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5170 CONGRESSIONAL RECORD- MAY 28 783. By Mr.· COCHRAN: Petition of Mr. May Thy divine guidance attend the Committee on Interstate and Foreign Sam Walker · and 32 other citizens of St. President of the United States of Amer­ Commerce of the House of Representa­ Louis, Mo., protesting against the passage of ica and all Members of Congress, that any prohibition legislation bY the Congress; tives, current session; on the bill

ANNUAL REPORT OF DEPARTMENT OF PUBLIC the national safety, the Military Establish· "Whereas· certain of these bills, particu­ WoRKS OF CITY AND COUNTY OF HONOLULU, ment of the United States and of the sev­ larly the Bailey bill, so-called (S. 34). and the T.H. . eral States, · and their vital interrelation­ . McCarran bill, so-cane·d (S .. 2), in the Senate, A letter from the Chief Engineer of the ships; and and the Randolph bill, so-called (H. R. 4), in Department of Public Works of the City and "Whereas there are in evidence many pro­ the House of Representatives, provide for the County of Honolulu, Honolulu, T. H., trans­ posals and conceptions respecting these prob­ allotment of 25 to 50 percent of Federal ap­ mitting the annual report of the activities lems, which, in their solution, will profound­ propriations for establishment and develop­ of that department for the year 1944 (with ly affect the future of every citizen: Now, ment of a national system of airports as an accompanying paper); to the Committee therefore, be it. direct aid to large municipalities for estab­ on Territories and Insular Affairs. "Resolved by the House of Representatives lishing and developing airports without re­ of the State of New Hampshire (the Senate gard to the interests of the States in which DISPOSITION OF EXECUTIVE PAPERS concurring), That the Congress be and hereby such communities are situated; and A letter from the Archivist of the United is urged, in acting upon this great problem, "Whereas the States would have no contra} States, transmitting, pursuant to law, a list to base its solution on the broad foundation over such sums as might be allotted to mu­ of papers and documents on the files of sev­ of citizen militar-y participation so that, hav­ n icipalities for these purposes from the total eral departments and agencies of the Gov­ ing fought a great war in which all partic­ of Federal appropriations, but would be ernment which are not needed in the con­ ipated, all may likewise have the opportunity forced into competition with their largei duct of business and have no permanent to contribute to the maintenance of peace; municipalities for allotments of suc11 funds value or historical interest, and requesting and be it further to airports under State control; and action looking to their disposition (with ac­ "Resolved, That in its enactments concern­ "Whereas, the proposed direct allocation of companying papers); to a Joint· select Com­ ing the natio~al after-war Military Establish­ large percentages of Federal appropriations mittee on the Disposition of Papers in the ment, the Congress be and it hereby is urged for these purposes to municipalities is a de­ Executive Departments. to preserve the stat'us of the National Guard parture from the established practice of al­ The PRESIDENT pro tempore ap­ as the first line of national defense and of locating all grants in aid through the States, the Officers' Reserve Corps and of the Organ­ successfully followed since 1916 in the distri­ pointed Mr. BARKLEY and Mr. BREWSTER ized Reserves as civil-ian components of the bution of Federal appropriations in aid of members of the committee on the part of peacetime Army, all in accordance with tradi­ highways and for other purposes; and the Senate. tional concepts as written into the law of the "Whereas the governments, PETITIONS AND MEMORIALS land in the National Defense Act of 1916, as the Governors'· conference, and the officers amended, and cognate acts, more particularly of the National Association of State Aviation Petitions, etc., were laid before the by the provisions of the Selective Training Officials have joined in opposing the project­ Senate, or presented, and referred as and Service Act of 1940, as amended; and as ed method of allocation on the ground that indicated: summarized by the Chief of Staff of the Army it is unnecessary, that it would complicate of the United States in War Department Cir­ any sound plan for a national airport system By the Prt:sident pro tempore: cular No. 347, dated 25 August 1944; and espe­ A of the Legislature and would be likely to result in many abuses, cially by those sections which recognize the particularly in the direction of increasing of the State of New Hampshire; to the Com­ National Guard as a prime and integral fea­ mittee on Military Affairs: friction between the Commonwealth and ture of the Military Establishment; and be it such of its municipalities as might be eli­ "Concurrent resolution memorializing the further ' gible for direct aid under any of the proposed Congress of the United States on after-war "Resolved, That should a system of uni­ bills that might be enacted: Therefore be it policies affecting the national military es­ versal military training be incorporated in the tablishment, particularly its civilian com­ "Resolved, That the General Court of Mas,.. after-war Military Establishment, such train­ sachusetts, believing that the proposals speci- . ponents ing ought to be integrated with the civilian fied are unnecessary, unsound, and undesir­ "Whereas unless the United States of Amel'­ components of the Army, the National Guard, able, hereby urges the Congress of the United ica maintain a military establishment ade­ the Officer!)' Reserve Corps, and the Organ­ States to provicte, in any plan that it may quate in size, in tarining and equipment, the ized Reserves; and be it further adopt in aid of the establishment and de­ peace for which the armed forces of the Na­ "Resolved, That in the course of its delib­ velopment of a national airport system, that tion are so bravely fighting will be exposed erations on this problem, the Congress give grants in aid shall be made only to and . to grave danger after the conclusion of hos­ particular heed and attach special weight to through the several States, and that no part tilities; and the knowledge and experience possessed by of such grants shall be made direct to mu­ · "Whereas having before them the fate those citizens who have served or who are nicipalities, no matter how large, in deroga­ which has been visited upon the peoples of serving as members of the armed forces in tion of State interests and authority; and be oppressed lands, the Nation continues to be this war providing a suitable opportunity it further unalterably devoted to its traditional concept whereby the views entertained by such citi­ "Resolved, That the State secretary forth­ of a military establishment founded on, zens relative to postwar military policies may with send copies of these resolutions to the ramified by, and spiritually energized by civil­ be received and so that those to whom the President of the United States, to the presid­ ian participation, both in times of peace and Nation, as to trustees, has delegated the duty ing officers of both branches of Congr~ss, and of war; and of safeguarding its future rights to peace and to all Members of Congress from Massachu­ "Wher~as the recognized and . desired in­ liberty, its cultural heritage, and its hopes setts." strumentalities whereby there may effectively for happiness and progress· and prosperity, A concurrent resolution of the Legislature be secured to the Nation the advantages of may deservedly and logically have an in­ of the State of Oklahoma; to the Committee such civilian participation in the national fluence upon policies which will affect the on Finance: defense and preparation for such defense, are very life of the Nation; and be it further the National Guard, the Officers' Reserve "Resolved, That copies . of this resolution, "S6nate Concurrent Resolution 10 Corps and the Organized Reserves; and certified by the Governor, the president of the "Concurrent resolution memorializing Con­ "Whereas, the National Guard, established senate, and the speaker of the house of rep­ gress to amend the Federal income-tax law by the Congress as the very bulwark of the resentatives, be transmitted to the President · so that it will not discriminate against 40 Nation's defense, has by its heroic achieve­ of the United States, to the President of the States including Oklahoma in favor of the ments demonstrated. that courage, strength, Senate of the United States, to the Speaker of 8 States having community property laws and military skill abundantly abide in the the House of Representatives of the United "Whereas the Federal income-tax laws for \yell-trained and well-equipped citizen sol­ States, and to the Secretary of War;. and be it years have made a discrimination in favor of dier, and has again richly justified in a Sec­ further the 8 community property States and ond World War the high trust wisely reposed "Resolved, That a copy of this resolution, against 40 States including Oklahoma; and in the National Guard by the Congress; and duly certified, be transmitted to the Senators "Where the Secretary of the Treasury of "Whereas it is realized that the contribu­ and Representatives in Congress from New the United States in 1937 pointed out that tion of the Officers' Reserve Corps to the war Hampshire for their information and guid­ the loss of revenue to the Federal Govern­ effort, through the providing of very great ance. ment due to this unjustifiable discrimination numbers of qualified officers needed for the "Passed May 9, 1945. against the residents of 40 States amounts to expanding military forces of the Nation, was "CHARLES M. DALE, millions of dollars; and absolute.lt' indispensable; and "Governo1'." "Whereas said discrimination in favor of "Whereas the acceptable plan for the Mili­ Resolutions of the General Court ·of the the residents of community property States tary Establishment has, from the days of the State of Massachusetts; to the Committee on has become increasiHgly sharp as Federal Nation's first President, contemplated the Commerce: surtax rates have increased, and is now gross­ maintenance in peacetime of a professional ly unfair to Oklahoma and the other 39 States "Resolutions memorializing the Congress of similarly situated; and Army no larger than necessary, amplified in the United States in favor of a Federal­ "Whereas due to this discrimination in the time of war by the services of available well State plan of establishing and developing a Federal income-tax law the State of "Okla­ trained and equipped civilian components; national system of airports. homa may lose many of its residents to the and "Whereas there are now pending in the State of Texas where they may cause one­ "W...hereas the Congress must now malte de­ Congress of the United States certain bills in­ half of their incomes to be reported by their cisions under the Militia and Army clauses tended to establish a national system of air­ wives and thus avoid paying the higher in­ of the Constitution which will greatly affect ~~~ . come taxes "ihey would have to pay on the 5174 CONGRESSIONAL RECORD-SENATE MA.Y 28

same income if they remained in Oklahoma; . mum production of lumber, the creation of·a · ment of- Senate bill 737, • to establish a Sa­ and large number of employments through forest vannah Valley Authority. and favoring the "Whereas it is evident that the Federal programs; as well as the problems· of the re­ development of the Savannah Valley through income tax law should be amended to set tardation of superficial washouts of the soil, the· plans provided in Public Law 534, Sev­ aside this unjust and unreaaonable discrim­ the control of erosion, the mitigation of enty-eighth Congress; to· the Commi'Uee on ination and to provide that Federal income inundations and the reduction of the rate of Commerce. taxes shall be collected on the same basis silting in the dams, all represent such a A resolution adopted by the· executive and in the same amount regardless of public problem that it should be solved at board of the Toilet Goods Association, New whether such income is earned by a resident public expense for the benefit of all of the York City, N. Y., favoring the enactment of of 1 of the 8 community property States or people of ; and legislation vesting' in the Food and Drug Ad­ by a resident of 1 of the 40 States not having "Whereas this legislature will do every­ ministration the sole jurisdiction of both the community property system: Now, there­ thing possible as regards funds and other the labeling and advertising of foods, drugs, fore, be it measures to remedy and improve the above­ and cosmetics:. to the Committee on Com- "Resolved by the Senate of the Twentieth mentioned situation of utilization of the land, . merce. Legislature of the State of Oklahoma (the by authorizing and furnishing in part the A letter from Robert F. Martin, executive House of Representatives concurring there­ funds for an extensive reforestation pro­ - secretary of the Vitrified China Association, in): gram under the direction of the Commis­ of Washington, D. C., asking for an amend­ "SECTION 1. That the Congress of the United sioner of Agriculture and Commerce of Puerto . ment to House bill 3240 to extend the au­ States of America be and it is hereby me­ Rico; Now, therefore, be it thority of the President under section 350 of morialized to amend the Federal income-tax "Resolved by the House of Representatives the Tariff Act of 1930, as amended, so that no law so that it will not discriminate against of Puerto Rico (the · reduction in duty under the Tariff Act of the 40 States of the Union not having the concurring: 1930 l'ates shall be made on importc; compet­ community property system in favor of the "SECTION 1. To request of the Congress of ing directly with articles produced by handf., 8 States having communi-cy property laws, the United States, as it is hereby requested, craft industries in the United States; to the but will provide that Federal income taxes · the favorable consideration of a substantial· Committee on Finance. ' shall be collected on the same basis and in increase in the Federal grants for the rel!.ef of A resolution of the Constitutional Con· the same amount regardless of whether such - Puerto Rico, stipulated in the provisions of ·_ gress ()f Costa Rica, San Jose, Costa Rica, income is earned by a resident of 1 of the sections 4 and 5 of the act of June 7, 1924 extending congratulations of the Allied vic­ 8 community property States or by a resi­ (43 Stat. 653); section 563 ff., paragraph 1.6, tory over Germany; ordered to lie on the dent of 1 of the 40 States not having the United States Code, and act of March 18, 1937 table.' community property system. (50 Stat. 188); section 568-b (paragraph 1,6, By Mr. BANKHEAD: "SEC. 2. That the Members of the Oklahoma United States Code, and under other acts of . A joint resolution of · the Legislature of delegation in Congress be and they are hereby the Congress of the United States which may the State of Alabama; to the Committee on requested to diligently endeavor to have the be applicable, which may be in force, or Commerce: Congress of the United States of America which may be enacted with reference to post­ "Senate Joint Resolution 13 amend the Federal income-tax law as herein war public work programs. requested "SEc. 2. That copies of this resolution be "The Senate of the State of Alabama and "SEc. 3. That the secretary of the senate be sent to the President of the United States of the House of Representatives assembled in and he is hereby directed to forward a copy America,· to the Presiding Officers of both the city of Montgomery adqress the Mem­ of this resolution to each House of the Con­ Houses of Congress, to the Secretary of the bers of Congress and the United States Sen­ gress of the United States of America, and Interior, to the Resident Commissioner for ate in unanimous resolution as follows: to each member of the Oklahoma delegation Puerto Rico to the United States, and to tlie "'Wheteas the canalization of the Tom- in (~ongress. ·• ." . bigbee River with that of the Tennessee River is one of the most important and A_ concurrent resolution adopted by the A resolution adopted by the Lions Club of San Juan, P . R ., favoring a free and demo­ Urgently needed waterway projects in the Leg15lature of Puerto Rico; to the Committee United States and will greatly benefit, eco­ on Tt!rritories and Insular Affairs·: cratic government for Puerto Rico; to the Committee on Territories and Insular Affairs. nomicaUy at least 31 States:· "House Concurrent Resolution 3 A letter in the nature of a petition from " 'Whereas via the Tombigbee.:Tennessee "Concurrent resolution to request of the Con­ Frank Torres, of Ponce, P. R., favoring route the distance to the Gulf Coast will be gress of the United States an increase in the .enactment of House bill 1756, provid­ · 630 miles less from Sheffield, Decatur, Chat­ the Federal grants for the relief of Puerto ing for compensation to the three infant tanooga, Knoxville, and other Tennessee Rico, and for other purposes · destitute children of deceased Demetrio Ca­ River points; "Wnereas there are in Puerto Rico ap- quias, killed by a United States Army jeep; " 'Whereas the distance to the Gulf Coast proximately 560,000 cuerdas of public and to the Committee on Claims. will be 200 miles less from Evansville, Louis­ private lands which, due to the shallow, The petition of the Coordinating Commit­ , ville, Cincinnati, Pittsburgh, and other Ohio stony, or nonproductive soil, or because of tee for a Spanish Republic, New York City, River points. - the incline of its slopes, are fit mainly for N. Y., favoring the use of the offices of this " 'Whereas the distance of the Gulf Coast the cultivation of trees and other shrubs Nation in the establishment of a free and · will be 108 miles less from St. Louis, Chicago, yielding forest products (including coffee) for democratic government in Spain; to the Minneapolis, St. Paul, Kansas City, aild other sale and domestic use; and as protective Committee on Foreign Relations. · · points· on the ·Mississippi, inssouri, and Ill­ forest covering of the hydrographic basins A telegram from the Women's Committee inois RivGrs. situated above dams now existing or here­ for United Action, signed by Mrs. George F. " 'Whereas from j;he Cumberland Valley the after constructed which furnish electric ~ Wilkins, executive chairman, Brookline, distance to the Gulf Coast will be 200 miles power and water for irrigation and domestic Mass., requesting the New England delega­ less: Now, therefore, be it use; and tion in the Congress to appear · before a . "'R.esolved by the Senate of Alabama (the "Whereas a great part of that area eith~r mass meeting of representative women and House of Representatives concurring). That does not produce today the quantity and · trade groups of New England at Faneuil Hall, ' the· Congress of the United States is hereby quality of forest products which that land Boston, Mass., Sunday, June 3. at 2:30 p. memorialized to enact the necessary legisla­ is capable of yielding, or is unproductive, m., to render an account of their personal - tion so as to provide for the construction of improperly used, or untilled, and therefore efforts toward a solution o! the flow of meat, the Tennessee River-Tombigbee River Canal aids the washing out of the soil and causes poultry, and eggs to the shops and homes of , project; be it further excessive erosion; and New England; to the Committee on Agri­ ~ "'Resolved, That a copy of .this resolution "Whereas the reforestation of such lands culture and Forestry . be sent to the Senators and Members of the deprived of normal growths of trees and other A resolution· adopted by the Lompoc Fili­ . House of Representatives froiT' Alabama in shrubs would alleviate the above-described pino Association, of Lompoc, Calif., favor­ _ Congress, and that copies of said resolution, situation and would at the same time furnish ing the enactment of legislation granting in triplicate, ·be presented to the Board of substantial employment to those residents rights to the Filipinos to become American Engineers for Rivers and Harbors (U.S. ·Engi­ who so urgently need work, thus assisting the citizens: to the Committee on Territories and neers) at the public hearing to be had on industrial and social economy of the island; Insular Affairs. said project in Mobile, Ala., on M~y 28, 1945.' and · A resolution adopted by the American Fed­ "The above .Senate joint resolution was "Whereas with the present available funds eration of Labor Postwar Planning Commit• adopted by the Legislature of Alabama on and facilities for the planting of trees on ap­ tee, of San Francisco, Calif., favoring the May 22, 1945." • propriate lands which require reforestation, adoption of the United States Bureau of POSTWAR MILITARY ESTABLISHMENT only about 4,000 cuerdas a year are planted, Reclamation program for the ~evelopment AND STATUS · oF THE NATIONAL , and at this rate a period of about 100 years of the land, water, and power resources of GUARD would be required to finish the work; and : the United States; to the Committee on Ir- "Whereas the Government of Puerto Rico . rigation and Reclamation. Mr. HOEY. Mr. President, I a.sk has recognized and still recognizes that the Resolutions adopted by the board of. di­ unanimous consent to present for ap­ problems of the restoration and proper regu­ rectors of the Charleston (S. C.) Cha~ber propriate reference and printing in the lation of the forests of the island, the maxi- of Commerce, protesting against the enact• RECORD a resolution adopted by the Gen- 1945 CONGRESSIONAL RECORD-SENATE 5175 eral Assembly of North Carolina relating be reinforced in time of emergency by organ­ Whereas if crude oil prices were increased to the postwar Military Establishment ized units drawn from the civilian compo-· the State gToss production tax thereon would nents of the Army of -the United States. materially assist the State .of Oklahoma to and the status of the National Guard. SEc. 3 .. That we advocate, in the event adequately finance its public-school system, The PRESIDENT pro tempore. With­ that a system of universal military training highway construction and maintenance, and out objection, the resolution will be re­ be included in the postwar plan for the Mili­ public-health programs; and ceived and appropriately referred. tary Establishment, that such training be Whereas the Disney bill, which passed the _ The resolution . was referred to the iptegrated with the civilian components of lower House of Congress in December 1943, Committee on Military Affairs, and, the Army and specifically the National Guard, would provide an average price increase of under the rule, ordered to be printed in the Officers' Reserve Corps, and the Organ­ 35 cents per barrel on crude oil; and the RECORD, as follows: ized Reserves. Whereas such an increase in the price of SEc. 4. That in the discussion of the post­ crude oil is desirable not only from the stand- . · Senate Joint Resolution 447 war military policy and the form of the Mili- . point tliat it would provide sorely needed" Joint resolution memorializing the Co:pgress tary Establishment, the fullest opportunity, State revenue but would help to relieve the of the United States of America on the consistent with existing conditions, be ac­ oil shortage now existing in that such in­ postwar Military Establishment and the corded the officers and men of all com­ cr~ase would encourage exploration for pe­ status of the National Guard. ponents of the Army, who are or who have troleum and maintain competition in the - Whereas the States and Territories of the been serving with the armed forces in time petroleum industry: Now, therefore, it it Union are jointly interested with the Na­ of war, to express their views on this most Resolved by the Senate of the Twentieth tional Government in the postwar military important matter to the end that this Na­ Legislature of the State of Oklahoma (the policy to be established by the Congress, tion will adopt a sound military policy con­ House of Rep1·esentatives concurring there­ sistent with our traditions and which will in): based upon the military clauses and the afford the utmost security to the Nation. Army clauses of the Constitution, thereby 1. That the Members of the Oklahoma SEc. 5. That this resolution shall be in full d€legation in Congress, and each of them, be directly affecting the military establishments force and effect from and after its ratification.· of the respective States in their relation­ ~nd they are hereby memorialized and peti­ In the General AsS'embly read three times tioned to revive and secure the adoption bY ship to the State forces of the Army of the and ratified, this the 21st day of March 1945. United States; and Congress of the Disney blll providing for an Whereas certain ones of the many plans J;lOSTAL SALARIES---RESo"LUTION OF NEW · average price increase of 35 cents per barrel and suggestions offered have been presented HAMPSHIRE LEGISLATURE on crude oil. . to the Congress: Now, therefore, be it 2. That the Members of the Oklahoma ' .Resolved by the senate (the house of rep­ Mr. BRIDGES. Mr. President, I ask delegation in Congress be, and they are here­ resentatives concurring) : · unanimous consent to present for print­ by, informed that in the opinion of this SECTION 1. That the Congress is respect­ ing in the RECORD and appropriate refer­ legislature they could render no greater serv­ fully petitioned to preserve, in the postwar ence a concurrent resolution adopted by ice to -~his State at this time than to secure military organization, the civilian compo­ the New Hampshire Legislature relative the adoption ·by Congress of an act providing nents of the Army of the United States; for an average price increase of 35 cents per to th~ so-called postal salary bill. specifically the National Guard, the Officers' barrel on crude oll; that such• price increase Reserve Corps, and the Organized Reserves, The PRESIDENT pro tempore. With­ now would be of great benefit to the State tn line with the provisions of the National out objection, the resolution will be re­ of Oklahoma and its people, both from a Defense Act of 1916, as amended, and ceived and appropriately referred. governmental and business standpoint. especially the provisions of the Selective The resolution was referred to the 3. That the secretary of the senate be, and Training and Service Act of 1940, relating Committee on Post Offices and Post he is hereby, directed to forward a copy of to the status of the National Guard as an Roads, and, under the rule, ordered to be this resolution to each Member of the Okla­ integral part of the first line of defense of printed in the RECORD, as follows: homa delegation in congress. our Nation. • · Adopted by the senate the 20th day of The National Guard and Organized Re­ Concurrent resolution relative to the postal April 1945. serves have made a glorious contribution to salary bill, so called the Nation, on the battlefields of World War - Be it- resolved by the senate (the house of To the Committee on Finance: II. "Their record in World War I was representatives concurring), That the Con­ Senate Concurrent Resolution 1 outstanding. Such contributions are justi­ gress of the United States be, and hereby is, Concurrent resolution memorializing the fication to the Congress in providing for the requested to give full consideration to the Congress of the United States to amend continuance of the National Guard andRe­ so-called postal salary bill known as House the Federal social-security law to permit serves as first-line components of the Army Resolution No. 2071, now before the Con­ recipieJ+ts of benefits or assistan,ce there­ of the United States. , gress of the United States, as it is the sense of under to engage in various work and small · SEc. 2. That · we fully subscribe to and the General Court of New Hampshire that enterprises without prejudice to their endorse the position taken by the Secretary such bill should become law; and be it fur­ status as beneficiaries of said law to the of' War, as to the future status of the Na­ ther extent that the first $240 annual net earn­ tional Guard, as announced on November 23, Resolved, That copies of this resolution be ings of any such persons shall not be taken 1944, in which he states: transmitted by the secretary of state to the into consideration in determining the "It would be the mission of this reserve Senators and Congressmen from New Hamp­ amount of assistance they are to receive . component (the National Guard), in the shire. Whereas approximately 80,000 of the citi- event of a national emer.gency, to furnish Passed May 18, 1945. units fit for service anywhere in the zens of this State, by reason of age and phys­ world. RESOLUTIONS OF OKLAHOMA ical infirmity, have qualified under the termll "This conception of the mission of the LEGISLATURE of the Federal Social Security Act, and are National Guard of the United States would enjoying the benefits and assistance there­ interfere in no way with the traditional mis­ Mr. THOMAS of Oklahoma. Mr. Pres­ under; and sion of the National Guard of the States ident, -I ask unanimous consent to pre­ Whereas a great number of such persons and Territories to provide sufficient organi­ sent for appropiiate reference and print­ ·are not only still able but desire to engage zations in each State, Territory, and the ing in the RECORD two concurrent reso­ in various work and small enterprises not District of Columbia, so trained and equipped lutions adopted by the State L~gislature necessarily connected with agricultural pro­ as to enable them to function efficiently _at of Oklahoma. 'duction and thereby augm·ent , the moneys existing strength in the protection of life The PRESIDENT pro tempore. With­ received from the social-security fund, and and property and the preservation of peace. out objection, the resolutions will be re­ at the same time give them something useful order, and public safety, under competent to do, as well as helping to relieve the man­ orders of., the State authorities. ceived, appropriately referred, and, un­ power.shortage and the winning of the war; "* • • National Guard units have der the rule, printed in the RECORD. .and played a vital role in the mobilization of ' To the Committee'' on Banking and Whereas to permit the same to be done our present Army and they have made a CUrrency: would not in anywise destroy or interfere brllliant record on every fighting front. We Senate Concurrent Resolution 16 .are counting on them as a bulwark of our ·with the policy or purpose of the Social Secu­ future national security." Concurrent resolution memorializing the rity Act, but would lend encouragement to We also approve and. endorse the statement Members of the Oklahoma delegation in this class of people to utilize the principles of Gen. George Marshall, Chief of Staff of Congress to revive and secure the adoption of thrift and industry which they are still the Army of the United States, set forth in of the Disney bill providing for an' average capable of exercising and enable them to War Department Circular No. 347, August 25, price increase of 35 cents per barrel on ·make a small contribution to their own wel­ 1944, to the effect that the postwar Military crude oil ·rare and comfort in their declining years, as Establishment should consist of a professional Whereas the State· of Oklahoma is sorely in ·well as 'to their community and to the all­ peacetime army (no larger than necessary need of additional revenues to. provide for 'out war effort of the Nation: Now, therefore, to meet normal peacetlme _ requirem~nts) to functions of State government; and be it XCI--326- 5176 CONGRESSIONAL RECORD-SENATE MAY 28

Resolved by the Senate of the State of more perfect instrument would endanger means of eliminating the use of currency Oklahoma (the House of Representatives con­ the possibility of ever achieving international and exchange devices for the purposes of curring therein), That the Congress of the economic cooperation which is desperately economic warfare. The fund permits order­ Unitel States be, and it is hereby, memorial­ needed to create and maintain a peaceful and ly and undisturbing changes in exchange ized to pass legislation amending the present prosperous world society. r~tes when they are needed to restore equi­ law by providing that each individual affected A caution should be uttered, nevertheless, librium to the balance of payments. But it by the social security law shall be permitted against expecting that monetary measures sets limits on these changes, compels mem­ to engage in work of any kind and in small can or will correct all the economic ills that bers to consult the fund, lays down rules of enterprises to the extent that the first $240 may descend upon the world in the difficult procedure and provides security and safe­ annual net earnings or income of any recipi­ postwar period. These measures will help; guards. In short, countries agree not to de­ ent or applicant for assistance shall not be they are a necessary step; but to look upon preciate their currencies by unilateral action taken into consideratfon in deter:r_nining the them as a cure-all would only bring dis­ in order to obtain unfair advantages in trade. amount of assistance such person is to re­ illusionment. They also agree gradually to remove present ceive under the social-security law and the TI-IE ARGUMENT: IN GENERAL exchange controls; and they agree to con­ rules and regulations of the Social Security sult and to cooperate in monetary matters. Board; be it further The Bretton Woods Proposals should be These are great assets and make the fund Resolved, That the secretary of the senate adoptea because they would help to promote seem both necessary and desirable. send a copy of this resolution to each Mem­ political security, economic stability, and Although there is some risk of loss, and ber of the Oklahoma delegation in Congress. world-wide prosperity. Perhaps the primary some uncertainties exist as to just how the argument in their favor is that they provide BRETTON WOODS PROPOSALS fund would operate in certain cases, the for continuing international collaboration alternative of making no international ar­ Mr. TOBEY. Mr. President, I ask and consultation on monetary and financial rangements for cooperation and consulta­ unanimous consent to present -for print­ problems. That is a big step forward; it will tion in dealing with these monetary prob­ promote understanding and cooperation. lems, since it would mean economic chaos ing in the RECORD and appropriate refer­ They also aim to prevent sowing again the ence a paper in the nature of a petition, and warfare, is socially indefensible. The seeds of economic warfare and discriminatory risk to world peace from having no inter­ embodying the recommendations for ac­ trade practices such as thrived during the de­ national machinery for promoting economic tion on the Bretton Woods proposals pression years. And they are an essential cooperation is so great that we cannot afford adopted by the social action committee step in the promotion of expanding interna­ not to insure ourselves against· it, so far as of the Church of Christ at Hanover, N.H. tional trade and a high level of domestic em­ that is possible. . The PRESIDENT pro tempore. With­ ployment. Moreover, they are the only plans The Bretton Woods proposals are not the before us; they ate carefully worked out whole story in international economic de­ out objection, 'the petition will be re­ plans-a compromise hammered out after ceived, referred to the Committee on velopment and they are not perfect, but years of study by experts of many nations; they are an essential step forward toward Banking and Currency, and-printed in and they are designed specifically to meet the cooperation in international economic rela­ needs of the present world situation. the RECORD. ~ions and they are a strong buttress for po­ The recomp1endation for action is as THE BANK litical cooperation. Unless peoples can work follows: The proposed Bank for Reconstruction and together in the econ,omic sphere, they will BRETTON WOODS PROPOSALS Development is particularly desirable be­ find that cooperation in the political sphere will soon become ineffective or impossible. RECOMMENDATIONS FOR ACTION cause it would open up, under proper safe­ guards, the field of investment, would in­ The plight of countries devastated by war The social action committee of the Church crease the security of international lending, calls not only for relief but for sound policies of Christ at Hanover, N. H., believes that and would help provide capital by which dev­ of reconstruction and for cooperation. The Congress 'should accept the Bretton Woods astated countries could reestablish their American people have a moral obligation to Proposals for an International Bank for Re­ help rebuild the world economy. It is also construction and: Development and an Inter­ econoxnies on a sound basis and backward countries of Europe and Asia might be de­ good business for us· to help out. Justice national Monetary Fund (in spite of possible veloped. and charity as well as self-interest urge us imperfections or risks involved), as an im­ to meet the challenge; to assume our full portant and essential step in the develop­ The bank is generally accepted to be a most­ share of responsibility. We therefore urge ment of international economic cooperation. important institution in the difficult transi­ that Congress support the Bretton Woods We believe it is as important that the tion period immediately ahead; yet it has proposals as important steps toward a more church and Christian laymen should support aroused so little opposition and therefore so peaceable and a more prosperous world. international economic cooperation, includ­ little discussion that its vital importance is Adopted by the social action "committee ing the Bretton Woods Proposals, as it is inadequately understood or appreciated. It of the Church of Christ on May 4, 1945. · that they recognize their moral obligation to is the means proposed for encouraging the Lloyd P. Rice, Chairman, John G. support the Dumbarton Oaks Proposals for an restoration of transportation and the devel­ Sagley, Helen F. Morse, Secretary, international security organization. Both opment of industries by the export of capital Anne W. Lincoln, Bessie Danke:..t, are in the interests of a lasting peace. The and equipment. Leslie K. Sycamore, Rev. Chester best imaginable political machinery that may The bank is soundly designed to serve this B. Fisk, Anne E. McCallum, Ken­ be set up at San Fra·ncisco has little chance purpose. Its function is not to supplant pri­ net w. Foley, Edith Thamarus, o_.f carrying out its objectives unless it can vate capital but primarily to release it by Virgil Poling, R. C. Beetham. build on a firm foundation of economic co­ underwriting and guaranteeing private in­ operation; unless some way is found to re­ vestments and to a minor extent to supple­ MISSOURI VALLEY AUTHORITY­ store areas devastated by the war and ment it by making direct loans. World peace MEMORIALS promote world trade, to prevent economic and political stability should thereby be Mr. CAPPER . . Mr. President, I have warfare and the revival of competitive trade promoted, as well as a higher level of em­ practices. One of the purposes of the Bret­ ployment and greater prosperity everywhere. received from Samuel Wilson, manager ton Woods Proposals is to create conditions of the Kansas State Chamber of Com­ in which an international security organiza­ THE FUND merce, Topeka, the following resolution tion can function and trade can expand. The monetary fund likewise seems to be expressing their opposition to the pro­ The place to begin on economic recon­ ·necessary, in spite of arguments advanced posed Missouri Valley Authority: against it, and it should serve a useful pur­ struction is with the financial measures KANSAS STATE CHAMBER OF COMMERCE, which permit the exchange and supply of pose even though some of its objectives may godds between nations. To oppose these pro­ -be difficult of attainment. Unless the fund Topeka, Kans., May 24, 1945. posals because of the known risks or the is established at an early date, there will be To the Members of the Kansas Delegation in assumed imperfections would be playing into no agency to assist in the orderly establish­ Congress: the hands of the economic isolationists and ment of initial exchange rates between cur­ GENTLEMEN: At a meeting of the execu­ perfectionists who are as much an obstacle to rencies during the difficult transition period tive committee of the Kansas State Chamber economic coopera;tion as political isolation­ immediately ahead; and no organization or of Commerce, the following resolution was ists are to an international security organi­ procedure for promoting orderly and undis­ adopted unanimously: zation. In both cases our policy should be turbing changes in exchange rates in cases "That we inform the Kansas Delegation in to study, support, improve. In both cases where subsequent developments prove such Congress that for conserving the resources the present critical intern~:J.tional situation changes to be desirable in the interest of in­ of the Missouri Valley, we favor a plan of demands that the machinery be set in motion ternal economic stability and full emplpy­ cooperative control by the Valley States and at an early date. ment. The most difficult task will be that of the Federal Government, a plan analogous to The moral responsibility of the United harmoni?pital, in the Reclamation Association at Phillipsburg, (Rept. No. 310). District of Columbia, and for other purposes; Kans., May 10, 1945, opposing enactment to the Committee on the District of Columbia. By Mr. HATCH, from the Committee · on (Mr. BRIDGES introduced Senate bi111068, of S. 555, creating a Missouri Valley the Judiciary: which was referr~d to the Committee on Authority-a position in which I heartily S. J. Res. 66. Joint resolution to extend the Finance, and appears under a separate head­ concur. statute of limitations in certain cases; with­ ing.) There beirtg no objection, the resolu­ out amendment (Rept. No. 311). By Mr. MYERS (for himself and Mr. tions were received, referred to the Com­ By Mr. THOMAS of Utah, from the Com­ GUFFEY): mittee on Irrigation, and ordered to be mittee on Military Affairs: S. J. Res. '70. Joint resolution granting the printed in the RECORD. as follows: S. 935. A bill to continue in effect section consent of Congress to an amendment of the 6 of the act of July 2, 1940 (54 Stat. 714), as original compact or agreement between the Whereas the officers and directors of the .amended, relating to the exportation of cer­ Commonwealth of Pennsylvania and the Kansas Reclamation Association believe that tain commodities; without amendment State of Ohio relating to Pymatuning Lake; the establishment of a Missouri Valley Au­ (Rept. No. 313). to the Committee on Commerce. thority as provided in Senate bill No. 555, now By Mr. :auSHFIELD, from the Committee being considered by the Senate of the United on Indian Affairs: ABATEMENT OF CERTAIN INCOME TAXES States, is inconsistent with the principles S. 709. A bill authorizing and directing the FOR MEMBERS OF THE ARMED FORCES and form of government of our country; and Secretary of the Interior to issue to Peter A. Mr. BRIDGES. Mr. President, I ask Whereas said officers and directors believe Candelario a patent in fee to certain land; unanimous consent to introduce, for ap­ that the development of ·our .land and water without amendment (Rept. No. 314); and resources can be better carried on under propriate reference, a bill to amend the existing Federal and State agencies; and H. R. 378. A bill authorizing an appropria­ Internal Revenue Code so as to provide Whereas a plan for development of our tion to carry out the provisions of the act for abatement of certain income taxes Missouri River Basin has been approved by of May 3, 1928 (45 Stat. 484), and for other for members of the armed forces. I also Congress and our existing Federal agencies purposes; without amendment (Rept. 'No. 315). ask unanimous consent that a statement are prepared to execute said plan as soon as in explanation of the bill may be printed the war is over: Now, therefore, be it BILLS AND JOINT RESOLUTION in the RECORD. R esolved: INTRODUCED 1. That this meeting ·respectfully requests The PRESIDENT pro tempore. With­ that George Knapp, State engineer of the Bills and a joint resolution were intro­ out objection, the bill introduced by the State of Kansas, attend the hearing before duced, read the ftrst time, and, by unan­ Senator frorp. New Hampshire will be re­ the subcommittee of the Committee on Agri­ imous consent, the second time, and re­ ceived and appropriately referred, and culture, , Seventy-ninth ferred as follows: the statement wm be· printed in the Congress, to offer testimony on behalf of the By Mr. HOEY: RECORD. opponents of said Murray bill. The bill (S. 1068) to amend the Inter­ 2. That this meeting respectfully requests S. 1058. A bill for the relief of Edgar B. that George Knapp, State engineer of the Grier; to the Committee on Claims. nal Revenue Code so as to provide for division of water resources, State of Kansas, By Mr. THOMAS of Oklahoma (by re­ abatement of certain income taxes for attend the hearing before the subcommittee quest): members of the armed forces, intro­ of the Committee on Irrigation, United S. 1059. A bill to amend the United States duced by Mr. BRIDGES, was read twice by States Senate, to .offer testimony on behalf Warehouse Act of 1916, as amended, to pro­ its title and referred to th~ Committee of the opponents of said Murray bill; be it hibit grain warehousemen whose receipts are on Finance. further tenderable in satisfaction of futures contracts from directly or indirectly dealing in grain The explanation presented by Mr. R esol ved: BRIDGES is as follows: a. That this meeting respectfully request and to prescribe the duties of such grain our Senators and Representatives from the warehousemen with respect to the storage of This bill which I propose to offer as an State of Kansas to use their influence that grain; to the Committee on Agriculture and amendment to the first revenue bill to come the following items of the annual Interior Forestry. · before the Senate is designed to remove a appropriation bill be restored to the amount By Mr. WILSON: distinct injustice in our national tax poli­ recommended by the Bureau of the Budget: S. 1060. A bill to authorize the furnishing cies against the men and women in the armed Mi~souri River Basin, recommended $4,480,- to military and naval petkonnel of transpor­ services. Many of these, upon demobiliza­ 000; approved by House, $1,440,000; general tation and subsistence to enable them to visit tion, will teturn home to find their personal invest igat ions, recommended $5,500,000, ap­ their homes while on furlough or leave in problems acutely increased by reason of the proved by House, $125,000; for the reason that the United States after service outside the accumulated income taxes which have ac­ su r~ h drastic cuts will materially hamper the continental limits of the United States and crued during their years of service. While work of the Interior Depar1;ment (Bureau of­ to return to their military and naval sta­ our present tax laws have given service men Reclamation) in the State of Kansas. and women the relief of not requiring in­ tions; to the Com'mittee on Military Affairs. come-tax payments or returns while in for­ By the Committee on Resolutions: By Mr. McMAHON: . PAUL APPLEGATE, Wakeeney. eign service, they have not forgiven such ob­ S. 1061. A bill for the relief of Violet Lu­ ligations. They simply postponed, for the CHRI S GREEN, CoU?·tzand. dokiewich; to the Committee on Claims. EMME"l'!' KISSELL, Portis. veteran, the day of reckoning. They pro­ Approved at Phillipsburg, Kans., May 10, By Mr. WALSH: vide that he shall be greeted, upon his re­ 1945. S. 1062. A bill to reimburse certain Navy turn home,· with an accumulated bill, pay­ E. PORTER AHRENS, personnel and former Navy personnel for per­ able in one lump for all the years of his President. sonal property lost or damaged as the result service. . Attest: of a fire at the Naval Auxiliary air station, Obviously, when this policy was entered J. E. KISSELL, Pungo, Norfolk, Va., on February 13, 1945; to upon, the Congress did not contemplate a Secretary. the Committee on Naval A:ffairs. war of such length as the present. For some 5178 CONGRESSIONAL RECORD-SENATE · MAY 28 of the men now in the service, who entered in fixing the rates which might be agreed House of Representatives to · the bill ship planned by Congress on a long-range basis. the plant breeder, the chemist, and other trainload after trainload of these surplus And we must plan now so that our farmers, scientists, make available to farmers their grains to Omaha. Several other alcohol who have done so much in war and in peace, new products, ideas, seeds, and discoveries? plants joined in to save this spoiling grain. can look with calmer faith toward a future Will these mean disaster through low-priced A number of carloads of these grains in a_great expanding America. Two billion surpluses? arrived in Omaha ln such spoiled condition do-llars is a lot of money, and no doubt it Even with all America on a full and com­ that the grain had to be removed from the is necessary to maintain parity in the post­ plete diet, plus a sizable legitimate export car with pick and shovel. But these sor­ war years, as we have provided, but it is not business, it means that we will have to find ghums made alcohol desperately needed by a solution to the farm problem. It is merely new uses for the products of at least 30,- industry for war production, and this use an expensive stopgap. 5184 CONGRESSIONAL RECORD-SENATE MAY '28 We must declare it as a national policy to DEVELOPMENT OF COOPERATIVE AGRI- per centum shall be allot ted under this sub­ produce fully so as to consume properly CULTURAL EXTENSION WORK-CON- paragraph to any one State or the Territory and to round out our farm program with FERENCE REPORT of Hawaii for any fiscal year: Provided fur­ positive legislation to assure industrial use ther, That these funds shall be matched by of future surplus farm products. In only Mr. BANKHEAD submitted the foi- the State or Territory receiving them, on ~ years out of the past 24 have farm prices lowing report: the same basis as other funds under this act; been above parity, and those 3 years were The committee of conference on the dis- and 1942, 1943, and 1944-war years when the agreeing votes of the two Houses on the " • (3) the remainder of the sum so appro- farmer couldn't buy what he needed or amendment of the House to the bill (S. 383) • priated for each fiscal year shall be paid to wanted, no matter how good his prices or to provide for the further development of the several States and the Territory of Hawaii how great his efforts. cooperative agricultural extension work, hav- in the proportion that the farm population of I hope the Senate will soon consider legis- ing met, after full and free conference, have each bears to the total farm population of Iation making it possible for the formation agreed to recommend and do recommend to the several States and Territory of Hawaii, as of an adequate national agricultural policy their respective Houses as follows: determined by the census of 1940. that will be carried out faithfully. I stand That the senate recede from its disagree~ "'(c) The sums appropriated pursuant to ready to join with others of both political . ment to the amendment of the House and this section shall be in addition to and not parties to sponsor legislation which w1ll em- agree to the same with an amendment as in substitution for sums appropriated under phasize the need, and point to the way for follows: such act of May 8, 1914, as amended and sup­ an expanding use of agricultural raw ma- In lieu of the matter proposed to be inserted plemented, or sums otherwise appropriated terials by industry. Such a program, I am by the House amendment insert the follow- for agricultural extension work. Allotments sure, will be of tremendous benefit to our ing: "That title II of the act entitled 'An to any State or the Territory of Hawaii for entire Nation-and, ultimately, to all the act to provide for research into basic laws any fiscal year from the appropriations here­ nations of the world. and principles relating to agriculture and to in authorized shall be available for payment RETROCESSION OF SOUTH TYROL TO provide for the further development of co- to S\lCh State or the Territory of Hawaii only AUSTRIA-ADDRESS PREPARED BY SEN- operative agricultural extension work and if such State or the Territory of Hawaii com­ ATOR LANGER the. more complete endowment and support plies, for such fiscal year, with the provisions of land-grant colleges', approved June 29, with reference to offset of appropriations [Mr. LANGER asked and obtained leave 1935 (the Bankhead-Janes Act), is amended (other than appropriations under this section to have printed in the RECORD an address en- by adding at the end thereof the following and section 21 of this title) for agricultural , titled "The Retrocession of South Tyrol to new section: extension work.' Austria," prepared by him for delivery in "'SEC. 23. (a) In order to further develop "SEc. 2. Section 21 of such act of June 29, New York City, which appears in the Ap- the cooperative extension system as inaugu­ 1935, is amended by striking out • (other than pendix.] rated under the act entitled "An act to appropriations under this section}' and in­ THE PUBLIC HEALTH-ADDRESS BY THE provide for cooperative agricultural extension serting in lieu thereof ' (other than appro­ GOVERNOR OF NORTH CAROLINA • work between the agricultural colleges in priations under this section and section 23 the several States receiving the benefits of of this title) '." [Mr. BAILEY asked and obtained leave to the act of Congress, approved · July 2, 1862, And the House agree to the same. have printed in the RECORD an address de- and all acts supplementary thereto, and the J. H. BANKHEAD, livered by Han. R. Gregg Cherry, Governor of United states Department of Agriculture", THEO. G. BILBO, North Carolina, at the dedication of the approved May 8, 1914 (U. s. c., title 7, sees. ALLEN J. ELLENDER, health center at Monroe, N. C., on May 14, 341-343, 344-348), particularly for the fur- ARTHUR CAPPER, 1945, which appears in the Appendix.] :ther development of county extension work, HENRIK SHIPSTEAD, Managers on the Part of the Senate. REORGANIZATION OF THE FEDERAL GOV ~ there are hereby authorized to be appro- ERNMENT-ADDRESS BY DAVID A. priated, out of any money in the Treasury JOHN W. FLANNAGAN, Jr., SII\WONS not otherwise appropriated, for the purpose ORVILLE ZIMMERMAN, of paying the expenses of cooperative exten- STEPHEN PACE, . [Mr. BUTLER asked and obtained leave to sion work in agriculture and home economics, CLIFFORD R. HOPE, have printed in the RECORD an address en- including technical and educational assist- J. ROLAND KINZER, titled "Reorganization of the Federal Gov- ance to farm people in improving their stand- Managers on the Part of the House. ernment," delivered by David A. Simmons, ards of living, in developing individual farm The report was agreed to. of Houston, Tex., president of the American and home plans, better mar].{eting and dis­ Bar Association; which appears in the Ap- tribution of farm products, work with rural APPROPRIATIONS FOR THE LEGISLATIVE pendix.] ' youth in 4-H Clubs and older out-of-school BR4NCH BLESSED IS THE PEACEMAKER-TRIBUTE youth, guidance of farm people in improv- ing farm and home buildings, development The Senate resumed the consideration TO FRANKLIN DELANO ROOSEVELT BY of effective program in canning, food preserva- of the bill llowm.g the penod I To whatever extent we increase the in· the substitute for the purpose. of ex- ~tnke ,?ut begmnm~ Wlt~ the word come, whether it is $1 or $2,500, the in· pressing clearly and in plain language .. actual ~?wn to and m~lud1_ng ~he word come is increased in that amount, and what we were trying to do purposes , and t~e penod m lme 2 on . · . page 2. Then I msert the language of I wish to say so. The Senator has met . Mr. Preside:t;It, I am ~ow gomg to mod- the proviso in the modified committee perhaps my chief objection, in that he 1fy the substitute which I offered .on amendment, after which I include the makes the net income subject to taxa­ Thursday to meet the amendm~nt wh1c~ languag~ of my original amendment be­ tion. has b.een offered by the comm1ttee .this ginning in line 2 on page 2 down to and Mr. OVERTON. That is correct. morn~ng. I had better read my modified including line 6, the language making Mr. JOHNSON of Colorado. Mr. subs~I tut~ be~a~se the lang~a~e of the the appropriation, which appears in lines President, will the Senator from New mod1ficatwn 1s m my own wntmg, and I 7 to 11 of the modified committee Mexico yield? am afraid the clerk might find difficulty amendment. Mr. HATCH. I am ready to yield the in readi:r:g it. The su.bsti~ute! as modi- As I said, Mr. President, I am offering floor. fied, ~hiCh I now offer m ll~u of. the this language perhaps as a partial solu­ The PRESIDING OFFICER. The committee amendment, as modified, 1s as tion of the problem with which the com­ modified amendment offered by the Sen­ ator from New Mexico, in the nature of follows: mittee was confronted, not only in trying a substitute for the modified committee There shall be paid to each Senator, after to provide compensation or income for January 2, 1945, an allowance of $2,500 per Senators, but also to meet the situation amendment on page 2, line 1, will be annum for the purpose of increasing the which exists between the two Houses. stated. income of Senators- Frankly, Mr. President, I am not The CHIEF CLERK. In lieu of the com­ mittee amendment on page 2, line 1, it I have changed the word "compensa- pleased with my substitute. It is not is proposed to insert the following: tion" to "income," because the Senator my idea of how the thing should be done, from Louisiana seemed to make a dis- and certainly it is not in my opinion ade­ There shall be paid to each Senator. after January 2, · 1~45, an allowance of $2,500 per tinction between the two words. I· make quate, because it does not cover the en­ annum for the purpose of increasing the in­ none; I think it is increased income, and _ tire subject as I think it should be cov- come of Senators, to defray expenses in­ I think we ought to say so- ered. curred in the discharge of official duties and 1945 CONGRESSIONAL RECORD-SENATE ·5191 until a general readjustment of salar.ies, re­ salary of United States Senators from - Mr. BILBO. I shall answer the Sena­ tirement pay, and expenses can be made: $10,000 to $12,500, and in reaching a tor's question. I am not arguing whether .Provided, That .for the purpose of determin­ ing the deductibility of expenses under the decision thereon, I entertain certain very an increase in Senators' salaries is justi­ income-tax laws the home of a Senator, Rep­ definite convictions which control me in fiable or not. That is not what I am resentative, Delegate, and the Resident Com­ every ·vote. In every vote which I cast arguing. The point I make is that I ac- missioner from Puerto Rico shaH be deemed on the floor of the Senate I must first -cepted this term of employment at a fixed to be his domicile in the State for which account to the people of Mississippi, salary of $10,000, and it is my convic­ or in which he is chosen, or in the Territory who elected me, and whom I represent tion and my feeling that I would have no or possession, as the case may be. For mak­ as their hired man; secondly, I must ac­ right to cast my vote to increase my sal­ ing such payments throJ,Igh June 30, 1946, $358,667, of which so much as is required to count to my country, as an American ary for this term; that I would have no make such payments for the period from Jan­ citizen; third, I must account to my right to put my hand into the Public uary 3, 1945, to June 30, 1945, both inclu­ conscience, with which I must always Treasury and take out $5,000 for this sive, shaH be immediately available. keep company; and fourth, I must ac­ year and next year-$2,500 a year-and count to my God, to whom I must finally thus add to my salary, when I was elect­ The PRESIDING OFFICER. The ed by the people of my State to serve at question is on agreeing to the modified account for everything I do. My conviction with respect to elective a fixed salary. amendment of the Senator from New If this amendment is adopted and be­ Mexico [Mr. HATCH] in the nature of a office in our representative form of gov­ ernment is to this e:ffect-- comes the law and if I go before the peo- substitute for the modified committee . ple of my State next year, as I propose to amendment on page 2, line 1. Mr. BUSHFIELD. Mr. President, a parliamentary inquiry. do, and if I am reelected with the un­ Mr. HATCH. Mr. President, I now The PRESIDING OFFICER. The derstanding that my salary will be $12,- yield to the Senator from Colorado. Senator will state it. 500, in 1947 I will accept that salary. . Mr. JOHNSON of Colorado. , Mr. Mr. BUSHFIELD. I should like to The Senate may adopt this amend­ President, my question has been an­ have the Chair pass upon the question ment if it wishes to do so, of course, but swered. I wish to find out the status of as to whether the point of order raised I will vote against it. the Senator's amendment in the nature by the Senator from Colorado should be Mr. OVERTON. Mr. President, will of a substitute, because I desire to make decided by the Chair before we proceed the Senator yield? the point o{ order that it is legislation with the debate? Mr. BILBO. I yield. on an appropriation bill. I understand The PRESIDING OFFICER. The Mr. OVERTON. What about a Sena­ that the amendment is now before the Chair is ready to rule. As the Chair tor whose reelection does not occur until Senate, and my point of order should be understood, the Senator from New Mex­ 5 years after the provision becomes the in order. I should like to make the point law? · of order. ' ico yielded to the Senator from Colorado. Mr. JOHNSON of Colorado. Mr. Mr. HATCH. In that connection let · The PRESIDING OFFICER. The Sen­ President, I yield the fioor. I am in no me say that the Senator from Mississippi ator from New Mexico has the fioor. particular hurry to have the Chair rule, would be in a .very enviable position. Mr. HATCH. I have no objection to except that the Chair should rule before Mr. OVERTON. He would be receiv­ yielding for that purpose. If the Sen­ any action is taken by the Senate. ing the increased salary, but othe\' Sen­ ator wishes to make the point of order, The PRESIDING OFFICER. The ators would not. · I think he is entitled to make it. I yield Chair will be ready to rule on the point Mr. HATCH. Oh, yes. the fioor. of order of the Senator from Colorado Mr. OVERTON. In other words, Sen­ Mr. JOHNSON of Colorado. Mr. Pres­ in a moment. In the meantime, the ators who were recently elected would ident, I make the point of order that the Chair recognizes the Senator from not receive the increase in salary·. substitute amendment offered by the Missis'sippi. Mr. HATCH. That would ease the Senator from New Mexico is legislation Mr. BILBO. Mr. President, I shall be conscience, perhaps, of the Senator from on an appropriation bill. Not only is it glad to finish what I have to say, if the Mississippi. legislation on an appropriation bill, but Senator has no objection. I shall con­ Mr. BILBO. Mr. President, I have this amendment is a revenue measure sume only a few minutes. nothing in the world to do with the con­ which has not been considered by the My conception of an elective officer sciences of others. My point is that no House. I do not claim to be an expert on under our representative scheme of gov­ Senator could conscientiously accept the the Constitution. I know that we have ernment is this: When I, as a citizen, proposed increase in salary for the term a great many constitutional lawyers and announce for public office and go before for which he has been elected. But if I experts in this body. However, the first the electorate and beg them for their am elected in 1946 and if I return to the paragraph of section 7 of Article 1 of the votes, and they decide in my favor, I . Senate in 1947, I shall then feel justified Constitution reads as follows: consider that the conclusion· of a solemn in accepting the increased salary, if the Any bills for raising revenue shall origi­ and binding contract of service for a Senate votes for it. But I will not vote nate in the House of Representatives; but the definite term of years. In 1934, as well for it. ·senate may propose or concur with amend­ as in 1940, I vigorously sought a contract Let me say further that, knowing that ments as on other bills.. with the people of Mississippi to repre­ my salary has been considerably cut The point is that House bill 3109 was sent them in the Senate. In each case down since I was elected by the enact­ not a revenue measure when it came I was elected. At the time I knew what ment of the last income-tax law, under from the House. It had no revenue ref­ the salary was. The people of my State which the Government is now taking erences in it whatsoever. We ·might as knew what the salary was. It was $10,- more than $2,000 a year out of my sal­ well take any House bill on the calen­ 000 a year and mileage two ways. ary, nevertheless I propose to accept my 'dar and make a revenue measure of it. Mr. HATCH. Did the Senator say lot and pay my share and suffer and pay 1 notice on the calendar House bill 1793, "mileage two ways"? -the price of this war aJong with the 3,'000,000 other Government employees Calendar No. 71. We might as well tal{e Mr. BILBO. To and fro. that bill and make it a revenue measure who have likewise been assessed in­ Mr. HATCH. Not two times. creased income taxes as a result of the in the Senate, if we can do what the Mr. BILBO. No; mileage to and fro, amendment now pending would do. necessities of the war; and I shall pay for each session of the Congress. mine without complaint, and I shall con­ While I am not making a point of order Mr. BANKHEAD. Mr. President, will tinue to stint and to live upon whatever on the constitutional question, I am the Senator yield for a question? is left until I am reelected by my people. mak!ng the point of order that this Mr. BILBO. I yield. . The Senate can adopt the amendment if amendment is legislation on an appro­ Mr. BANKHEAD. The Senator vigor­ it wishes to do so, but I will ·not accept priation hm. ously asserts that he knew what the sal- one cent of the money until 1947. I will Mr. BILBO. Mr. President, wi~l the . ary was when he was elected, a.nd that leave the $5,000 in the Trea.sury to help Senator yield? he did not think it ought to be increased. pay the debt resulting from this tremen­ Mr. JOHNSON of Colorado. I yield. I ask him if he did not also know what dous war. That is all I have to say. Mr. BILBO. Mr. President, in con­ the compensation of clerks allowed him Mr. LANGER. Mr. President, I speak sidering the pending amendment, the was, and if he has not since voted to in­ upon the amendment and the substitute effect of which is to increase the present crease that compensation? so that my position may be clear. Last X Cf- -327 5192 CONGRESSIONAL RECORD-SENATE MAY 28 week when I tried to obtain a yea-and­ Mr. President, a wife of a man in the The Senator from Oregon has the nay vote on the question whether a mar­ service, who is about to give birth to a floor. ried woman employed by the Federal child, is called upon to live on 93 cents Mr. MORSE. Mr. President, I regret Government shall have a 60-day leave of a day. Think of it-93 cents a day. That that I deem it necessary to speak a sec­ absence with pay at the time of confine­ is all she gets; only 93 cents ·a day. No ond time on.this very important amend­ ment when she is giving birth to a child Member on this floor is trying to see that ment. the privilege of having such a yea-and­ she gets $1.93. I remember very clearly Mr. LANGER. Mr. President, will the nay vote was denied me. Only nine Sen­ that when I tried to get the pay of sol­ Senator from Oregon yield in order that ators of all who were on this floor raised diers increased from $50 a month I was I may suggest the absence of a quorum? their hands in favor of having the Sen­ unable to get a showing of hands for a Mr. MORSE. I yield. ate recorded on that question by a yea­ roll-call vote upon that occasion. The Mr. LANGER. I suggest the absence and-nay vote. only Senators who offered any support of a quorum. In connection with the pending bill to my effort in the form of a speech at The PRESIDING OFFICER. The and the pending amendment, Mr. Presi­ that time was the distinguished former clerk will call the roll. dent, I notice that when the question was Senator from Missouri [Mr. CLARK] and The Chief Clerk called the roll, and the before the House of Representatives the the senior Senator from Wisconsin [Mr. following Senators answered to their Members of the House had no yea-and­ LA FOLLETTE]. names: nay vote, either. For fear that there Mr. President, if the tax ruling about Aiken Hart Pepper may be no yea-and-nay vote in the Sen­ which we have heard so much upon the Bailey Hatch Radcliffe Bankhead Hayden Saltonstall ate on this question, I shall make my floor of the Senate, which has been Barkley Hickenlooper Shipstead own position very clear, indeed. hashed and rehashed by the dis tin­ Bilbo Hoey Smith I am opposed to the original language guished Senator from Louisiana EMr. Bridges Johnson, Colo. Taft Briggs La Foilette Thomas, Okla. as set forth on page 19, which has been OVERTON) is wrong, I may say that·it was Buck Langer Thomas, Ut ah read. I am opposed to the amendment supported by the Board of Tax Appeals Bushfield Lucas Tobey to the language which was submitted year in and year out for many years. If Butler McKellar Wagner Capper McMahon Walsh this morning by the distinguished Sen­ the ruling is not correct, why has it not Cordon Magnulilon White ator from Louisiana [Mr. OvERTON], and been appealed to the Supreme Court of Donnell Moore Wiley I am also opposed to the substitute prq­ the United States? The very fact that Ellender Morse Wlllis Fulbright Myers Wilson posed by the distinguished Senator from no Senator or Representative has ever George O'Daniel Young New Mexico [Mr. HATCH]. · Mr. Presi­ appealed it gives support to the belief Gerry O'MahoneJ dent, in my judgment, the language in that, in my opinion, at least, the ruling Green Overton its original form cannot be amended in was correct. It it was wrong it could Mr. BARKLEY. I announce that any way, shape, or manner so that I can have been appealed. the Senator from Virginia [Mr. G:tAss j, possibly support it. If an employee who comes from the the Senator from New Mexico [Mr. As I view the situation, a Senator is an State of Wisconsin, from the State of CHAVEZ], . the Senator from New York employee of the people who elected him. Vermont, or from the State of North [Mr. MEAD]. and the Senator ·from He is merely a hired man of the people Dakota to Washington and works for the Nevada [Mr. ScRUGHAM] are absent be­ of his State and of the country as a Government may not deduct from his cause of illness. whole. Therefore he is in exactly the income-tax return any part of his ex­ The Senator from Florida [Mr. same class as is any other Federal em­ pense incurred in living, I submit, Mr. ANDREWS] is necessarily absent: ployee. President, that a Representative or a The Senator from Virginia [Mr. BYRD]. What is the record with respect to Fed­ Senator is exactly in the same category. the Senator from Mississippi [Mr. EAST­ eral employees? They have not been If a farmer from my State should be in­ LAND], the Senator from South Carolina given an increase in basic pay since 1925. vited to Washington to perform work in [Mr. MAYBANK], the Senator. from Geor­ The other day in the Civil Service Com­ the Department of Agriculture and not gia [Mr. RussELL], the Senator from mittee I tried to make it possible for Fed­ be allowed to deduct' legitimate expenses Tennessee [Mr. STEWART), and the Sen­ eral employees to be granted an increase in connection with temporarily moving ator from Arkansas [Mr. McCLELLAN] of 25 percent in their basic pay, and I to Washington, then certainly the Sen­ are visiting battlefields in Europe. could not even get a second to my pro­ ators from North Dakota should not de­ The Senator from Kentucky [Mr. posal. I tried to g.et them overtime pay duct similar expenses. CHANDLER], the Senator from California at the rate of time and a half. While I wish to make my position very clear. [Mr. DowNEY], the Senator from Penn.:. the bill which was being considered by I am opposed to every paragraph, every sylvania [Mr. GUFFEY), the Senator from the committee provided for compensa­ sentenee, every line, every comma, and Utah EMr. MURDOCK], the Senator from tion at the rate of time and a half, it every period contained in either the Montana [Mr. ·MuRRAY], the Senator was conceded that it was only time and original language, the amendment, or from South Carolina [Mr. JOHNSTON 1, one-twelfth. Yet, I could not get a sec­ the substitute amendment. I sincerely and the Senator from Idaho [Mr. ond to my motion. hope that it there are Members on this TAYLOR] are absent on public business. The other day, in the Civil Service floor who can in good conscience vote to The Senator frOm Texas [Mr. CoN­ Committee, I tried to get an increase in increase the.ir compensation, no matter NALLY] is absent on official business as a pay for night workers. I tried to get a under what guise they may do so, while delegate to the International Conference differential for them of 15 percent so wives of servicemen have to live on 93 in San Francisco. that a person working during the grave­ cents a day, and servicemen may receive yard shift, as it is called, would receive The Senator from Alabama [Mr. HILL] only $50 a month in compensation, those is absent because of illness in his family. 15 percent more compensation. Yet, I Senators are welcome to take that posi­ could not get a second to my proposal. The Senator from West Virginia [Mr. tion, but I ask that they go on record KILGORE], the Senator from Washington In the same committee I tried to get by a yea-and-nay vote on this very im­ overtime pay for those who work on [Mr. MITCHELL], and the Senator from portant legislation. · Delaware [Mr. TuNNELL] are absent on holidays. Federal employees who work Mr. MORSE addressed the Chair. on New Year's, Christmas, the Fourth of official business for the Special Commit· Mr OVERTON. Mr. President, has tee Investigating the National Defense July, Memorial Day, and so forth, re­ the Chair ruled on the point of order ceive common ordinary pay. They do not Program. receive double pay, time and a half pay, made by the senior Senator from Colo­ . The Senator from Nevada [Mr. Me· or time and one-twelfth pay. Yet, I rado [Mr. JOHNSON]? CARRAN] is absent on official business. could not get a second to my motion. The PRESIDING OFFICER. No; the The Senator from Arizona [Mr. Me· I have already related my experience Chair has not yet ruled. The Senator FARLAND] and the Senator from Montana when upo:r... this floor only nine Senators from Colorado is not now in the Cham­ [Mr. WHEELER] are absent on official joined in the request for a yea-and-nay ber. The c'hair recognizes the Senator business for the Interstate Commerce vote in conhection with the proposal to from Oregon EMr. MoRsE], and after the Committee. - . grant 60 days time with pay to married Senator from Colorado has returned to The Senator from Maryland [Mr. women who were about to become the Chamber the Chair will rule on the TYDINGS 1 chairman of the Committee on mothers. point of order. Territori~s and Ins~lar Affairs, is in· 1945 CONGRESSIONAL RECORD-SENATE 5193 specting the ·Philippine Islands and program of the Government; we are go­ program, and I shall not vote for the bill therefore is necessarily absent. ing seriously to embarrass the War Labor with the House provision in it. Mr. WHITE. The Senator from Ver· Board and the Internal Revenue Bureau, Mr. HATCH. Mr. President, I think mont [Mr. AusTIN] , the Senator from Il­ and in my judgment, before we get the Senator misunderstood my point. I linois [Mr. BROOKS] , and the Senator through with it we will embarrass the am not raising the question of a row from Nebraska [Mr. WHERRY] are absent President of the United States. I think with the House. I do not see how there by leave of the Senate. the President is entitled to the support will be a row. What the Senate is to do The Senator front Michigan [Mr. VAN­ of this body in maintaining existing es· this afternoon is to vote whether it will DENBERG] is absent on official business sential wartime stabilization controls, be on an equal footing with the House. as a delegate to the International Con­ because we can lose the war on the home The House has already adopted this pro­ ference at San Francisco. front if we do not do everything within vision, and, so far as I can learn, the The Senator from Idaho [Mr. THOMAS] our power as a Congress to check at all provision will remain in the bill, and and the Senator from Colorado [Mr. times the dangers of inflation. with all due respect to the Senator, MILLIKIN] are absent because of illness. It has been said in the debate today whether he votes for it or against it, I am The Senator from New Jersey [Mr. that the adoption of this small increase quite sure the provision will become law. HAWKES] is absent on official business by so far as the money is concerned will not So what we are going to have as a net leave of the Senate. in and of itself cause inflation. That is result is that the House of Repre­ The Senator from Maine [Mr. BREW­ quite true. It is not the amount of mon­ sentatives, 435 Members, will receive STER ], the Senator from Minnesota [Mr. ey involved in this amendment that will $2,500 for expenses, and 96 Senators are BALL], and the Senator from Michigan have an inflationary effect, but it is the not going to receive that amount. Where [Mr. FERGUSON] are absent on official Nation-wide example that will be set by will we be? That is what I am trying to business of the Senate as members of the the Senate of the United States if we find out. Mead committee. adopt this amendment which will have Mr. MORSE. I do not agree with the The Senator from Indiana [Mr. CAPE­ serious inflationary effects. Senator from New Mexico that the House HART] is necessarily absent on official Mr. HATCH. Mr. President, will the provision will necessarily remain in the business. · Senator yield? bill. I have great confidence in the The Senator from Wyoming [Mr. Mr. MORSE. I yield. Members of the House, and I am in­ RoBERTSON] is absent by leave of the Mr. HATCH. There is one thing clined to believe-at least I wish to hope, Senate on official business of the Com­ which has perplexed and bothered me and I shall continue to so hope until the mittee on Public Lands and Surveys. about this whole matter. The Senator House demonstrates to me that my hopes The Senator from South Dakota [Mr. referred to the Senate of the United are not well founded-that when the GURNEY], the Senator from Kansas [Mr. States. Probably the Senate is going Senate does what I think it should do, REED], and the Senator from West Vir­ to reject his amendment. I rather think namely, vote down the amendment pro­ ginia [Mr. REVERCOMB] are absent on of­ so. Nevertheless, the fact remains that posed in regard to the Senate allowance, ficial business of the Senate as members the House has already adopted the pro­ and then, after that vote has become a of a subcommittee of the Senate. vision, and it is going to remain in the matter of record, refer the whole matter The Senator from Ohio [Mr. BuRTON] bill regardless of what we do with the to the House for further conference, the is necessarily absent. pending amendment. What effect will House will recede from its position. The PRESIDENT pro tempore. Fifty­ that have? The House of Representa­ Mr. HATCH. Will the Senator fur­ two Senators having answered to their tives, 435 Members, are going to receive ther yield? names, a quorum is present. this $2,500 a year for increased expenses, Mr. MORSE. I yield. Mr. MORSE. Mr. President, ·as I or whatever we may call it, but 96 Mem­ Mr. HATCH. From a parliamentary stated, I regret very much that I deem bers of the Senate will ·not receive it. Is standpoint-and if I am wrong in this the principles involved in the pending it not the tail wagging the dog in that I should like to be corrected-the House amendment so vital to the economic respect? I am really concerned about provision will not even be in conference. stabilization program of the Government that. Am I correct in that, I ask the majority as to require me, as a matter of public Mr. MORSE. I appreciate the parli· leader? duty, to speak further on the subject. mentary delicacies involved. I think I Mr. BARKLEY. I would state to both I spoke at some length on it last Thurs­ understand, as does the Senator from Senators that I think it is generally day afternoon. Over the week end I New Mexico, that if we do· not accede to understood that, from a parliamentary checked the matter with certain public the House provision we will at least vio­ standpoint, if the Senate defeats the members of the War Labor Board and proposal now before it, and no change is with officials of the Internal Revenue late long-established practice in the Con· made in the House provision, and the bill Bureau, which agencies have authority gress of the United States. In fact, I · goes back to the House and is sent to and jurisdiction over the stabilizing of think the language used by one speaker conference, the provision will not be in wages and salaries during the war period. today was 'that if we do not go along with conference, and if the conferees made The representatives of both those agen­ the House bill we will be involved in a any change in it, it would be subject to cies informed me that if the same type of row with the House. a point of order in either House. So prop·'sal as is involved in the amendment Mr. HATCH. Will the Senator yield that there will be no chance to change under discussion were made by an Amer­ further? the House provision after the b111 shall ican business or corporation it would be Mr. MORSE. I yield. leave the Senate. the ruling of those agencies that the pro­ Mr. HATCH. That is not the point. Mr. MORSE. If that be the parlia­ posal would violate the wage-stabiliza­ The point. is that the House provision is mentary situation, Mr. President, I think tion program of the Government and in the bill as a part of the bill, and, so it is all the more important that the would have to be denied. Hence, the far as I can see, it is going to remain in Senate of the United States strike a blow major premise which I shall seek to de­ the bill, regardless of what the Senate this afternoon in defense of sound sta­ fend throughout my discussion of this does. What effect will that have? bilization for the rest of the war, and amendment is that if business attempted Mr. MORSE. I was about to make the leave the House then to assume its own to do exactly the same thing the Senate point, in reply to the statement made by responsibility for violating our wartime of the United States is attempting to do one of the Senators in the debate today stabilization program. I still think, how­ by this measure the stabilization author­ that unless we vote for this amendment ever, that when the Senate upholds the ities of the Government would rule that we will find ourselves in a row with the stabilization program by voting down the an attempt to increase the income of House-and I certainly would not like to amendment there will be those in the workers and salaried officials by an ex­ find us in a row with the House. How­ House who will at least desire to seek pense account not heretofore paid would ever, as between rowing with the House further consideration of the House pro­ constitute a violation of the wage and and protecting the wartime economic vision, by proper parliamentary tactics. salary stabilization program. stabilization program of this Govern· I cannot believe and refuse to believe Further, I desire to defend to the best ment, I am ready to row with the House that a majority of the Members of the of my ability the premise that if we adopt over the matter, because I think if the House will want their action to stand the proposed amendment we are goi'ng provision remains in the bill, then we once they fully realize that their pro­ to endanger the wartime stabilization will endanger the economic stabilization posal violates the policies of the War 5194 CONGRESSIONAL RECORD-SENATE MAY 28 Labor Board and the Bureau of Internal 1. To keep the cost of living from spiral­ tive orders did not freeze wages nor sal­ Revenue as to wartime wage and salary ing upward, we must tax heavily, and in that aries. They provided for certain excep­ controls applicable to our citizens gen­ process keep personal and corporate profits at a reasonable rate, the word "reasonable" tions to a wage freeze. Thus the Execu­ erally. betpg defined at a low level. tive orders, as you will see in a minute, Now, Mr. President, dry as it may be, empowered the War Labor Board to ad­ nevertheless I think it is important that I do not think our t~x program has just wage rates so as to rectify subst and­ we get into the RECORD a little wartime provided the most equitable distribution ard wages, gross inequalities, and inequi­ history so far as our economic stabili­ of the tax load but I agree -with President ties in the wage structure involved in zation program is concerned, and hence Roosevelt that heavy taxes were and are any case before the Board. Further, it I desire to take the Senate back to April necessary to check the dangers of infla­ should be remembered that the Board . 27, 1942. On that date President Roose­ tion. The President stated further: · was authorized to grant such increases velt submitted to the Congress of the 2. To keep the cost of living from spiraling as the evidence in a given case demon­ United States a message, which has be­ upward, we must fix ceilings on the prices strated were necessary as an aid in the which consumers, retailers, wholesalers, and came known as the Economic Stabiliza­ manufacturers pay for the things they buy; effective prosecution of the war. Those tion Message of April 27, 1942. In part, and ceilings on rents for dwellings in all areas increases under the last-mentioned ex­ he said this: affected by war industries. ception have been exceedingly rare in These economic factors relate primarily to the history of the War Labor Board. I an easily understood phrase which affects . I have been very critical and still am ask Members of the Senate to keep that the lives of all of us--"the cost of living." of the OPA but I agree with the late Pres­ fact in mind as I attempt to take them Because rises in the cost of living which came ident that without a price-control pro­ through two or three of the Executive with the last war wtre not checked in the gram we would be confronted with a run­ orders that were issued in regard to beginning, people in this country paid more away inflation and the value of the wage stabilizing wages. than twice as much for the same things in earner's dollar would be greatly reduced. 1920 as they did in. 1914. The first Executive Order was No. 9250. Then in his message of April 27, 1942, That is known as the General Wage In other words, Mr. President, we suf­ the President pointed out the importance Order-the one that imposed most of fered the experience in 1920 of a cost of of wage controls to inflation control. He the rules and instructions, as far as the living rise in this country double what it said: War Labor Board was concerned, of the was in 1914. Tbe President very prop­ 3. To keep the cost of living from spiral­ President upon the Board in keeping with erly, in his great message of April 27, ing upward, we must stabilize the remunera­ his message of April 27, 1942. Note some tried to impress upon the Congress of the tion received by individuals for their work. of the language of that Executive order: United States the importance of Con­ He made a wage-control program one 1. No increases in wage rate, granted as gress cooperating with the Executive, and of the cardinal principles ot a wartime a result of voluntary agreement, collective doing everything within its power to see economic stabilization program. b"argaining, conciliation, arbitration, or other­ to it that proper checks were placed upon The other points of his seven-point wise- our economy to prevent an increase in plan were these: the cost of living. He proceeded to say Note the words "or otherwise." I may in that great message: 4. To keep the cost of ~iving from spiral­ say parenthetically that under the term ing upward, we must stabilize the prices "or otherwise" the Board reached the When the cost of living spirals upward received by growers for the products of tl1eir week after week and month after month, lands. conclusion that it was prohibited from people as a whole are bound to become poorer · 5. To keep the cost of living from spiraling recognizing . any indirect wage increases because the pay envelope will then lag behind upward. we must encourage all citizens to such as wage increases by way of expense rising retail prices. The price paid for carry­ contribute to the cost of winning this war accounts not theretofore paid. ing on the war by the Government, and there­ by purchasing war bonds with their earn­ And no decreases in wage rates, sllall be fore by the people, will -increase by many ings instead of using those earnings to buy authorized unless notice of such increases or billions if prices go up. Furthermore, there articles which are not essential. decreases shall have been filed with the Na­ is an old and true saying that "that which 6. To keep the cost of living from spiraling goes up must always come down"-and you tional War Labor Board and unless the Na­ upward, we must ration all essential com­ tional War Labor Board has approved such and I know the hardships and heartaches we modities of which there is a scarcity, so that all went through in the bad years after the increases or decreases. they may be distributed fairly among con­ 2. The National War Labor Board shall not last war, when the Americans were losing sumers and not merely in accordance with their homes and their farms and their savings financial ability ta pay l1igh prices for them. approve any increases in the wage rates pre­ vailing on September 15, 1942,- and were looking in vain for jobs. 7 (and last). To keep the cost of living . ~ . from spiraling upward, we must discourage May I repeat- We must therefore adopt as one of our credit and instalment buying, and encourage Shall not approve any increases in the wage principal domestic objectives the stabi~iza­ the paying off of debts, mortgages, and other tion of the cost of living, for this is essential obligations; fo1· this promotes savings, re­ rates prevailing on September 15, 1942- to the fortification of our whole economic tards excessive buying, and adds to the That was the deadline date. structure. amount available to the creditors for the pur­ Relying on past and present experience, chase of war bonds. Unless such increase is necessary to correct and leaving out masses of details which relate maladjustments or inequalities, to eliminate more to questions of method than to the In his message to Congress the Presi­ substandards of living, .to correct gross in­ objective itself, I list for the Congress the dent also said: equities, or to aid in the effective prosecu­ following points, which, taken together, may I know that you will appreciate tl1at these tion of the war. well be called our· present national economic seven principal points, each and every one of May I assure Members of the Senate, policy: them, will contribute in substantial fashion without taking them through a large to the great objective of keeping the cost of Then followed the President's so-called living down. · number of cases, that the Boru·d applied seven-point program. Many of us may the language which provided for the differ as to individual items within the Then on April 28, in a radio address exceptions as language of limitation, as program. Many of us may differ as to to the country, the President used this restrictive language. Hence the Board whether or not the best job possible has language: required great proof to be shown that a been done in carrying out the seven Do you work for wages? You will have to serious inequality or gross inequality, points. I have been critical of some of forego higher wages for your particular job with the language of the order, was the agencies charged with the responsi­ for the duration of the war. established by the evidence in the case bility of some of those points. Neverthe­ The National War Labor Board took before it would grant any exception to the less, as I said last Thursday, I think that, the President's message to Congress of general rule enunciated by the President by and large, and on the whole, a mag­ April 27, 1S42, as binding upon it, and in his message of April 27 and his speech nificent job has been done in holding the it proceeded to work out a wage stabiliza­ of April 28, that "If you work for wages cost of living within reasonable bounds. tion program that in its judgment best you cannot expect any increase in those I should like very quickly to review the kept faith with the request of the Presi­ wages for the duration of the war." seven points, because I think we need to dent that it stabilize wartime wages. Mr. President, in my judgment the keep them in mind as we consider the ef­ However, I want Members of the Senate policy of Order 9250 is at least morally feet of the amendment now pending be­ to keep in mind the fact that the message binding upon the Senate of the United fore the Senate. The President said: of April 27, 1942, and subsequent Execu- States. I would be_ the first to agree 1945 CONGRESSIONAL RECORD-SENATE 5195 that neither the ·war Labor Board nor to, bonuses, additional -compensation; gifts, 15, 1942, the expense allowance sought the Bureau of Internal Revenue has· any commissions, fees, and any other remunera­ by this amendment was not a part of the tion in any form or medium whatsoever, jurisdiction over the salaries paid to the (excluding insurance and pension benefits in wage pattern of the United States Senate. Members of the Congress of the United a reasonable amount as determined by the I submit that in keeping faith with the States. If we want to vote ourselves Director); but for the purpose of deter­ economic-stabilization program of this a salary increase or if we want to vote mining wages or salaries for any period prior Government during the war we should ourselves a salary increase by way of in- to September 16, 1942- not seek by this method to increase our . direction through an expense account, And note the date, September 16, take-home money by way of an ex­ we have the authority to do so, I grant 1942- pense allowance which ·we were not en­ it, because the agencies 'which have been titled to as ·of September 15, 1942, when set up to stabilize the salaries and wages such additional compensation shall 'be taken into account only in cases where it has been a prohibition against all such indirect for all other Americans have no juris­ customarily paid- forms of wage increases was laid down diction over us. Yet, I say, that very against the rest of the workers of the fact greatly increases our moral respon­ Only in cases where it has beep cus­ country. Speaking only out of my own sibility in this matter, and we certainly tomarily paid. I continue to read: conscience, I am frank to say that in should not place ourselves in a position by employers to their employees. "Salaries" my judgment, a moral issue is involved. before the people of the United States as used in this order means remuneration for The next Executive order to which I in which they can rightly say that we personal services regularly paid on a weekly, wish to call attention is Executive Order month, or annual basis. agree that one policy is good enough 9328. In essence, Executive Order 9328 for the wage earners and the salary Members of the Senate, do not pass reinforced and buttressed Executive Or­ earners of American, but a different pol­ over that language lightly, because under der 9250. It modified Executive Order icy should be applied to the Members the prohibition of that language, in de­ 9250 in this respect: It further reduced of the Congress of the United States. cisions as long as my arm in number, the the exceptions under which the War La­ I am not one who fears criticism, War Labor Board has held over and over bor Board could grant wage increases. It because I suppose I have lived under again, as has the Bureau of Internal eliminated the so-called equalization as much criticism as any man in this Revenue, that we look to September 16, criterion, because it was felt by some in body, but neverthel~ss, I am one who 1942, to see what the wage and salary the administration that under the equal~ feels that we should not subject the pattern of the company involved in a ization criterion the Board had been al­ Senate of the United States to justified given case was as of that date. lowing wage increases which it should criticism when we can avoid it by doing The wage pattern of September 16, not have allowed. our clear duty. If we adopt this amend­ 1942, became binding upon the Board I read from the first section of Execu­ ment, in my judgment, the p~ople of and upon the Bureau·or Internal Revenue tive Order 9328: this country will have a right to criti­ unless a modification were justified under In order to safeguard the stabilization of cize all Members of the Congress of the the exceptions previously referred to. In prices, wages, and salaries affecting the cost United States who in the midst of a other words, we took that language as a Qf living on the basis of levels existing on war voted themselves by indirection a prohibition upon us-and I think rightly September 15, 1942- salary increase which constitutes a vio­ so-prohibiting us from recognizing any 0nce again the President said to us­ lation of the wage-stabilization program of the various types of indirect wage in­ "September 15, 1942," is the date- creases. binding upon every other American. as authorized and directed. by said act of Order No. 9250 provides, in addition Let us be perfectly fair about it. I am Congress of October 2, 1942- to what I have already· quoted from it- aware of the fact that there are distinc­ 5. No increases in salaries now in excess of tions between a situation involving the The Stabilization Act voted by the $5,000 per year (except in instances in which salaries of Members of Congress and the Members of this very Senate- an individual has been assigned to more salaries and wages paid by business to and Executive Order 9250 of October 3, 1942, difficult or responsible work) shall be granted workers, in this sense, at. least, that on and to prevent increases in wages, salaries, until otherwise determined by the Director. September 15, 1942, there was a great prices, and profits which, however justifiable manpower shortage in America, and in a if viewed apart ·from their effect upon the The order provides further, in title great majority of cases it was the em­ economy, tend to undermine the basis o! lli: stabilization, and to provide such regula­ ployers who were asking for the wage in­ tions with respect to the control of price, 2. The National War Labor Board shall creases. In fact, it was a bit paradoxical constitute the agency of the Federal Gov­ wage, and salary increases as are necessary to ernment authorized to carry out the wage to sit on the War Labor Board and find maintain stabilization, it is hereby ordered policies stated in this order, or the direc­ that in the majority of cases the pleas as follows: for wage increases were no coming from tives on policy issued by the Director under In other words, Executive Order 9328 this order. The National War Labor Board labor, but from employers. The emploY­ was a subsequent order to Executive Or­ is further authorized to issue such rules and ers were very resourceful in inventing regulations · as may be necessary for the ways for obtaining indirect wage in­ der 9250, strengthening the prohibitions speedy determination of the propriety of any creases. I mentioned some of them last against further salaries and wage in­ wage increases or decreases in accordance Thursday. Suffice it to say that em­ creases. In this order the President said, with this order, and to avail itself of the ployers sought to have the Board approve under item 2: services and facilities of such State and various types of indirect wage increases, The National War Labor Board, the Com­ Federal departments and agend~s as, in the missioner of Internal Revenue, and other discretion of the National War Labor Board, including the so-called new expense agencies exercising authority conferred ·'ly may be of assistance to the ~oard. account. Executive Order 9250 or Executive Order 9299 The point I wish to make is that unless and the regulations issued pursuant thereto A tremendous power was given to the the particular type of wage which the War Labor Board under this order. As over wage or salary increases are directed employer sought to have the Board ap­ to authorize no further increases in wages or I said on another occasion, it is an prove was a form of wage which the em­ salaries except such as are clearly necessary awful power, nevertheless a power which ployer paid prior to September 15, 1942, to correct substandards of living, provided it was deemed necessary at the time to the date fixed in Executive Order 9250, it that nothing herein shall be construed to give it in order to do everything that this was disallowed. That is why I say that if prevent such agencies from making such Government could on the home front to this particular amendment were in the wage or salary adjustments as may be deemed protect the value of the American dollar. form of a request by a private employer in appropriate and may not have been hereto­ The last quotation I want to make America to the War Labor Board to in­ fore made to compensate, in accordance with from Order No. 9250 is this language: crease the take-home money of his the Little Steel formula as heretofore de­ Salaries and wages under this order. shall salaried employees to the extent of the fined by the National War Labor Board, for include all forms of direct or indirect re­ the rise in the cost of living between January amount of expenses allowed under this 1, 1941, and May 1, 1942. muneration to an employee or officer for amendment, the Board agency would work or personal services performed for an rule that the increase could not be al­ I digress for a moment to point out employer 01; corporation, including, but not lowed. Why? Because it was not a part that Executive Order 9328 made it very limited- . of the .wage pattern of that particular clear that the so-called Little Steel for­ Note the language, "including, but not plant as of September 15, 1942. I need mula had been sanctioned by the Execu­ limited"- not labor the point that a.s of September tive. Also it was the position of the 5196 CONGRESSIONAL RECORD-SENATE MAY 28 Executive and of the Board-and I be­ page 40, the Board says this, 1D speak­ of living goes up so many points, wages lieve rightly so-that the Stabilization ing about its wage policies: automatically will go up, and vice versa; Act of October 2, 1942, by implication 1. To prevent inflationary spirals, it must and such an escalator clause existed in imposed upon the Board the duty to be recognized that wages cannot be auto­ the shipbuilding contract. On May 2, carry out the provisions of Executive Or­ matically adjusted to increases in living costs. 1942, the President of the United States, der 9250 and the subsequent provisions We are all aware of the fact that the as the Board reported, wired the Ship­ of Executive Order 9328, including the War Labor Board, the Bureau of Internal building Wage Stabilization Conference, application of the Little Steel formula. Revenue, and even the Congress of the urging the voluntary deletion of esca­ Executive Order 9328 further provided: United States-all of us-constantly are lator clauses. In his telegram the Presi­ Nor shall anything herein be construed to working under urgings that there should dent said this: prevent such agencies, subject to the general be general wage increases in this coun­ There is no surer way to undermine the policies and directives of the Economic Sta­ try. It has never been the position of the standards achieved by labor than to fail in bilization Director, from authorizing reason­ our common effort to control the cost of able adjustments of wages and salaries in War Labor Board that the so-called living. Wage earners must do their part, case of promotions, reclassifications, merit Little Steel formula-which is the cost­ by agreement, to stabilize wages or else the . increases, incentive wages, or the like, pro­ of-living formula--should never be very standards for which we have striven so vided that such adjustments do not increase changed, but it has been the consistent long will be eaten away by increased costs of the level of production costs appreciably or position of the War Labor Board, as set living. furnish the basis either to increase prices or out in the report I have mentioned, that • resist otherwise justifiable reductions in The situation that now confronts you is prices. until it can be shown that the cost- of living has risen to a, point where Ameri­ that the full percentage wage increase for With respect to this last provision, can workers cannot maintain a standard which contracts call and to which by the Executive Order 9328 did not authorize of living of health and decency, the 15- letter of the· law you are entitled, is irrec­ oncilable with the national policy to control the War Labor Board to grant any wage percent formula should be retained inso~ the cost of living. increases not provided for under Execu­ far as requests for increases on cost-of~ • tive Order 9250, but further restricted its living grounds are concerned. Under these circumstances, I suggest to power. However, it did recognize, as the I am not arguing this. afternoon that the stabilization conference that you put Board had done in a great many deci­ the Little Steel formula should never be your heads together and try to work out a sions, that if a man were classified into changed, but I certainly am arguing that plan by which this conflict may be resolved a new job, if the duties of his job changed the Senate of the United States should so that the wage standards of the workers or if he were assigned different work, the not be the first to change it in connection in the shipbuilding industry and in other Board could then consider a different with its own wages. When· we look at industries, and the living standards of all rate of pay for him. the results of the amendment from the persons ot modest income may be preserved against an inflationary rise in the cost of Applying that principle to the amend­ standpoint of the additional money it living. ment before us, I think the fact is per­ would put into pockets of each Member fectly clear that the job of United States of Congress we see that, as compared The Board then said: Senator is the same as it was on Sep­ with September 15, 1942, our take-home The unions and employers patriotically re­ tember 15, 1942. I realize that we may money will be increased in excess of ·the sponded to the President's request, and the be in longer sessions. Nevertheless, if Little steel formula.. Unless there are escalator clauses were removed. Thereafter a record were being made before a board new rules of addition-of which I. do not it became a settled stabilization rule, ac­ know-! know of no other conclusion cepted by all parties concerned, that such which had the obligation of applying clauses would not be recognized or enforced the wage policies set down in Executive which one can reach by the application during the war. Orders 9250 and 9328, no showing could of simple arithmetic other than that This did not, of course, mean that wage be made in that record which would the amendment breaks the Little Steel levels would never be reconsidered however justify the conclusion that the· work of formula. much the cost of living might soar. But it a United States Senator has so changed The Board in its report pointed out did mean that a supreme effort would be since September 15, 1942, as to justify the great cooperation which it has re­ made to keep both wages and prices stable this particular amendment under the­ ceived from .various groups of labor in and that in that effort any direct connection provisions of Executive Order 9328. So holding the line. For example, on page between the two, even though established I repeat that I care not by whatever 4C it referred to the principle that in a by contract, would have to be foregone. yardstick this Government has given wartime economy, when the supply of The second principle which the Board the Bureau of Internal Revenue or the civilian goods falls so far short of avail­ states it has applied throughout its his­ War Labor Board in determining wages able purchasing power, you cannot main~ tory is the following one: ,for other Americans you may wish to tain a reasonable cost of living if you 2. Every attempt should be made to protsct measure this proposed wage increase for adjust wages with every percentage the real wages of labor to the point that they Members of Congress it is clear that the change in cost of living. As I said last do not drop below a standard of living com­ amendment falls far short of measuring Thursday-and it deserves repeating­ patible with health ~nd decency. up to the wage stabilization standards. basic to this whole question is the ques- · You will find that language, I assure There is simply nothing in existing wage tion of protecting the value of the Ameri­ you, in a great many War Labor Board regulations which would justify a recog­ can dollar. An action such as the one decisions, and many of them are cited in nition of this increase if the Board had proposed by the pending amendment would simply make it more difficult to the footnotes of the report. jurisdiction over the Congress of the The Board then said: United States. keep the floodgates of inflation closed. Thus I say that if the Senate adopts the This principle, which recognizes the need Mr. President, I think there is a great of wage adjustments to prevent "substand­ deal of misinformation in the Senate in amendment, which in e:ffect and in fact ards of living," has also been an essential regard to the principles of wage and sal­ violates the Little Steel formula, we shall feature of the wage stabilization program, ary stabilization in this country, as they weaken the hands of those who are at­ from its inception down to date. are applied by the War Labor Board and tempting to hold the line against infia~ the Bureau of Internal Revenue. How­ tion. The third principle stated by the Board ever, I should like to commend to the The Board goes on to say on page 40 is as follows: reading of the Members of the Senate the of its .report: 3. To the extent it can be done without This principle has become a foundation inflationary effects • • • fair and rea­ Wage Report of the War Labor Board sonable upward wage adjustments should submitted on February 22, 1945. In my stone of the wage-stabilization program. On be made as an ofiset against increases in the judgment the report is an excellent one. May 2, 1942, the President wired the Ship­ cost of living. In it the Board sets out clearly the his­ building Wage Stabilization Conference at Chicago urging the voluntary deletion of It was under that principle that the tory of its policies and a synopsis of some escalator clauses. of the leading cases of the Board in which Little Steel formula was devised. those policies have been put into effect. Escalator claUses are found in many In the Board's report this comment is I shall not detain the Senate long, but wage contracts, and I think there is made: for· the record I wish to read the follow­ much merit in them in peacetime. They After the President's message of April 27, ing paragraphs from that report. On provide that when the index of the cost 1942, had called far the stabU1zation of both 1945 CONGRESSIONAL RECORD-=-SENATE 5197 prices and wages, the Board in the Little April 27, 1942, called for _action to halt the Labor Board's Wage Report of February Steel case applied the foregoing principle · of rise of both wages and prices." At the same 22, 1945: the Harvester case to those who had not re­ time, however, the Pres.ident indicated that ceived increases equal to the rise in the cost it was not his intention to freeze wages with­ The Board acts on the assump.tion that of living from January 1941 to May 1942. out room for the adjustment of inequities. prices and living costs will now be stabilized As the Chairman said in his opinion : under the President's seven-point program. Then on page 43 the Board discusses "We agree with the contention of the union the history of the Little Steel formula that the policy declared by the President in­ "What the National War Labor Board must itself, as follows: · volved a deliberate choice to reject any arbi­ not do, and what it avoids doing in this case trary freezing of wages and to leave wage ad­ is to start' another lap in the race between THE LITTLE STEEL CASE, JULY 16, 1942 prices and wage.s. Another cycle of general 1 justments, where agreement could not be The Little Steel case was pending before reached by collective bargaining, to final de­ wage increases started at this time would a panel of the War Labor Board at the time seriously threaten the chance to stabilize the the President issued his message of April 27, termination by the War Labor Board. The union has ·declared its acceptance of the cost of living • • • The entire national 1942. It was necessarily considered by the economic policy is unmistakably based upon Board in the light of the President's seven­ President's seven-point stabilization program in full, and has said that it does not contend the general maintenance of wage rates at point program, in which he called among existing scales as a necessity for the stabili­ other things for a stabilization of wages, that all items in the program must be accom­ with "due consideration to inequalities and plished before wages can be stabilized. In zation of our domestic economy in the in­ return the steelworkers have the President's .tei'est of winning the war.'' the elimination of substandards of living." It is clear from the Little Steel case that In the Chairman of the War Labor Board's assurance, given to the whole country in his address to the Nation of April 28, that 'I the Board, while hoping and expecting that opinion, handed down with the decision on shall use all of the Executive power that I living costs would be stabilized in accordance July 16, 1942, the Chairman described the have to carry out the policy laid down.'" · with the President's program, rejected the nature of the case as follows: idea that the Little Steel formula would be "Since the announcement of the seven­ Thus the Board, while determined to do its part in preventing a resumption of the cycle automatically revised to keep pace with in­ point program, the Board has decided a num­ creases in living costs. On the other hand; ber of cases in which it has allowed wage of -wage and price increases which had run its course from January 1941 to May 1942, quite clearly also, the Board expected that increases to adjust inequalities within the if the program failed to check the rise in the particular wage structure under considera­ recognized also an obligation to correct inequities by appropriate wage adjustments. cost of living, there might come a time when tion. In some of those cases it has refused the Little Steel formula would need to be wage increases that would have led to a I urge that the Members of the Senate reexamined, the question being one of the higher level of wages throughout an industry degree of disparity between wage levels and or area. And it has in certain cases given make reference to that statement of the particular attention. to the lower wage brack­ history of the formula, because there is price levels. ets which might fairly be regarded as in­ a great deal of misunderstanding in the Both of these views were reaffirmed in the Senate as to what the Little Steel for­ !allowing passages from Deari Morse's opin­ adequate to produce decent standards of ion in the Remington Rand case, issued on • living. mula is. It is a cost-of-living wage for­ July 27, 1942, and from Dr. Graham's opin­ "The present case is the first one in which mula which is applied in specific cases to ion in the Aluminum Company case, issued the Board has been confronted by a demand an appropriate group of employees. on August 18, 1942. Dean Morse said: for a general wage increase affecting a widely Such a group might be the employees of "Contrary to some reports, it (the Little extended and substantially equalized wage a plant; it might be the employees of a Steel formula) does· not guarantee to labor structure throughout an industry, and in that existing standards of living will be main­ which the lowest wages are above that level department of the plant; it might be the employees who are under a collective­ tained throughout the war. Even before the which the Board has thought of as too .low Little Steel decision, the Board had pointed to afford a decent living standard." bargaining agreement. out in several cases that labor cannot hope In d€aling with this demand the Board It refers to the period between Janu­ to receive wage increases which will enable began by affirming the principle (already an­ ary 1, 1941, and May 1, 1942. May 1, it to keep pace with upward changes in cost nounced in the Harvester case and applied by of living. the President in dealing with the shipbuild­ 1942, was ·the nearest date to the Presi­ ing escalator clause) that any dirlilct con­ dent's April 27, 1942, speech, for which · nection between wages and living .costs must the Board could get from the Bureau of "The wage formula of the War Labor Board be severed in the interests of stabilization. Labor Statistics a compilation of statis­ is no cure-all for inflation, but it is a defi-. The Board rejected the union's demand for tics as to changes in the cost of living in nite and certain check on inflation as far as a wage increase of $1 a day to compensate the country during that period of time, the wage factor is concerned. It must be for the increased cost of living since the last looked upon as a concomitant of a broad­ from January 1, 1941, to May 1, 1942~ general wage increase received by the steel base tax policy and of a wide-scale and effec­ workers in April 1941. "Such a wage in­ So the Board said, "We will take that tive system of rationing and price fixing of crease," said the Vice Chairman in his opin­ period of time as the period which those consumer goods, the prices of whicl"l ion, "would be entirely incompatible with measures the race between wage in­ are so controlling in the cost of living of the the President's stabilization policy." The creases and cost-of-living increases, and average citizen. Such adjustments in the Vice Chfiirman pointed out that the April we will say that henceforth in any fu­ formula as need to be made in light of future 1941 real wage could not be taken as a peace­ events and trends in the war economy of the ture case we will not grant any wage country will be made by the Board." time standard to be preserved against any increase on a cost-of-living argument"­ rise in living costs "since the country was • then in the midst· of girding itself for war mark that, Mr. President, on a cost-of­ Dr. Graham said: and the race between wages and the cost of living argument-"if between January "In facing the alternative of haying no living had already begun." This race be­ 1, 1941, and May 1, 1942, the employees standard for stabilization at all, or having t ween wages and prices had started shortly concerned have had increases in their the absolute standard of freezing wages, the after January 1, 1941, following a period of average straight-time hourly rates"-not Board sought to avoid the unintelligent drift, several years of relative stability in both in their take-home pay, not in respect confusion, and potential disaster of the wages and prices. As the Vice Chairman to other wages, but increases .in their former and the unreason, injustice, and po­ pointed out, earnings as of January 1941 tential disaster of the latter • • •. "had, therefore, a rather constant purchas­ average hourly rates-"for that appro­ "In the Little Steel decision, Dr. Taylor, ing power. Workers knew pretty well what priate group of employees of 15 percent. the vice chairman, in grappling with our their money would buy." But after Janu­ If they have had an increase which most difficult wage case, worked out the gen­ ary 1941 the race began. By May 1942, the amounts ·to 15 percent in their average eral fdrmula for stability and equity in the month following the President's stabiliza­ hourly rates, then we will not grant any stabilization and adjustment of wages. This tion message, the cost-of-living index had. further increases on a cost-of-living ar­ formula is based on faith in tqe approximate risen approximately 15 percent above the gument ~ " achievement of the President's seven-point stable level of January 1941. What was the effect, Mr. President? program for the stabilization of the cost of During 1941 and the spring of 1942, general living. If all agencies, all groups, and the wage increases had been secured by workers It was simply to notify' employers and will to win on the part of the united people m most American industries. By May 1942 labor representatives that "we will hear sustain and carry forwa~d the whole program, "a cycle of adjusting our domestic living to you on a cost-of-living argument to the this formula for both stability and equity a wartime economy had in a sense been com­ extent of a 15-percent increase, if you will do .its part for total victory." pleted. The President in his message of have not had a 15-percent increase in • your average straight-time hourly rates The legislative history of the act indi­ 1 cates that Congress applied the same basic In re B ethlehem Steel Corporation, Re­ from January 1, 1941, to May l, 1942." public Steel Corpomtion, Youngstown Sheet principles which had been laid down by the and Tube Co., I nland Steel Co., and United Mr. President, I wish to read ~he .fol~ Pre si~en t, and also l;>y the War Labor Board, Steelworkers ot America (CIO), 1 WLR 325. lowing additional excerpts from. the w· al~ namely: 5198 CONGRESSIONAL RECORD-SENATE MAY 28 (1) Wages and prices should be stabilized that they labor under such a handicap, be:. Mr. Eccles said: together. For th,is purpose Congress author­ cause the,·President bas made it very clear "It is the duty of all those charged with ized the President "to issue a general order that the War Labor Board is to correct such public responsibility for holding the line stabilizing prices, wages, and salaries affect­ inequities. against the pressures for higher prices and ing the cost of living; and • • • such • • • • • higher wages to see to 1t that nothing is stabilization shall so far as practicable be on E XECUTIVE ORDER 9328 OF APRIL 8, 1943 done to impair the public confidence in the the basis of the levels which existed on Sep­ future buying power of the dollars invested tember 15. 1942." This order (often referred to as the "hold the line" order) was divided into five parts, in Government securities, life insurance, or * • • the two most important of which dealt with other forms of savings. If that confidence In applying its policy to both voluntary prices and wages. were impaired, there would be an increasing and dispute cases the !Board was bound, by impulse to spend money instead of saving it. Executi-ve Order '9250 and by the act of Oc­ 1. As to wages, the War Labor Board was That would seriously affect the Government tober 2, 1942, to bear constantly in mind the directed "to authorize no further increase credit and the financing of the war. The Congressional mandate that wages were to in wages except such as are clearly stability of all credit, including Government be maintained at September 15, 1942, lev.els necessary to correct substandards of living," credit, depends upon maintaining faith in "so far as practicable." The Board's feeling . or as may be permissible under "the Little the pur.chasing power of the dollar. If the of obligation toward that mandate was ex­ Steel formula as heretofore defined by the public is assured by the extension of this pressed in the majority opinion in the Four National War Labor Board for the rise in the legislation for a s~filcient length of time, Meatpacking Cos. case decided February 8, cost of living between January 1, 1941, and without crippling amendments, that the line 1943, in which it was said: May 1, 1942." The effect of this was to will be held against inflationary forces, the "It has become increasingly evident .that remove the Board's capacity (1) to change problem of financing the war and refunding the stabilization of. our domestic economy, as the Litt~e Steel formula and (2) to grant the public debt will continue to be met suc­ conceived by Congress and by the President, wage increases to correct interplant in­ cessfully. If the public is, led to believe, can only be achieved by a determination to equalities. however, that the price. wage, and rationing ;maintain present levels. This applies to both 2. As to prices, the Food Administrator controls are going to be weakened, or not wages and prices. • • • The National and the Price Administrator were directed, continued as long as may be necessary, con:. War Labor Board faces its responsibilities a~ong other things, "to place ceiling prices fidenae cannot be maintained in the purchas­ with the assurance of the Director of Eco­ on all commodities affecting the cost of li-v­ ing power ·of our. money." nomic Stabilization that such a stabilization ing,'' "to prevent further price increases di­ Judge Vinson submitted a prepared state­ of wages will be accompanied by a stabiliza­ rect or indirect," and "to reduce prices which ment to both committees. In thercourse of tion of prices. are excessively high, unfair, or inequitable." the statement, and in the discussion follow·­ "In the Economic Stabilization Act the In a public statement accompanying the ing it, he opposed any upward change in th~ basis for the stabilization of our domestic "hold the line" order the President said: Little Steel formula. . He said, in part: • . economy is set forth. A simultaneous stop­ "'To hold the line we cannot tolerate fur­ "We are no longer in the realm of specula­ ping of any general upward rise of wages, sal- ther increases in prices affecting the cost of tion or hypothesis. We have made a record. . aries, and prices was to be effected. Neither living or further increases in general wage or We have fought a battle against a deadly wages nor salaries were to be frozen at Sep­ salary rates except where clearly necessary to enemy. The past 12 months marked the tember 15, 1942, levels. Certain adjustments correct substandard iiving conditions. • • • first time in the history of the United States above those levels were contemplated. The "All items affecting the cost of living are to as a nation that we have ever checked this nub of the program, however, is that such be brought u~der control. No further price enemy during the war. It is of critical im­ adjustments would be relatively small in to­ increases are to be sanctioned unless im­ portance to the future of the country and to tal effect and would be controlled so that, In peratively required by law. • • • the future of our economy. that, having won general, September 15 levels would be pre­ "Some prices affecting the cost of living are the first battle, we do not lose the war. The served. already above the levels of September 15, 1942. most critical period is yet to come. But we "The data (on cost of living and earnings) All of these cannot be rolled back. But 5ome can only judge the future in the light of the does show, however, that wages 1n general of these can and should be rolled back. The past. Let us therafore survey the record. can justly be stabilized at September 15, order directs the reduction of all prices which "In the year which has passed since the 1942, levels, although it should be frankly are excessively high, inequitable; or unfair. President issued his' hold-the-line order, the recognized that such stabilization demands a The Stabilization Act was not intended to be price level has been stabilized. The cost of correlative stabilization of prices." used as a shield to protect prices \'7hich were living is now 0.3 percent below the level pre­ • • • excessively high on September 15, 1942. vailing April 8, 1943. Wholesale prices are Dean Morse similarly expressed the view "On the wage front the directions tn the down 0.1 percent. These figures become espe­ that the time might come when the Little order are equally clear and specific. · cially significant when contrasted with an Steel formula should be revised, but that the "There are to be no further increases in increase of more than 4. p~roent in the cost disproportion between wage levels and prices, wage rates or salaries' scales beyond the Little of living between October 1942 and April 1943. whatever its exact measure might be, was Steel formula, except where clearly necessary "I should state at this point that I have not then such as to warrant breaking the to correct substandards of living. just received information that the cost-of­ formula. He said: • living figures for April 15, 1944, are up. They "So it is the position of the public mem­ "Under the act of October 2, 1942, Congress are up 0.6 percent over March 15, 1944. Of bers of the Board that if the only grounds directed that so far as is practicable, wages, that increase 50 percent of it, acq_ording to for asking for a wage increase are the salaries, and prices should be stabilized as of my information, is due to the impact of the grounds that the cost of living bas risen the level of September 15. Under that direc­ excise taxes, the increased excise taxes; and above the 15-percent formula, we do not pro­ tion inflation has been slowed up. Now we the other 50 percent, or 0.3 is due to increases pose to vote for an increase on those grounds. must stop it." in house furnishings, food, and clothing. "Now, if the time comes when the other Basic to this entire dicussion, Mr. Pres­ "OUr battle to stabilize the family budget agencies of the Government fail to control over the past 2 years has been won primarily the cost of living with the result that the ident, is a view held by some that a little on the food front • • • The upward cost of living reaches a point where labor "controlled in:fiation" is a desirable de·­ spiral of food prices has been checked. Since cannot maintain a decent standard of living vice for meeting the great debt burden April 1943, when the hold-the-line order was necessary to maintain maximum production, of this country. Make no mistake about issued, food prices have actually gone down then I will vote to break the formula. But it, there are many sincere people and by 4.3 percent. that will be only after other agencies of the some not so sincere that favor such a • • • • Government have failed_ to carry out their disastrous economic policy. If they suc­ "Mr. Chairman, as it stands today price job. I am not going to make their work ceed, the wage earner will be the great­ control is a proven success. The job which an impossible one by breaking that formula est sufferer. The War Labor Board in the Congress assigned has been carried out until they have had ample time and oppor­ and carried out extremely well. For its con­ tunity to check the increase in the cost of its report, on page 55, calls attention to tinuation, no significant change in the stat­ living. And the fact that, as some leaders the danger by quoting both Mr. Bowles ute is required. of labor.are telling me, that the cost of living and Mr." Eccles, who speak out against it "The record of the National War Labat: has gone up 7 percent above 15 percent is not with commendable courage as follows: Board has done a tremendously successful an argument sufficient in weight, in my judg­ Mr. Bowles said: job in administering a national wage policy ment, to break that formula, at least at this "I believe that the experiment of legislat­ firm enough to hold the line, and yet flexible time. ing a little inflation would be a dangerous enough to meet the varying conditions to • • one, and that fairness does not require it . Which such a policy must be applied . "The public memqers, in decision after de­ The balance between prices and wages is • • cision, have demonstrated that they recog­ precarious at best, and any attempt to write "Even the official index, however, indicates nize that labor in the low-paid brackets will into the law a guarantee against the pos­ that living costs have risen almost 10 per­ have to be taken care of on the basis of sibility of hardship to anyone would cer­ cent since May 1, 1942. Superficially, then, inequalities and inequities and substandard tainly jeopardize and probably destroy that it might be argued that we ought to let wages if and when evidence in the case shows balance.'' wages rise an additional 10 percent. But - 1945 CONCRESSIONAL RECORD-SENATE 5199 there are many factors of which such a sim· Again, without· being boresome in do not believe it would be appropriate ple conclusion would fail to take account. citing precedents, which are legion in or applicable to .say that the argument "Although cost-of-living adjustments are arbitration law, we said to them, "The rests upon political considerations as only permitted to the extent of 15 percent over the rates prevailing in a particular in­ simple test is this: We look to see wheth­ some have suggested in this debate. The dustry in January 1941; wages as a whole er the wage paid permits of a standard fact remains that if the Senate of the· have risen far more than 15 percent. The of living of health and decency. If it United States adopts this amendment its best measuring rod by which to gage trends does, there may not be any further in­ integrity will be questioned, rightly or in straight-time hourly earnings of indus· crease merely because the cost of living wrongly, as the Senator from Colorado trial labor is a weighted index which meas· may have exceeded 15 percent. But if £Mr. JoHNSON] stated, by millions of ure.s industrial wages according to employ­ a standard of living of health and de­ Americans who believe that during the ment in January 1941, thereby statistically discounting such factors as the transfer of cency cannot be maintained we will closing period of this war we, as Senators, workers to high-paying war industries. grant you an increase, not under the should be willing to undergo whatever Measured by that index, straight-time hourly Little Steel formula but on the basis of financial sacrifices may be involved in earnings have increased about 32 percent the substandard wage principles or on our jobs without endangering the coun­ abovP the level of January 1941, as against the basis of the rare and unusual case try's stabilization program. As I stated an increase of about 25 percent in the cost­ doctrine. last Thursday, when the war is over we of-living index over the same period of time. The task was not a pleasant one. We should then frankly go before the Ameri­ "But the important fact to remember is can people with an educational program that, whatever index or measurement is had confronting us the obligation of up­ used, prices have remained in a reasonably holding the arm of the President. After in regard to the financial problems of fair relationship with wages since October the wartime stabilization act of October United States Senators, and tell them 1942, when, for the first time, we instituted 2, 1942, was enacted we had before us thin"gs which I am sure they do not now control over all wages and all prices. the obligation of upholding the arm of know. We should then be perfectly will­ "The laboring classes as a whole could not the Congress itself, and seeing that in­ ing to make a full disclosure, if necessary, benefit from a renewal of the wage price creases in excess of 15 percent on the of our personal accounts. I am sure the spiral. · Higher wages cannot create more basis of the cost-of-living factor were voters of my State would be interested food, more clothes, or more shelter in a war­ not allowed. The Board held the line in knowing that last month I paid a con­ ti~e economy. Supplies of essential goods siderable sum of money out of Il)Y own are limited by the needs of our soldiers, our in the face of much criticism. I think sailors, our airmen, and our allies. If that it did its duty. pocket for lohg-distance telephone calls inescapable truth is kept firmly in mind it It is not for me to say, because I do because the present expense allowance of points plainly to the conclusion that higher not have the evidence before me my office permits only 10 calls of 3 min­ wages cannot improve the worker's standard whether the cost of living has so changed utes each a month. When I talk with of living. At best they will benefit some in this country that increases above 15 an individual in my State on some im­ workers who are well organized and power­ portant official governmental matter I ful at the expense of other workers who, percent should now be allowed. How­ ever, I would repeat the test that I always cannot say to him, "Well, Dick, I can because they are not so well organized, have talk to you only for 3 minutes and then already fallen behind the procession. stated in decision after decision. The answer to the question is dependent upon hang up." evidence showing that workers generally As I have stated, last month I spent "For the most part our wage-stabilization a considerable. sum of money out of my policy has worked well. Its standards, like cannot maintain a standard of living of any others, sometimes encounter difficulties health and decency on wages now paid. own pocket for long-distance telephone in application. But all in all I do not believe But there again I believe the formula if calls on Government business, and will that we could deviEe a set of wage policies it is to be chaRged, should be changed do so again, if necessary, because I be­ better in any mate'rial particular than those on the basis of evidence presented to the lieve that such expenses represents a we now have." · War Labor Board and to the Director of part of the sacrifice I should be willing During the course of the discussion in the to make. I do not believe that while the Senate committee which followed Judge Internal Revenue. The benefits of any such change should be applied to wages war is still on we should try to remedy Vinson's statement, he was asked by Senator the situation. By so doing it might re­ McCLELLAN whether, "under the conditions of the workers of this country. The for­ that now exist," there could be "any justifica­ mula should not be broken by the Mem­ sult in a questioning of the_integrity of tion for any modification or the brealcing bers of the Congress of the United States the Senate of the United States as the or the revision upward of the Little Steel iri relation to their own salaries. If we Senator from Colorado [Mr. JOHNSON] formula." Judge Vinson replied: think the time has come to break the last Thursday pointed out. When the "As far as I am concerned, I have no in­ Little Steel formula then let us pass war is over we should propose a substan­ tention or purpose to break the Little Steel general legislation applicable to all work­ tial increase in our salaries and in our formula • • • I do not think that the office expense accounts, because such in­ Little Steel formula should be discarded." ers in the Nation. However, do not for­ get that there are still many thousands creases are not only deserved but would After some further discussion with mem­ be in the interest of good government. bers of the Senate committee, Judge Vinson· of workers particularly white-collar said, referring to the hold-the-line order of workers and the unorganized who have A strong case can be made for them. April 8, 1943, as supplemented by Justice yet to enjoy the benefits of the Little For example, most citizens do not know Byrnes' directive of May 12. 1943: Steel formula. I am not in favor of that a Senator's office allowance does not "If you think the wage test in the Byrnes Congress grabbing an increase for itself even cover the cost of all of his office directive is too severe you can write limita­ until it sees to it that those workers who · supplies and, in. many instances, of all of tions into the law. If you think the theory yet have not received their. 15-percent the stenographic costs of his office. too generous you can write language into law increase first get theirs. Our sacrifice They do not know that his travel allow­ that will take care of it. If I am to administer ance falls short of meeting his necessary· it I will do my best." compared with theirs is only nominal. Many of them get less than $2,000 per travel costs during his term. They have We had many cases when I was a mem­ year. Before we act on wage legislation little idea of how much financial outlay ber of the Board in which the evidence let us get the facts by calling before us it tal{es to perform the duties of a United clearly showed that in some sections of Government officials charged with sta­ States Senator. My faith in the voters the country the cost of living had in­ bilization and representatives of labor, is so complete that I am convinced that creased beyond 15 percent. In one case agriculture, industry and the consuming when they know the facts they will au­ I recall it was alleged that the increase public. I have no doubt but that wage prove of a salary increase and an ex­ was 30 percent. We said in effect "We policy changes may have to be made be­ pense allowance after the war which will will not grant any wage increase enable financially poor men to serve in b~cause fore the end of the war and during re­ the Senate and maintain themselves and of a change in the cost of living over conversion but we should make them for families in modest decency . . apd above the 15-percent allowance. If, the country as a whole and not for our­ So, Mr. President, I close with a review as a result of our refusal to grant such selves selfishly. of three points. First, I cannot vote for increase, you find yourselves in a posi­ I have one other point, Mr. President, the amendment, because I am satisfied tion where your wages are substandard before completing my remarks. that on the record it constitutes in prin­ grossly unjust so as to impede the wa~ A very good point was made by the dis­ ciple and in fact a violation of the wage­ effort we act on the·special merits of the tinguished Senator from Colorado [Mr. stabilization program of our Govern­ case. JoHNSON] last Thursday. 1 cex:tainly me:q.t, which has been imposed by our 5200 CONGRESSIONAL RECORD-SENATE MAY 28 Government on a majority of wage earn­ Representatives, and shall also be allowed at The Chair now quotes from the ruling ers and salaried persons throughout the the commencement and end of every session, of Vice President Marshall: country. $6 for every 20 miles of the estimated dis­ tance, by the most usual road, from his place "'Notwithstanding the rule of the Senate Second, I cannot vote for the amend­ of residence to the seat 'of Congress;" * • • to the effect that general legislation may not ment, because I think it is perfectly clear and the Speaker of the Hamre of Representa­ be attached to an appropriation bill, still that it will not solve the real problem in tives, to defray the incidental expenses of his when the House of Representatives opens the manner in which the Senate should office, shall he entitled to receive in addition the door and proceeds to enter upon a field solve it in the interest of good govern­ to his compensation as a Representatives, $6 of general legisl~tion which has to do with ment. We should wait and go before the for every day he shall attend the House." a subject of this character, the Chair is people at the close of the war and point Section 1 of the same act provides that going to rule--but, of course, the Senate can each Senator shall be entitled to receive $6 reverse the ruling of the Chair-that the out to them that if they want better for every day he shall attend the Senate, and House having opened the door the Senate of government, or if they want to preserve shall also be allowed, at the commencement the United States can walk in through the good government, they must not allow a and end of every session and meeting of Con­ door and pursue the field.' situation to continue developing in the gress, $6 for every 20 miles of the estimated "In view of that ruling, the Chair an­ Congress of the United States which distance, by the most usual road, from his nounced the point of order made by the permits only rich men to become Mem­ place of residence to the seat of Congress. Senator from Missouri was overruled. From bers of the Congress. I think the people The compensation and allowance for mile­ the ruling of . the Chair the Senator from are entitled to know the danger which age has been changed from time to time, in Missouri has appealed to the Senate." amount and by different rates for mileage. The decision of the Chair was sustained by will exist to good government, and to the In addition, allowances have also been made the Senate: Yeas 53, nays 19. exercise of independence of judgment for stationery for Senators and Representa­ The question of germaneness raised by Mr. on the part of Members of Congress if tives, and recently for air-mail and special­ Adams, was, by the Chair, submitted, under they fail adequately to finance Members delivery stamps; and for long-distance tele­ the rule, to the Senate, and the Senate de­ of Congress by approving salaries which phone calls to a limited extent payment is cided that the amendment was germane: will make it possible for them to live in made from the contingent fund of the Senate. Yeas 53, nays 21. (Senate Journal, 74th Washington in decency and provjde for At no time has statutory authority existed Cong., 2d sess., p. 333.) their families and themselves in their for an expense allowance to assist in de­ The present -occupant of the chair, fraying expenses related to or resulting from subject of course to having his opinion old age. the discharge of the official duties of a Lastly, i shall oppose the amendment, Member of Congress. By the provision on­ -overruled by the Senate, as stated by because I think it would endanger the page 19, line 16, of the bill H. R. 3109, the Vice President Marshall in the instance work of the Internal Revenue Bureau and Legislative Appropriation Act for the fiscal cited, is of the opinion that, the House of the War Labor Board in the great task year 1946- having passed general legislation on an which they are both attempting to per­ a,ppropriation bill, under the decisions form in checking inflation in this coun­ Which is the bill now under considera­ and precedents of this body, the Senate try. I think the amendment would cause tion- has the right to offer an amendment to a wealcening of the hold-the-line pro­ the House of Representatives has incorpo­ such legislation. Therefore, the point of gram of this Government. It would con­ rated legislation on an appropriation bill to provide for such expense allowance. order raised by the Senator from Colo­ stitute, in my judgment, a disservice to On May 29, 1936, .the Senate had under radc is not sustained. the President of the United States in consideration H. R. 12624, a deficiency ap­ There are similar precedents in the these trying times, and it would reflect propl'iation bill, and the question was on House of Representatives which the upon the integrity of the Congress of the agreeing to a reported amendment inserting Chair asks to have inserted in the United States. · a. provision that no Feder~ project should RECORD in connection with the opinion Mr. GEORGE addressed the Chair. be undertaken or prosecuted with funds pro­ he has just delivered. The PRESIDENT pro tempore. The vided in the bill unless and until an amount There being no objection, the matter· Chair is about to rule on the point of sufficient for its completion had been al­ located and set aside therefor, and the Presi­ was ordered to be printed in the REcoRD, order which has been raised. dent was authorized to restore to the Federal as follows: Mr. GEORGE. I do not care to address Administrator of Public Worlcs out of tbe The House of Representatives in its rulings myself to the point of order. I do, how­ funds appropriated in said bill any sums on similar points of or~er as to legislation on ever, wish to be heard on the issue now which were, by order of the President, im­ an appropriation bill has taken a like posi­ before the Senate. pounded or transferred to the Federal Emer­ tion, and for a very good reason, as will be The PRESIDENT pro tempore. The gency Relief Administration from appropria-· seen from one of its rulings, taken from sec-. Senator from Georgia will be recognized tions theretofore made and allocated to public tion 3916, volume IV, of Hinds' Precedents of as soon as the Chair rules on the point works projects. the House of Representatives: of order. Mr. Robinson, of Arkansas, proposed an "On June 17, 1898, the House having undei: amendment providing for the appointment of consideration a Senate amendment (No. 74) The Senator from Colorado [Mr. two boards--(1) the Florida Canal Boru:d, _ to the District of Columbia appropriation bill. JoHNSON] has made a point of order that and (2) the Passamaquoddy Board, which relating to electric fighting in the District, the pending amendment is out of order should review, respectively, the Atlantic-Gulf Mr. Mahlon Pitney, of New Jersey, moved because it is legislation on an appropria­ ship canal project, Florida, and the Pas­ to recede and concur in the Senate amend­ tion bill. samaquoddy tidal power project, Maine; and ment with an amendment relating to a con­ In January 1945, in a treatise on the prescribing certain duties of the said boards. duit system for el~ctric light wires. rules of the Senate, Mr. Watkins, the Mr. Adams made the point of order that "Mr. William H. King, of Utah, having made Senate Parliamentarian, stated as fol­ the amendment proposed general legislation, a point of order, the Speaker pro tempore . that it was not germane to the repo1·ted held: 'The gentleman from New Jersey [Mr. lows: amendment, and that it was therefore not Pitney] moves to recede-from the House dis­ Under the precedents, however, when a in order. a·greement to the amendment No. 74 and to general appropriation bill conta]ns legisla­ Mr. Clark, of Missouri, made the point of agree with an amendment. The gentleman tion inserted by the House of Representa­ order that the amendment proposed general' from Ut.ah [Mr. King] makes the point of tives, germane amendments may be offered legislation, and under rule XVI was not in order that the amendment offered by the in the Senate. order. · gentleman from New Jersey is new legisla­ The Acting Parliamentarian (Edward The Presiding Officer (Mr. HATCH) over­ tion. The Chair is very clearly of opinion ruled the poin~ of order made by Mr. Clark, that the point of order is not well taken. J. Hickey) has examined into the ques­ from which ruling Mr. Clark took a11 appeal It is conceded that the amendment offered tion, and I read from his report: to the Senate. by the gentleman from New Jersey is germane Section 6 of article I of the Constitution After a quorum call, the Presiding Officer to the Senate amendment, and the point that of the United States provides: "The Senators · made the following statement: "The Sen­ it is new legislation cannot be raised at this n.nd Representatives shall receive a com­ ator from Missouri (Mr. Clark} made the stage of the proceeding, inasmuch as the pensation for their services, to be ascer­ point of order that the committee amend­ new legislation originated in the Senate. If tained lly law, and paid out of the Treasury ment amounted to general legislation. The that was not the rule, it would be in the of the United States." Chair overruled the point of order made by power of the Senate at any time to originate Section 3 of the act of September 22, 1789, the Senator from Missouri because title II new legislation and deprive the House of any ~t the first session of the First Congress, at of the bill as it came from the House or· judgment with reference to it. If new legis­ page 71 of Statutes at Large I, provided: Representatives contained many matters of lation originates in the Senate, the House has "That at every session of Congress, each general legislation, and in such a case the the right to agree or disagree or to agree with Representative shall be entitled to receive $6 rule laid down by Vice Pl'esident Marshall is an amendment, and the point of order is tor every -day he-shall attend the House of stated thus- therefore overruled.' " 1945 CONGRESSIONA.L RECORD-SENATE 5201 Mr. GEORGE. Mr. President, I have tax, as ·such; against a Member of Con­ $10,000 a year. tinder this amendment no purpose to discuss the point of order, gress, of course. At any rate, however, he could deduct the whole amount, and but, in view of the fact that I had some­ that is the state of law. would not be limited to the $2,500 per­ thing to say this morning about the rev­ I now bring another matter to the mitted under the terms of the amend­ enue laws, I thought I should like to clar­ attention of the Senate, and I think it is ment as an advance on his expense ac­ ify my own positjon upon this amend­ one which should be considered. Quite count. ment . recently a decision has been rendered Mr. LANGER. Mr. President, will the The state of the law is that in our var­ which will make it necessary for the Senator yield? ious revenue acts the terms trade and Treasury Department to ask for a review Mr. GEORGE. I yield. business are used, and by section 48 of the of the prior ruling of The Tax Court on Mr. LANGER. In the opinion of the act a trade or business is defined to in­ this very question of residence of a pub­ Senator, would the decision of the Su­ clude the performance of the functions lic officer. I have confirmed my recollec­ preme Court be retroactive, so that a of a public office. That, however, is not tion of that case by conference with the Senator would be allowed to deduct his the section which recognizes a deductibl~ counsel of the Treasury, and I find that expenses o( previous years? expense in computing taxable income. the Treasury will be compelled to ask for Mr. GEORGE. Undoubtedly it would The provision dealing with deductions for a writ of certiorari to review the decision be retroactive during the period of the expenses incurred in trade or business is which, as I recall, was handed down in limitation. He could not get back for found in another section of the revenue the Fifth Circuit Court of Appeals. At 10 years, but he could go back for the 4 act, to wit, section 23 (a). I should like any rate, the decision has been made: years. to read the language of that section to it is now necessary fo.r a review of that Mr. LANGER. Even though he did not the Senate. It has been read, but I de­ decision to be had for the guidance of pay the tax under protest? sire to read it again for the purpose of the Treasury, and at a reasonably early Mr. GEORGE. Yes; I think he could, calling attention to a matter which has date, of course, the Supreme Court will if the Supreme Court should reverse the not been discussed. pass upon the question of whether or not, prior ruling. The point I am now mak­ Here is the general principle- for tax purposes, the residence of a Mem­ ing is that I think what is proposed is a All the ordinary and necessary expenses ber of the Congress is at Washington or very inadvisable method of procedure. paid or incurred during the taxable year in is in the State or district ·from which he Of course, I have no criticism to make carrying on any trade or business,· including was elected. of the House of Representatives. a reasonable allowance for salaries or other It seems to me it would be very wise, Mr. HATCH. Mr. President, will the compensation for personal services actually therefore, for us not to attempt l-egisla­ Senator yield? rendered; traveling expenses (including the tion at this moment, or until that ques­ Mr. GEORGE. I yield. entire amount expended for meals and lodg­ tion is settled. If the Supreme Court Mr. HATCH. I am anxious to have the ing) while away from home in the pursuit of a trade or business; and rentals or other should reverse the decision of The Tax Senator's interpretation. This is all the payments required to be made as a condition Court, then a Senator or a Member of proviso includes: to the continued use or possession, for pur­ the House of Representatives would be That for the purpose of determining the poses of the trade or business, of property to entitled to deduct from his gross income deductibility of expenses under the income· which t h e taxpayer has not taken or is not all ordinary and usual and necessary ex­ tax laws the home.of a Senator, Representa­ taking title or in which he has no equity: penses incurred by him in discharging tive, Delegate, and the Resident Commis­ the functions of his office, because there sioner from Puerto Rico shall be deemed to That is the section under which ex­ be his domicile in the State· for which or in penses incurred in a trade or business can be no question now, at least, that a which he is chosen, or in the Territory or may be taken as against gross income for public office is included within the term Possession, as the case may be. "trade or business;" by express congres­ the purpose of arriving at taxable net in­ Do I correctly understand the Senator come. sional act. I now call attention to the fact that to say that in the light of that provision As was stated this morning, my recol­ the statute which authorized the deduc­ a Member of Congress could come to lection is that this matter was under dis­ tion gives a discretion to the taxing ::.u­ Washington and pay any amount for cussion, and the Senator from Connecti­ thorities so far as the allowance of ex­ living expenses, no matter how extreme cut [Mr. Danaher] raised some questions penses ordinarily incurred for salaries, or extravagant it might be, and becau~e with the representatives of the Treasury, and so forth, are concerned, but when it of the fact that his home was declared and I had the impression that the comes to traveling expenses, including to be in the State from which he was definition of "trade or business'' in the the entire amount expended for meals elected, that amount would be deductible section first read was then amended so as and -lodgings while away from home in for income-tax purposes? to include "performance of the functions pursuit of a trade or business, it i's highly Mr. GEORGE. Whatever is necessary of a public office.'' I may be in error questionable whether there is any dis­ for him to spend here. about that, and if I am, that section was cretion left in the taxing authorities. Mr. HATCH. Whatever is necessary amended prior to 1939. It may have been Therefore, under the amendment in the discharge of his official duties? .amended as early as 1933 or 1934, upon Which has been proposed as a substitute, Mr. GEORGE. Yes; but it i3 now ex­ the motion of the Senator from Pennsyl­ both that proposed by the distinguished pressly held that his home is here. vania, the Honorable David A. Reed. Senator from New Mexico and the one Mr. HATCH. Under the amendment At any rate, Mr. President, The Tax proposed by the committee, by and his home is in his State. Court was called upon to rule upon the through the distinguished Senator from Mr. GEORGE. Of course his home is expenses incurred in the performance of Louisiana, a change in the law would be in his State, and the tax law already says the functions of a public office, under the made by legislative act, but a Senator or that he is entitled to include the entire pertinent section, section 23, which I last Representative would not be restricted amount expended for meals and lodging read. The ruling was to the effect that to the $2,500 allowed under the proposed while away from home in the pursuit of the residence of a Member of the Con­ amendment or amendments. · In other his trade or business. 'It is a· matter of gress of the United States was at Wash­ words, once it is declared by the legis­ expenditure. Of course, if there is fraud ington. The fact that that is the official lative branch of the Government that the -and a willful padding of an account, _residence of a Member of the Congress home of a Member of Congress is in his there is a right to inquire into it, but might, in my judgment, have very little State and not in Washington, then he the point is that there are a great many weight on the other question, and that is entitled to. deduct · from his gross in­ Senators and Representatives who would seems to me to have been entirely over­ come, in computing his net taxable in­ spend $3,000 a year in Washington, and looked by the decision, to wit, while a come, all the expenses he incurs in the do it legitimately, for rent, for food, and Member of the Congress has his official performance of the ~unctions of his office, lodging. There are many Members of residence at Washington, and must come including the entire amount paid out by the House and Senate who probably here to discharge his duties, when A or B him for lodging, for rentals, and for would spend $4,000 a year, while there or C is elected to the Congress, either subsistence. would be others who would not spend the House or the Senate, he comes from It might well be that some man would anything like that amount. his home in his State. This section is ap­ come to the Congress who desired a Mr. OVERTON. Mr. President­ plicable to a taxpayer, a citizen, who is $5,000 a year apartment. He might even The PRESIDING OFFICER (Mr. called upon to pay a tax. There is no be a bachelor and he might prefer to pay GREEN in the chair) . Does the Senator 5202 CONGRESSIONAL RECORD-SENATE MAY 28 from Georgia yield to the Senator from least the reasonable amount a Member Mr. President, that is all I have to say. Louisiana? of the Congress would pay for his food I do not care to discuss the provision Mr. GEORGE. I yield. and lodging. It would vary in almost inserted in the appropriation bill by the Mr. OVERTON. This provision in the every case. If we are going to make an Appropriations Committee of the House, committee amendment places Senators ·allowance of that kind, it seems to- me because I have always recognized the and Representatives in the same category we had better. do it by stating a fiat sum right of the House to deal with its own as those engaged in any business or trade which we can justify, after we have taken problem; but I do not• believe that the and in the same category as omcials who our seats around the table, heard the question here involved is one that falls are domiciled outside of Washington. testimony, looked into the case, and then clearly within the rule of comity that The fault does not lie in the amendment. reached our own conclusion about the ought to exist between the two Houses. The fault, if any, lies in too broad a pro­ matter. In other words, whatever we may say of vision · in the revenue law which allows Mr. OVERTON. I would have no ob­ it or about it. I think there is a pro­ a deduction for all expenditures, includ­ jection to that, I may say to the Senator, vision increasing the incomes of the ing travel, lodging, and maintenance. if big businessmen and big corporations Members of the House, and while we But there is no difference between a Sen­ were treated in exactly the same way. might be content to grant that without ator or Representative and a represent­ Mr. GEORGE. I presume they are considering a like increase for the Mem­ ative of a corporation or a businessman being treated that way. I assume that bers of the Senate, it seems to me that or anyone else who is domiciled out of public officers are doing their duty. - The it raises an issue on which we, as well Washington and who comes here-- to point I am making, however, Mr. Presi­ as the Members of the House, are called Washington. dent, is that once we adopt either of the upon to vote. Mr. GEORGE. No; I know there is rio substitutes now offered we shall have re­ Mr. HATCH. Mr. President, will the difference, but there is a vast difference versed the decision of the Tax Board, Senator yield at that point for a moment? in the administration. and then the statute that allows deduct­ Mr. GEORGE. I yield. Mr. OVERTON. The amendment ible items in computing net income be­ Mr. HATCH. I understand the posi­ simply puts Senators and Representa- . comes applicable, and we have necessar­ tion of the House of Representatives to tives in the same category as others. ily for public officers varying amounts, be that the $2500 provided for by the Mr. GEORGE. Oh, no. according to the actual expenditures they House provision will be exempted from Mr. OVERTON. Under this provision, may make. That has nothing to do taxation. ·It has occurred to me that what advantage would the Senator have with the very worthy purpose of increas­ when any citizen or body of citizens, over a businessman? ing the salaries in proportion to the ex­ whether official or otherwise, receives an Mr. GEORGE. Let me ask the Sena­ penditures we are now required to make. exetnptio11 from taxation, that is a mat­ tor, what collector ·of internal revenue There is the question, of course, of the ter for both Houses of the Congress to would question the amount that any Stabilization Act to which the distin­ pass upon. Member of the Senate or the House guished Senator from Oregon [Mr. Mr. GEORGE. I agree with the Sen­ might pay for rent if he said-it was a MoRsEl has called attention, but aside ator from New Mexico. While the House reasonable rental, and was paid for the from that I think a very strong case can does not expressly say that the item shall only house he could get·in Washington? be built up for an increase in the salaries be exempt from taxation, that it shall Mr. OVERTON. Whether he says so or of the Members of the House and the not be subject to taxation, as a matter not, does the collector question what the Senate. I believe, however, that wnen of fact the Treasury will be obliged to businessl}lan returns? we do that we ought to sit down around make inquiry of each Member, when he Mr. GEORGE. Yes; he has a right to . the table and carefully approach the makes his returns, or thereafter, regard­ do so. question, after a real hearing on the ing his expenditures, and if he has not Mr. OVERTON. He would have the merits of the matter. expended the $2,500, if for a whole year same right with respect to a Senator or a I am perfectly conscious that we should he has been sick and has not come to Representative. await the decision of the Supreme Court Washington at all, and has not spent a I should like to ask the Senator from of the United States, which may reverse dime in Washington, he will undoubtedly Georgia one other question. There is, the decision of the Tax Board and make be chargeable with the $2,500 as income. however, a limitation on what a Senator it possible for the Treasury to allow de­ I think it would be a taxable item. There­ or a Representative may spend, let us ductions for all the necessaTy expenses fore the questions asked by the distin­ say, for the rental of an apartment or a that Representatives and Senators in­ guished Senator from New Mexico be­ home. That limitation is that the Gov­ cur and are, of course, compelled to come pertinent. ernment does not pay for it all. It is incur in coming to Washington -to dis­ Those, briefly, are the reasons why I merely deductible. Let us consider a charge their duties. believe that we ought not to deal with Senator whose sole income is $10,000 a Mr. OVERTON. May I interrupt the this question in tbe pending bill, and year salary. I use that as an illustration Senator, simply to ask a question for ought not to approve the allowance for because it is very easy to use the :figure information? ourselves or for Members of the House. $W,OOO. He pays a 25-percent tax. So ' Mr. GEORGE. Yes. I do not discuss the question of criticism if he should rent a $3,000 home he could which might reach us. I do not believe make a deduction of $3,000. But that Mr. OVERTON. The decision to which the Senator refers is not in connection that the country would be critical of would not be a deduction of $3,000 net to any fair increase in salary, ma_de directly him. On the contrary, he would have to with a case in which a Representative or a Senator is interested? and in the open, and without, of course, pay 75 percent of the $3,000 and the undertaking to prevent the application of Federal Government would pay 25 per- Mr. GEORGE. No; but it involves this direct question, and the Treasury advised the tax laws to the amount of the salary. cent. · I think it is a bad principle in tax legis­ Mr. GEORGE. That is, if the deduc­ me during the noon hour that they would be compelled to ask for a review of the lation to include exemptions from taxa­ tion did not destroy his taxable !income. tion, but I realize that there are many ex­ If his deduction. took him down below a ·decision, and that would be controlling on the prior decision. emptions. Reference was made today to taxable income he would not pay a the exemption of $1,5'00, over and above penny, and that is the point I am making, Mr. OVERTON. One circuit court of that the Appropriations Committee is appeals has decided the question one the statutoTy. exemptions, for men and proceeding to legislate on a tax matter, way and another circuit court of appeals women in the armed services. I think and on a very delicate and a very im­ has decided the question the other way, there is no doubt about the wisdom of portant tax provision, without I fear, and the Supreme Court will have to be that exemption. 1\iy only concern is that very careful consideration of what the the :final arbiter. it may not be adequate to take care of the e1!ect of it will be. I do not think this is Mr. GEORGE. And the Supreme men and women in the armed services. the proper approach to the matter, Court must decide the question. But I know that we are remiss in one thing, Wholly aside from the question of the already the case has arisen, and has and I hope that another tax bill will not merits or the demerits of an increase in been decided, which makes it necessary pass without provision being made for salary. There should be a standard pro­ for a Supreme Court ruling to be handed relieving men and women in the armed Vided for a deduction measured -by at down. serv1ces, particu1arly those overseas, from 1945 CONGRESSIONAL RECORD-SENATE 5203 the necessity of filing any return. I As the Senator·from Georgia has said, a I have the greatest respect for the can think of nothing more distracting to good case can be made out in behalf of House of Representativess and for its a boy in a fox hole in the southwest Pa- an increase in the salaries of Members Members. I served there 14 years, and . cific tha.n to be thinking about how he is of Congress. Many things have hap­ I enjoyed service there. I am thoroughly going to make tax returns back to the pened in the past 20 years which have familiar with their problems. They have ye9Jr 194U. affected our net income; and I agree with to run for office every 2 years, whereas 1\fr. JOHNSON of Colorado. Mr. Pres­ him that the country would not be criti­ Members of the Senate are required to ident, will the Senator yield? cal of a reasonable increase in view of run for reelection every 6 years. I sup­ Mr. GEORGE. I yield. the increased cost of existence· and all pose it can be said that, on the average, Mr. JOHNSON of Colorado. The Sen­ the circumstances which attend mem­ the expenses of an individual Senator are. ator from Georgia has spoken of the $1,- bership in either House of Congress. But greater than the expenses of individual 500 exemption to men and women in the I have a very firm conviction that what­ Members of the House, inasmuch as Sen­ armed forces. I ask him if that proposal ever is done upon the subject ought to ators have to cover a whole State, and was in an appropriation bill for the mili­ be done for the benefit of Members of the obligations of a Member of the tary forces, or whether it was in a reve­ both Houses alike. Heretofore when Senate in regard to things which cost nue bill? there has been an increase in the com~ money are greater than those in the case Mr. GEORGE. It was in a revenue pensation of Members, no matter whether of an individual Member of the House bill. the increase originated in the House or of Representatives. So it probably aver­ !vir. JOHNSON of Colorado. That was in the Senate, it has been made to apply ages up between the two bodies. where it belonged. both to Members of the S~nate and Mem­ Mr. President, by whatever name we Mr. GEORGE. Yes; it was in a reve­ bers of the House. call it, it seems to me that in the interest nue bill. In this case, whatever the allowance of comity, of which we hear something Mr. President, I have full faith in the may be called, whether it be an expense said, the provision should be made to Appropriations Committee. It is just as allowance or an increase in the gross in­ apply to both Houses alike. That has al­ competent as is any other committee to come or net income of Members, the ways been done heretofore. If a pro­ pass upon tax questions. However, there effect is to give more money to Members posal for an increase in salary originated is a great deal of. wisdom in the general of the two Houses . . The provision for in the House of Representatives, it was rule which obtains in this body, namely, an allowance of $2,500 is contemplated made to apply to the 'Members of both that we may not place general legislation to take care of expenses which we are the House of Representatives and the on an appropriation bill. I believe that now paying out of our own pocket. Senate. If the proposal originated in all of us recognize the validity· of that There can be no question that, whether the Senate, it was made to apply to both rule. However, in this particular case,· it applies to lodging, food, or subsistence, Members of the Senate and Members of I believe that the Chair has properly all of which we are now paying out of the House of Representatives: Hereto­ ruled that, the House having opened the our salaries, if the $2,500 increase is al­ fore, neither House has considered it door, any germane or pertinent amend­ lowed, it will be that much toward the within its special province to legislate ment may be considered. payment of our living expenses in the for its own compensation and to let the Mr. OVERTON. Mr. President, will city of Washington. We would have other House take it or leave it. There the Senator yield? that much more money to spend. In has always been uniformity. Since the Mr. GEORGE. I yield. · that event, it would represent an in-, beginning of the Government there has Mr. OVERTON. I agree with the Sen­ crease in our gross income, and, of been uniformity in the matter of com­ ator that it was a wise provision to insert· course, would automatically become an pensation and. also uniformity in the in the law an exemption of $1 ,500 for increase in our net income. matter of mileage, based upon the same those in the armed services; but, Mr. I do not criticize the House at all. The amount per mile for each Member of President, does the Senator make a dis- · House had before it a delicate situation, the House of Representatives and each which is not new. The question has been Member of the Senate. tinction between those engaged in the discussed many times over a long period, armed services who sit at desks in Wash­ Mr. WHITE. Mr. President, will the ington and United States Senators, who in cloak rooms, in offices, on street­ Senator yield? are here the year round, working just as cars, in taxicabs, and in the vicinity of the Capitol. This is the only time in 20 Mr. BARKLEY. I yield. laboriously as the officer or enlisted man years when it has taken CQncrete form Mr. WHITE. Mr. President, is not who is working in Washington, although in the shape of an amendment to the what the Senator has just said em­ he may be a member o{ the armed la\\. phasized by the constitutional provision forces? When we come to the question of that the salaries of Members of the House Mr. GEORGE. No; I do not make any comity between the two Houses, that of Representatives and ·Members of the distinction. · If I did, I would make it in has heretofore been interpreted to apply Senate shall be established.by law-which favor of the legislative branch of the to committee clerkships, size of commit­ means that they shall be established by Government. tees, and the contingent funds of the joint action of the two Houses of the Mr. BARKLEY. Mr. President, I do respective Houses. Neither House has Congress? not desire to detain the Senate long on ever impinged upon the right of the other Mr. BARKLEY. Undoubtedly that is this question. I hope we may complete to decide what its contingent fund should so. But if the provision of the bill in consideration of the bill today. be. Neither House has ever attempted this respect which was adopted by the On last Thursday I briefly expressed to say how many clerks the Members of House of Representatives remains in the some views on this whole question. At the other House should have-and prop­ bill and if the bill is passed by the Senate · that time I suggested that we might erly so. and is signed by the President, that pro­ take a recess until today to see whether I do not put this proposal upon · the vision will become the law, and in that the Appropriations Committee, or sub­ same footing as committee-clerk hire, case greater compensation will be paid committees of the ·Senate and House the contingent funds of the respective to Members of the House of Representa-· committees, could work out some provi­ Houses. or clerk hire for individual Sena­ tives than to Members of the Senate. sion which would be acceptable. tors. It seems to me to be entirely dif­ Mr. WHITE. I think the Senator I myself would not have introduced ferent. I am unable to escape the con­ is correct in that respect; but in that any legislation on this subject originallY, clusion that, whatever it may be called, connection it occurred to me that the in the Senate, and I am sure that had it is an increase in the amount of money constitutional provision has a signifi­ the House not included the provision· we are paid out of the Treasury of the cance of its own. It clearly contem­ which is found on page 19 of the bill the United States; and whatever is· done, no plates that the two Houses shall deal Senate committee would not have ven­ matter in which House the proposal orig- · with the subject of the salaries of the tured upon this field in the way in which inates, it should be made applicable to Members of both Houses. · the proposal riow comes before us. the Members of both Houses alike. In­ Mr. BARKLEY. Undoubtedly that The way in which this question comes asmuch as that was not done, an embar.; is true. Heretofore for 150 years both before us at this time is an embarrass­ rassing situation has been created for Houses have frowned upon any effort to ment to the Seriate' and to all Senators. the Members of the Senate. draw a distinction between the salaries 5204 CONGRESSIONAL RECORD-SENATE MAY 28 of Members of the House of Representa­ the House has made for itself or if the There is a very logical objection which tives' and the salaries of Members of the Senate should adopt an amendment they have, and which seems to me to be Senate, and, of course, neither House making any increased allowance whatso­ good, to increasing the pay, namely, that is willing to admit that it is not as im­ ever to defray the expenses of Members there are other members of the Govern­ portant as the other, and neither House of the Senate, so that the amendment ment, including members of the judiciary should ask the other House to admit or would be in the bill, could the committee and other governmental employees, who concede or grant that it is less important on conference then consider the ·amend­ are not covered by the bill which we than the other House. ments and could it then have the right to recently passed, and in that case the Mr. AIKEN. Mr. President, will the reach a meeting of the minds and to $1,500 allowance would be more than it Senator yield for a question? raise qr lower the amount named in should be, but that if we put it in now it Mr. BARKLEY. I yield. either amendment? would be more difficult to adjust it later Mr. AIKEN. I should like to ask Mr. BARKLEY. I have grave doubt according to what it should be than it whether I am correct in understanding whether a point of order would not be would be if we left it untouched alto­ that if the Senate fails to adopt an sustained against a conference report gether. amendment providing for an increased which attempted to change the language I do not know whether a permanent allowance for Members of the Senate, in one part of the bill deal~ng with one increase of $1,500, which perhaps would and if it fails to strike out the amend­ branch of the legislature, no matter what last 15 or 20 years-as was the case with ment providing for an increased allow­ the Senate might do in another part of respect to the last increase in the pay ance for expenditures for Members of the bill dealing with itself. I have grave of Members of the Congress-would be the House of Representatives, the com­ doubt whether ·the conferees could do fair. No one can tell what will happen mittee on conference could neither con­ that. in the next 15 or 20 years. We know sider striking out the increased allow­ Mr. President, in a moment I shall what has happened during the last 20 ance for the House of Representatives offer an amendment to reduce the years with respect to our salaries. But nor could it add to or increase the allow­ amount carried in the pending amend· a permanent increase now to $11,500 ance for the Senate, in order to make ment from $2,500 to $1,500. I shall do would be a serious handicap to making the allowances uniform. that on the basis of the argument which a suitable adjustment at some later date. Mr. BARKLEY. That is correct. As­ was made here the other day that what­ Mr. TOBEY. I assume that the Sena­ suming that the Senate were to reject ever we do, if we do anything, we should tor takes the position tll_at in deference the pending amendment and were to not go beyond the 15 percent which is the to the Little Steel formula, the increase adopt no substitute for it, and assuming rule under the Little Steel formula. should be only $1,500. Am I correct? that it were to leave the House language Provision for $1,500, whether we wish to Mr. BARKLEY. Yes. One of the ob­ untouched, then neither of those matters add it as compensation or by way of an jections made a few days ago to the would be in conference, and when the expense allowance, would not violate the proposed $2,500 allowance was that it conferees met they could not add any­ 15-percent provision carried in the Little went beyond the 15 percent which is now thing for the benefit of Senators, and Steel formula. If that amendment to permitted. they could not subtract 1 cent from the pending amendment should be Mr. TOBEY. And so, under the Little the allowance of $2,500 carried in the adopted and if the amendment as thus Steel formula a Senator's expenses would bill, as it passed the House, as an allow­ amended should be agreed to by the Sen­ be limited to 15 percent. ance for the expenses of Members of the ate, it seems to me that in order to be Mr. BARKLEY. Yes. House. logical we would have to do the same Mr. TOBEY. Accepting that state­ · So, I think the result .would be em­ thing with the House provision making ment, would the Senator be willing to barrassing-and no less embarrassing an allowance for expenses of Members of phrase his amendment so that the $1,500 for the House of Representatives than the House of Representatives. would apply just so long as the Little for the Senate. The result would be Mr. MORSE. Mr. President, will the Steel formula was in existence, and that that the Members of one House would Senator yield? thereafter the amount be increased to be drawing that much more money than Mr. BARKLEY. I yield. $2,500? the Members of the other House would Mr. MORSE. I rise to inquire about Mr. BARKLEY. It is somewhat di:ffi.­ draw. That would create a situation the parliamentary situation with respect cult to take two bites at once and say which would present invidious compari­ to the matters the Senator from Ken· that we will chew one bite until the sons, and I do not think the Congress tucky has been discussing. Let me in· Little Steel formula is abandoned and should indulge in them. I think what­ quire whether I am correct in my under· then we will take another bite. ever is done for either House should be standing that when the bil!-1s sent back Mr. TOBEY. It is contingent. done for both Houses. to the House of Representatives it will Mr. BARKLEY. It is contingent. Mr. AIKEN. Then, it seems to me that not be subject to a motion for reconsid­ However, if we do anything about the the action which the Senate takes will eration of any portion of it which has situation now, probably the House pro­ in a sense probably be final. previously been passed by the House of vision and the provision in the· pending Mr. BARKLEY. It may be; it may be Representatives. amendment subject to a reduction if the that what we do here will be done in such Mr. BARKLEY. I do not believe it Senate sees fit to make it, is probably a a way as to leave no leeway or jurisdic­ would be in order to move to change pro­ better way in which to deal with it than tion or field for the conferees to work visions of the bill which were sent to to deal with it as a contingent increase out the matter. In that case, the action the Senate by the House of Representa­ in salary, with a provision that later on, of the Senate will be final, because when tives and which had not been modified if something takes place we will do some­ we send this measure to the House of by the Senate, unless a special rule were thing else. I believe that the Congress Representatives it either must go to con­ obtained from the Committee on Rules will be in session for some time and that ference or the House of Itepresentatives of the House of Representatives. Unless we will be able to deal with salaries as must act upon the Senate's amendments such a special rule could be obtained, I exigencies arise. My judgment is that on the floor of the House. The House of do not believe it would be in order to do if the war with Japan continues there Representatives will have no jurisdiction that. will be a stabilization act still in ex­ to undo what it has already done and to Mr. President, I have talked with istence, and under it either the Little send it back to the Senate, even "though Members of the House of Representa­ Steel formula of 15 percent, or some we by our amendments do not touch that tives in regard to the question of an in­ other formula which will be adopted, will particular point. That is the case- under crease in pay and in regard to the pro­ be in effect. I doubt whether we should the parliamentary rules. So I repeat visions of the amendment or of the bill, say that salaries should be $1,500 more that that language would be in the bill and I have talked with some Members during the next year, and after that and could not be changed. ·about the Little Steel formula, so as to $2,500 more, and the year following, $5,· Mr. AIKEN. Will the Senator yield feel them out with respect to how far 000, and so forth. I think we should deal so that I may ask a further question? they would be willing to go or whether with the situation when it arises, and Mr. BARKLEY. I yield. they feel we should stop at $1,500-which without any contingencies. We can do Mr. AIKEN. If the Senate should re­ would be 15 percent-as an increase in so under whatever circumstances exist duce by any amount the allowance which pay or as an allowance for expenditures. at the time. •

1945 CONGRESSIONAL RECORD-SENATE 5205 Mr. TOBEY. I do not accept the in­ treat the Members of. the Senate in the an indictment could be filed. Last of all, terpretation of the Senator that the same manner. I do not desire to inter­ it has no authority to try any war crimi­ proposed increase would be an increase fere with the comity between the two nal. In other words, it is an investigat­ in salary. I have interpreted it as an Houses, but I think that the Members of ing organization, with power to make expense account authorized by the Mem­ the two Houses should have conferred recommendations, which may or may bers of Congress. I think the bar sinister with one another and talked· with one not be followed. is the Little Steel formula. When and if another about this matter before the Following the creation of this Com­ the Little Steel formula no lot:lger exists provision was put into the bill in the mission, the Allied Nations, in the Mos­ and the Congress believes that $2,500 is a first instance. cow Declaration of November 1, 1943, fair amount to be contributed by the Mr. President, on page 1, line 2, of provided that all war criminals whose Treasur~· toward the expenses of Sena­ the committee amendment, I move to crimes had a particular localization in tors, only the amount of $2 ,500, which amend by striking out the figure "$2,500'' any of the overrun countries should be the Senator has in mind, would be in and inserting in lie!J. thereof "$1,500." returned to those countries to be tried effect. PUNISHMENT OF WAR CRIMINALS therein according to the local law. . Mr. BARKLEY. I do not like the Under this agreement, the Union of words "bar sinister" which the Senator Mr. LUCAS. :t~ar. President, I dislike Soviet Socialist Republics has started to has used. I should rather use merely to take the time of the Senate to discuss implement its right of punishing war the word "bar." The theory upon which a subject which is not germane to the criminals and their accomplices, and has I am suggesting this reduction is that issue now pending, but I wish to refer sentenced several culprits to capital pun­ no one, whethe:r he interprets the in­ for a few minutes to the subject of the ishment at open trials in Krasnodar and crease as an increase in compensation, punishment of war criminals. Kharkov. or as an allowance for expenses, may There is being disseminated in Amer­ France, having experienced the dis­ say that we have done for ourselves ica and throughout the wdrld a vast grace of the Vichy regime, has arranged what we have not permitted the Gov­ amount of misinformation on the pun­ trials of the collaborationists, and to ernment to do for other persons. It ishment· of war criminals. In order date has passed hundreds of sentences. may be that consistency is a hobgoblin that the record may be made clear and The Czechoslovakian Government has of small minds, but I do not believe that brought up to date, I am going to take drawn up a huge list of war criminals, we should ignore altogether a compari­ the time of the Senate to review his­ who are now being tried. ~on between our treatment of ourselves tory, and make some comments on bring­ It is my understanding that. a special in cases in which we have power and our ing to an early trial Nazi and Fascist tribunal has been set up in Holland, treatment of other persons in cases in leaders in custody of the American Army Belgium, Norway, and Denmark to try which we also have power but they do in Germany, Italy, and elsewhere. the traitors, Quislings, and other war not have it. · Throughout the war in Europe, the criminals. Bulgaria has adopted a rigor­ Mr. TOBEY. I should like to think Allied Nations were familiar with the ous course against the Fascists, and has of the definition of consistency as being crimes being committed by Nazi and sentenced to capital punishment many "Thou art a jewel." Does not the Sen­ Fascist leaders upon political prisoners of the. top war criminals. In. Rumania ator agree with that definition? and other innocent minority groups. a rather extensive number were listed, Mr. BARKLEY. Yes; but we cannot We also knew that the Nazi and Fascist and recently many of them were found always be consistent. In the light of new leaders were not living up to the Inter­ guilty and sentenced to be shot. facts and conditions we must be at least national Convention of Geneva relative to the treatment of prisoners of war. It should be remembered that those ftexible in our minds and in our approach listed or· now being tried by various to matters. We cannot always vote today With a full realization that victory over the common enemy was inevitable, the Allied Governments are· war criminals in the same way we voted 10, 15, or 25 whose crimes were committed in these years ago. We would be static if we Allied Nations in October 1943 organized the United Nations War Crimes Com­ respective countries. were not willing to take advantage of . Mr. President, there is precedent for new information. mission, with its principal office in Lon­ don, England. Sixteen nations are this procedure. However, the difficult Mr. TOBEY. I thank the Senator for members of the Commission. The only task lying ahead of the Allied Nations his statement. nation of any import that failed to join is the trial of war criminals whose crimes Mr . BARKLEY. I do not wish to pur­ was our ally, Russia. had no geographical localization. Obvi­ sue the matter any further, Mr. Presi­ Mr. President, there are many dis­ ously, they must be handled differently. dent. torted views as to the creation of the Today the United States Army in Ger­ Mr. OVERTON. Mr. President, if the Commission, its powers, its duties, and many has in its custody many top Nazi amendment proposed by the Senator its functions. In fact, the Commission leaders and many members of the Ger­ from Kentucky shall be agreed to, am I itself, judging from some statements is­ man General Staff. In our custody is to understand that he will then with­ sued, is laboring under a delusion as to a part of the band of evil men respon­ qraw any opposition which he may have the extent of its rights and powers. sible for the preparation and unleashing to the remainder of the amendment? In order to keep the record straight it of the war of aggression against the Mr. BARKLEY. No, Mr.•President; I should be remembered that the Com­ Allied Nations. Their implied belief in have not said that. I say that if this mission, in the beginning, was estab­ brutality, force, and torture was respon­ amendment shall be adopted, I think it lished for the sole purpose of investigat­ sible for the ghastly atrocities commit­ would be more consistent to adopt it on ing war crimes. · After operating for a ted upon political and military prisoners that basis than otherwise. I think the While the Commission received from the and many other minority groups. same treatment should be given to Mem­ 16 participating nations the additional Search the records of history, and one bers of the other House that we give to duty of making recommendations to the will not find a chapter so black, degrad­ Members of the Senate. governments with respect to procedural ing, and inhuman. There is no question Mr. OVERTON. I think it would be matters dealing. with war crime. The about the proof of guilt. We have it better to kill the amendment by one blow Commission obtains the evidence, exam­ from our own Senators who were priv­ than by piecemeal. If the Senator is ines it, and when it is convinced there ·ileged to view first hand the systematic going to fight the amendment-- are sufficient data to convict a person operation of the Nazi crime doctors. Mr. BARKLEY. No; I am not saying makes ·such a recommendation. The This group of international brigands that I will fight it, and I am not saying Commission has, unfortunately, termed challenged free civilization to live. They that I shall vote for it even if the amount this bringing ·an indictment against the repeatedly announced their criminal is decreased. I reserve the right to op­ war criminals. A great number of peo­ aims, and carried them into execution pose it even if the amount is reduced. ple are of the opinion that the Com­ with high German · efficiency. These Mr. OVERTON. I understand. mission has the power to indict war Nazi and Fascist leaders stand indicted Mr. BARKLEY. I am willing to say criminals. This is highly erroneous: in public opinion for crimes against that this: I am not going to vote to give The Commission has no authority to in­ part of the human family believing in the Members of the House $2,500, dict any criminal, irrespective of where reason and justice. whether it is called ::m allowance for ex­ the crime was committed. . Even if it had Mr. President, other far-reaching and penses, or an increase in salary, and not such power, there is no court with which delicate international problems are now 5206 CONGREBSIONAL- RE-CORD-SENATE MAY 28 upon the agenda of world affairs-the and the Nazi Party. These skeptics con­ use their power to bie'ak up for all tirp.e dispute about Trieste, the Polish ques­ tend that the German General Staff is to come the. German General Staff. tion, and many more, but the immediate· merely a group of soldiers, and should be Nothing should be ·left undone to de~ question now before the civilized world treated as prisoners of war under the stray once and for all the evil art of is, when and how will these criminals be rules of international laW'. These doubt­ German war making. We should deal tried? Since the method of trial and dis-· ing Thomases would have us believe that with stern· realities in a realistic man­ position of these criminals could not be the General Staff knew nothing about ner. We cannot repeat the mistakes included in the Moscow Declaration be­ the horror camps and other atrocities. that were made in 1918. A bullet for a cause there was no geographical local­ This, of course, is a fallacy· that un­ German staff officer now is better than ization, the Allied Nations are compelled doubtedly will be challenged when the a .bullet for an American boy in 20 years to find a way out. It is necessary to make trial of these criminals starts. In my from now. precedent. It is gratifying to know that opinion, the General Staff is just as guilty We must never forget what Franklin the United States has taken the lead in as Hitler, Goering, and the group who D. Roosevelt, the late President of the the preparation of plans and procedure· controlled the Nazi Party. The truth of United ~tates, saidon March 23, 1944: in the trial and punishment of this out­ the matter is that the General Staff We • • again proclaim our de- law group. It is inadvisable to state at recognized Hitler as just the man it need­ termination that none who' participated in this time just what those plans are. It ed to ftway the German mass to theit: these a.cts of savagery shall go u npunished. is sufficient to say that they are in keep­ theories and philosophies of future war. The United Nations • • • will pursue the ing with what is right and just. If those Curt Riess, in his book entitled "The guilty and deliver them up in order that jus­ Nazis Go Underground," quoted from an tice be done. That warning applies not governments now occupying Germany only to the leaders. but arso to their func­ agree to the proposals or submit counter­ address made by Field Marshal von Run­ tionaries and subordinates. suggestions upon which all can agree, stedt before the War Academy in Ber­ justice in the end will triumph. lin, in which he said the following: We should not forget what President It is well to point out that the Presi­ . The destruction of neighboring people and Harry S. Truman said on April 16, 1944: dent of the United States has recently their riches is indispensable to our victory._ Nothing shall shake our determination to appointed Justice Robert Jackson of the One of the great mistakes of 1-918 was to punish the war criminals even though we spare the civil life of the enemy countries, must pursue them to the ends of the earth. Supreme Court, as the one to prosecute for it is necessary for us Germans to be al­ these criminals in behalf of the United ways at least double the number of the peo­ Mr. President, as an American, believ­ States. Justice Jackson has assembled ples of contiguous countries. We are there­ ing in constitutional liberty, the Senator a staff. He is now in Europe assembling fore obliged to destroy at least a third of from lllinois is in favor of giving these the evidence. Only arriving at an agree­ their inhabitants. The only means is or­ leaders a fair an