. In short, all the people pay machinery, it naturally follows that all who are benefited shall their part of all kinds of taxes, and all the people have a direct share in the responsibility of guaranteeing employment for the interest in all taxes and have a right to say how all taxes shall be men which labor-saving machinery displaces. paid and expended. We ought not to falter a moment in extending constantly the You would think from propaganda for tax reduction that use of machinery for saving labor and for infinitely improving these income taxes are burdensome in the extreme. Let us take a the present living conditions of men. And this must and can look at this, and let us hold in mind that if they make nothing certainly be done in such a way that all men shall participate they pay nothing; that if an individual makes less than $4,000 a in the benefits and advantages which result from labor-saving year he pays nothing. There are 2,440,000 individuals who pay machinery, the men who labor and the men who are thrown taxes on net incomes. The number of these who pay on net in out of work as well as all others. We can do all that if we use comes from the minimum of $4,000 a year to $25,000 a year is the opportunity at hand. 2,347,000 individuals. Now all these together pay $150,000,000 a As long as we had a West to go to the throwing of men out year, or an average of $63.91 a.piece: The remaining 93,000 indi .. of employment by labor-saving machinery was not such a hard victuals, the very rich, pay $940,000,000, so all the 2,440,000 indi ship. Often indeed it put a man into a much better position in viduals together pay a total of $1,090,000,000. The corporations a new country than he had lost at home. But little by little, pay $1,400,000,000. The married man who has a wife but no this new West was settled up. All the land of any value was children, who has a net income of $4,000 a year, pays the Govern taken and all the opportunities embraced, until for the past ment the awful sum of $5.63. Yes; $5.63 and no more. If he has few years there is no longer any West to go to. And during children, he is allowed $300 additional exemption for each one. these last few years where the machine went in, the man went In England, if a man earns less than $650, he pays no income out to part or total enforced idleness. This cannot continl;le. tax. But on everything in excess of this, up to $3,000 a year, he It is an entirely new condition, and we must face it intelligently. pays 10 percent, and above that he pays 20 percent. So the com.. Another result of the use of labor-saving machinery has been parison is easy enough to make-on $4,000--an American pays the building up of fortunes of such magnitude, and incomes of $5.63; an Englishman pays $800. You might hear an Englishman such extent as men could not have believed possible a hundred grumble but you'd never hear him "holler." Americans are as years ago. . gocx:.l sportsmen as the English. If we show the American It is true that labor-saving machinery has created countless income-tax payers that a much heavier income tax is needed for new jobs, several new industries, a whole new era indeed. Never the benefit of all, they will be found very generally coming across theless, as machinery is improved all the time it constantly re willingly and patriotically. . duces the number of men required in all lines of industry, The question of where national income taxes are paid in nowise including these new industries which it has itself created. It is affects the right and duty to expend the money where and as the beyond doubt the ultimate result that every time a labor-saving National Government sees fit. Most of the taxes are paid in New machine goes in men go out. And this constantly operating prin York, Philadelphia, Chica.go, and the other great centers of popu ciple accounts entirely for the normal and constantly increasing lation, becalise those places have become the most convenient army of the unemployed. It is not a temporary condition which centers for carrying on business. But suppose the individuals who can be met and cleared away ..PY any temporary measure however pay national income taxes should prefer to live in Nevada, and the well intended. It is a permanent condition that can only be met great corporations should consider it more advantageous to have by per~anent provisions and on a scale to guarantee against their places of business in Reno, then 90 percent of the income failure. taxes would be paid in Nevada, and Congressmen from all the Nineteen industrial countries of the world have alr~ady accepted great cities would be the first to vociferously declare the truth, responsibility for unemployment. Forty-six million workers have that the national income tax is gathered alike from all sections unemployment insurance under Government control. It amounts of the country, as much from the people of Arizona, Oregon, or in fact mostly to a guarantee against starvation while a man is Arkansas in proportion to the population and service received as out of work. It has been of service only for this purpose. In from the people of New York and Maine. And this is true wher Great Britain and Northern Ireland 11,000,000 workers are under ever national income taxes are paid or by whomsoever paid. It one of these systems of unemployment insurance called the dole. is equally true that every part of America will be benefited by It is a pay to those who are Idle by those who are at work by every dollar put into permanent national improvements, wherever the employers of those who are working and by the general gov made. ernment jointly. . There are more than a million idle men and WAGES women constantly drawing these doles. More than a quarter of a Up to a few years ago men who employed labor thought hon billion dollars a year is paid out for this idleness. estly the cheaper they could get labor done the better off they Those who receive doles do absolutely no work for the money were. But in the last decade some of the wiser ones have learned received. It is a direct tax on industry to support idleness. It that the rights of humanity are actually involved in plain eco is justifiable and necessary to prevent starvation only if no method nomics-that steady employment and high wages are the best pf providing work for these idle men and women can be found. boon the business world ever found. TAXES · As soon as we began paying wages high enough so men could Prior to 1913 the Federal Government depended principally buy, they did buy everything they wanted, and every line of upon tariff and internal-revenue taxes for its income. This sys business began to thrive. As long as men were employed business tem had been found both insufficient and inequitable. In that of all kinds flourished greatly. As soon as employment began to year the sixteenth amendment became a part of the Constitution. wane business of all kinds naturally began going down, and as un It grants Congress the power to tax incomes, whether of indi employment increased we began to have hard times. There are viduals or corporations, and inheritances. It is founded on the always good times when everybody is at work. There are al very just ground that men should pay taxes according to their ways hard times when large numbers are idle. Good times or ability to pay. hard times is a matter of employment or unemployment-nothing This income-tax amendment came in answer to a long-continued more, nothing less. and well-justified ;:i.gitation for equalization of taxation. The To increase the ability of the people to buy 1s the only way we spirit of it cannot be overridden or ignored without again awaken can improve business. The only way we can do that is to provide ing tt.ose sentiments of injustice and convictions of inequality employment. We cannot do that by property tax, because prop which originally brought this amendment into our Constitution. erty tax is all·eady so high, and property values so low, that we Social peace always comes with social justice. It will not remain have reached, if we have not indeed passed, the taxable limit. without it. If we would make wealth permanent and safe against Incomes depend entirely on prosperity, and,. in the long run, wrong-headed radicalism, as it ought to be, wealth itself must will vary as the tide of prosperity rises and falls. When prosperity honestly and willingly bear Its full share of the burdens of gov- is general, taxable incomes will be numerous and the rates of ernment under the spirit of our basic laws. · income high. When prosperity wanes, the taxable incomes will There is a proportional relation between income taxes and prop decrease and the rate of income will be low. Employment is the erty taxes. When that comparable eq'ual1'ty has been established, basis of all prosperity. Unemployment destroys it. 1934 CONGRESSIONAL RECORD-HOUSE 1529 · Every hour wasted tn enforced idleness is irretrievably lost to The hard roads of Illinois are worth vastly more than they have the service of mankind. Enforced idleness causes a greater loss cost the State. The improved roads in all the States are enor than all the destruction of war. mously more valuable than the expense of building them. The · Every dollar not assisting in useful industry is a dead dollar value to the United States of all the improved roads in all the and the waste of unused money is as great a loss as the enforced States is 10 times greater than the money they cost the National idleness of men. Government. The streets are full of idle men. The hoards of hidden places, The Panama Canal is a splendid investment. Every adequate and the banks, are full of idle money. Bring the two together post office is worth more than it costs, and every other Govern and industry springs instantly into life. All that is required to ment building, every harbor improvement, and every other Gov bring permanent happiness and prosperity to the one and perma ernment work which is permanently and well done is a good nent profit to the other is the use of a little vision and the appli investment for the whole people. cation of common sense by giving men employment. We have OUR NEEDS learned in the last 10 years that low wages, part-time employment, and bad working conditions is bad business--that high wages, Let us understand fully that America is the most backward of steady employment, and good working conditions is good business. all civilized nations in river improvements, canals, harbor develop Now we must learn and apply the same rule to our governmental ments, public building, and in national roads. There lie our affairs-that a tightwad national policy ts a bad national policy; tremendous needs. that expenditures in keeping with the national wealth and proper Every civilized nation in the world owns and controls all the national income is good national policy. navigable waters within its boundaries, whether rivers, lakes, or arms of the sea, and has every right for canals, harbors, and REAL ESTATE public buildings and every road right necessary for the broadest _ Real estate, from the beginning has been considered the safest, national nervice. solidest investment possible. Long ago it was established as the Our first necessity is to declare our national responsibility for standard for all other investments. So when real estate every all these and accept it as our duty to improve them all for the where becomes a questionable investment-most questionable, as it benefit of our people. When the Nation does this all those local now is--it ought to convince anyone that something is radically antagonisms which have so often prevented desirable national wrong. Income is the ultimate measure of all values. Incomes improvement will naturally disappear. That plan would entail from farms, and only to a lesser extent, from city property as well, the inauguration of a far-reaching national system of permanent has become so much smaller than it was 10 years ago, that nobody internal improvements providlng: wants real estate any more. The result is that real-esta~e values First. For control of all our national rivers for the purpose of all over America have gone tumbling, in the big cities even, though improving all of them to prevent destruction from overflow, and not yet to the same extent that it has on the farms and in smaller to develop their channels for all commercial uses insofar as cities. Very few farms comparatively are paying any net return practicable. on labor and investment. Many do not pay labor and taxes. The Second. For building those canals and improvements in water consequence is, very few farrns are salable at one fourth their ways which for a long time we have recognized as necessary to former value---while everybody was at work. our best interests nationally as well as the desirable new ones. Beginning neary 20 years ago, as employment became more gen Third. For deepening, equipping, and protecting our harbors eral, wages increased. Buying power extended and all products sufficiently to care adequately for the ever-increasing commerce rose to higher price levels. When employment became universal in which we must of necessity more and more engage to assure the price of farm products reached a new high level with ready our own financial prosperity. sale. All farm products were prcduced at a profit. The price of Fourth. A great series of national public buildings, useful, f.arm land went up. As long as employment was general these beautiful, adequate to our needs for every locality where national conditions continued. But, beginning the latter part of 1921 and use requires them-including the hospitals for the kindly hu early part of 1922, unemployment began here and there and yonder. mane care of our suffering soldiery. It slowly but steadily increased. Farms felt it first. The price of Fifth. For the building of a great system of purely national farm prcducts gradually fell off as unemployment increased . . Land interstate trunk-line highways connecting up all parts of the prices began to sag. These conditions gradually extended to all Union with the State highways. sections of the country. At the end of 7 years permanent en No piecemeal policy along any of these llnes has given or can forced idleness had reached an average of half a million men and give rational results. A national program for all these improve part-time unemployment reached a million more. Land prices had ments extending over a sufficient period of years and with suf collapsed. January 1, 1930, found grain prices at the lowest level ficient annual expenditures to bring them all to full-grown in many years in the very face of Government aid. Unemployment permanent development is the absolute requirement. Our ideas had strangled farming and partially paralyzed all other industry. will grow with the doing of this work. There is 50 years of Nearly every honest bank failure in this series of years was actu labor for all our idle men in this program, and prosperity for ally due to the result of constantly increasing unemployment. It the whole country. so reduced the sale value of property that the banks held as Let us make no mistake. A billion dollars would provide an security as to compel them to accept such losses as to destroy income of $1,000 a year for a million men now idle. And every completely their capital and make failure of many good banks body knows that if you put a million men to work along new inevitable. This was known as frozen assets. lines of endeavor that two more million will be required to The same condition prevails in town and city property to a fill the places not now busy. much greater extent than any of us have yet thought. A certain I! as much consideration had been given to making secure building in one of our fine cities in Egypt pays a gross income in the jobs of those who had them; for providing jobs for those rentals of $14,400. The general taxes on the building are $7,000, who did not have them; and for looking out ahead for jobs for special tax, $400; insurance and upkeep is $4,00Q--L-the net income those who were in danger of needing them-if as much considera is $3,000 a year. Now this same building when everybody was tion had been given these questions as was given to reducing the employed brought twice the rental it brings now. It paid the income taxes of rich individuals and prosperous corporations, same general and special tax, the same insurance, and the same there need not be an idle man in America today. upkeep. So it paid a net return of $17,400 a year instead of $3,000. Following the World War, the chief interest and the constantly Under present depression, that building is worth a little less than repeated slogan of our politicians seemed to be "reduce taxes", one fifth of what it was when everybody was at work. This same " reduce taxes ", a second time; " reduce taxes " a third time, rule applies in varying degrees to every piece of real estate in and "reduce taxes" a fourth time. Every one of these tax reduc America. In short, if we make employment general and perma tions was an income-tax reduction, taking the burden otI of those • nent all over the country, all real estate---farms, city property, and who are most prosperous and best able to pay. While property all-will return to a reasonable basis and remain there as/ long as taxes, taxes mostly on homes, more than doubled, the tax on employment continues. net incomes were cut in two. It was a short-sighted blunder. We have put off and put otI our national improvements a full Senators and Representatives did not ask whose taxes were being hundred years, tm all the unsupplied needs of that great lapse of reduced-what would be the result-whether a better use could time stand staring us in the face, calling to be builded, now when be found for the money-whether the tax on net incomes should we are no longer a debtor Nation. It will take 50 years to catch be reduced while property taxes increased-whether there was up with our national building program if we keep every man at a relation between tax on property and tax on net incomes. work. '- And e·ach time a reduction of the taxes on these net incomes I am not asking to put men to work just to give idle men was made, Congress was not satisfied simply to reduce the income something to do. But I am pointing out to you a long-neglected taxes from that time on but gave back a full year's taxes already series of improvements that everyone must see ought to be done- due and owing to the Government to the prosperous corporations tremendous works that need to be done more than any other work and individuals. Four times this was done, and then last Decem in America-work we are abundantly able to do. And here stand ber, when they did not dare reduce the tax on incomes again the men ready, nay, anxious, to do the work-men who need work because there would not be enough money to run the Govern to do--men who must have work to enable them and their fam ment even under the present national tightwad policy, our con ilies to live. We have stood back as a nation and let the State gressional charity association, commonly known as " Congress ", and cities and counties and townships and villages do the work made a Christmas present of $160,000,000 of your money and my and pay the bills from direct tax on property. We must now money to those same prosperous corporations and individuals. accept our national obligation and set about building these long Congress refused to use that money to give employment to the deferred permanent national improvements. countless thousands of men looking for work, unbelievable as that PUBLIC IMPROVEMENTS may seem. There was absolutely no pretense that this great sum Under normal conditions, every time a street is paved, it raises would benefit the people one penny. It was very frankly admitted the value of the property affected very much more than the pav on the floor of the Senate that it would not. There were two sup ing costs. Every time a street is paved, it is profitable to the posed reasons assigned for giving away this $160,000,000. First, that whole city. the Government did not need the money; and that therefore, pre- 1530 CONGRESSIONAL -RECORD-HOUSE JANUARY 29 sumably, it should be given to the corporations and rich indi Government is a partnership. Every citizen u, a partner with viduals who didn't need it either. Second, this hundred and bis Government, whether rich or poor. He owes his support to sixty millions was given back for psychological effect on business, it to the extent of his fortune, and his life if need be. It in turn it apparently being presumed that if you do not need money, you owes him a fair opportunity in the pursuit of happiness and pro· have a psychology and get money-and if you do need money, tection of his life, liberty, and property. you have no psychology and get no money. (Think this over.) If we now had the money in the Treasury which our generous The Senate completely overlooked the fact that the Govern statesmen have contributed as charity to those who did not need ment needs billions of dollars of permanent national improve it, a total in the five gifts of approximately $2,000,000,000, we ments; that the doing of work is the greatest and most important could put every idle man in America to work and keep him at · business in the world; and that the men and women who do work 2 years without taking another penny. this work should be the first consideration of our lawmakers. What rate of income tax must be restored to provide the money If you want to get the whole effect of this remarkable attempt necessary to build these great permanent national improvements to justify this fifth act of the congressional charity association's can be readily calculated. But it would likely be about the same fawning folly, tum to the Senate's action as reported in the CoN rate which existed after the second income-tax reduction follow GRESSIONAL RECORD for December 13 and 14, 1929, and don't fail to ing the World War. But so long as the income-tax payer has no appreciate the very few Senators on both sides of the Chamber less money at the end of the year than be would have had with who opposed this gift, but who were " steam-rolled " by the over this existing lower tax rate and the accompanying hard times, he whelming vote of both parties in that body. surely would have no room to complain. In fact, the increased I want to say to you, however, that I have not found so much prosperity which universal employment will bring about will re dishonesty among officials. Their failure consists mostly in ac quire but a small part of the increased profits which it will assure cepting the customs of the past as binding on the present, failure to every man engaged in useful industry. to distinguish between essentials and nonessentials, failure to American workingmen don't want doles. They want work, op look out ahead and plan to meet conditions as they arise, failure portunity to serve. But America is not going to let children be to recognize new conditions and the passing of the old ones; stunted, nor starved. And I say to you now that America, acting lack of vision, lack of aggressive courage, but, most of all, failure nationally, is either going to pay out money for work or for idle to think for America as a national unit. ness. We must take our choice between the two whether we want There is not a solitary measure or proposal before Congress to or not. at the present ttme that anybody claims or believes will lead us If America should pay doles, it would be vastly more than Eng out of our present unfortunate condition. They are disputing land pays. It will cost as much to keep men idle as it will to mightily over nonessentials. They have reached a stalemate. keep them at work. They are headed nowhere and have already arrived there politfo AGE LIMIT ally. It ought to be plain that those policies which have led us In closing this address, I must call your attention to a condition into this condition can in no possible way lead us out. A new which our unwise captains of industry have imposed upon us. plan is the necessity. Even our politicians should see that much. It bas become a custom in most industries in recent years to BUSINESS SOUND throw men out of work at some arbitrary age---sometimes at 45, Our rich men rush constantly into print to assure us that very generally at 50. And once a man past 50 is out of a job it American business is sound at bottom. Certainly it is. Anybody is the rule that he can never again find employment. This is at ought to know that. Of course, we have as much and as good real a time when men generally need incomes most for educating estate as we ever had. We have as much coal and iron and copper their families, and for laying by the money necessary to protect and lead and zinc and all other natural resources that have en them and their wives against want in old age. This custom bas abled us to wax rich. We have the man power, the men and grown up with the idea that by getting very young men, you can, women, the desire, and the ability to work mightily; we have by rushing them, get a little more work out of them than you better boustng and better health; better ability to do great things can out of older men. Henry Ford has shown conclusively the than ever before; the average of life is longer; we are better edu economic folly of this idea. I denounce the inhumanity of it. cated; we are the creditor Nation of the whole earth; for the first A man is not going to starve because he is 45 or 50, or 60, or any time tn our history we have attained financial independence; we other ·age. Congress, that ought to be the heart of America, no longer need to ask what we can do; it is now purely a question should at once by proper law prevent this custom in all cor of what we want to do; we have a far greater amount of money porations coming under the rules of interstate commerce. That than any other country has ever bad; a greater amount than we would set the pace. That would shock the drivers of youth into ourselves have ever bad before. All of which ought to make it some understanding of what shame this insanity leads them to. plain to anybody that there is no justifiable reason why we have It would teach them that this is a Government for human beings. such wide-spread and stringent hard times; why enforced idle That laws and customs must be in the interest of humanity. I ness, poverty, and distress should be abroad in the land; why all would crush the thought that great splendid America is going to classes engaged in useful indnstry should fac-e the future with permit anybody to be starved who is wtlling to work, no matter misgiving; why thousands of farm homes and homes in cities have what his age. been sold for taxes in the past few years; why within this 8- or 9- year period we have slumped from the highest state of prosperity Mr. KELLER. We are in the midst of the greatest revo in our history to comparaticely the lowest. They do not seem to lution in the history of civilization. It is a revolution of know that this condition is the result of a cause and that there peace. It seeks a rational solution of our difficulties. It is a very simple remedy for it. There is no necessity to search for some new or untried way to demands justice. It will accept nothing less. It of necessity get the money to do away with unemployment. The income tax goes to the very foundation of human rights. It takes as its furnished abundant and a well-justified source for the necessary basis the first .sentence in the great Declaration of Inde money. The law has been held valid by the courts; the method pendence: of accounting· is well understood and accepted by business men and corporations everywhere; the department of collecting is al We bold these truths to be self-evident, that all men are created ready established; the cost of collecting would be little if any equal, and that they are endowed by their Creator with certain more for a higher rate than for a lower rate; the whole work of unalienable rights, that among these are life, liberty, and the pur Congress necessary to secure the larger amount would consist suit of happiness. That to secure these rights, governments are only in raising the rate. The rate can be raised as quickly as it inStituted among men. was lowered; 30 days would abundantly suffice. The income tax is the solution of the source of the money to put our idle men The whole political system which we had inherited from to work. A minimum of a billion dollars a. year should be added the thousands of years of drudgery and suppression of • to the present income tax, and that amount used exclusively for human rights was based entirely upon man's inability t.o paying for these permanent national improvements. produce by hand more than a meager part of the things he Industry has permitted the growth of unemployment because it bas not understood the effect of it nor seen the necessity of pre desired. It was the age-old era of poverty handed down by venting it. Industry is too intimately connected with the result inexorable custom. The coming of power-driven machine!'Y of unemployment to see or apply the remedy. Industry cannot has in the meantime brought the era of abundance. The solve it. Localities cannot solve it. It is Nation-wide in its ori gin and extent. It can only be solv ______20_ ~ ~~ __:_ ~ _:__ ~J~ ~ie:~~-e-~~=====:::::::: _1_:~-2 _i._·~--o_: ~-~ _o_:~-5 _o_:~- 9 o: :~ _o_::_~ _o_:~-~ _o_:_~i 1 Difference in favor of COST steam ______.76 .45 .30 .21 .15 .10 .07 .04 .01 St. Lawrence______1. 72 1. 14 0. 86 O. 69 O. 57 O. 49 O. 4.3 0. 38 0. 34 Steam______. 93 • 70 . 58 . 50 . 44 . 40 • 38 • 37 . 36 The above shows that St. Lawrence hydroelectric power cannot be delivered in the city of :Rochester, N.Y., as cheaply as it can be produced in that city by steam; although at 100-percent load Diff¥:~g:Favor :~-St. Lawrence------__ ~--:-~------:-1--:---:-~-: 1 =. 02 factor the difference, in favor of steam, is only one one-hundredth of a cent per kilowatt-hour. The above shows that St. Lawrence River hydroelectric power With a load factor of 50 or 60 percent, the excess cost of St. cannot be delivered in Albany, N.Y., as cheaply as steaID.-electrlc Lawrence power is 48 percent and 38 percent, respectively. can be produced in that city, except when the forID.er is being AssuID.ing a doID.estic-use load factor of 30 or 40, it is seen used (delivered) at a 90- to 100-percent load factor. As a 100-per that St. Lawrence power costs 71 percent and 59 percent more, cent load factor is a consuID.ID.ation forever wished but never respectively. secured, a lower factor ID.ust be considered. SYRACUSE CoID.paring the costs at a 50- or 60-percent factor, it is seen that St. Lawrence power costs 38 percent ID.ore than steam generated power and at a 60-percent factor this difference ls 29~ ------·I ------percent. These are fair conunercial service factors. . Asswning a domestic-use load factor of 30 or 40, it is s'een COST that St. Lawrence power costs 63 percent and 48 percent more, St.La~Tence ______1.49 0.99 0.74 0.60 0.50 0.43 0.38 0.33. 0.30 respectively. - · · · Steam______. 88 • 65 • 53 . 46 • 41 • 38 • 36 • 34 • 33 BINGHAMTON Difference in- Fa vor of steam ______.61 .34 .21 .14 .09 .05 .02 ------50 60 70 80 90 100 Favor St. Lawrence __ ------• 01 • 03 ------1---1------COST The above shows that St. Lawrence hydroelectric power can be delivered at Syracuse, N.Y., at a less cost than steaID.-electric St. Lawrence______1. 72 1.14 O. 86 O. 69 O. 57 O. 49 o. 43 O. 38 O. 34 can be generated there provided a load factor of 90 or 100 can . Steam______• 92 • 67 • 55 • 48 • 43 . 39 • 37 . 36 . 35 be secured. Difference in- With a load factor of 50 or 60 percent, the excess cost of St. Favor steam______. 80 .47 • 31 • 21 .14 . 10 • 06 . 021----- Lawrence power is 30 percent or 22 percent, respectively. Favor St. Lawrence __ ------.01 AssuID.ing a domestic-use load factor of 30 or 40, it is seen that St. Lawrence power costs 52 percent or 40 percent more, re spectively. The above shows that St. Lawrence hydroelectric power cannot be delivered in Binghamton, N.Y., as cheaply as steaID.-electric can Mr. BEITER. The joint board of engineers report out be produced in that city except when the forID.er is being used (delivered at a 100-percent load factor. lines a complete development of the power resources of the Comparing the costs at a 50- or 60-percent factor, it is seen that river by the construction of additional power works with an St. Lawrence costs 44 percent and 33 perc.ent, respectively, ID.ore inflated capacity of approximately 5,000,000 horsepower, at than steaID.. These are fair commercial-use factors. · a total cost of from $620,000,000 to $650,000,000. Assuming a domestic-use load factor of 30 or 40, it is seen that St. Lawrence power costs 70 percent and 56 percent more, respec The existing water-power and steam plants in the section tively. of the United States which could be economically reached 1536 CONGRESSIONAL RECORD-HOUSE JANUARY 29 from the St. Lawrence territol'y by the transmission lines Mr. BEITER (reading): are quite adequate to meet the industrial development for Engineers' estimate (as published>1------$543, 429, 000 2 many years to come. Lock duplication ------18, 700, 000 3 Compensating works ------100, 000 The power production contemplated cannot be counted Channeldeepening 4______25, 000, 000 upon to liquidate the canal outlay. The value of hydro 5 Welland Canal deepening ------25, 000, 000 electric power has in the last 10 years heavily depreciated, Power projects in Canadian territory 6 ______262, 000, 000 :M:ontrealIIarbor ______4, 600, 000 owing to the remarkable developments in efficiency of steam 7 power electric plants. So there is not likely to be a market Private capital required to improve harbors a______25, 000, 000 for power in the large cities which have steam plants located Total------903,829,000 at tidewater. In substance,-the Government. would be en Upon whom will the original cost fall and °upon whom will gaging in a most hazardous power speculation. the cost of maintenance and operation fall? In giving con It is an admitted fact that the St. Lawrence can only oper sideration to the probable ultimate cost to each State and ate economically by using its total power production as a having at hand the various and divergent estimates, recourse base load, and such use would put out of business practically should be made to the average oi estimates prepared by dif all the commercial plants in the section of the United States ferent individuals or organizations who have given study to which could be reached from the St. Lawrence now produc this project. Including President Hoover's figures, the aver ing electric energy, excepting at times of peak load; and by age would be $914,8.57,250. If based upon the same per such action would destroy the value, as going concerns, of centage as internal-revenue receipts are based, the cost to practically every electrical utility company in the State of each State would be as follows: New York. Such condition certainly cannot be assumed as true economy in any sense of the word. Percent You may also be interested to lqiow that low water in State or T~ry or total Amount Lake Ontario and the St. Lawrence River has been below the standard low-water datum of the Canadian Government, to AlaskaAlabama.. ______------__ ------______------__ ------_ 0.17 $1, 545, 257. ~'.d such an extent that it will, undoubtedly, require a revision of . 01 91,438. 57 Arizona______---______-----_-- ___ --___ ------.06 548, 914. 3;J all previous estimates of the cost of constructing the pro Arkansas.California ______-- - - ___ _: ______------_ .07 630, '100. 00 4. 90 44, 828, 00.5. 25 posed St. Lawrence Canal. The said low water is lower than Colorado ______- ______-_------_____ ------. 35 320, 200.04 any records during the last 60 years. Connecticut______----______1.31 11, 984, 629. 9!S Delaware ___ ------1.06 9, 697, 486. 85 The extremely low water will require a new determination District of Columbia_ _------_ .54 4, 940, 229. 10 of the amount of firm power obtainable on the river. It is Florida _____ ------.54 4, 940, 229. 15 of great concern to the Canadian Government as it effects .28 2, 561, 600. 30 g:~i~_-_-_-::: ======.24 2, 195, 657. 4U artificial channels in the river below Montreal and may Idaho_IDinois --______------_ .03 274, 457. ll:I 6.85 62, 667, 721. 63 require a large expenditure to assure safe navigation therein. Indiana______------_ • 79 7, 127, 373. 215 The officially published costs of the complete St. Lawrence Iowa ______-----______.41 3, 750, 914. 7:-S Kansas _____ ------.46 4, 208, 343. &> project have been ·greatly understated, to such an extent as 1.69 15, ·461, 087. .53 to be badly misleading. As far as they have gone, the .40 3, 659, 429. 00 Maine~~:;:~~: ___ ---======------.28 2, 561, 600. 30 engineering reports are understandable. Instead pf a total Mary land.. ______---______---_-- -- 1. 51 13, 814, 344. 48 cost of $543,429,000 it is believed that the public should be Massachusetts ______------_____ ------3. 16 38, 909, 489. 10 Michigan ______----_ ---_---- _------3.85 34, 810, 318. 36 apprised of the fact that the total eventual cost will aggre Minnesota __ _------______------__ _ .92 8, 416, 686. 70 gate not less than $903,829,000, as follows: .05 457,428. 63 2. 22 20, 309, 830. 95 Mr. SNELL. Will the gentleman yield? Montanam~~-~~:=== ______======------~ ======______.06 548, 914. 35 Mr. BEITER. I yield. Nebraska __ ------______------______.20 1, 829, 714. 50 Nevada ______.09 823, 371. 53 Mr. SNELL. Where did the gentleman get those state New Hampshire ______------.11 1, 006, 342. 93 ments? What authoritative sources have made such state New .Jersey __ ------ 4. 52 8, 416, 686. 70 New Jl.ferico __------ .02 182, 971. 45 ments as that? New York __------25. 36 232, rm, 798. 60 Mr. BEITER. I have the total amount broken down, and North Carolina ______------14. 84 135, 764, 815. 90 North Dakota ____ ------. 02 182, 971. 45 I will read it to the gentleman. The amount for engi 0 hio _------.: _------o_ - - - _._ ------3. 97 36, 309, 832. 83 0 klahoma _____ ------.65 5, 946, 572. 13 neers' estimates, as published, is $543,429,000. Oregon ______------______.16 1, 463, 771. 60 Lock duplication, $18,700,000. That is found in St. Law Pennsylvania ______------______: _------7. 02 63, 222, 978. 95 rence Waterway Project, Ottawa, 1932, pages 10 and 11. Rhode Island ____ -----______------.43 3, 933, 886. 18 South DakotaCarolina ______------______. ______:. ______.11 1, 006, 342. 9S Mr. SNELL. I think the gentleman misunderstood my .03 2, 744., 571. 75 Tennessee. ______------.58 5, 306, 172. 05 question. I understood the gentleman to say that ~he best Texas ______-----______1.18 10, 795, 315. 55 estimates were a total of nine hundred million and some odd. UVermont_ talL __ -- -______------______------_ .09 823, 371. 53 .06 548, 914. 35 Mr. BEITER. Nine hundred three million eight hundred .47 3, 374, 971. 83 and twenty-nine thousand dollars. - 6.4-2 58, 733, 835. 45 .45 4, 116, 857. 63 Mr. SNELL. Will the gentleman tell me from what source 1. 06 9, 697, 486. 85 that came? · ~irf~~:=::~~:::::::=~~~~~~:~~::::~=:::=:=:~~=::~ .03 274, 457.18 .02 182, 971. 45 Mr. BEITER. I am trying to give the gentleman the iYJli~hfersiaii Mr. SNELL. That might have been, but I am trying to 1 Great Lakes-St. Lawrence Deep Waterway Treaty (publication get the authority back of the statement. no. 347, Department of State, p. 17). Mr. BEITER. It is from the engineers. 2 St. Lawrence Waterway Project, Ottawa, 1932 (pp. 10, 11). a For 32-foot depth, derived from S.Doc. 183 (69th Cong., 2d sess., Mr. SNELL. What engineers? pp. 27, 28) , IInoc. 253 (70th Cong., 1st sess., p. 4). Mr. BEITER. The engineers of the Department. 4 For 32-foot depth, derived from H .Doc. 253 (p. 7). Mr. SNELL. The engineers of the State Department? 6 For 32-foot depth, derived from S.Doc. 183 (p. 28). Mr. BEITER. Yes. - 6 S.Doc. 183 (P- 48, tables II and lli). 1 S.Doc. 183 (p. 52). Mr. SNELL. That is news. • IInoc. 253 (p. 5). t934 CONGRESSIONAL RECORD-HOUSE 1537 a direct subsidy to shipping-not to all shipping but to cer COMMITTEE ON MERCHANT MARU:-E, RADIO, AND FISHERIES tain favored classes of shipping.