sign in sign up
<<
Home , Quinine

11454 OONGRESSIONAn REOORD-_ HOUSE ITUNE 17 bill the edible products of the forests which are not capable of made; the House adopted it without any clifficnlty after it was cultivation-which, in fact, will not permit of cultivation, but fully discussed there; and the .Agricultural Committee refused merely have to be gathered-and at the same time to exclude a to eliminate the provision. I hope the Senate will permit it to product which actually requires hard work is an absurdity. remain. Mr. President, it is not intended to give to those engaged in Mr. TRAMMELL. Mr. President, I wish to make it clear this industry any benefits except those granted under the House according to my opinion-and I believe that that opinion will bill to others who are engaged in agricultural pursuits. I wish be concurred in by all Senators who closely study the bill to call the attention of Senators to the fact that the naval­ which we are discussing-that the provisions of this bill for stores provision is contained on the :first page of the bill passed a system of cooperative marketing do not in anywise change by the House of Representatives, beil!-g House bill 7893. That the status and do not contemplate a change of the status of is not the Haugen bill. The Haugen bill has been added as any industry so far as its bearing toward the antitrust law an amendment to the original bill which was passed by th~ is concerned; 1n other words, the mere fact that naval stores House of Representatives. That portion of the bill to Which are included in this bill would in nowise protect the naval the amendment applies provides for no financial benefits at all stores industry against the provisions of the antitrust law if from the Government. It is merely to permit farmers to form it should form an unlawful combination for the control of cooperative organizations for the specific purposes stated in the prices. I am confident that upon a thorough study of the bill bill. For instance, that bill provides: every Senator will agree with me on that point. SEC. 2. The Secretary ~f Agriculture is hereby authorized and The reason why agricultural organizations are exempted directed to establish a division of cooperative marketing wlth suitable from the provisions of the antitrust laws is on account of a personnel in the Bureau of Agricultural Economics of the Department specific measure which has heretofore been enacted for that of Agriculture or in such bureau in the Department of Agriculture- · purpose. Naval stores, however, are not included in that par­ ticular law. And so forth. Mr. President, I understand there is a desire to take a Then it is provided that- recess at this• time, and I will defer further remarks on the Such division shall be under the direction and supervision ot the Sec­ pending amendment until the morning, when I should like to retary of Agriculture. have the floor. Section 3 provides : RECESS (a) Tbe division shall render service to associations of producers of Mr. McNARY. I move that the Senate take a recess until agricultural products, and federations and subsidiaries thereof, en­ 12 o'clock noon to-morrow. · gaged in the cooperative marketing of agricultural products, including The motion was agreed to; and (at 5 o'clock and 29 minutes processing, warehousing- p. m.) the Senate took a recess until to-morrow, Friday, June 18, 1926, at 12 o'clock meridian. And so forth. (b) The division is authorized- (1) To acquire, anal-yze, and disieminate economic, statistical, and HOUSE OF REPRESENTATIVES historical information regarding the progress, organization, and business methods of cooperative associations in the United States and foreign THURSDAY, June 17, 1926 countries. The House met at 12 o'clock noon. Why deny the producers of naval stores that service? The Chaplain, Rev. James Shera Montgomery, D. D., offered (2) To CQnduct studies of the economic, legal, financial, social, and the following prayer : other phases of cooperation, Our God and our heavenly Father, in faith, hope, and love * * * • • • * may we draw near to Thee. Imbue us bountifully with the (3) To make surveys and analyses if deemed advisable of the ac- gifts for service. Clarify our understanding and make our counts and business practices of representative cooperative associa­ hearts pure that with statesman-like wisdom and fervor the tions upon their request ; Members of this Congress may be altogether worthy of the public's faith and confidence. Help us to be true to all the • • * • • • • better voices of our bein

I - - 1926 CONGRESSIONAL RECORD-HOUSE Ill455 This was a resolution which would commit the Holise in under this settlement; but it you will take into consideration advance to the policy of the World Court. It was an attempt to the interest that is included in the new principal, $394,000,000, drag the House into an attitude of seeking to influence the and the interest that will accumulate during the remaining Senate into adopting the World Court J)rogram of President period at these low rates of one-eighth, one-fourth, and so forth Coolidge. I was always opposed to the League of Nations and you will find that the United States receives back its principai had fought it and voted against the league every time I got an and an average rate of interest on it of eighty-three one­ opportunity to do so. My district was against it and my people hundredths of 1 per cent, or nearly 1 per cent interest on the stood where Washington stood, against foreign entanglements. whole amount during the whole time, which aggregates $759 - I do not honestly believe in entangling alliances with foreign 000,000 of interest which you will receive on the indebtedne~. nations. I knew, moreo-rer, that Congressman BURTON had This calculation was made by the actuary of the· Treasury always been consistently for the league. During Wilson's ad­ Department. ministration be stood for the league. So, therefore, I made up These rates of interest are not all that America will have re­ my mind that I would vote against this resolution, and did. ceived out of this loan. If you want to put it on a cold­ A roll call of the House on the resolution disclosed 100 blooded, strict commercial basis, all of this money but $80,- Members who were away from the city at the time and did not 000,000 was spent in the United States for war supplies, food, Tote; 303 who voted for the World Court, and 28 who voted cotton, and other essentials in the prosecution vf the war. against it. My name is recorded as one of the 28 in the Sixty­ During that time the United States had an income tax, normal eighth House who voted " no," against it. and surtax, amounting to 77 per cent, and had an excess war­ So much for the World Court. profits tax of 80 per cent. All ot the American enterprises Now, as to the Italian debt settlement. When the Republican which made money out of these sales to Italy had to pay the administration came into power it found foreign governments United States income and excess-profits taxes and the United owed us $11,000,000,000. This sum of money was loaned to the States reaped a benefit from that source, millions in additional foreign countries by the Wilson administration. The law under taxes. which these loans were made provided that our Government The Congress is filled with bUls seeking agricultural relief. should take bonds from those governments as security for Our statute books are filled with artificial laws which produce these loans ; but, strange to say, Mr. McAdoo, then Secretary economic effects and affect the agricultural industry. We have of the Treasury, took no bonds or other security, but accepted the IDsch-Cummins law or railroad administration bill. It merely the I 0 U's with no definite stipulation as to time or not only is a price-fixing bill but it produces economic effects ; other conditions of payments. This money had been loaned then we have the Federal reserve law which also has an arti­ for several years, but not a cent of principal or of interest had ficial effect. It is price fixing because it establishes the rate been collected. In fact, Mr. Bryan and many other Democratic of discount, and so forth. Then there is the Adamson law leaders were urging the cancellation of these debts. The Re­ which fixes the days of labor at eight hours each; the restrictive publican administration promptly took the position that there immigration law keeps out foreign labor. All this has a tend­ would be no cancellation of .any of these debts, but that these ency to produce economic effects and establish prices around debtors would have to make arrangements to pay. Under an which our civilization hinges, and all our prices are high. Now, act of the Republican Congress, Great Britain had already Italy is affected by the laws of the United States in at least arranged to refund her debt, amounting to nearly $5,000,000,000, three ways. The standard of living in Italy is lower than any by paying a substantial sum of interest and giving her bonds other great country. It is lower than that of the poorest, for the remainder, to be paid at a definite time and at a definite humblest class of citizens in the United States. It is not so rate of interest. · from chance. It is so from stern necessity. Italy, in the year The commission created by Congress concluded negotiations 1925, had a deficit in her trade balance of $274,000,000. In with Italy looking to the refunding of her debt to us. The other words, she imported that much more than she exported. negotiations were approved by Secretary of the Treasury Now, there are three United States laws that effect Italy. Mellon and President Coolidge and passed over to the Congress They are economic laws and effect Italy's economic condition. for final approval. They were approved by the House of Rep­ One law is the prohibition law. This law stops her from send­ resentatives January 15, 1926; by the Senate April 23, 1926; ing into the United States her wines and liquors and selling and by President Coolidge April 28, 1926, Italy and the legisla­ them to us. - The second law is the Fordney-McCumber tariff tive bodies of Italy having previously approved the settlement. law which prevents her shipping her commerce into the United I voted for the settlement. States in any great quantities. To protect California and It was the wise thing to do for the United States and the Florida lemons on the markets of New York and the East, our taxpayers of the country. We loaned Italy during the war tariff on lemons ranges from 90 to 99 per cent. Italy sets that $1,030,000,000. We loaned her after the war closed $616,000,000, up as a matter interfering with her capacity to pay as a method making a total of $1,646,000,000. Under the terms of its settle­ of transferring credit. Sh,e can not sell her surplus products ment the United States receives back every cent of its princi­ to us. pal-$1,600,000,000. The United States not only receives back The thlrd law Italy sets up is our immigration law. She all this principal, but she receives bacl~ also $759,000,000 as says we shut out her citizens from America. On that account interest. she is deprived of a revenue of approximately $200,000,000 a As soon as this settlement was made the United States Treas­ year. That, to my mind, is a splendid argument for our immi­ ury received from Italy its first payment, $5,199,000, and the gration laws that I have helped to pass in the years I have Treasury will continue t..9 receive $5,000,000 each five-year been in Congress. I think our money should be kept at home period. for Americans. I voted for every immigration restriction law In making this settlement we computed interest on the $1,600,- and am glad of it and delighted that the laws are now laws. 000,000 to the date of the settlement at the rates of interest Personally, I would rather cancel the entire foreign debt than of 4"%, per cent and 3 per cent, just exactly as interest was have wide-open indiscriminate immigration like we formerly figured on the British debt. In the new principal which is had before I became a Member of Congress. funded there is $394,000,000 of interest added, which was fig­ In settling this debt we must take into consideration that ured at the rate of 4* and 3 per cent. So the new principal Italy not only owes the United States $2,000,000,000, but she that is funded is $2,000,000,000, $394.,000,000 of it being interest, also owes Great Britain $2,500,000,000. Do you believe Italy and we will get compound interest on the $394,000,000 that is can pay on the same basis as Great Britain with her vast added into lt. monopolies and colonies? No; it can not be done and there Now, the great difficulty of Italy is her present condition. is no use fooling one's self. I never try to fool myself. j We had to provide for low payments for the first few years, There may be much said about the tyranny of the premier of although not from choice. We would have preferred to have Italy-Mussolini-and about how he persecutes the Masons. the big payments during the first years, but you could not get I have been a Mason in good standing since March of 1885--41 I it. It takes two to make an agreement. Italy could..not pay. years. Masonry does not teach that I shQ.uld meddle in political ~ Italy would not pay. Therefore we agreed that for the :first matters or that a Masonic Lodge should interfere or engage five years there should be payments of $5,000,000 a year without in international affairs. I take no obligation to draw our interest; and after that, during successive 10-year periods, at country into war. I do not believe in tyranny. I love liberty rates of one-eighth of 1 per cent, one-fourth of 1 per cent, one­ and tolerance. I believe that all citizens of a Government half of 1 per cent, three-fourths of 1 per cent, 1 per cent, and should have fair play and justice. If the Italian Government then during the last seven years 2 per cent. Of course, those is tyrannical, persecutes its citizens, or shows them no toler- are low rates of interest. Nobody questions that, but which of ance, I regret it. That is a matter for Italians who live under you has not settled a claim against a corporation or an indi­ that Government to determine. I would resist any foreign gov­ vidual at 50 cents on the dollar or leas of the principal, with ernment coming to the United States and undertaking to tell no interest at all? You were lucky to get your principal, and America what kind of a government we shoul

On motion of Mr. BUTLER, a motion to reconsider the vote Mr. McKEOWN. Will the gentleman yield? whereby the conference report was agreed to was laid on the Mr. BUTLER. Yes. . table. 1\lr. McKEOWN. What is thE! additional amount that will CONSTRUCTION AND PROCUREMENT OF AIRCRAFT be carried? Mr. BUTLER. Mr. Speaker, I call up the conference report Mr. BUTLER. It is said to carry $7,500 additional. The on H. R. 9690. . amendment provides for the appointment of an additional The SPEAKER. The gentleman from Pennsylvania calls Secretary of the Navy. While I had my own views, as one of up a conference report, which the Clerk will report. the conferees I agre·ed to the report. It was made largely The Clerk read the conference report. through the instrumentality of my colleague and special friend, The conference report and statement are as follows: the gentleman from Georgia [l\Ir. VINSON]. It is approved by the President of tile United States, and it is desired to have CONFERENCE REPORT this official in the Navy just as such an official has been pro­ vided for the Army. We have agreed that it was the right The committee of conference on the disagreeing Yotes of the thing to do, and we have been promised that the duties will two Houses on the amendments !>f the Senate to the bill (H. R. be economically administered, and I will say to the gentleman 9690) to authorize the construction and procurement of air­ from Oklahoma that I pr-opose to keep my eyes open in order craft and aircraft equipment in the Navy and Marine Corps to see whether or not that part of the program is fulfilled. and to adjust and define the status of the operating personnel 1\fr. BLACK of Texas. Will the gentleman yield? in connection therewith, haying met, after full and free con­ Mr. BUTLER. Yes. ference have agreed to recommend and do recommend to their Mr. BLACK of Texas. At the present time we have only respective Houses as follows: one additional Secretary of the Navy, as I understand it? That the House recede from its disagreement to the amend­ Mr. BUTLER. Yes. ments of the Senate numbered 1, 2, .3, 4, 5, and 6, and ag1·ee to l\1r. BLACK of Texas. I was wondering why, with all of \ the same. the various activities of the Navy, we should have a Secretary Amendment numbered 7: That the House recede from its for just one branch of it, to wit, the aeronautical branch. disagreement to the amendment of the Senate numbered. 7, and l\Ir. BUTLER. Mr. Speaker, I will reply in this way: It agree to the same with an amendment as follows : Stnke out was first proposed that the only duties which should be as­ all of the language of the amendment of the S_enate and in lieu signed to him were those connected with aviation, but we thereof insert the following : succeeded, after some deliberation, in having the Senate "SEc. 4. To aid the Secretary of the Navy in fostering naval amendment so written as to provide that additional duties are aeronautics, and to perform such functions as the Secretary may to be assigned to him, such additional duties as the Secretary direct, there shall be an additional Assistant Secretary of the of the Navy sees fit to assign. Now, as to the real need of the Navy, who shall be appointed by the President, by and with !he official I am going to yield to my colleague to make the ex­ advice and consent of the Senate, and whose compensation planation. He is very familiar with this branch of the serv­ shall be fixed in accordance with the classification act of 1923. ice ; he has performed very important duties, and he would He shall, under the direction of the Secretary of the Navy, be like to have this official. I am perfectly willing to join with charged with the supervision of naval aeronautics and ~he him in obtaining the position so that there may be further de­ coordination of its activities with other governmental agencies, velopment in a nation. and in addition such other duties as may be assigned to him 1\Ir. VINSON of Georgia. If the gentleman will yield, I by the Secretary of the Navy. There shall be detailed to his think the gentleman ~rom Pennyslvania has already convinced ofice from the Bureau of Aeronautics such number of officers the gentleman from Texas of the wisdom of this. and civilian employees as may be authorized by the Secretary Mr. BLACK of Texas. I was just asking for information of the Na,·y." as to the duties of this new Assistant Secretary. Is he to have And the Senate agree to the same. charge of anything else outside of the aeronautical branch of THOMAS S. BUTLER, the Navy? .FRED A. BRITTEN, Mr. VINSON of Georgia. Yes; he is to have charge of other A. E. B. STEPHENS, duties in addition to the aviation branch of the Navy. CARL YINSON, 1\Ir. BLACK of Texas. But he will have charge of that J. V. McCLINTIC, branch? Jlanagers on the part of the House. Mr. YINSON of Georgia. Exactly. FREDERICK HALE, 1\Ir. BUTLER. I think he will be of use and it is not going GEORGE WHARTON PEPPER, to cost much. I promise my friend from Oklahoma that I TASKER L. 0DDIE, will keep my eyes on that end of it. CLAUDE A. SWANSON, Mr. .McKEO)VN. Will the gentleman yield further? PETER G. GERRY, Mr. BUTLER. I have yielded the floor to the gentleman Jtana(ffJ1'S on the pa;rt of the Senate. from Georgia. · Mr. VINSON of Georgia. I yield to the gentleman. B'l'.dTEMENT. Mr. McKEOWN. This may be necessary, but I do not like to create very many more offices. The managers on the part of the House on the bill H. R. Mr. BUTLER. Neither do I. 9690 state that- Mr. McKEOWN. I do not think it is along the line of The amendment of the Senate No. 1 is deemed to better term economy to create new offices. and classify what airplanes shall be regarded as "useful l\lr. VINSON of Georgia. I will say that an additional planes." · Assistant·secretary who will be assigned to aeronautical duties The amendment of the Senate No. 2 specifically provides that will be a very economical way to run the organization. the construction of one of the two dirigibles authorized by the Mr. McKEOWN. I will say to the gentleman that my com­ bill shall be undertaken prior to July 1, 1928. mittee, which has charge of the commerce end, has reported The amendment of the Senate No. 3 is made necessary by against expanding these departments by creating new offices. reason of the provision of amendment No. 2. 1\Ir. OLIVER of Alabama. Will the gentleman yield? The amendments of the Senate Nos. 4, 5, and 6 clarify the 1\Ir. VINSON of Georgia. Yes; I yield to the gentleman from language and intent of the bill. Alabama. The amendment of the Senate No. 7, as agreed to by the l\lr. OLIVER of .Alabama. Is this Assistant Secretary to be House with an amendment, provides for the creation of the a ciYilian? office of an additional As istant Secretary of the Na\y, in l\1r. VINSON of Georgia. Yes; the law requires that he must accordance with the recollllllelldations of the President's air­ lle a civilian. craft board, and the language thereof has been changed to Mr. SPEaKS. Will the gentleman yield? conform -with the language creating a like office in the 'Yar Mr. VI:~SON of G€orgia. With plea ure. Department and stating the duties of such office, as contained 1\lr. SPEAKS. Does the Secretary of the Navy recommend in the bill H. R. 10827, now in conference. the appointment of an additional Secretary of the NaT'y? THOMAS s. BUTLER, 1\lr. VINSON of Georgia. The Secretary of the Navy testi­ l!~RED A. BRITTEN, fied before the gentleman's Committee on Military Affair.·, and A. E. B. STEPHENS, at first he was inclined to doubt the wisdom of it. Later on CARL YI;:qso~. he appeared before the gentleman's committee and ur:;ed that J. V. McCLINTic, this office be created and a similar one for the military end Managers on the part of the House~ of it. 1926 CONGRESSIONAL RECORD-HOUSE 11459 Mr. SPEAKS. Did not the Secretary of the Navy say there enrolled bills of the following titles, when the Speaker signed was no necessity for such an officer, but that if Congress in its the same: wisdom saw fit to create the position and appoint such an offi­ H. R. 8034. An act to authorize the destruction of paid United cer, they would welcome him in the department? States checks ; Mr. VINSON of Georgia. The gentleman from Ohio is a S. 590. An act for the relief of Emily L. Hoffbauer; member of the committee and knows better than I do what he S. 1047. An act to reimburse the State of Montana for ex­ has said. penses incurred by it in suppressing forest fires on Government Mr. SPEAKS. I wanted the membership of the House to un- land during the year 1'919; derstand it. · S.1727. An act· fbr the relief of the Carib Steamship Co. Mr. VINSON of Georgia. But he did say the second time he (Inc.) ; appeared before the committee that he advocated the creation S. 1728. An act for the relief of the owners of the steamship of this additional Assistant Secretary. The gentleman recalls San Lucar and of her cargo; and that, does he not? S. 2324. An act for the relief of the New Jersey Shipbuilding Mr. SPEAKS. Not clearly, but I do not doubt it at alL & Dredging Co. Mr. BUTLER. Yes; and the Secretary of War advocated it before the gentleman's committee. MESSAGE FROM THE PRESIDENT OF THE UNITED STATES Mr. SCHAFER. Will the gentleman yield? A message from the President of the United States, by Mr. Mr. VINSON of Georgia. Yes. Latta, one of his secretaries, announced that the Pre ident had Mr. SCHAFER. With reference to the creation of additional approved bills and joint resolution of the following titles: Assistant Secretruies of the Navy and the War Departments, On May 28, 1926 : does not the gentleman think that before we create an addi­ H. R. 6615. An act for the relief of Noble-Gilbertson Co., a tional Assistant Secretary for the War Department that the corporation, of Buford, N. Dak. ; present assistant should confine himself more to his duties H. R. 6729. An act to amend section 18 of the irrigation act and stop going around the country making political speeches? of March 3, 1891, as amended by the act of March 4, 1917 ; If he would do that, we would not need to have another as­ H. R. 10126. An act to revise the boundary of the Mount sistant. Rainier National Park in the State of Washington, and for Mr. VINSON of Georgia. I will say to the gentleman that other purposes ; if they are well occupied they will not have very much time H. R. 8916. An act granting public lands to the county of to make political speeches. Kern, Calif., for public-park purposes; Mr. McCLINTIC. Will the gentleman yield? H. R. 7966. An act to provide the name by which /the Board Mr. VINSON of Georgia. Yes. of G€neral Appraisers and members thereof shall hereafter be Mr. McCLINTIC. Something has been said about the known; method of appointment; is it not a fact that the Assistant Sec­ H. J. Res.139. Joint resolution authorizing the construction retary is appointed by the President and confirmed by the of a Government dock or wharf at Juneau, Alaska; Senate? H. R. 10055. An act to amend section 77 of the Judicial Code . Mr. VINSON of Georgia. Certainly; he has to be appointed to create a middle district in the State of Georgia, and for by the President and confirmed by the Senate. other purposes ; . I Mr. McCLINTIC. Therefore we will know what kind of a H. R.10732. An act to authorize the construction of necessary man is going to be selected for this job, and his attitude with additional buildings at certain naval hospitals, and for other respect to aviation. purposes; Mr. VINSON of Georgia. Yes. H. R. 11202. An act to provide for the preparation, printing, Mr. CONNALLY of T€xas. Will the gentleman yield? and distribution · of pamphlets containing the Declaration of Mr. VINSON of Georgia. Yes.- Independence, with certain biographical sketches and explana­ Mr. CONNALLY of Texas. Who is going to be appointed as tory matter; Assistant Secretary? H. R. 11511. An act to amend in certain particulars the na­ -, Mr. VINSON of Georgia. I hope he will be a man who is tional defense act of June 3, 1916, as amended, and for other going to advance aviation in the Navy. purposes; Mr. CONNALLY of Texas. Has not the gentleman some idea H. R. 8794. An act to credit the accounts of W. W. House, about who it is likely to be? special disbursing agent, Department of Labor; and Mr. VINSON of Georgia. I have not the slightest idea who H. R. 10859. An act to provide for the transfer of certain he is going to be. · records of the General Land Office to States, and for other Mr. McKEOWN. I would like to ask the gentleman from purposes. . Pennsylvania a question, if the gentleman will yield? On May 29, 1926 : Mr. VINSON of Georgia. Yes. H. R. 4902. An act for the relief of Washington County, Ohio, . Mr. McKEOWN. Does the- gentleman from Pennsylvania, S. C. Kile estate, and Malinda Frye estate; with his long experience on this committee, believe that this is H. R. 2635. An act for the relief of Mrs. W. H. Re:Mine ; an ab olute necessity? H. R. 5683. An act authorizing the appropriation of $2,500 Mr. BUTLER. I will answer the gentleman's question out in for the erection of a tablet or marker at Sir Walter Raleigh the lobby. I can not have my own way always in this world. Fort on Roanoke Island, N. C., to Virginia Dare, the first child [Laughter and applause.] of English parentage to be born in America; Mr. Speaker, I move the adoption of the conference report. H. R. 965. An act for the relief of C. B. Wells ; The SPEAKER. The question is on agreeing to the confer­ H. R. 7911. An act to authorize the exchange of certain public ence report. lands and the establishment of an aviation field near Yuma, The question was taken; and there were on a division (de­ Ariz.; manded by 1\Ir. BLACK of Texas)-ayes 150, noes 8. H: R. 6696. An act for the relief of Edward J. O'Rourke, as So the conference report was agreed to. guardian of Katie I. O'Rourke; On motion of Mr. BUTLER, a motion to reconsider the vote by H. R. 815. An act for the relief of 0. H. Lipps; which the conference report was agreed to was laid on the H. R. 8486. An act for the relief of Gagnon & Co. (Inc.) ; table. · H. R. 8657. An act to amend sections 226 and 228 of the Judi­ Mr. SCHAFER. Mr. Speaker, a parliamentary inquiry. cial Code, and for other purposes ; and The SPEAKER. The gentleman will state it. H. R.11927. An act to authorize the Secretary of War to sell Mr. SCHAFER. When will the House vote on the so-called a portion of the Fort Ringgold Military Reservation, Tex., to t corn sugar bill ( S. 481) ? I Rio Grande City Railway Co. \ The SPEAKER. .AB soon as the conference reports are dis­ On June 1, 1926: posed of. H. R. 9218. An act to authorize the Secretary of War to MESSAGE FROM THE SENATE exchange deteriorated and unserviceable ammunition and com­ A message from the Senate, by Mr. Craven, one of its clerks, ponents, and for other purposes ; and announced that the Senate had agreed to the amendments of H. R. 9178. An act to amend section 12 of the act approved the House of Representatives to bills of the following titles: June 10, 1922, so as to authorize payment of actual expenses for S. 590. An act for the relief of Emily L. Hoffbauer ; .and travel· under orders in Alaska. S. 2324. An act for the relief of the New Jersey Shipbuilding On June 2, 1926 : & Dredging Co. H. R.10089. An act to authorize the construction of a bridge ENROLLED BILLS SIGNED over the Columbia River at a point within 1 mile upstream and Mr. CAMPBELL, from the· Committee on Enrolled Bills, 1 mile downstream from the mouth of the Entiat River, in reported that the committee had examined and found truly Chelan County, State of Washington; 11460 CONGRESSIONAL RECOR.D-HOUSE 'JUNE 17

H. R. 11607 . .An act granting the consent of Congress to the H. R.10312. An act to authorize the di...position of lands no Red River Parish Bridge Co. (Inc.) to construct a bridge across longer needed for naval purposes. the Red River at or near the town of Coushatta, in the parish On June 8, 1926: of Red River, in the State of Louisiana ; H. R. 252. An act to authorize the Secretary of the Treasury H. R. 8513. An act to extend the time for the construction of to accept a title to a site for the post office at Donora, Pa., a bridge across the Monongahela River at or near the borough which excepts and reserves natural gas and oil underlying the of Wilson, in the county of Allegheny, Pa.; land; H. R. 9724. An act declaring Eagle Lake, which lies partly H. R. 431. An act providing for the conveyance of certain land within the limits of the State of Mississippi, ·in Warren County, to the city of Boi ·e, Idaho, and from the city of Boi e, Idaho, and partly within the limits of the State of Louisiana, in to the United States; Madison Parish, to be a nonnavigable stream; H. R. 680. An.act for the relief of John A. Douglas; ·H. R. 3796. An act to establish a national military park at"' H. R. 1717. An act for the relief of Alonzo C. Shekell; the battle field of Moores Creek, N. C.; and H. R. 1721. An act for the relief of Francis Forbes ; H. R. 7403. An act for the relief of John E. Luby, of New H. R. 2172. An act for the relief of Jo eph A. Choate; Bedford, Mass. H. R. 3446. An act for the relief of u'1ric 0. Thynne; On June 3, 1926: ~ H. R. 4325. An act for the relief of Wade W. Barber; H. R. 2237. An act for the relief of Leslie Warnick Brennan; H. R. 4547. An act to establish a department of economics, H. R. 3837. An act authorizing the Postmaster General to government, and history at the United States Military Academy, rent quarters for postal purposes without formal contract in at \Ve t Point, N. Y., and to amend chapter 174 of the act of certain cases; Congress of ApYil 19, 1910, entitled "An act making appropria­ H. R. 3842. An act authorizing the Postmaster General to tions for the support of the l\Iilitary Academy for the fiscal year make monthly payment of rental for terminal railway post­ ending June 30, 1911, and for other purposes"; office premises under lease ; II. R. 4585. An act for the relief of Andrew Cullin ; H. R. 7429. An act for the relief of Joseph L. Rahm; H. R. 9869. An act to authorize and empower tlle Secretary H. R. 7889. An act to regulate subsistence expenses of civilian of the Treasury to accept a corrective deed to certain real estate officers and employee· while absent from their designated posts in the city of New York for the use of the new post-office building; of duty on official bu iness; H. R. 10385. An act to amend section 55 of the national de- fense act, June 3, 1916, as amended, relating to the Enli._ ted H. R. 8186. An act to authorize the Secretary of the Interior Reserve Corps ; to purchase certain land in California to be added to the Santa Ysabel Indian Reservation and authorizing an appro­ H. R. 10981:. An act to amend the national defense act of June priation of funds therefor; 3, 1916, as amended, so as to permit the Secretary of War to detail enlisted men to educational institutions ; H. R. 9558. An act to provide for allotting in severalty agri­ H. R.11353. An act to convey to the city of Oshkosh, Wis., cultural lands within the Tongue River or- Northern Cheyenne certain Government property ; and Indian Reservation in Montana, and for other purposes; and H. R.11385. An act granting the consent of Congre s to the H. R 118-U. An act to amend section 4 of the air mail act of Georgia-Florida Bridge Co. to construct a toll bridge aero s I February 2, 1925, so as to enable the Postma. ter General to the Chattahoochee River at or near Keal Landing, in Seminole make contracts Ior the transmission of mail by aircraft at fixed County, Ga. rates per pound. On June 9, 1926 : On June 4, 1926: H. R. 615. An act for the relief of John H. Barrett and Ada H. R.10771. An act granting the consent of Congress to the H. Barrett; Northern Pacific Railway Co. to construct a bridge across the H. R. 1594. An act for the relief of F. Joseph Chatterton; Mississippi River at Little Falls, llinn.; H. R.1828. An act for the relief of J. M. Holladay; H. R.10895. An act granting the consent of Congress to the H. R. 4158. An act for the relief of Sophie J. Rice ; Northern Pacific Railway Co., a corporation organized under H. R. 4580. An act for the relief of the Moran Towing & the laws of the State of Wisconsin, to construct a bridge across Transportation Co. ; the Mississippi River in the city of Minneapolis, in the State of H. R. 5341. An act for the relief of Ruphina M. Armentrout; Minnesota ; H. R. 6535. An act to amend so much of section 55 of the H. R. 10975. An act granting the consent of Congress to Mis­ Hawaiian organic act as amended by the Hawaiian homes souri State Hjghway Commission to construct a bridge across commission act, approYed July 9, 1921; Cunent River; H. R. 7024. An act for the relief of Walter Kent, jr. ; H. R.11175. An act ·granting the consent of Congress to Mis­ H. R. 7523. An act for the relief of John G. Hohl; souri ~tate Highway Commission to construct a bridge across H. R. 8715. An act to authorize the Secretary of Agriculture Current River; to extend and renew for the term of 10 years a lease to the H. R.11357. An act extending the time for the completion of Chicago, Milwaukee & St. Paul Railway Co. of a tract of land the bridge across the Mississippi River, county of Hennepin, in the United States Department of Agriculture Range Live­ Minn., by the city of Minneapolis; and , stock Experiment Station, in the State of Montana, and for H. R. 11084. An act to amend the act of February 28, 1925, a right of way to said tract, for the removal of graYel and firing the compensation of fourth-class postmasters. ballast material, executed under the authority of the act of On June 7, 1926: Congress approved June 28, 1916; H. R. 7380. An act to amend section 5 of the act entitled "An H. R. 9212. An act authorizing and directing the Secretary of act to provide for the removal of what is now known as the the Treasury to pay to McLennan County, in the State of Aqueduct Bridge, across the Potomac River, and for the build­ Texas, the sum of $9,403.42 col{lpensation for the appropriation ing of a bridge in place thereof," approved l\Iay 18, 1916, and and destruction of an improved public road passing through section 12 of the act entitled "An act to provide for eliminating the m..ilitary camp at Waco, Tex., in said county, by the Gov­ certain grade crossings," etc., approved February 12, 1901, as ernment of the United States ; amended; H. R. 9237. An act to reopen, allow, and credit $1,545 in the H. R.11118. An act to authorize the widening of Harvard accounts of Maj. Harry L. Pettus, Quartermaster Corps (now Street, in the District of Columbia, and for other purposes ; deceased), for memorial tablet in the Army War College, as H. R.12172. An act permitting the Wa hington .Market Co. authorized by the act of March 4, 1923, and certify the same to lay a conduit across Twelfth Street SW. ; to Congress, and to reimburse the United States Fidelity & H. R. 5507. An act for the relief of Agnes M. Harrison, post­ Guaranty Co. the amount paid by that surety company to the mistre s at Wheeler, l\Ii s. ; Government to settle said accounts ; H. R. 8489. An act to relinquish the title of the United States H. R. 9390. An act to eliminate certain ptivately owned lands to tile land in the claim of Thomas Durnford, situate in the from the Rocky Mountain National Park and to transfer cer­ county of Baldwin, State of Alabama; tain other lands from the Rocky Mountain National Park to H. It. 10131. An act granting the consent of Congress to the the Colorado National Forest, Colo.; Wakt>field National Memorial Association to build upon Govern­ H. R. 9636. An act to provide for the inspection of the battle ment-owned land at Wakefield, Westmoreland County, Va., a field of Pea Ridge, Ark. ; and replica of the house in which George Washington was born, H. R. 9775. An act for the relief of Sherman Miles. and for other purpo es ; On June 10, 1926 : H. R. 10203. An act authorizing the Secretary of War to con­ H. R. 4812. An act to amend an act entitled "An act making it vey certain portions of the military reservation at Monterey, a misdemeanor in the District of Columbia to abandon or will­ Calif., t.o the city of Monterey, Calif., for street purposes ; and fully neglect to provide for the support and maintenance by 1926 OONGRESSION AL-R-ECORD-HOUSE tll46{ any person of his wife or his or her minor children in destitute H. R. 7943. An act for the relief of Mrs. G. A. Guenther, or necessitous circumstances," approved March 23, 1906; mother of the late Gordon Guenther, -ensign, United States H. J. Res. 9. Joint resolution granting permission to Walter Naval Reserve; Stanley Haas, lieutenant commander, United States Navy, to H. R.10773. An act to authorize acquisition or use of public accept a decoration bestowed upon him by the Government of lands by States, counties, or municipalities for recreational ; purposes; H. R. 912. An act for the relief of Capt. George G. Seibels, H. R.12066. An act to add_ _certain p-q.blic lands to the Supply Corps, United States Navy; Washakie National Forest, Wyo.; H. R.1538. An act for the relief of John Milton Pew; H. R. 2808. An act for the relief of Paymaster Herbert Elliott H. R. 2207. An act for the relief of Simon R. Curtis; Stevens, United States Navy; and H. R. 2715. An act for the relief of the widow of W. J. S. H. R.12018. An act granting tha consent of Congress to W. Stewart; E. Buell, of Seattle, Wash., to construct a bridge across Port H. R. 2993. An act for the relief of Harry MeN eil ; Washington Narrows within the city of Bremerton in the H. R. 3952. An act authorizing the Secretary of the Navy to State of Washington. receive for instruction at the United States Naval Academy at On June 15, 1926 : Annapolis Mr. Gustavo Tegera Guevara, a citizen of Venezuela; H. R. 4007. An act to amend an act approved June 20, 1910, H. R. 5332. An act for the relief of T. Luther Pinder; entitled "An act to enable the people of New Me:x:ico to form a H. R. 6015. An act to correct the Marine Corps record of Roy constitution and State government and be admitted into the W. Saam; Un1on on an equal footing with the original States ; and to H. R. 7181. An act to provide for the equalization of pro­ enable the people of Arizona to form a constitution and State motion of officers of the Staff Corps of the Navy with officers government and be admitted into the Union on an equal foot­ of the line; ing with the original States " ; H. R. 7217. An act to authorize Capt. F. A. Traut, United H. R. 4554. An act for the relief of Adaline White; States Navy, to accept a decoration from the King of Denmark H. R. 7188. An act granting the consent of Congress to the known as the Order of Dannebrog ; J. R. Buckwalter Lumber Co. to co-nstruct a bridge across H. R. 8602. An act for the relief of Hew..son L. Peeke ; Pearl River in the State of Mississippi; and H. R 8725. An act to establish the warrant grade of pay H. R. 10942. An act to extend the time for commencing and clerk and the commissioned warrant grades of <;._hief marine completing the construction of a bridge across the White Rjver gunner, chief quartermaster clerk, and chief pay clerk in the near Augusta, Ark. United States Marine Corps ; ENROLLED BILLS PRESENTED TO THE PRESIDENT FOR HIS .APPROV.AL H. R. 10161. An act for the relief of the owners of the barge Mcnvaitte No. 1}· Mr. CAMPBELL, from the Committee on Enrolled Bills, re­ H. R. 595. An act for the relief of B. Jackson ; ported that this day they had presented to the President of the H. R. 962. An act for the relief of the estate of William Fries, United States for his approval the following bills: deceased; H. J. Res.157. Joint resolution authorizing and directing the­ H. R. 3691. An act for the relief of the estate of James H. Secretary of War to accept and install a tablet commemorating Graham; the designation of May 30 of each year as l\Iemorial Day by (. General Order No. 11, issued by Gen. John A. Logan, as com­ I H. R. 4117. An act for the relief of J. Walter Payne; H. R. 5026. An act to provide for the construction of 10 ves­ mander in chief of the Grand Army of the Republic; sels for the Coast Guard; H. R. 4810. An act granting and relinquishing title to certain H. R. 5359. An act authorizing the purchase by the Secretary lands in the State of Washington to the American Board of of Commerce of a site and the construction and equipment of a Commissioners for Foreign Missions, and for other purposes ; building thereon for use as a master track scale and test-car H. R. 10611. An act to change the time of holding court at depot, and for other purposes ; Elizabeth City and at Wilson, N. C. ; H. R. 7809. An act for the relief of H. H. Hinton; H. R. 11896. An act granting the consent of Conoarress to the H. R. 8846. An act for the relief of Cyrus Durey ; and county of Cass, State of Minnesota, to construct, maintain, and H. R. 11308. An act authorizing the payment of an indemnity operate a free highway bridge across the Boy River in said to Great Britain on account of the death of Daniel Shaw Wil­ State; and · liamson, a British subject, who was killed at East St. Louis, H. R. 12168. An act granting the consent of Congress to the Ill., on July 1, 1921. Pittsburgh, Fort Wayne & Chicago Railway Co., its successors On June 11, 1926: and assigns, to construct, maintain, and operate a railroad H. R. 4125. An act for the relief of Louis A. Hogue;. bridge across the Grand Calumet River. H. R. 9035. An act for the payment of claims for damages to HOME CARE FOR DEPENDENT CHILDREN IN THE DISTRICT Ol!' and loss of property, personal injm·ies, and for other purposes COLUMBIA incident to the operation of the Army.;. . . Mr. ZIHLl\!AN. Mr. Speaker, I call up the conference re­ H. R. U613. An act to provide for the study and investigation port on the bill (H. R. 7669) to provide home care for depend­ of battle :fields )11 the 'United States for commemorative pur­ ent children in the District of Columbia. ,.. poses; The Clerk read the conference report. H. R.12266. An act to amend the act entitled "An act for the The conference report and statement are as follows : . retirement of public-school teachers in the District of Colum­ bia," approved January 15, 1920, and for other purposes; CONFERE~CE REPORT H. R.1961. An act for the relief of B. G. Oosterbaan; and The committee of conference on the disagreeing votes of the H. R. 7522. An act for the relief .of William J. Nagel. · two Houses on the amendments of the Senate to the b1ll (H. R. On June 12, 1926: , 7669) to provide home care for dependent children, having met, H. R. 7190. An act granting the <:onsent of Congress to the after full and free conference have agreed to recommend and Granfield Bridge Co., a corporation, to construct, maintain, arid do recommend to their respective Houses as follows: operate a bridge across Red River and the surrounding and . That the House recede from its disagreement to the amend­ adjoining public lands, and for other purposes; ments of the Senate numbered 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, H. R. 9461. An act to extend the time for the construction of and to the amendment to the title, and agree to the same. a bridge across the Rio Grande between Eagle Pass, Tex., and Amendment·nu.mbered 3: That the House recede from its dis­ r Piedras N egras, Mexico ; · agreement to the amendment of the Senate numbered 3, and l H. R. 10352. An act to extend the time for constructing a agree to the same with an amendment as follows: Aftec the bridge across the Ohio River between Vanderburg County, word " act," in line 25, page 2, strike out the colon and the Ind., and Henderson County, Ky.; words "ProvUied, .That she " and insert in lieu thereof a comma H. R.11718. An act granting the consent of Congress to the and the words "which application shall be referred to a stand­ Commonwealth of Pennsylvania to construct a bridge across the ing subcommittee of the board, at least one of whom shall be Allegheny River; and a woman : Pro1-"iited, That such applicant"; and the Senate H. R.11719. An act granting the consent of Congress to Kan­ agree to the same. sas-Nebraska-Dakota Highway Association to construct a F. N. ZIHLMA.N, '\ '1o bridge across the 1\liss~mri River between the States of Ne­ ROBT. G. HOUSTON, braska and South Dakota. MARY T. NOR-TON, On June 14, 1926: Managers on the part of the House. H. R. 3833. An act to amend section 204 of an act entitled .ARTHUR CAPPER, "An act to establish a code of law for the District .of Colu.m-· w. L. JONES, bia," approved March 3, 19011 and the actS amendatory thereof WILLIAM H. KING, and supplementa.ry the!eto_;. Managers 011. the part of the Senate•

.-

.' fll462 OONGRESSION AL RECORD-HOUSE [UNE 17

STATEMENT :Mr. MONTAGUE. Mr. Speaker, under the leave to extend my remarks in the RECORD, I include the following: The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendments ADDRESS OF MR • .TAMES BROWN SCOTT, LL, D., AT TH.I!l CELEBRATION OF of the Senate to the bill (H. R. 7669) to provide home care for THE ONE HUNDRED AND FIFTIETH ANNIV.I!lRSABY OF THE ADOPTION OF dependent children, submit the following detailed statement in THE VIRGINIA BILL OF RIGHTS AT WILLIAMSBURG, JUNE 12, 1926 explanation of the effect of the action agreed upon by the con­ The more we hear of George Mason, the more we want to know about ferees and recommended in the accompanying conference re­ him. Our curiosity, however, must be very great if it ls not satisfied port: on this occasion. The language of eulogy and of appreciation seems to ·on amendments Nos. 1, 2, and 8: The bill as it passed the be exhausted, yet I would venture to make some observations which House provided for the appointment by the Commissioners of may not be deemed wholly inappropriate even at this late hour. the District of Columbia of a separate board of five members George Mason was born in Virginia, and he died in that Common­ to administer aid and relief to dependent children of the Dis­ wealth, which a Justice of the Sul}reme Court once called from the trict. By its amendments Nos. 1, 2, and 3, the Senate struck out bench "the Mother of Elmpires." He never sought office beyond his the provision for such board and substituted in lieu thereof the State; he was content to lead the life of a country gentleman, deeply general board of public welfare of the District of Columbia interested in the welfare of the colony, and intent upon securing its to administer the act. The intention of the House was to have rights against what he considered the unjustified conduct of the mother the work of extending aid to dependent children segregated country. He represented his section repeatedly in the legislature of from other forms of public social-service work, including cases the colony and of the State. He was never a member of the Continen­ involving juvenile delinquency, and what might be designated tal Congress, as were so many of his distinguished countrymen, yet his as purely " charity " cases. The Senate, on the other hand, career has an interest not only for his State and for the United States held to the view that Congress having recently concentrated but for the world at large. all other forms of public social-service work under the newly In the Federal Convention of 1787-the one occasion on which he created Board of Public Welfare, in order to do away with a was a member of a body beyond the confines of his State-George multiplicity of boards and commissions engaged in the same Mason said that there was a new spirit in America. That spirit he had general kind of relief work, it would be contrary to the intent helped to create. It is the spirit of democracy. and spirit of such legislation to immediately set up a new and On the 6th day of May, 1776, a convention composed <>f 45 members distinct boBJ.'d to separately administer but one form of social of the colonial house of burgesses met here in Williamsburg, r,nd on relief. the 12th of June-exactly 150 years ago to-day-adopted a bill of Your managers found the Senate conferees determined ~o rights. The constitution of the State was adopted on the 29th of maintain the position adopted by the Senate, as embodied m June of that year. It consists of two parts-the first, or preamble, its amendments especially in view of the fact that it appeared enumerates the " several acts of misrule " because of which " the gov­ to them that the people of the District of Columbia individ­ ernment of this country, as formerly exercised under the Crown of ually and through their civic organizations are very strongly in Great Britain, is totally dissolved." The second part of the constitu­ favor of the principle of unification and centralization of all tion distributes the powers confided to the government of the State. forms of public social-service work. • The sovereignty of the Crown of Great Britain passed, in George After extended conference, a compromise was agreed upon Mason's opinion, to the people of Virginia when that colony declared whereby the House recedes from its disagreement to the Sen~te its independence of the Crown. The sovereignty of the Crown passed amendments striking out provision for a new board, but With to each of the thirteen Colonies by the adoption o1' the Declaration . of an amendment offered by the House managers {to which the Independence on July 2 by the Continental Congress and its formal Senate a~ees) providing that applications for aid for de­ proclamation to the world two days later. · And in each of the 13 pendent chndren shall be referred to a standing subcommittee States the sovereignty of the Crown remained, 1n his opinion, ucepl of the Board of Public Welfare, at least one of whom shall be in so far as it was subsequently granted by the people of each of the a woman. The House managers believe that this retains the States to the Government of the Union. With the people of each of the principle found in the bill as it passed the House, in that the 48 States it rests to-day. applications will have the attention and consideration of public­ The bill of rights was drafted by George Mason, the so-called " sev­ spirited men and women spe?ially de~ignated to pass on. cases eral acts of misrule" by Thomas Jefferson, and the two, put togetl;l.er callinO' solely for the extensiOn of aid to dependent children, by Jefferson, are the Declaration of Independence of these United and thus such cases will be virtually segregated from others States. involving juvenile delinquency as well as purely "charitable" The bill of rights and the Declaration o! Independence set forth a relief of subnormal persons. The existence of a standing subcom­ theory of government created by the people to be governed and to be mittee to handle the applications for aid to dependent children changed by the people whenever it should fail to meet with the1r, ap­ should serve to definitely fix in the public mind the idea that proval. In its first sentence the bill. of rights states that all men are this form of public assistance is distinguished from so-called by nature "equally free and independent"; that they have "certain "charity work " and is intended for the benefit of . the com­ inherent rights," of which, when "they enter into a state of society. munity itself. they can not deprive or divest their posterity," such as "the enjoy­ On amendments Nos. 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13, merely ment of life and liberty, with the means of acquiring and possessing involved renumbering of the several section.s of the bill, made property, and pursuing and obtaining happiness and safety." in the necessary by the striking out of the section providing for a more familiar language C1f. the declaration, these rights are declared to separate board and also involved removal of provision for a be self-evident " truths." secretary to s~ch board. The House recedes from its dis­ In the bill "All power is vested in, and consequently derived from, agreement to such minor amendments. the people," and officers of government, be they high or low, are but The Senate further amended the bill by adding to the their trustees or servants, and "at all times amenable to them." Gov­ title ·thereof the words " in the District of Columbia," so that ernment, under the bill of rights and the Declaration, is conceived as amended the title will read "A bill to provide home care tn the interest of the governed, the bill saying that " government is, for dependent children in the District of Columbia." The or ought to be, instituted for the common benefit." By the adjunction House recedes from its disagreement to this minor change. of the phrase "ought to be/' George l\Iason appears as a statesman FREDERICK N. ZIHLMAN, instead of a doctrinaire. In the Declaration, Government is instituted ~BERT G. HOUSTON, to secure certain specified rights. :U.ARY T. NORTON, In the bill the best form of government is that "capable of pro­ Managers on the part of tke House. ducing the greatest degree of happiness and safety and is most effec­ tually secured against the danger of maladministration." In case of its The conference report was agreed to. failure "a majority of the community hath an indubitable, unalienable, and indefeasible right to reform, alter, or abolish it, in such manner ONE HUNDRED AND FIFTIETH ANNIVERSARY OF THE .ADOPTION OF as shall be judged most conducive to the public weal." This is the THE lULL OF RIGHTS doctrine alike of the bill of rights and the Declaration of Independence. Mr. MONTAGUE. Mr. Speaker, I ask unanimous consent to The government contemplated by the bill is to be free and the bless­ extend my remarks in the RECORD by printing an address of ings of liberty are to be preserved by " a firm adherence to ju ~ tice, 1\Ir. James Brown Scott at the celebration of the one hundred moderation, temperance, frugality, and vit·tue, and "-it can not be too ann fiftieth anniversary of the adoption of the Bill of Rights, often stated here and elsewhere-" by frequent recurrence to fundampn­ held at Williamsburg, Va., on the 12th instant, to attend which tal principles." The religion contemplated by the bill-because people a committee of this House was appointed. of that day looked upward as well as onward, even in political mat­ The SPEAKER. The gentleman from Virginia asks unani­ ters-is to be directed " only by rea on and conviction, not by force mou. con~ent to extend his remarks in the RECORD in the man­ or violence." All men were entitled to its "free exercise," as their ner indicated. Is there objection? " conscience" should dictate, as religion, in George Mason'!! opinion ThN·e was no objection. and in that ot his fellow citizens of Virginia, imposes, according to the 1926 CONGRESSIONAL RECORD-· HOUSE 11463 bill, the mutual duty of all "to practice Christian forbearance, love, still working out the destiny of tlle American people." (The Life of and charity toward eacb. other." John Marshall, Vol. I (1916), p. 32.) The bill, it is to be observed, is one of duties as well as of rights. Many years ago I visited the quarters of the French Academy in The example set by Virginia was followed by Pennsylvania, Delaware, Paris, on the banks of the Seine ; and among the busts of the " Immor­ Maryland, North Carolina, Vermont, Massachusetts, and New Hamp­ tals " I noticed one of Moli~re, with an inscription to the effect that shire. The constitutions of tliese States have bills of rights. The nothing was lacking to his glory, although he was not a member of the constitutions of New Jersey, South Carolina, New York, and Georgia academy. lack bills of rights, although they contain provisions of such a nature. In like manner something of the kind may be said of George Mason In the summer of 1787 George Mason took an active part in the de­ by the .American Bar Association, which I have the honor to repre ent bates in the Federal convention, to which he was a delegate from the on this occasion, for, although he was not a lawyer, nevertheless we State of Virginia. He urged that the spilit of democracy should' per­ may acclaim him as a great Virginian, as a great .American, and as a meate the Constitution, and he was responsible for what must ever be great statesman of the larger world. considered one of the successes of that document. On May 30, the first debating day, "Mr. Mason," according to Madi­ CORN SUGAR son's notes, "argued very cogently that punishment could not in the The SPEAKER. The unfinished business is the motion of nature of things be executed on the States collectively, and therefore the !gentleman from Wisconsin [Mr. ScHAFER] to l.'ecommit the that such a goV"ernment was necessary as could directly operate on bill ( S. 481) to amend section 8 of an act entitled "An act for individuals and would punish those only whose guilt required it." This preventing the manufacture, sale, or transportation of adulter­ is the great triumph of the Constitution-that Government operates ated or misbranded or poisonous or deleterious foods, drugs, not against States, but through States, upon the people, to the extent of medicines, and liquors, and foc regulating traffic therein, and the powers granted to the Federal Government. for other purposes," approved June 30, 1906, amended August A Constitution acting on the people through the States, and a Gov­ 23, 1912, March 3, 1913, and July 24, 1919, .which the Clerk el'Dment representative of the people without distinction of class, will report by title. was George Mason's ideal. An advocate of national government, be The Clerk re3.d the title of the bill. nevertheless wished the rights of the States to be protected, and The SPEAKER. The question is on agreeing to the motiQn the national Congress restrained from violating those rights which he to recommit. had set forth in the Virginia bill. Therefore, in the closing days of The question was taken ; and on a division (demanded by Mr. the Federal convention, be proposed a bill of rights. It was rejected, ScHAFER) there were--ayes 22, noes 105. and George Mason withheld his signature from the Constitution. How­ Mtr. SCHAFER. Mr. Speaker, I object to the vote on the ever, he had the last word, for through his advocacy of a bill of ground there is not a quorum present. rights for the Federal Constitution, and his 1nfl.uence in the Virginia The SPEAKER. It is evi~ent there is not a quorum present, Convention called to consider the Constitution, that instrument was and the Clerk will call the roll. adopted with the understanding that amendments would be added, The question was taken ; and there were--yeas 131, nays 175, in the nature of a bill of rights. The first 10 amendments to the answered " present" 1, not voting 123, as follows: Constitution of the United States are, therefore, George Mason's Fed­ [Roll No. 115] eral bill of rights. It would have been honor enough for any man, to draft even a bill YEAS-131 of rights for the constitution of his State ; many people would think Abernethy Driver Kerr Ragon Allgood Edwards LaGuardia Rankin it a greater honor to draft a bill of rights-suffixed, if not prefixed­ Almon Eslick Lampert Reed, Ark. to the Constitution of these United States. He did both. Had matters Aswell Evans Lanham Rouse rested there, George Mason's claim would be local, and national. Auf der Heide Fisher Lankford Sanders, Tex. Black, N.Y. Fletcher Larsen Sandlin However, it is international. The Declaration of the Rights of Man, Bland Foss 'Leavitt Schafer· adopted by the National Assembly of France in 1789, and the manifesto Box Frear McClintic Schneider of European democracy, reproduces In a slightly modified form, the Brand, Ga. Free McDuffie Scott Briggs Garrett, Tex. McKeown Sears, Fla. b1ll of rights of Virginia. Browne Gasque McLaughlin, Mich.Smitbwick It was Lafayette, himself, an honorary " citizen " of Virginia, who Browning Goodwin McLeod Speaks proposed a declaration to the National Assembly, and laid before that Bulwinkle Green, Fla. McMillan Steagall Busby Griest McRE>ynolds Stedman body the various bills and declarations of rights of the American Byrns Hadley McSwain Sumner·s, Tex. States. Carew Hall, N.Dak. MacGregor · Swank Where did the ideas contained in what may be called the introductory Carss Hammer Mapes Taylor, Tenn. Carter, Calif. Hardy Martin, Mass. Thompson portion of the bill of rights and of the Declaration of Independence Celler Hare Menges Tillman come from, and whence are derived the ideas contained in the balance Collier Harrison Michener Tucker of the bill of rights and of the French declaration? Collins Hayd('.n Mooney Underwood Connally, Tex. Hill, Ala. Moore, Ky. Upshaw · An Englishman says: "The sonorous phrases of the Declaration of Cooper, Wis. Hill, Wash. Moore, Va. Vincent, Mich. Independence or the rights of man are not an original discovery, they Cox Hogg Nelson, Wis. Vinson, Ga. are the heirs of all ages, the depositary of the emotions and the Crisp Hooper O'Connell, N.Y. Voigt Crosser Huddleston O'Connor, La. .weaver tboogbts of 70 generations of culture." (John Neville Figgis, from Cullen Hudson O'Connor, N.Y. Weller Gerson to Grotius, 1414--1625 (1907), Introduction, p. 34.) Davey Hull, Tenn. Oliver, Ala. Whittinrton And a Frenchman says : " None of them is original. They come Davis Jacobstein Parks Wilson, La. :from Rousseau, from Monte.an. • this great cooperative creamery they have secured to themselves Mr. Ransley with Mr. Rayburn. all of the profit to be made in the manufacture of dairy products. Mr. Taylor of New Jersey with Mr. Oliver of New York. Mr. Wat!'on with 1\Ir. Wi!son of Mississippi. They learned that there was profit to be made in the sale of ::.\Ir. Stobbs with Mr. Goldsborough. those dairy products, and so they sell the surplus of their Mr. Wurzbach with Mr. Sabath. dairy products by the ca.rload in the great city of New York. i\ir. Funk "\\-ith Mr. Buchanan. Thus, by their cooperative organization, they have secured ta Mr. Burdick with Mr. Carter of Oklahoma. 1\Ir. Graham with ~Ir. O'Connell of Rhode Island. themselves all of the profit to be made in the production and Mr. Kellar with Mr. Lyon. manufacture and sale of dairy products from the time the l\Ir. Kiefner with Mr. Bowling. milk is first strained in the farmer's milk pail in western ~lr. S ~alke r with Mr. Somers of New York. Mr. Swartz with Mr. Wingo. Nebraska until the butter is served upon the tables of some of Mr. Robsion of Kentucky with Mr. Taylor of Colorade. you gentlemen from New York in your great metropolitan city, Mr. Sinclair \:Vith Mr. Thomas. and is consumed upon your tables by the people there. You Mr. Vestal with Mr. Connery. Mr. Roy G. Fitzgerald with Mr. Berger. may bend a people who have the genius to organize a coopera· Mr. Gibson with Mr. Kvale. tive organization such as that, but you can not break them. 1\Ir. FulJer with Mr. Beck. But Nebraska has a second unique distinction among the Na­ 1\Ir. A1·entz with Mr. Peavey. tion's Commonwealths. The result of the vote was announced as above recorded. Some sage has said that only that man is free who owes no The SPEAKER. The question is, Shall the bill pass? . debt. Judged by that standard, Nebraska is the only free 1\fr. SCHAFER. On that, Mr. Speaker, I demand the yeas Commonwealth in the Union, since she iB the only State that and nays. has no bonded no~ fioating debt. 1926 CONGRESSIONAL RECORD-· HOUSE 111465 Wisconsin and Kentucky likewise owe no bonds, but accord­ money by the use of. the depositors' capital deposited in the ing to the World's Almanac and the report of the Bank of bank. America, they have some outstanding floating certificates of No banker who is safe attempts to make profit out of the indebtedness. use of his own capitaL When a bank begins to loan its capital It is interesting to note the growth of State indebtedness in for the purposes of profit it is time to call in the banking the past 10 years. In 1925 the total reported bonded indebted­ department of the State or Nation. ness of all the States was $1,555,742,000. Fifty-seven per cent Bank profits are derived from the interest received upon the of this was incurred since 1920; 68 per cent since 1915. Or, idle funds of others deposited with it. Since there would be no in other words, the States of the Union have bonded them­ banks but for depositors' moneys, the Nebraska law provides selves in the past 5 years for more money than was outstand­ that the bankers chartered under the Nebraska law shall set ing for the preceding 145 years of the life of the Republic. aside a certain portion of the profit derived from the use of Nebraska alone can look the world in the face and say she the depositors' funds for the purpose of i,nsuring against the owes no obligations. On the contrary she has many of her possibility of loss the man whose money makes possible all the sister Commonwealths paying tribute to her for the use of her profits in the banking business. surplus funds. If a tax of one-thirtieth of 1 per cent had been levied on the Nebraska is unique for a third outstanding feature in her deposits in national banks from their first establishment down industrial and commercial life. She alone of the great agri­ to this hour, it would have raised a sufficient fund so that no cultural States has come through the terrible years of deflation man or woman who risked their money in a national bank following the war and protected her people from the loss of a would have lost a dollar. And that would cover the period of single dollar of depositors' money because of the failure and the panic of 1873, the panic of 1893, and the panic of 1907 and ba.Jlkruptcy of banks chartered under her laws. the terrible losses of the last 10 years. Banks pay 4 per' cent According to the report of the Comptroller of the Currency on time deposits of money. Why? Because they think there 2,941 State and national banks have failed and gone into is profit above that rate of interest in loaning it. If the profit the hands of receivers in the past 11 years. That is the was 6 per cent~ then you would have to take only one hundredth most terrible showing of failure and bankruptcy ·for n like part of the bank·s profit on the depositor's money to insure the number of years iJ;l the en.tire banking history of the Nation. people against·the possibility. of loss. Over 600 State and national banks failed ·in 1925. The total Nebraska has simply applied more fully than any other State liabilities to · creditors for 10 years was $936,132,000. Add to a factor in· business safety and stability in the banking busi­ that the number that have failed since · 1926, ·and the total ness that has been in practice ever since banks first issued I notes of credit be used in lieu of money. . 1 liabilities of failed institutions amount to very much morP than to one thousand million millions of dollars. No man has been able Bank notes were formerly secured above depositors and by · to give ·me reliable information about how much the people of special security because it was held they traveled many . miles the country have lost because of this bankruptcy and failure of from their place of issue in the course of trade and were banking institutions, but we know that it is a great many hun­ received and dealt in by those who could not know as to their dreds of ~ons of dollars and consequent misery and su:ffer- credi~ility. Our national-bank notes were . first secured by a in~f to the unfortunate depositors. · deposit of Government bonds. There could be no question as In 1925 failed banks reported by various States surrounding to their safety, though the bank of issue should fail. ' Nebraska were as follows: But in later years under our Federal re ·erve bank system a more scientific and elastic plan of guaranty of bank notes pre­ vails. Under present law Federal reserve bank notes are guar­ anteed by the gold and cash reserves and by all the assets of the banks of issue and also by the joint credit of all the assets §~~~J3J.fu~f~fffff~fffff~fffff~~fff~~ff~~~~~~~~~~~ .f! of all Federal reserve banks in the Union. This makes a form 'rhe total liabilities to depositors for the five States was of credit and security as firm as the foundation of the credit $55,568,000. of the Republic itself. In the past quarter of a century a new era in business :ex­ I can not learn how much Nebraska's neighbors lost because ~ange and use of certificates in lieu of money has developed. of these commercial disasters, but for the pa t 18 years no man Nrnety-five per cent of the volume of the Nation's business is or woman in Nebraska who has trusted their money to the transacted by means of checks and drafts against deposits in banks organized under her laws has ever lost a dollar commercial banks. . During those 18 years $26,000,000 have been returned to the Nebraska has been the first State to fully meet this new PE:ople from banks that were in trouble, mismanaged, or closed condition and by her laws has given checks and drafts against Without the people having their savings discounted a single accounts in commercial banks in Nebraska the same security cent. [Applause.] and standing that has heretofore applied only to Federal bank . The people of Nebraska are a highly intelligent and progres­ notes. sive people. They have the highest standard~ of education the The assets of all her banks stand unitedly to guarantee the lowest percentage of illiteracy; they spend more money for prompt payment of any lawfully issued check or drnft against schools than for any other purpose. There are few rich and actual deposits in her banks just as the Federal reserve bank there is little poverty in Nebraska, but they have the greatest guarantees its bank notes. [Applause.] average of opportunity and of intelligence. . There are no poor­ I was elected Governor of Nebraska upon that issue, and houses in Nebraska. long after I am dead and gone I believe it will be remembered Mr. WYANT. 1\!r. Speaker, will the gentlema11 yield? that I attached that long name of mine to a bill that forever Mr. SHALLENBERGER. Yes. guarantees the people of Kebraska that after they have earned Mr. WYANT. Are there many foreigners in Nebraska? ~heir money by toil and sweat out of our soil, and have put it Mr. SHALLENBERGER. One.-half of the people of Ne­ m a bank chartered under our laws they shall never lose· it. braska were born in Europe or their parents were born in [Applause.] Europe. They are good people, and we make them good Amer­ The SPEAKER pro tempore. The time of the geatleman ican citizens in Nebraska. [Applause.] from Nebraska has expired. The people of Nebraska remembered the panics of 1873 of Mr. SHALLENBERGER. Mr. Speaker, I ask unanimous 1893, and of 1907, and they knew the loss and suffering that consent to proceed for 10 minutes more. · followed in their wake because of the failure of banks to pay The SPEAKER pro tempore. The gentleman from Nebraska their depositors. They knew that laws had long required that asks unanimous consent to proceed for 10 minutes more. Is national, State, and county funds must be secured by bonds or there objection? other forms of special securities. There was no objection. They observed that the general public, who could least afford Mr. SHALLENBERGER. Now, because Nebraska pays her the lo s, were permitted and compelled to take chances upon debts and owes no money it does not follow that she -has lagrred honesty and judgment of bankers as the only security for their behind in this great era of State devel pmeLt and progre~se in deposits. material improvements. So the Nebraska Legislature, taking lesson from . all this The great gro"Jth in State indebtedness in recent years :has passed a law in 1908 requiring banks of deposit to guara.n~ · undoubtedly followed the invention and improvement of the the ordinary depositor as well as the State, county, and munici- · automobile. Because of improved roads and bridges public .palities, which heretofore had been treated as specially preferred bonds·· and · debts have piled up to monumental proportions. customers. Nebraska is noted for her wonderful roads and splendid Stat~ The absolute equity of the Nebraska law lies in the fact that bridges and highways, all built withou·t bonds. She has- the no bank was ever organized for any other purpose than to make longest, levelest, and broadest roads in the Union. Six hun- 11~66. CONGRESSIONAL RECORD-.HOUSE ~UNE 17 dred. miles from East to West, the Lincoln Highway winds up gether with the rate of taxation thereon, and to also show the great valley of the Platte from the MiS3ouri River to the ·what your State's annual expense budget was during the past mountains, and with no rise of over 7 feet in a mile. _fear, as well as the State's total receipts and the amounts Mr. WYANT. Will the gentleman yield? -expended during a normal year for education and for good Mr. SHALLENBERGER. Yes. roads and what amounts have been raised by the counties of Mr. WYANT. From what sources are your funds raised to the State on bond issues for public roads. construct these highways-gasoline taxes, and so forth? Mr. SHALLENBERGER. I shall be very glad to do that. Mr. SHALLENBERGER. Entirely by taxation. The gaso- Mr. ROMJUE. Will the gentleman yield? line tax raises something like $2,500,000 per annum. Mr. SHALLENBERGER. Yes. Mr. WYANT. How much is the tax per gallon? Mr. ROMJUE. The gentleman's recital has been very inter· Mr. SHALLENBERGER. Two cents per gallon. esting and instructive. The gentleman who has been speaking Mr. OLIVER of Alabama. What is your State rate of taxa­ to us a few years ago was Governor of the State of Nebraska, tion on personal and real property? and William J. Bryan along about the same time was advocat­ Mr. SHALLENBERGER. I have not those figures. ing such a banking system as you have in Nebraska, and at 1\Ir. OLIVER of Alabama. Will t!le gentleman kindly insert that time a large number of people throughout the .country them? charged that that was visionary and that it could not be made Mr. SHALLENBERGER. I will. successful. The recital which the gentleman has given to the Mr. HILL of Alabama. Will the gentleman yield? House demonstrates beyond peradventure the soundness and l\fr. SHALLENBERGER. Yes. validity of the policy advocated by the gentleman as governor Mr. HILL of Alabama. I understand the State of Nebraska and by Mr. Bryan as a citizen of Nebraska. [Applause.] has not issued and does not issue bonds for the construction of Mr. SHALLENBERGER. I will say in response to the gen­ good roads? tleman's statement that there are two fundamental things Mr. SHALLENBERGER. No; the State does not issue any. behind this bank guaranty law that has been lacking in other Our constitution prohibits the State from issuing bonds for any legislation for the same purpose, and they constitute the chief purpose, but the counties can issue bonds. reasons for the success of the Nebraska law during all the trials Other States surface their roads with rock broken by ma­ and troubles for the past 16 years. chinery or concrete made by man. Nebraska's ..roads are sur­ First, we did not hesitate to pledge all the assets of all the faced with broken granite disintegrated by nature throughout banks for the immediate payment of every dollar of indebted­ a million years. This disintegrated granite is taken from the ness. When you begin in any way to modify that absolute bed of her historic Platte River, where nature has stored it a pledge the public loses confidence. By it they are made secure. mile wide and 40 feet deep and for the entire length of the Second, after the bill had been in operation for 10 years and river, and with it Nebraska builds the cheapest and best hard­ disasters began to happen, we adopted an amendment whereby surfaced roads yet invented by man. we did away with receivers not directly intere ted in the And, last, I want to show you that although we know enough economical management and settlement of the obligations of to keep out of debt as a people and to require that our bankers any institutions that might be in trouble and turned the matter pay their obligations. We also are unique in the possession over to a bankers' commission selected by the bankers them­ of an artistic spirit that has produced a building out there selves. Thus the banks that guarantee and pay the money upon the prairies of the West that, like the Taj Mahal of India, have the management and control. We took the matter entirely is the only architectural jewel of its kind in the world. At our away from politicians and politics and gave it to the business capital city of Lincoln, the people of Nebraska are building the men, who bear the responsibility of the entire matter. This finest State capitol on any continent. has been the solution and the salvation of the entire system. And they are paying for it out of their pockets as they go. [Applause.] It is the last and the greatest creation of the genius of Ber­ 'Mr. Speaker, as requested by Mr. OLIVER of Alabama, I offer tram Goodhue, world-famous architect and artist, who has for the RECORD a letter from Hon. C. W. Pool, secretary of state lately passed on to another world. of Nebraska, giving additional data concerning Nebraska's It is to cost when finished ten, twelve, or, with all of its budget of income and expenditures. furnishings and ornamentations and surroundings, perhaps even fifteen millions of dollars. DEPARTMENT OF STATll, The main building will stand foursquare to the world, Lincoln, Nebr., Jrwe 23, 1!126. three stories in height, and fronting almost two city blocks Ron. A. C. SHALLENBERGEit, east and west, north and south, with a beautiful court with House of Representati'IJes, Wasl1ingfOt1, D. 0. gardens and fountains in the center. DlolAR MR. SHAI,LENBERGER : In reply to your request of June 18 for The central tower based 60 feet below the surface upon some data relative to State government expenses and income, I am submitting the following tabulated statement of the budget expense the solid rock, 80 feet square of solid masonry, will rise 400 feet above the plains it crowns. The best artists from Europe and income of Nebraska for 1925 and 1926. and America have joined to carve and ornament its walls and You will note that all cash funds are estimated, and that in order towers and decorate with mural pictures its halls, reception to obtain the annual income of the State government, it will be neces­ rooms, and auditoriums. sary to divide the figures in half. This is only approximate, and Broad and spacious stairways lead to the several :floors in could be only approximate in any event whether they were made the main building. Elevators are used only in the great central annually or biennially, as there is no way of ascertaining what the tower. We are assured by the commission which is superin­ receipts will amount to annually in advance. Unless otherwise stated, tending its construction that its reception rooms and legislative the figures given below are for the biennium. Statement follows : hall and senate chamber will equal or surpass those in any NJilBRASKA capital on either continent. 1. Total value of assesse~ proyerty ______$3, 176, 773, 795. 00 When the last speck of gold leaf is placed upon the statue 2. State mill levy for 192o, 2.3o ; for 1924______1. 8 of the Sower that peaks the central tower, every dollar of the 3. Total budget expense for biennium______29, 944, 775. 10 cost of this building will have been paid for by the people of 4. Total income for biennium for 1925-26 for all Nebraska, and it will stand for centuries as a monument to To~~[P~;:siunds------16,512,764.00 proclaim to the world that the best character of citizenship, Receipts appropriated (estimated)------7, 112,039.96 the best example of industry and economy is always to be State cash funds (estUnated)------2,736,772.99 found among those who live close to the soil and draw their Gas tax biennium (estimated)------5, 500, 000. 00 living from the broad bosom of our mother earth. _[Applause.] Felleral cash funds (estimated>------3, 583, 198. 15 Mr. OLIVER of Alabama. Will the gentleman yield' Total------35,444,776.10 Mr. SHALLENBERGER. Yes. 5. County road improvement bonds (outstanding)_ 3, 786,000.00 Mr. OLIVER of Alabama. The speech of the gentleman is 6. Total amount of school money used f?r year not only a very deserving tribute to the industry, frugality, from July 1, 1924. to July 1, 1925, for c1ty, vil- and genius of a splendid people, but I feel that it is so educa­ lage and rural schools------26, 541, 121. 68 tional and instructional that a motion should be made to have The permanent school fund amounts to______10, 679, 085. 76 it printed as a House document for ch:culation. I am sure The· figures in this statement are taten from the State tax com· that at this time, when mauy States are issuing bonds for missioner's and State auditor's reports, as well as the State super· public improvement , it will be truly instructive and helpful intendant's annual report, and should be as reliable and accurate as to llave an informative address like this widely circulated. it is possible to give them at this time. The gas tax is estimated on J expect to make a motion to have the address printed as a the basis of what has been collected up to this time. nou e document, and I wish to ask the gentleman to set out in Very truly yours, his speech the assessable value of property in Nebraska, to- CHARLES W. PooL, Becreta1·11 of State. 1926 CONGRESSIONAL RECORD-HOUSE J.l467 The SPEAKER pro tempore (Mr. SwEET). The Ohair recog­ Democratic Party in New York, not simply of the individual nizes the gentleman from New York [Mr. FIS?] for 15 minutes. Representatives who are here, but the stand of the Democratic Party, the champions of the liquor interests in New York THE LEri'ICR FROM NEW YORK DEMOCBATIO CONGRESSMEN '1'0 State. _ _ SENATOR WADS WORTH It not only missed the p1ark, as the Democratic paper, the Mr. FISH. Mr. Speaker and Members of the House, I want New York World, has said, and has done no harm to our it distinctly understood that I do not intend in any way to colleague in the other branch, but it has done mortal harm criticize any man for his views on prohibition, and particularly to the presidential aspirations of the Governor of the State of I do not want to criticize my Democratic colleagues from New New York. It will raise a stench among law-abiding Democrats, York for their individual opinions upon this question; but I antinullification Democrats, Democrats from the South and the do want to discuss the letter they incorporated recently in the West, who believe in the Constitution and in the enforcement of CONGRESSIONAL RECORD making 1t a public document, and de­ the eighteenth amendment, that will not down. It will come nounce it because it represents exactly what the Democratic home to roost. It will plague every one of them. Why, it is Party of the State of New York stands for. just reported that the pet presidential bee of the Governor of The papers a few days ago contained rumors that some Re­ New York was so intoxicated from the fumes of this letter publican would move to expunge from the RECORD this letter, [laughter] that when he came to it was reported that he said: alleged to be signed by 21 Democrats from the S:tate of New I can take care of my enemies, but Lord protect me !rom my friends. York; and I want to say at this time that I doubt if there is a single Republican so lacking in wisdom, so lacking in political [Laughter.] sagacity as to even consider attempting to expunge this public These 21 wet Democrats of New York, these admirers and document alleged to be signed by 21 valiant Democratic Mem­ supporters of the Governor of New York, have done him ir­ bers of this ·House, boasting and vaunting that the Democratic reparable injury by putting this statement in the RECORD and Party of the State of New York is the only wet party. making it an official document. I do not want myself to criticize these gentlemen, and there­ Let me tell you that there are such things as dry Demo­ fore I will read at the outset a condemnation from the New crats in the State of New York. In my congressional district, York World, that Democratic daily newspaper, unquestionably which is overwhelmingly Republican, there are 60 supervisors·; the greatest Democratic newspaper in the country: 20 of them are Democratst and 15 of these Democrats represent there may exist a cheaper, less dignified public document than this, dry towns. Of course, Republicans will take this public docu­ but if so we have not heard of it. ment and see to it that it is sent broadcast to Democrats and Republicans alike. Mr. Speaker, how much time have I remain- [Laughter.] ing? It is in the manner of a comic valentine; 1t needs but a vindictive The SPEAKER pro tempore (Mr. SNELL). The gentleman picture with a piece of vulgar doggerel, to deserve a frame and a place has two minutes remaining. on the barroom wall. It will help no cause, wet or Democratic. It Mr. FISH. I will ask that my time be extended five will not hurt Mr. WADSWORTH, for the citizens are likely to conclude, minutes. · aside from the merits of the dispute, that they do not care to join Mr. CAREW. Mr. Speaker, I ask that he have all day. hands with the kind of men who oppose him. It is a sorry exhibition, [Laughter.] and coming from our Representatives in the National Legislature it Mr. FISH. I will ask, Mr. Speaker, that my time be ex- / will not help the prestige of New York. tended 10 minutes. ( No one can question that in putting this round-robin letter The SPEAKER pro tempore. The gentleman from New into the RECORD it constitutes an abuse of the privileges of the York asks that his time be extended 10 minutes. Is there ob­ House, because it attacks the record of a Member of the other jection? ~ranch of the National Legislature on his record of votes. No Mr. SCHAFER. Reserving the right to object, I was won­ one can question that some of the alleged facts are inaccurate dering whether the gentleman was going to state to the House and no one ca.n question that it constitutes bad , and espe- whether he is dry or wet. cially bad literary style, which of all is the most inexcusable. Mr. FISH. I will come to that. This letter, alleged to be signed by 21 valiant Democratic The SPEAKER pro tempore. Is there objection? Members from New York, is not a simple letter; it is a political There was no objection. manifesto of the Democratic Party of the State of New York. Mr. FISH. I will say to my genial friend and colleague It serves notice on all Democrats of the South and of the West from New York who wants me to speak so long that I hold in and of the Middle west just where the Democratic Party of my hand a statement of one of the alleged signers of this letter. New York stands on the wet issue. We must not forget there It was reported that the letter was written by my friend D;om are more Democratic Representatives from the State of . New New York who has just spoken. I do not know whether it York than· there are from all the Northern States combined. was or not and I do not care; with me it is not a personal There are 22 Democratic Representatives. in this House from matter. It is well known that some of these men who were the State of New York. Twenty-one are alleged to have signed alleged to have signed the letter did not sign. Here is one, this public document, boasting and va·unting of the wetness of braver than the rest, who repudiates the letter and says if their party. We Republicans believe that the incorporation Of he was here he would have voted to take it out of the RECORD . . this letter in the CoNGRESSIONAL REcoRD is the most colossal His statement reads- piece of stupidity that the Democratic Party of our State has wish to vote to have written letter to WADSWORTH stricken out of committed in recent years, and we want all the Democrats the RECORD. Would not have signed such a letter if it had been sub­ from the South and from the West and from the Middle West mitted to me, and most thoroughlY disapprove letter. Absolutely unfit to read the letter carefully. The last paragraph states : to remain in public document. Please sllow this wire to the Speaker. If you want to be wet why do you not join the only wet party in This is the statement of one Member whose name still ap- the State of New York-the DemoCl.'atlc Party? You may expect to pears in the RECORD as having signed that political manifesto receive from us from time to time in the near future other letters in of Democratic wetness. Now, not satisfied with writing this reference to your record on prohibition and other subjects. , particular letter and incorporating it into the RECORD, one of This letter was aimed at our colleague in the other branch the Members who signed it has written an additional letter of the Legislature. It is a "holier-than-thou " letter ; it is a to our colleague on the other side stating that they intended " wetter-than-thou" letter. It attempts to prove that Tammany to follow it up with more letters. is wetter than our colleague in the other branch of the Legis- Mr. O'CONNOR of New York. The gentleman need not have lature, and it would be interesting to me, and probably to every any hesitancy in saying who wrote these letters. Member of the House, to find out which is the wettest, those Mr. FISH. It is not a personal matter with me, it is the who say in this letter that their party is the only wet party and attitude of the Democratic Party of the State of New York take this " wetter-than-thou " attitude, or the gentleman to with which I am concerned. I understand that afterwards whom it is written, who stands for the repeal of the eighteenth some of my Democratic colleagues from New York may attempt amendment. to answer what I have said, but I wish to proceed without It was aimed at our colleague, but it missed the mark com- interruption. pletely. This torpedo full of rum was aimed at our colleague Mr. CAREW. I am not asking the gentleman to yield, I but it hit another ma.n. It hit the Governor of New York was only going to suggest to the gentleman that he does not State, who is the standard bearei: of the Democratic Party in speak for his side of the party in the State of New York. our State, and who said himself at the convention in New York Mr. FISH. Now, Mr. Speaker, I want to help my Demo- - that he was the leader of the State Democracy. He has not · cratic friends from New York because I think it is a shame repudiated this public document. He aas not repudiated this that they should incorporate into the RECORD fillY more letters political manifesto. This is the unquestion~ stand of the of such an illiterate style. [Laughter.] Therefore I have 1.146.8 OONGRESSION.A.L RECORD-HOUSE [UNE 17 taken the trouble to write a letter, what might be called a the State of New York believes In and has always advocated model letter, which they C1J.n copy with my permission for law enforcement, state-wide law enforcement, and that is the there are no rights reserved. [Laughter.] attitude of the Republicans in our State just as it is the attitude Mr. BLACK of New York. Will the gentlem,an yield? of Republicans all over this Union. [Applause.] Mr. FISH. Yes. Mr. O'CONNOR of New York. Mr. Speaker, I ask unanimous Mr. BLACK of New York. Will the gentleman set it to consent to proceed for 15 minutes in reply to the remarks just music? made by the gentleman from New York [Mr. FISH]. Mr. FISH. There will be a little music in it and a little The SPEAKER pro tempore. Under the special order the refined poetry, or a little doggerel, because the New York gentleman from Texas [Mr. CoNNALLY] will next be recognized. World points out that all the round-robin letter lacks to l\Ir. O'CONNOR of New York. The gentleman from Texas make it a comic valentine is a little doggerel. In order to has agreed to waive to me. get it in the RECORD in my time I will read it now. It is as Mr. FISH. Mr. Speaker, I hope my colleague from New follows: York [Mr. O'CoNNOR] will be afforded the opportunity to speak MODEL LETTER at this time. Emblem: A bottle of booze. 1\Ir. CAREW. Mr. Speaker, I object. Considering what a Slogan : Yo ho I Yo ho ! and a bottle of rom. flop the speech of the gentleman from New York [Mr. FisH] DEAR COLLEAGUE : You say you are wet, but you are only kidding was, after what we were threatened with, I am going to object yourself. We are the only bona fide, unadulterated 100 per cent wets to any gentleman from New York replying to it. I sincerely representing the Democratic Party of New York State with an untar­ trust that no Democrat from the State of New York will pay nished, unsullied record of continuous and conspicuous wetness. We any attention to the speech of the gentleman from New York represent a party in New York State which is the proven champion of [Mr. FisH]. A more perfect flop I never heard, and I want to the liquor interests. call attention to the fact that it was not a responsible member You say you are for the repeal of the eighteenth amendment, and for of the Republican Party or the Republican organization in the the Quebec system. We, too, are for the repeal of the eighteenth State of New York who came forward and made that speech, amendment, for what is the Constitution among wets? We are, how­ but a man who is universally regarded in the State of New ever, opposed to the Quebec system for two reasons; one is that you York as an outsider or a guerilla Republican. I object to the are for it, and the second is we don't want to wipe out the saloons and request of the gentleman from New York [Mr. O'CONNOR]. speakeasies. The SPEAKER pro tempore. The gentleman from Texas As one politician to another, we don't understand your attitude tn [Mr. CoNNALLY] is recognized for 20 minutes under the special trying to handicap the saloon; don't you realize that the saloon, the order. [Applause.] bootleggers, and the hijackers are the best customers of political rna­ Mr. CONNALLY of Texas. Mr. Speaker, I ask unanimous . chines, and the biggest vote producers. We think you made a political consent that my time be extended for 20 minutes. error in knocking a foul ball at the saloons, bootleggers, etc. The SPEAKER pro tempore. Is there objection? We want it clearly understood we are not for the Quebec system, but There was no objection. we are for any wet system that will bring us votes ; preferably the Mr. CONNALLY of Texas. Mr. Speaker, I was somewhat Tammany system. interested in the last portion of the remarks of the gentleman You say you are wet, but we are dripping wet. We propose the from New York [Mr. FisH], in which he announced his pleas­ following test to prove your degree of wetness : ure in being a member of the Republican Party, the party, as Where do you stand on State enforcement? E;ery Democratic he said, which stands for law enforcement, for the enforcement \ member of the State senate and assembly voted against it? We want of all of the laws all of the time. I .§hall adopt that closing no equivocation or quibbling. We dare you to say "To hell with en­ statement of his as a sort of text for part of what I shall say J forcement." We dare and do. this afternoon, as I call attention to the failure of the admin­ Finally, in order to qualify in the last remaining test to prove your istration to enforce the antitrust laws any of the time. right to a place on the wet band wagon you must learn by heart the In the old days of Rome a celebrated statesman named Cato following. doggerel : rendered a great service to his country. When he thought Put a bottle of booze at our head and feet, that the political freedom of Rome was being endangered by And then I guess our jobs we'll keep ; the growing strength and power of Carthage he arose in the Put a bottle of booze as our emblem of election, senate and, after making observations on the general state And then I guess we'll sweep the northeast sectio11. of the nation, concluded his address with the Latin words which were equivalent to "Carthage must be destroyed." He CHORUS was speaking for the political freedOII! of his country. Address We want our liquor; we want our rum: after address ·was concluded with that prophetic yet potent Let's have a repeal and a referendum; peri9d. He reiterated that statement until in the providence Yo ho! Yo ho! and a bottle of rum. of time a Roman Army humbled Carthage and lningled its We don't want any kind of modification; proud temples with the dust. I wish to-day there were another What we want ts real nullification ; Cato, a Cato to whom the party of the gentleman from New Yo ho! Yo hoI and a bottle of rom. York would pay heed, who might rise in this Chamber and in We suggest that you practice this melody; face of the threat to the economic freedom of this Government But If you can not sing it with sincerity, and the people it serves, from time to time hurl with withering Why, you can not expect to play with Tammany. denunciation the statement that monopoly and privilege must Yours of the only Simon-pure variety of wetness. (To be signed by be destroyed. [Applause on the Democratic side.] individual Democratic Repre~entatives from New York State.) On January 7 of this year I took occasion to make some remarks on this floor in which I quoted a speech of the Presi­ I hope when they come to this future letter-writing contest dent of the United States made in New York last November, to decide the degree of wetness between so many of our col­ in which he gave utterance to his sentiments regarding what leagues on the Democratic side and our colleague in the other is commonly called " big busineSs," but which too frequently body that they will have this letter in mind because I tried is, in fact, " bad business." to make it just as clear as possible so that he who runs may The President in speaking of the present generation of busi­ rea fl. 1\Ir. WELLER. Mr. Speaker, will the gentleman yield! ness at that time stated: Mr. FISH. I have only two minutes. If the gentleman will But the present generation of business almost universally through­ \ extend my time for five minutes, I would be very glad to yield. out its responsible organization and management has shown' every The SPEAKER pro tempore (Mr. SNELL). The gentleman disposition to correct its own abuses with as little intervention of declines to yield. the Government as possible. Mr. FISH. Mr. Speaker, I for one want this precious Demo­ At that time I pointed out that the D~partment of Justice, cratic letter to remain as a public document. I want it to the head of which wa. an intimate friend of the President remain so that its ~tench will be carried to the nostrils of all and who bad been appointed by him, almost coincidentally the Democrats in this country. It reminds me of another dog­ with the pronouncement of the President in New York gave gerel. It stinks and shines and shines and stinks like a dead out a public statement which was quoted in the press in part mackPrel in the moonlight. I hope there will be no Republican as follows: 1'!0 foolhardy as to move to expunge this precious document from the RECORD. SABGENT TO GUARD HO.NEST BUSlYESS-ATTORNEY GFJ.NERAL TO CON­ In conclusion, Mr. Speaker, I thank God that I belong to the FINE ATTENTION TO MOST SERIOUS LAW YIOLATIONS Republican Party, the party that has always believed in en­ Business with a clear conscience tllat is not trespassing on the forcement of aW. our law·. [Applause on the Republican side.] antitrust statutes is noa going to be hampered by any investigatory I want to say to my colleague!) that the Republican Party in activities or the Department of Justice. ) 1926 OONGRESSIONAL REOORD-HOUSE 111~69

The department ls going after the cases "involving serloWI viola­ ~he tnvestlgation was made from two standpolnts­ tions of the law," but the investigation of "unsubstantiated com­ (a) A possible violation of the Sherman law. plaints," such as tends to the unsettlement of private business and .(b) A possible violation of section 7 of the Clayton Act. generally leads to nothing more, is not going to clutter up its pro­ As to the first, it was found by investigation that there wa.a no cedure henceforth in antitrust matters. justification for the belief of violation of the Sherman Act. The Thi.s declaration of freedom for American business and Industry material developed, however, was still held 1n the possibility that it tram unnecessary disturbance has been definitely enunciated in the might subsequently fit in with other mergers of closely identified inter­ annl)al report of WilliRm J. Donovan, assistant to the Attorney Gen­ ests. As to section 7. of the Clayton Act, it appears that the Tidewater eral, in charge of antitrust work. 1s primarily a refining and distributing organization operating on the eastern coast, while Associated is primarily a producing company oper­ SARGENT STAND CLEAB ating 1n the California fields and selling from the west coast. In Crystallization of this attitude in the department under the adminis­ foreign trade there would appear to be some competition, re.present­ tration of Attorney General Sargent has been indicated 1n the utter­ in.g primarily 7 per cent of the business of the two companies. You ances of the Attorney General on a number of occasions. have in mind, of course, that the Webb Act by its terms gi~es con­ • • • • • • • gressional approval to the holdings of stock in competing companies MEllGER NOT FORMALLY RECOGNIZED operating exclusively in the foreign trade, and also in its entire tenor Coincident with the publication of Mr. Donovan's report, Attorney shows that Congress Is prepared to approve a certain amount of re­ General Sargent made known that the department had taken no formal striction upon competition among American companies abroad, so long cognizance of the recently announced merger in New York Qf the Ward, as there is no substantial effect upon competition at home. These Continental, and General Baking interests. companies were advised that their operations would continue to be kept under observation, and that while at this time no suit is contemplated Gentlemen of the House will recall that, beginning last fall that subsequent events would determine whether or not any · action and continuing until the present time, especially in the indus­ on the part of the Government should be instituted. trial and commercial centers. there have been formed an ex­ In regard to the General Petroleum and Standard Oil Co. merger: In tram,dinary number of corporate mergers and consolidations of that case the Standard Oil Co. of New York is to acquire the assets vast corporate properties. The Department of Justice, with of the ~neral Petroleum Corporation in exchange for two shares of its possibly one or two exceptions, had seemingly maintained an stock, to be paid directly to the stockholders of General Petroleum for attitude of complaisance if not of absolute indifference as to each share of stock of that company held by them,. The investigation whether such mergers were in violation of the terms of the disclosed that these companies are complementary and not competitive. Sherman law or the Clayton Act. A few days ago the press So far a.s our investigation shows, each company has active and intense carried additional statements with reference to mergers-! competition in the localities .where it is engaged in business. The New can not name all of those mergers which have been formed, York company is primarily a marketing company, with extensive but I have heretofore placed in the RECORD a catalogue of a storage and distributing and other marketing facilities in New great many of them-but on the 22d day of April there apJ?eared York and the New England States, where it has a large marketing in the Washington press the following notice : business. The New York company has no crude production, but its SANCTIONS OIL MERGER subsidiary, the Magnolia Petroleum Corporation, produces crude oil ill Government sanction to the recent merger of the Associated Oil Co. the fields of Texas, Oklahoma, Kansas, Arkansas, and Louisiana. and the Tidewater Oil Co. was given to-day after an i14vestigation by The General Petroleum Corporation .has no production in those fields the Department of Justice. but produces its crude oil in the fields of California, with some produc­ Attorney General Sargent announced that the investigation revealed tion in Wyoming. The New York com'pany has refineries in New York, no violation of the antitrust law, but that this conclnsion did ;Iot Rhode Island, and Te.xas. The refineries of the General are exclusively preclude the Government's reconsideration of the transaction should it 1n California. The New York company has its distributing facilities appear later that it involves any other mergers_ and makes its sales generally in • New York and the New England States, whereas the General Petroleum Co. has no distlibuting facilities j On the 20th day of May another notice· appears: · 1n any of the localities where the New York company does its marketing. ! OIL MRRGER APPROVED In view therefore of the present investigation we can find no viola­ The merger of the Standard 011 Co~ of New York and the General tion of the law, but as I have stated above there has been no approval Petroleum Corporation was approved to-day by the Department of given by the ~overfi:IDent to these mergers and it is not restrict.td in Justice. any way in the event that a. violation of the law should be disclosed. Attorney General Sargent said an investigation of the merger had • WILLIAM J. DONOVAN, ABsistat~t to the Attorney General. I sl:!.own that activities of the two companies are not in competition but I complementary. Mr. Speaker and gentlemen of the Honse, desiring to secure DEPARTMEYT OF JUSTICE, information as to why the Department of Justice had gone' Wasltit1gton, June 8, 1926. beyond its duty and had given in advance sanction and approval Hon. GEORGE S. GRAHAM, to' these corporate mergers which; upon their face, appeared to Chairman of the Judieia1·y Committee, the Capitol. lessen competition and to be in violation of the antitrust laws, In re Merger of Associated Oil Co. and Tidewater Oil Co.; also Gen­ I introduced House Resolution 277, calling upon the Depart­ eral Petroleum Corporation with Standard· Oil Co. of New York. ment of Justice to transmit to the House of Representatives MY DEAR Co~GRESSMAN GRAHAM : Supplementing my memorandum· the facts in these cases and the data and documents which were to you of yesterday in the above case, I would advise· that the turning on file. This resolution wa.s referred to the Committee on over of documents and btiefs and other data now in the files of the tbe Judiciary of this House, and the Judiciary Committee department would be prejudicial to the public interest in view of the upon its receipt promptly forwarded it to the Attorney Gen­ fact that the above cases have not yet oeen disposed of. eral's office, and the Department of Justice replied to the Very truly yours, · Judiciary Committee under date of June 7 as follows: WILLIAM j, DOYOTA.t.'i, A.ssi~tant to ·the Attorney Ge11eraZ. DEPARTMENT OF JUSTICE, Washington, Ju.ne 1, 1926. Although the department disclaimed that it had formally Memorandum for Congressman GRAHAM : approved the mergers, saying that it in ~owise restricted its I have House Resolution No. 277, relative to the merger of the liberty to prosecute these cases in the future if facts should As ociated Oil Co. and the Tidewater Oil Co., and also the merger of develop which might seem to warrant the prosecution, the the General Petroleum Corporation with the Standard Oil Co. of New department in effect justifies their formation and proclaims York. It is stated in this resolution that these mergers were approved their innocence. It avowed that it could discover no violation by the Department of .Justice. Such is not the fact. of law in either case, and says that the merger of the Standard The Attorney General in his announcement on April 22 stated that Oil Co. of New York with the General Petroleum Corporation upon the facts so far disclosed the Government would not be warranted was not violative of the law, because the Standard of New in instituting proceedings under the antitrust laws based on this par­ York had its selling agencies in New York and New England ticular transaction. He stated expressly, however, that the. determina­ and had no production of crude oil, whereas the General tion at this time would not ·preclude the Government from reconsidera­ Petroleum Corporation was a producing company and had re­ tion of the transaction should it later appear that it is in any degree fineries only in California. The Department of .Justice seems coupled with any other merger. The statement 1n regard to the Gen- to ignore the fact, however, that ther-e is a Standard Oil Co. eral Petroleum Corporation and the Standard · Oil Co. was to the same· of California which does have its properties and its activities eJtect. upon the Pacific coast. It ignores the fact that in December The facts in regard to the Tidewater and Associated merger are as the Pacific Oil Co. and the Standard of California, two of the follows: largest in the West, were merged and were not prosecuted. It 11470 OONGRESSION AL REOORD-HOUSE JUNE 17 ignores the fact that the various Standard companies of the Mr. LAGUARDIA. Mr. Speaker, will the gentleman yield various States are all interlocked and intertwined in such a there? manner that it would be difficult to unscramble them, and in­ Mr. CONNALLY of Texas. Yes. stead of there being no competition between the General Pe­ Mr. LAGUARDIA. There was also a Senate resolution pend­ troleum of California and the Standard of New York there ing asking for an investigation of the baking industry at that might be competition between the General Petroleum and other time. subsidiaries of the Standard Oil Co. and that the merger would Mr. CONNALLY of Texas. Yes. I will come to that later. remove that competition. It justifies its action in approving the But this complaint. against the Continental was pending before merger of the Tidewater Oil Co. and the Associated Oil Co., the Federal Trade Commission, and the Federal Trade Com­ but admitted there was some competition between the com­ mission was undertaking to investigate the fact as to whether panies in the foreign trade. The Committee on the Judiciary, or not that company had in restraint of trade acquired a con-· after the receipt of the memorandum from the Attorney Ge)l­ trolling ~terest in 16 other companies. While that complaint er8.1, received a letter from the department in which the depart­ was pending there was formed a still greater baking combine, ment advised that it would be "prejudicial to the public inter­ known as the Ward Food Products Corporation, with a capital est " to transmit to the House of Representatives information of $2,000,000,000, and the Continental baking concern was one in the files of the department because the cases have not yet of the constituent companies which were to be merged into the been disposed of. Gentlemen of the House, if there be inno­ Ward Food Products Co. cence in these mergers, if there be no proof of guilt in the On October 7 Commissioners Thompson and Nugent made files of the Department of Justice, what harm can come either public the complaint issued against the Continental and criti­ to the interests of the Government or the interests of these cized the action of the majority in suppressing it. Thereafter companies by laying before the Congress, as the representative the commissioner's examiner reported that while the complaint of the people of the United States, the files of the Department was pending the Continental had acquired the capital stock of of Justice? nine additional baking companies. On November 23, 1925, the If there be no evidence of fraud or violation of the law, let Federal Trade Commission dismissed the complaint and ordered the facts upon which the department acted be made known. to issue a new complaint against the Continental, charging viola­ The department says that it has proof of no wrong, the de­ tion of section 7 of the Clayton Act, and included all acquisitions partment says it has pending no litigation, and only in the of capital stock to that date. It issued on December 19, 1925, future, in case facts are developed contrary to what they now and was promptly served. Taking of testimony was begun on appear to be, will prosecution be authorized. Gentlemen of February 8, 1926. Though the $2,000,000,000 food merger had the House, if the Department of Justice may in advance ap­ been announced on October 5, 1925, though a complaint that ·the prove the formation of vast corporate mergers and may then Continental, one of the constituent corporations, had violated lock up the evidence on which it bases that approval and deny the antitrust laws had been pending before the Federal 'rrade it to the Congress, then the legislative bl"8..lch of this Govern­ Commission since April 10, 1925, yet the Department of Justice ment is at the mercy of bureaucrats and Cabinet autocrats. did nothing until both in this Chamber and in the Senate and in If the Department of Justice, a creature of the Congress, may the public press there was a persistent outcry against the defy the Congress, which by law has denounced monopoly and formation of that $2,000,000,000 food corporation; and then, and restraint of trade and the stifling of competition by mergers only then, the Department of Justice filed a suit in a Federal and consolidations, and may approve what Cong1·ess has de­ court at Baltimore praying for an injunction against the Ward nounced. it assumes an authority above and beyond the law. Food Products Co. On June 5 the White House announced that the President What did the Department of Justice do? would shortly ask the Federal Trade Commission to investi­ Now, what are the facts? What did the department in fact gate gasoline prices. The press. report contained the following: do? It entered into an agreement with the attorn·eys for the Ward Food Products merger and the Federal Trade Com­ DOUBTS ANY IRREGULARITIES mission, dominated by· Mr. Humphrey, appointed by the Presi­ In making known the President's intention the White House has ex­ dent, and Mr. Vanfleet and Mr. Hunt, the three majority mem­ plained that the President, while very willing to have the matter thor­ bers of that commission, reorgani~ed as it was by the President oughly probed and to have corrected any evils that may be found to according to the announcement he made in the fall of 1924, exist,. personally does not expect the commission's investigation to to the effect that he proposed to reorganize the Federal Trade develop any irregularities incident to the increasing prices of gasoline. Commission to enter a consent decree. That was in con­ formity with tb,e doctrine announced by Mr. Humphrey, of the Why have an investigation if the President is to acquit in Federal Trade Commission, that the commission was not going advance those charged with manipulation? Mergers and con­ to disturb business any more than it was necessary. The solidations do not lessen prices of gasoline. If there is to be Federal Trade Commission, a majority of them, over the pro­ an inrestigation, let there be a real one. Let its findings be test of the minority members, Commissioners Thompson and independent of the President's view. Nugent, made an agreement with the Department of Justice In this Chamber, on February 9 of this year, I called to the whereby the consent decree was entered in the Federal court attention of the House the Ward Food Products Corporation, at Baltimore, and upon its entry the complaint against the the $2,000,000,000 baking merger which had shortly before been Continental Baking Co. was to be automatically di-smissed. formed. In the fall of 1925, when the Department of Justice They entered that consent decree on the express agreement gave out its statement of freedom for American business, the between the majority members· of the Federal Trade Commis­ department also stated that it had taken no .. formal cogni­ sion and the Attorney General that the complaint that was zance" of the baking merger of the Ward, Continental, and then pending with the Federal Trade Commission, and in which General Baking interests which had been announced. That the commission had already taken evidence that would prob­ was in connection with the announcement of the Attorney Gen­ ably have convicted the Continental concern of violation of eral last fall. Although the Department of Justice knew that the antitrust law-they entered that decree in Baltimore upon the merger had been announced in the press, the department the express stipulation that the Federal Trade Commission took no "formal cognizance" of it, notwithstanding that at would ·dismiss that complaint and wipe it from its books. The that very time the Continental Baking Gorporation, one of the Department of Justice caused to be entered that decree at a companies tha -~ was to be incorporated in that merger, was time when it knew that the Federal Trade Commission would already befure the Federal .Trade Commission upon complaint dismiss that complaint or had agreed to do so. And yet in the filed against it for violation of the antitrust law. The Con­ consent decree the Department of Justice inserted the follow­ tinental Baking Corporation was a baking concern reputed ing paragraph: to hold a dominating position in the baking industry in the United States. On March 23, 1925, the Federal Trade Com­ It appears that the charge contained in the petition herein that the mission had by unanimous vote ordered that complaint issue acquisition and holding by the Continental Ba.king C()rporation of the against the company, charging it with acquiring the capital stock and other share capital of alleged competing bakiug companies stock of about 16 baking companies, in violation of section 7 is in violation of section 7 of the Clayton Act was included also in of the Clayton Act. However, the commission granted the a complaint filed with the Federal Trade Commission against the Con- company an ex parte hearing and unsworn statements of its tinental Baking Corporation on December 19, 1925. Wherefore the petition is dismissed as to that charge without prejudice to the rights attorney and the chairman of the board of directors we~:e re­ ceived. Final action was deferred until on October 5, 1925, of the United States to again raise the issue in any other proceeding. Commissioner Thompson directed the attention of the commis­ In short, in the antitrust suit against the Ward Food Prod­ sion to the news dispatch announcing the proposed merger ucts Co. in the Baltimore Federal court, notwithstanding the of the Continental Baking Corporation, the Ward Baking Co., Department of Justice had alleged that the Continental Baking and the General Baking Corporation. Co., one of the constituent companies, had already violated ilia 1926 CONGRESSIONAL RECORD-HOUSE ~1471

law by its a.cquisltlon of compet~g companies and stock in should be complied with as a matter of courtesy. The other commis­ competing companies, the Federal court dismissed that Charge, sioners agreed, and Judge Hainer, chief counsel, and Trial Attorney with the consent of the Department of Justice, on the pretext A. R. Brindley were delegated to represent the commission at a confer­ that it was already pending before the Federal Trade Com­ ence to be held at such time as suited the convenience of the Attorney mission and therefore it ought not to be tried in two courts. .General, and the Attorney General was advised accordingly. And yet the -.Attorney General and the Federal Trade Commis­ The conference was held at the office of the Attorney General on sion-the three majority members over the protest of the two March 27, 1926, and resulted in "a plan •• which was reduced to writ­ minority members, Commissioners Nugent and Thompson-had ing in the office of the Attorney General and submitted to the commis­ already agreed that upon the entry of that consent decree in sion by its chief counsel, and reads as follows: the Federal court the charge against the Continental Baking Memorandum Co. should also be dismissed by the Federal Trade Commission. At a conference between the Attorney General and his special assist­ What did that result in? ant, A. F. Myers, Judge B. T. Hainer, chief counsel of the Federal It resulted in the Continental Baking Corporation-which the Trade Commission, and A. R. Brindley, trial attorney in the Conti­ .Attorney General had alleged in a suit had a dominant posi­ tion in the baking industry, and which the Federal Trade nental Baking case before the comm.Lssion, the following plan was sug­ Commission had already proven, to the satisfaction, at least, of gested relating to the charge contained in both the case of United two members of the commission, had violated the law by States against Ward Food Products Corporation et al., and the com­ acquiring control of competing companies-to go forth from plaint issued by the Federal Trade Commission against the Continental the court in possession of that stock and in the future to go on Baking Corporation, viz, that the last-named company has acquired and violating the law which the .Attorney General had said it had now holds stocks or other share capital of competing baking companies violated. It permitted 1\fr. Ward and his associates, who owned in violation of section 7 of the Clayton Act : this projected corporation of $2,000,000,000, to continue in (1) T}).at the Federal Trade Commission proceed with the hearings control of the constituent companies; it permitted them to hold under its complaint until it shall have taken all testimony to be that property" in the future and be able to dominate and con­ adduced by it or the Continental :Baking Corporation on that issue. trol the baking industry, according to the revelations made by (2) 'fhat upon the conclusion of those hearings the Federal Trade the minority members of the Federal Trade Commission, Com­ Commission make its findings of fact, and certify the findings of fact missioners Thompson and Nugent. and the evidence to the court at Baltimore, which shall be stipulated Mr. Speaker, at this point I desire to incorporate in the into the record in the case of United States against Ward Food Products Corporation et al. as the facts upon which the court shall determine RECORD certain extracts from the dissent of Commi ioners Nugent and Thompson from the dismissal by the majority of the above-mentioned issue in that case. the Federal Trade Commission on .April 2, 1926, of the com­ (3) (a) That the Federal Trade Commission having taken the tes­ plaint against the Continental Baking Corporation: timony and made its findings of fact relating to the issue in question, it shall thereupon suspend proceedings under its complaint until there On February 8, 1926, the day the commission began taking testimony has been a final determination of the issue in the Ward case by the court. against the Continental the Department of Justice filed a petition in (3) (b) Or, in the alternative, that the Federal Trade Commission, the Uni~ States district court at Baltimore against Wru.·d Food after having taken all the testimony introduced in behalf of the com­ Products Corporation, Continental Baking Corporation, United Bakeries mission and the respondent, the Continental Baking Corporation, shall Corporation, Ward Baking Co., Ward Baking Corpor,ation, General certify all the testimony taken to the United States court at Baltimore Baking Co., General Baking Corporation, William B. Ward, George G. to be used as evidence in the case of United States against Ward Food Barber, and others' and charged that the defendants were engaged in a Products Corporation et al. combination and conspiracy in violation of the Sherman Act; that said ( 4) That nothing herein contained shall a1fect the proceedings in corporations had violated section 7 of the Clayton Act, and said viola­ the case of United States against Ward Food Products Corporation et tion on the part of the Continental was set out substantially as charged al. on other issues than that with respect to the acquisition and bolding in the Federal Trade Commission's complaint against that company. by the Continental Baking Corporation of stocks in competing bakeries, On March 24, 1926, the following letter was received from the Attorney in violation of section 7 of the Clayton Act; but all other such issues General: shall be heard and determined at such times and in such manner as the OFFICE OF THE ATTORNEY GENERAL, parties may agree or the court direct. Washington, D. a., March !S, 1926. [EXPLANATORY NOTE.-Judge Hainer concurs in an of subdivision 3 ·Hon. J. F. NuGENT, (b) with this addition: That after the findings and testimony are ahairman Federal Trade aommission, Washington, D. a. certified to the court the commission's proceedings shall be suspended Re: United States v. Ward Food Products Corporation et aL until the final determination of the issue by the courts, but states MY DEAR M:R. CHAmMAN: The Government's petition in the above­ that he has no objection to subdivision 3 (a) if the commission shan named case charges, among other things, that the Continental Baking favor that course. He further suggests that if subdivision 3 (a) is Corporation has acquired the stock or other share capital of a number adopted it may be embarrassing to the court.] of competing baking companies in violation of section 7 of the Clayton Colonel Brindley does not concur in any suggestion that the com­ Act. Substantiany the same charge is made in the complaint issued mission suspend its proceeding. by the Federal Trade Commission against the Continental Baking Cor­ Comment on the " plan " or the explanatory note is withheld. They poration, which is now being heard before an examiner of the com­ speak for themselves. Suffice it to say that the object sought by the mission. "plan" was to prevent the entry by the commission of an order re­ Mr. William H. Button, counsel for the Continental Co., has repre­ quiring Continental to divest itself of capital stock it had acquired con­ sented to the department that the trial of the same issue in two pro­ trary to section 7 of the Clayton Act. It is apparent that Chlef ceedings at substantially the same time will work an undue hardship Counsel Hainer was of the opinion that •the commission should not r on his company. He has therefore expressed the hope that an arrange­ enter an order against the Continental, but that after taking testi­ ment may be made between the commission and the Department of mony it should "suspend proceedings * * • until there has been Justice whereby the determination of the issue may be had in one pro­ a final determination of the issue in the Ward case by the court." ceeding or the other and not both. It also appears that the " plan " accorded with the views of the I do not know whether this arrangement could be made in fairness Attorney General, for in his letter o~ March 23 he said : to the Government and would want to consider the matter very cnre­ " It would seem, however, that we might agree upon the taking of fully before committing myself. It would seem, however, that we this testimony in this issue in ouly one proceeding. The commission's might agree upon the taking of the testimony on this issue tn only one proceeding being already under way, it would seem that if an ng-.:-ee­ proceeding. The commission's proceeding being already under way, it ment is reached it should provide for the reception of the commission's would seem that if an agreement is reached it should provide for the record in evidence in the suit at Baltimore." reception of the commission's record in evidence in the suit at Balti­ The " plan " above quoted was submitted to the commission by more. Chief Counsel Hainer with a memorandum containing the following I do not want to take any action in the matter without a consulta­ statement: tion with the commission or such commissioners or representatives a.s " Colonel Brindley concurs in the memorandum except that he does the commission may designate. To that end I would be pleased to have not desire to make any suggestions with reference to suspending the a conference with the commission or its representatives at some con­ proceedings before the commission." venient time this week. That is an entirely different statement than that contained in the Yours very truly, explanatory note to the memorandum made in the office of the At­ JOHN G. SARGENT, torney General. 'Fhat statement was : A ttor-n~y General. "Colonel Brindley does not concur in any suggestion that the com­ On 1he morning of March 25, 1926, Chairman Nugent called a special mission suspend its proceedings." meeting of the commission, with all members present except Commis­ It should be noted that thereafter Attorney Brindley, who had bPen sioner Thompson, who was absent on official business. Chairman in charge of the commission's proceedings against Continental since Nugent stated that the Attorney General's request for a conference its inception, was not informed of further conferences between the 11472 UONGRESSION AL RECORD-HOUSE commission's chief counsel and the Attorney General, nor invited to tion between them and the companies whose stock they acquire. The attend such conferences. consent decree does not prohibit them from acquiring the capital stock The provision in the " plan " for the commission to " suspend pro­ of two or more baking corporations where the effect of such acquisi­ ceedings • • until there has been a final determination of the tion may be to substantially lessen competition between such corpora­ issue in the. Ward case by the court," meant nothing more than the tions, or any of them, whose stock is so acquired, or to restrain com­ dismi sal of the commission's complaint against the Continental. merce in any section or community. The second paragraph of section For·, if the court found against the Continental, and decreed accord­ 7 of the Clayton Act specifically forbids stock acquisitions having such ingly, there would be nothing for the commission to do and its com­ effects. plaint necessarily would be dismissed. On the other hand, if the The complaint of the Department of Justice also charged that the court found in favor of the Continental, the matter would have been corporate defendants "have acqurred • • • the whole or a sub­ adjudicated, and it is fair to assume that the commission would have stantial part of the stocks or other share capital • • of other dismissed its complaint. corporations engaged in interstate trade and commerce in the baking In our opinion, the Attorney General was reasonably certain, under and related industries • • • in violation of section 7 of the Clay­ the law and facts of this matter, that no court would have restrained ton Act," and sets out the names and location of certain of such the commission from proceeding with its case against the Continental. "other corporations." The consent decree does not require the de­ We also think that the attorneys for the Continental held that opinion, fendants to divest themselves of the capital stock unlawfully acquired. otherwise they would have applied to the Federal court for a restrain­ Neither does it require them to divest themselves of said stocks and ing order after the Department of Justice filed its petition in the the physical assets so acquired by any of them. The commission has 'court at Baltimore cha-rging the ~ontinental with violating section 7 issued such orders in several similar cases, and in two cases its orders of the Clayton Act on substantially the same facts set out in the have been affirmed by different circuit courts of appeal. Hence, the commission's complaint. The Continental in~tead of attempting to corporate defendants in the Ward suit are to-day in the enjoyment of restrain the commission through court action appealed to the Attorney property obtained contrary to law. General, as shown by· his letter of March · 23 . . The said bill of complaint alleged that- The "plan " devised in the office of the Attorney General and the " This unlawful plan for restraining and monopolizing interstate "explanatory note" thereon with the memorandum of the commis­ trade and commerce in bakery products and the ingredients and equip­ sion's chier" counsel were circulated among the commissioners, in order ment used in the manufacture thereof originated with the defendants, that they 'might familiarize themselves with their contents, and were W. B. Ward and Howard B. Ward. · The other defendants, individual pending at the regular meeting on Friday, April 2, 1926, and would and corporate, entered into the plan from time to time as they came 'doubtless have been acted upon that day. But early on the forenoon into relation with those defendants or were brought into existence by of April 2 the chief counsel appeared before the commission and sub­ them. The defendant, W. B. Ward, is to-day the most powerful single ·mitted a proposed " consent decree " to be entered in the Ward Food personage connected with the baking industry. Closely allied with Products Corporation case in the Federal court at Baltimore. The Ward are the defendants Helms and Barber, who have been associated chief counsel presented a copy of the "consent decree" and made a with him for many years and who with Ward constitute a triumvirate bi-ief statement concerning it, and submitted a memorandum from controlling and directing the fortunes of the baki~g industry," which the following is quoted : . • • • • " Pursuant to the direction of the commission heretofore given the " Howard B. Ward is a brother of the defendant, William B. Ward, chief counsel in this matter, to confer with the Department of Justice in and has been . associated with him in all his enterprises since 1912. the matter· of the proceeding before the commission in the Continental He is vice president of the defendant Continental Baking Corpora- Baking co'rporation case and in the case of United States of America tion. • • .against Ward Food Products Corporation et al. • • • pending in "Paul H. Helms has been associated for many years in the business the District Court of the United States for the District of Maryland, enterprises of the defendants William B. Ward and George B. Smith. I again had a conference yesterday, April 1, 1926, with the Attorney He is a former secretary-treasurer of both the Ward Baking Co. (of General, his assistants in charge of the above suit, and with counsel New York) and the Ward Baking Corporatio.n. He is now president of for the defendants in the above-entitled action and also in the Con­ the defendant General Baking Corporation. • • tinental Baking Corporation proceeding now pending before the com­ " George G. Barber has been associated for many years with the de- mission. As a result of this conference a decree was agreed to in the fendant William B. Ward in various baking enterprises. • • case of United States of America against Ward Food Products Cor­ "He was active in the promotion of the defendant Continental poration and others, in the Baltimore court, subject, however, to the Baking Corporation, and bas served as its president since it was or­ condition that the proceeding in the Continental Baking Corporation ganized." case pending before the commission be dismissed, effective on the entry of the decree by the court at Baltimore." • • • • • • • Paragraph 13 of said consent decree· reads as follows : • • • • • • • " It appears that the charge contained in the petition herein that THE CONSENT DECREJ!l the acquisition and holding by the defendant, the Continental Baking The bill of complaint of the Department of Justice In the Ward suit Corporation, of the stocks and other share capital of alleged competing alleged, among other things, that the Ward Baking Corporation, the baking companies is in violation of section 7 of the Clayton Act, was Ward Baking Co., the Continental Baking Corporation, the United included also in a complaint filed by the Federal Trade Commission Bakeries Corporation, the General Baking Co., and the General Baking against the Continental Baking Corporation on December 19, 1925. Corporation, together with certain individuals- "Wherefore the petition is dismissed as to that charge without " are engaged in a combination and conspiracy in undue and unreason­ prejudice to the right of the United States to again raise the issue in able restraint of trade and commerce among the several States and in any other proceeding." the District of Columbia. • • • with respect of bread, cake, The only reasonable inference that can be drawn from that language pastry, and similar products • • • in violation of sections 1, 2, and unquestionably the inference that it was intended should be drawn and 3 of the Sherman Antitrust Act." therefrom is that said charge was dismissed for the reason a complaint paragraphs ·5, 6, and 7 of. the consent decree entered by the F~c:Ieral involving the same subj.ect matter was then pending and undetermined court at Baltimore in said suit at the request of the Department of before the ll'ederal Trade Commission. It is mere camouflage. The Justice enjoins, restrains, and prohibits each of said corporations trom consent decree was signed by the judge of the Federal district court at acquiring, directiy or indirectly, or-exercising direct or indirect control Baltimore and entered on Saturday, April 3, and the Federal Trade of, e.tc., the whole or any part of the sh_a.res of capital stock of either Commission at a regular meeting held on Friday morning, April 2, of the other corporate defend~ts or their controlled companies, and was informed by its chief counsel that the entry of said decree was from acquiring any of their physical assets. . subject to the dismissal by the commission of its case against the Under the decree the six corporations above named may not acquire Continental. \ either the capital stock or physical assets of each other, but all of them At said meeting of the commission, by vote of Commissioners Hunt, are at liberty to acquire the physical assets pf other bakeries. Humphrey, and Van Fleet, with Commissioner Thompson absent on Paragraph 8 of said decree enjoins, restrains, and prohibits the said official business and Commissioner Nugent voting "no" and dissentipg, corporations- _ the said complaint of the commission was dismissed, the order to be­ " from acquiring, directly or indirectly, the whole or any part of the come effective when said decree was entered by the Federal court, and stock or other share capital of any other baking corporation engaged the chief counsel of the commission was directed to " informally advise also in interstate commerce, where the effect of such acquisition may the Attorney General" of said action, which we have no doubt he did be to substantially lessen competition in such commerce between the before noon of said day. However that may be, the fact remains that ·corporation whose stock. is so acquired and the defendant corporations about 3 o'clock p. m. of April 2 the Attorney General was informed by or tend to create a monopoly." letter dispatched to him by special messenger that the commission had * * * • • • • dismissed its complaint against the Continental, as above stated. We call attention to the fact that Ward Baking Corporation, Gen­ We quote the following from said letter to the Attorney General : eral Baking Corporation, and Continental Baking Corporation are "In consideration of the above-mentioned (consent) decree and in holding companies only, and as such are not engaged in the baking accordance with the recommendation of its chief counsel the commis­ business. No acquisitions of stock they may make will lessen competi- sion had dismissed its complaint against the Continental Baking Cor- 1926 CONGRESSIONAL RECORD-HOUSE 111473 poration, docket 1358, alleging violation of· section 7 of the Clayton ton was entitled "The Little Gold God." I did not ·witness its Act, such dismissal to become effecti~-e upon the entry of the decree. performance. It was but a show ; it was but a picture ; it "By direction of the commission. was something on the screen ; it was artificial ; it was but a "l\lr. Nugent di<~senting." porb·ayal though in flesh and blood, of a reality ; it was not It is therefore plainly apparent that when on April 3 the Depart­ the reality itself. But there is a real "little gold god." ment of Justice requested the court at Baltimore to sign and enter said The " little gold god" is ruling the present administration. decree, which contained section 13, above quoted, it was fully aware Gentlemen of the H ouse, I am not embittered against pros­ of the fact that the very moment said decree was entered the order perity; I am not antagonistic to property rights ; I am not of dismissal of the commis ion's case against the Continental became an enemy to corporations that obey the law. I believe in effective. property. I believe in the sanctity of property rights, -and it When Commissioners Hunt, Humphrey, and Van Fleet, "in consid­ is because I do believe in the sanctity of property rights and in eration of this (consent) decree," dismissed the commission's com­ the sanctity of human rights that I propose to protest against plaint against the Continental, it wns with knowledge that said decree every policy that sacrifices one man's property rights for the dismissed the section 7 charge of the Department of Justice against benefit of some other man's property rights. that corporation. Now, gentlemen, let us see whether or not the spirit of ex­ The result of said dismissals is that the Continental Baking Cor­ ploitation and the spirit of special privilege does or does not poration is to-day in the quiet, undisturbed, and unchallenged owner­ dominate the present administration. Who is the most potent ship and possession of the capital stock of corporations owning and and the most dominant figure in this administration? AII ·of operating at least 83 bakeries, among which are some of the largest you do know. It is not necessary for me to put in the RECORD in the countt·y and others are among the largest in the sections in which even the alphabetical symbol that name the most potent influ­ they are located, notwithstanding both the Department of Justice and ence in this administration. The most compelling name in this the Federal Trade Commission bad solemnly charged that said stock administration is that of the Secretary of the Treasury, Andrew was acquired in violation of section 7 of the Clayton Act. W. Mellon. The present Secretary of the Treasury has often • • • • * • • been compared to Alexander Hamilton. If what history records While the consent decree dissolv~d the Ward Food Products Corpora­ about Alexander Hamilton is true, Alexander Hamilton no tion which had issued no stock and owned no property, it left William more completely dominated and controlled the Federalist Party B. Ward, his former employees, intimate friends, and business associ­ of his day than the present Secretary of the Treasury con­ ates in control of the Ward, the General, and the Contine.ntal Bakiug trols his party and the administration to which he belongs. Corporations, the three ,largest in the country. The Department of Jus­ [Applause.] Alexander Hamilton controlled his party by the tice estimated the annual sales of the bakeries controlled by the Ward marvelous genius of his mind and the quality of his logic, and j and Continental corporations at between $120,000,000 and $140,000,000. the present Secretary of the Treasury no less dominates and Mr. Speaker, Commi sioners Nugent and Thompson have ren­ controls ·the present administration. dered and are rendering the American people a distinct and His power, perhaps, springs from a different source than that deserving service on the Federal Trade Commission. of Alexander Hamilton, but in this day the peculiar power ne Mr. Speaker and gentlemen of the House, that action of the possesses is probahly more compelling than even the brilliant Department of Ju tice can not be corrected here. This is a m.ind and charming personal manners of Alexander Hamilton. legislative body. We may make the laws, but we can not en­ Through his own great wealth and his affiliation and associa­ force them. That is the duty of the President. However, the ticn with a variety of interests that have vastly profited Congress can aid in letting the country know where the re­ through legal favoritism, and his naturq.l sympathy with such sponsibility rests and how that responsibility has been met mth a system, he is able to wield an influence greater than any reference to the enforcement of the laws against lawbreakers other figure of his day. · big and little, powerful and weak. The Department of Justice What is the political theory of the Secretary of the Treasury? not only permitted the promoters of the $2,000,000,000 Food What does he believe in? The other day an election was held Trust to remain in conb·ol of the constituent companies, but in Pennsylvania and the public had a statement fro~ the Sec­ deliberately. rescued one of- those companies, the Continental, retary of the Treasury about that election which illustrates from investigation and judgment at the hands of the Federal his philosophy of politics and illustrates his philosophy of public Trade Commission. · life. In speaking of a Republican primary in which was ex­ In the beginning of my remarks I said something about pended a sum ranging from $2,000,000 to $3,000,000, the Wash­ political freedom and economic freedom. We are proud of and ington Herald quotes Secretary Mellon as saying: we frequently boast of our political freedom. But, gentlemen, The primary was carried on in an entirely lawful way, and I don't political freedom is not complete if the possessors of that believe there was anything either extravagant or reprehensible about political freedom are in the bondage of an economic servitude it. The expenditures were all legitimate. All of the Pepper-Fisher that does not permit them to enjoy the real fruits of political money was spent as honestly, as legitimately as mouey given to the liberty. church. Such a big campaign requires expenditures on th~ scale used. · What is the economic trouble now? What is the trouble with our people? Why are people knocking at the doors of this The Secretary of the Treasury puts his approval upon ex­ Congress day after day asking for some particular measure of penditures of two mill.ion to three million dollars as legitimate relief? in a Republican primary campaign in his home State of Penn­ · ·Down at the bottom of all of it you will find an economic sylvania. cause. Some feel they have been exploited. Some feel they My friends, that is the gospel of gold. That is the doctrine ought to have something out of the Treasury to compensate of the "little gold god "-that contributions to a political them for some loss they have suffered through exploitation. So slush fund with which to prostitute and debauch an electorate after all, most of our political questions are intermingled with were spent as honestly and as legitimately as contributions to economic questions. What I want to call to the attention of further the religious movement throughout the world. That is this· Chamber and, I hope, at least, to a few people of the the political philosophy of great wealth amassed through laws United Stares, is the seeming absolute surrender of the present that give it the power to profiteer. That is the political doc­ adrriinistration to. the great corporate interests of the country trine of th·e present dominating figure in this administration. and to the favored interests that are exploiting the American They believe that money ought to rule. people. [Applause.] Is it any wonder that the Secretary of the Treasury should I There was a time when they said the king could do no wrong, denounce the Haugen bill? I~ it any wonder that a man who I I but it seems to be the doctrine of the present administration, thinks it is perfectly right to charge Am·erican constimers more especially of the Department of Justice and of the President­ for aluminum than the foreigner pays should denounce a bill / and I speak respectfully of the President-it seems to be their that pretends to give the American farmer the same advantage t;heGry and_ their political and economic philosophy that the that tlie 'Aluminum Trust enjoys? The doctrine of the Secre­ large corporations can do no wrong. tary of the Treasury is that it is sound, that it is morally right, Mr. SCHAFER. Will the gentleman yield? that lt is a proper gover.nmental function of the United States 1,' l\fr. CONNALLY of Texas. Yes. to permit the foreigner to buy aluminum cheaper than the I I Mr. SCHAFER. If there was not such a complete surrender, American consumer so long as that aluminum sold to the there would not be available for ca~paign purposes and for American consumer belongs to the Secretary of the Treasury administration machine candidates several million dollars, such and his outlawed trust, that bas violated the statutes of the as was eArpended in Pennsylvania, would there? United States repeatedly and has had court decrees re.ndered Mr. CONNALLY of Texas. I shall refer to that a little against it, and then has gone on defying those decrees. The later. · . Secretary of the Treasury believes it is sound, politically sound, l\fr. Speaker and gentlemen, some time ago I saw in the press to build up by law a tariff wall and dig a moat around the a notice that a theatrical production playing here in Washing- U~ited States so that the American farmer may be required to LXVII-722 11474 CONGRESSIONAL RECORD-HOUSE ~UNE 17 pay more than the foreigner for manufactured goods; so that Iknowing the extent of your economic degredation and ex­ he can buy American steel cheaper than the farmer out on the ploitation, join with the Democrats and take oft' the books the plains of Nebraska can buy that same steel; but he says it is a damnable Fordney-McCumber Tariff Act and put some one in crime, an economic crime, to permit that same farmer out in the Attorney General's office who will enforce the law and take Nebraska, who is being exploited by the Steel Trust and the the burden off your backs? Aluminum T.rust-he says it is morally wrong to permit him to Mr. WEFALD. Will the gentleman yield? sell his wheat to foreigners cheaper than it is sold here in the Mr. CONNALLY of Texas. No; I regret to say I can not markets of the United States. Is it any wonder, my friends, yield. In conclusion, gentlemen, let me say that economic that a man who entertains that kind of political morality, that exploitation is a tyranny that no brave and powerful people kind of economic theories-is it strange or is it any wonder can long endure. Back of all of the political uprising, when that so long as that kind of spirit rules the present administra- you get back to the bottom and dig among the ashes you will tion you are going to have men knocking at the doors of this find the economic cause. People finally rebel against wrong. Congress asking that their miseries be relieved? When they see control of food and clothing. and other neces- Mr. JACOBSTEIN. Will the gentleman yield for a ques- saries of life being brought under the control of a few groups tion? through great corporate mergers they begin to realize that they Mr. CONNALLY of Texas. Yes. are losing their economic freedom. They can see the rise and Mr. JACOBSTEIN. Is it not the fact that for many years reign of economic masters. you could buy sewing machines, typewriters, and farm ma- People must be fed, people must be clothed, over the whole chinery cheaper abroad than you could here? wide world. There is not usually too much to eat and not Mr. CONNALLY of Texas. You can do that now. Only usually too much to wear; but the problem is to get it from night before last a gentleman from Pennsylvania who is in the the man who produces it to the man who wants it, to promote steel business was riding· on the train with my colleague from the free exchange of service and goods, free from the monarchy Texas [Mr. JoHNSON], and in discussing political and economic of money as well as from the monarchy of might. questions he told him, "You know we are able to sell our steel In conclusion, gentlemen of the Northwest and gentlemen products abroad cheaper than we sell them here in the United of the Middle West who are Republicans, and the President of States of America." Last summer some of my colleagues were the United States, I summon you to the standard of enforce­ in China, and they have told me that they could buy sewing ment of t~e law, as the President in· a letter a few weeks ago machines and other manufactured articles in China more rhetorically unfurled that standard. cheaply than you can buy them here at home in our markets. The President of the United States said: Gentlemen, why are the farmers of the Northv;-est knocking Enforcement of law and obedience to law, by the very nature of \. at the doors of this Congress? It is because they feel down in our institutions, are not matters of choice in this Republic, but the the bottom of their hearts that they are being exploited. They expression of a moral requirement of living in accordance with the feel that the law is taking something from them and giving it truth. They are clothed with a spiritual significance in which is to some other interests in America, and they want some arti­ revealed the life or the death of the American ideal of self-government. ficial aid by which they can be reimbursed. Of course, that is not the remedy. The remedy is to repeal The President speaks fine phrases about the enforcement the laws that give that artificial aid that permits exploitation. of the law; but, Mr. President, the law can not be enforced The remedy is to remove the cause. by rhetoric, law can not be enforced by fluted phrases. If the My friends the gent}eman from Iowa, Mr. DrcKINso~, and President of the United States wants to serve all the people the gentleman from Iowa, Mr. HAUGEN, recognizing that the and not some of the people, let him instruct the Department Secretary of the Treasury is the dominating influence in this of Justice to pull down the white :flag of surrender to the cor­ administration, go over on their hands and knees to the Secre­ porations and the trusts and run up the banner of battle, so tary of the Treasury and lay the Haugen bill down before him. that the law can be enforced and the enemies and exploiters of the people can be punished. [Applause.] ' They lay their child down and ask the Secretary to bless it. \ Why do they not go to the President of the United States and ADDRESS OF HON. JAMES T. B100G, OF OHIO ta.ke it to him Qlld say, "Mr. President, our farmers are in \ distress. Here is a scheme we have worked out that we think Mr. DARROW. Mr. Speaker, I ask unanimous consent to '. will work. We want you to tell your Republican Senators print in the RECORD a speech delivered last night over tlte radio over in the Senate and your Representatives in the Congress to by the gentleman from Ohio [Mr. B:EGG]. approve it and to enact it into law." Oh, no; they went where The SPEAKER pro tempore (Mr. SWEET). The gentleman they knew the real power resided, and so they go over on from Pennsylvania asks unanimous consent to extend his re­ their hands and knees and lay this infant down before Mr. marks in the RECORD. Is there objection? Mellon. Why? They knew if Secretary Mellon would only There was no objection. anoint it, they knew that if Mr. Mellon would only bless their Mr. DARROW. Mr. Speaker, under the leave to extend my darling-- remar~ in the RECORD, I insert a speech made by Mr. Bmo, of Mr. O'CONNELL of New York. Or adopt it. Ohio, over the radio : Mr. CONNALLY of Texas. Or if he might sanctify it by a Tll1l TABIFJ' wave of his hand. They knew if they could get Secretary Mr. BJ:GG. Ladies and gentlemen who may be listening, I some­ Mellon's 0. K. to the Haugen bill, it would be passed, because times wonder what kind of conclusions you reach after listening to the they knew that his willing lackeys- countless discussions that have been given this year by my colleagues The SPEAKER pro tempore. The time of the gentleman on various subjects a1fecting the public welfare. I realize that some from Texas has expired. of my colleagues-most estimable gentlemen, but of the opposite politi­ Mr. CONNALLY of Texas. Mr. Speaker, I ask unanimous cal faith-have made speeches on the tarilf and have made statements consent to proceed for five additional minutes. directly contrary to those I shall make to you on the tariff and its The SPEAKER pro tempore. Is there objection? effect on prosperity. \ There was no objection. But that you will not say after hearing me, "Well, that is just Mr. CONNALLY of Texas. They knew that the willing another lot of political bunk," I want to preface all I have to say on lackeys of the Secretary of the Treasury would go scurrying the taritl by the statement that I will appreciate proof from any of about and would put it through this House and wherever else my listeners that any of my statements made in this talk are not it was necessary to put it through if be approved it, and if he founded on facts. I have never knowingly misrepresented historical issued his ukase that it must pass. They abased themselves facts in any campaign speech, nor do I intend to give you any infor­ when they did it. If Mr. Mellon had approved this bill, mation to-night other than that which I can prove to be true, and with they would have said, "Great is the Secretary of the Treas­ this preface let me give you some questions to ask my Democratic col­ ury." But he presented some very strong arguments against it, leagues who are arguing that the tarifl' should be lowered and that the and because he disapproved it the gentleman from Iowa [Mr. tariff is not responsible for this wonderful prosperity we now have in , DICKINSON] came out in yesterday afternoon's Star and de­ this country and have bad for the past six years. nounced him. This is the same gentleman from Iowa [Mr. Let me first propound this question to advocates of a reduction in DICKINSON] who voted for the Fordney-McCumber tariff bill, the tariff : If a high protectire tarilf Is not conducive to prosperity, which he is now denouncing. Let me speak to you northwestern why is lt that following the advent into power of every free-trade Members, you know what the truth is. You know you are administration before the Civil War and every tariff for revenue only, being exploited by the tariff. You know you are being ex­ or Democratic administration since the war there has been a closing ploited by these mergers and monopolies in the necessaries of down of industry, a falling o1I in the scale of wages to the laborer, a life. You know that Secretary .Mellon is the ve1·y patron saint lessening in the number of hours of employment annually, free soup of both of the e iniquitous systems. kitchens in every great city in the land, and a general panic? Now, Why in the name of the miseries of your people do not you this statement is true save for the periods of 1846 to 1854 and 1914 to men of the Northwest and you men of the Middle West, 1918. Both these periods had a low tariff or no tariff, but there was 1926 CONGRESSIONAL RECORD--HOUSE (1 _14_75 no general pa.ntc as we were at war with Mexico in the first instance, per pound, while the average price of wool of the same grade under the and the World War covered the latter period. Pro~rity founded Fordney-McCumber tari1f law ha~ been 40 cents a pound. That makes upon warfare is not prosperity, and I can not be so unfair with my a differential of 25 cents a pound in favor of the tariff, and, again, the Democratic friends as to even insinuate that they might claim these farmer who sold 1,000 pounds of wool bas $250 more in the bank than two periods as shining examples when free trade or tariff for revenue he would have had under a Democratic administration if they had lived only failed to produce economic distress. up to their former record of free wool. At the close of Mr. Wilson's administration every newspaper in the Now, let us nsider cattle. I will take the concrete example offered land carried the story that 5,000,000 men were out of work. Within by the chairman of the Committee on Agriculture of the House, Mr. six months after the inauguration of President Harding these 5,000,000 HAUGEN. Last fall he went to Canada and purchased 800-pound steers men went to work, and have been at it ever since with few exceptions, at 4lh cents a pound and shipped them to his farm in Iowa to feed. and in each instance the exceptions were due to other conditions. At that time the same grade of steer was selling in Chicago and Kansas If tariff for revenue only is to be preferred to a protective tarur, City markets for 7lh cents. Why was it, I ask you, that steers in why is it that England to-day has between one and two million men Canada were 4~ cents and in Chicago they were selling for 7~ cents? out of work who have been the recipients of the Government dole ever The answer is simple. The tariff is from 1¥.1 to 2 cents per pound, and since the close of the war? the freight from Canada down to these markets makes up the differ­ Another question I should like to have you ask my Democratic col­ ence. Now, my question is, Who gets the difference between 4% cents leagues is this : If tariff for revenue only or free trade, either one, and 7% cents 1f it is not the farmer who raised the steers? So any are more contributory to the prosperity of the masses than a protec­ farmer in the United States who sold 10 head of steers weighing from tive tarifi', why is it that every time a free-trade party before the 800 to 1,000 pounds received last fall $20 per steer more than he would Civil War or a low-tariff party or the Democratic Party since that 1f there had been free trade, a difference of $200. war has come into power we find that the national debt was greater One could go on indefinitely, almost, with farm products protected when they surrendered control of the Government than when they by the present Fordney-McCumber tariff and show an advantage in farm took it over? Of course, I am excepting the two war periods again, prices directly chargeable to the tariff. The little item of eggs on the because they can not be considered. farm bas a 5-cent duty per dozen; in fact, practically every prod­ Why is it that the national debt was always decreased and never uct produced on the farm is protected. But when we add the total increased save at war times when the Republican or the high-protec­ of just the three items discussed in detail you will find that the farmer tive tariff party had control of the Government? Is there not some­ is better off by $700 because of the tariff. thing radically wrong with the arguments from the opposition when the Now, bow much does the tariff cost the farmer? As I have stated, results following their control have always been unemployment, soup there is no tariff on any farm machinery, but the Democrats make a houses, low prices, and increased national debt? great claim about the tariff on aluminum. Ten dollars will pay the I will make another positive statement in answer to the charge of annual tariff on aluminum in any farm home in America. my Democratic colleagues that the present tariff does not benefit the The tariff on sugar is $1.76 per hundred. The average home would farmer. Farm products are higher and always have been higher under not use 500 pounds in a year, but assume they do, it would make a protective tariff than under free trade or tariff for revenue only. tariff of $9 on sugar. Add $1 for a tariff on log chains and pearl b~t­ Of course, we are excepting the war periods. The value of real estate, tons, about which we have beard so much, then the one other item both city and rural, has never been as high under low tariff as under outside the luxury class on which the farmer is compelled to pay a protective tariff. Consequently, 1f the mass income of the people is tariff is clothes. There isn't $5 worth of tariff in any suit of clothes. less and if the total value of property is less under a low tariff than If the farmer had a family of four boys and they would each buy two under a protective tariff administration, it follows that the national suits of clothes a year, it would be 10 suits, or $50 tariff, allowing for wealth is Jess also under Democratic control. the extreme. Adding all of these things together and you have a total If the protective tariff is not responsible for mass prosperity I should of $70 that the farmer pays directly by reason. of the tariff; but his like to have some Democratic colleague tell me why it is that around benefits-and I am speaking of the small farm-are at least $700. the American industrial establishments you find the laborers' auto­ Subtract the cost fi;om the benefits and the farmer has $630 net profit mobiles parked, while around the industrial plants in any other country due to the tariff. I will submit to my listeners that any 80 acres of ...\ in the world you find no automobiles. Tbere might be a slight ('Xcep­ land in the United States that is strictly agricultural can produce what f tion to such conditions in the Dominion of Canada, but nowhP.-re else I have mentioned. We have taken but three items in figm·ing the bene­ I in the world. Why is it that 75 to 90 per cent of the radios, auto­ fits, but have allowed the extreme on all item.s of tariff, not taking mobiles, victrolas, pianos, and so on rre owned in the United States into consideration the fact that sugar, for instance, is cheaper now than instead of a fair share in Great Britain, France, Germany, Japan, it was under free trade. Canada, or any other nation which has not adopted a protective lariff? Now, let's look at the laboring man and see whether he gets any Last year we imported into this country $4,228,000,000 worth of benefits out of the tariff. I will take as my illustration an industry products, and of this total $2,650,000,000 worth were on the free list, at Tiffin, Ohio, the Standard Sanitary Manufacturing Co., which employs leaving approximately a billion and a half on which a tariff wa<3 paid. around 800 men and women. Ot this billion and a bali, three hundred milli()ns, in round figures, The average wage of these people, high and low together, is $5.56 per were luxuries and seven hundred and fifty millions were on agricultural day, Their competitors are England, France, Italy, and Germany. The f ! products directly for the benefit of the farmer. That leaves only average wage in England is $2.56, in France $1.56, in Italy 91 cents, '· $500,000,000 worth of tariff-protected articles on which duty W'lS paid, and in Germany 81 cents per day. Now, let me submit to my hearers I or, in other words, only 13 per cent of the total of dutiable imports this question. I am a citizen of the United States building a new > by any stretch of the imagination could have required a tariff which home. I want plumbing fixtures. Let's assume for the purpose of the the farmer might have to pay. argument that the Democratic Party is in control and that their low­ Now, if the present tariff is damaging to the farmer, I want some one tariff policy exists. Let's E!ee what happens. I want to buy a ba.thtub to explain this to me. · for my home, and I go to the city and go into the plumbing shop Why is it that the prOducts the farmer sells are higher to-day than handling the American-made bathtubs. I find the style I want and ask­ they ever have been under a low-tariff administration, save during the price. ) war periods, and that the articles he buys are cheaper to-day jn most The plumber tells me he will sen it to me for $5.56, saying that is ( instances than they were in 1920? There .is no tariff on any farm exactly what they paid the labor to make it. I tell him I will let him machinery, harness, or any other products used by the farmer. know, and I go into the next store, which handles the English bathtub, Great stress is laid by some of my Democratic brethren on the fact and there i find the same style and ask its price. They tell me they that there is a tariff on pearl buttons, log chains, and aluminum, and will let me have it for $2.56, just exactly the cost of the labor in it. statements have been made about how many millions of dollars have Again I reply that I will look around, and I go into the store handling been paid because of the tariff on sugar. The taritr on sugar is lower the French-made article. Upon finding the same style of tub I ask in the United States to-day than in any other nation in the world, and the price, and am told that it is $1.56, that being the price of French s·1gar is cheaper in this country than when it was on the free list. labor in it. I do the same thing in the Italian store, and am quoted Explain that. a price of 91 cents, as that is the cost of the Italian labor, and when If the tariff ts not benefiting the farmer, why is it that under free I enter the German store I find the same style tub for 81 cents, the trade Canadian wheat outsells American wheat an average of 5 cents cost of the labor in that country. J a bushel, while under the present tariff American wheat outsells Cana­ .\ Now, the question I ask you hearers is, Which bathtub will I buy? ( dian wheat an average of 20 cents a bushel? That makes a differ­ Will it be the $5.56 American-made tub or the 81-cent German tub? ( ential in favor of the tariff of 25 cents. Who gets it? The man who l The answer is evident. I buy the cheap product, if it is as good, and ' produces the wheat or the farmer, and any farmer who sold a thousand American conceit will not claim that our articles are made any better bushels of wheat last fall received 25 cents per bushel more for It, or or the workmanship in our articles are any better than those made by a total of $250. To-day be has $250 more assets than he had one year our foreign competitors. ago directly due to the tariff. Another question I want to ask my Democratic colleagues : If I and Now, let us take wool, which U! one of the standard products of the all the rest of the purchasing public buy :foreign-made goods, what farm. The average price of wool under free trade is not above lG cents happens to the goods o:f the Standard Sanitary Manufacturing Co., at J OONGRESSION.A.L RECORD-HOUSE ~UNE 17 Tiffin, Ohio? Wby, they stay in the factory. And when they stay in and learned precisely what must now be done for their complete the factory, then wh"at happens to the jobs of American laborers? The restoration. management of the holds a meeting, and there are just two The last Congress refused, and this House has again refused things that can be discussed. The first is close the shop and the other to increase the price of farm products to the level of the manu­ is cut the cost of production. If there are any laborers listening to­ factured products which farmers must buy. To be sure this night, you can answer this question. When the cost of production is increase would be in a sense artificial, the price increase de­ cut where does the cut come? It comes on the labor. manded would have been in consequence of an act bf Congress Let me use another illustration. I have in my district cutlery rather than the result of natural laws. Also the figures were plants at Fremont, Ohio. They make scissors, kni.-es, forks, spoons, large. The relief asked would have added not less than $2,000,- and all kinds of cutlery, including surgical instruments. I will take 000,000 to farm products at the farm and more than that to a pair of house shears for my illustration. food prices in retail. Every time a pair of this grade of shears Is manufactured 1n the I appreciate the force of the objection to such an increase factory at Fremont, Ohio, the laborer gets 44 cents. Now, I can buy in living costs, but we must remember that large as the sum that very kind of shears 1n New York City, made in Germany, and so is it fs a very slight percentage of the hundreds of millions nearly like the American shears that an expert could not tell the that are annually accumulated and spent by the American di1rerence 10 feet away, and the price I would have to pay in New York people. We must also remember that it has been the settled tor those German-made shears is 19 cents without a tarifl'. If the policy of the country to increase by act of Congress the prices American housewife wants a pair of shears and goes into a store and of our manufactured products in order that those who labor in is shown two pairs, and the man says one of them is $1 and the other our factories no more earnestly, however, J:han those who labor is 25 cents, and they both look alike and are alike so far as quality is on our farms may have the high-living standards which Con­ concerned, what happens? She is a bit skeptical and asks why one gress has refused to give to that 30 per cent of our population pair is 25 cents and the other $1. The salesman replies that there is who live upon the farms. no dift'erence in the shears other than that the $1 pair is made by The decision to give no relief through the Congress to the American labor and the 25-cent pair is made by German labor, explain­ farmers by the increase of their selling prices has in it one ing that the American laborer receives from $5 to $7 a day, while the element of righteous satisfaction, and that is they will see German laborer receives around $1 a day. Now, if the foreign-made that the present high tariff will be reduced. shears are admitted under a low tarift' or no tariff, I ask you again No assault will be made upon the wage earners or the what happens to the shears made in the American factory? Why, they industries of our blessed country, but the conduct of our remain in the factory, a.nd the management holds a meeting and faces overprotected and profiteering manufacturers as respects the the same two problems of closing the plant, throwing labor out of work, tariff will be made to square hereafter with the facts of or cutting the cost of production, and the same condition applies as production. No longer will th'e overprotected interests sue~ we had in the pottery illustration. If the cost of production is cut, ceed like a false prophet of religion who gets the worship-­ that means a cut in the labor cost. ers on their knees with their eyes shut so that he may pick If American labor ls compelled to compete with foreign labor on a their pockets. American farmers and their friends will re-­ wage basis, away goes the American laborer's automobile, his victrola, quire that tariff rates shall measure honestly and fairly, and his radio, and good clothes for his children, as well as all of the lux­ with full proof, the difference in th'e costs of production herl" uries of his life, and he must start living on a par with foreign labor. and abroad. The false doctrine that American high wages Now, my good friends who are listening over the radio, if I have mean high costs of production will be discarded and tht\ made an error in my reasoning, point it out to me. I know I am world will learn, just as the American farmer will learn, accurate in my figures; I think I am accurate in my reasoning; and that high American wages per day means in many American it I have been, then I ask you how any sane, intelligent man or industries the lowest wage cost in the world per yard or woman in this country can advocate a low tariff? It always bas pound of product. Were this not so the United States would produced idleness. It always bas produced low prices and panics. Do not have exported $2,500,000,000 of manufactured productg yon want a repetition of that same condition and idleness in America in 1925 and surpassed Great Britain for the first time in I, Uke there is in EJurope? history in the volume of its exports of domestic manufactures. There is a sense of gratlflcatlon in donating to charity for free-soup To illustrate, our hosiery people have deceived Congress and i kitchens on the part of the donor, but there is little gratification in the public for 20 years or more by declaring that they must ) receiving charity. on the part of the recipient, and bread lines have have from 50 to 100 per cent protection because the American \ always followed a reductio11. in the tariff. Unless there is an exception factory operative gets $3 per day in our hosiery mills as to what always has been, it ts safe to conclude that they always will against half that wage or less in Europe. They withhold follow. the fact that the American girl knits 1,800 pairs of ordinary Don't let the selfish desire for cheap products for which the individ­ cotton socks for one-sixth of 1 cent per pair; that her con­ ual pays lead you into making the mistake of voting for what always tract does not call for $3 per day, but for 2 cents per dozen bas produced financial ruin in this country. pairs, and that she gets $3 per day only because she knits Good night. 1,800 pairs per day-the lowest wage cost and the highest LEAVE TO .ADDRESS THE HOUSE daily wage in the world. I know, because I have seen the factory costs to the fourth decimal place. Mr. MOORE of Virginia. 1\Ir. Speaker, after the special It was upon this false information that Congress was in­ order to-morrow I ask unanimous consent that I may address duced to give the ho iery people a tariff of 50 per cent against the House for 15 minutes. a total wage cost of 17% per cent of the factory selling ptrice. The SPEAKER pro tempore. The gentleman from Virginia It is because of our lower costs that one exporter of hosiery asks unanimous consent to address the House to-morrow, after has 1,200 merchant customers in free-trade England, and we the other special orders, for 15 minutes. Is there objection? export some $10,000,000 of hosiery and knit goods annually. There was no objection. And what is the effect of this 50 per cent tariff? Before this THE TARIFF tadff was enacted these socks retailed for 10 cents per pair. \ The price is still 10 cents, but it is 10 cents per sock instead ) Mr. CANFIELD. Mr. Speaker, I ask unanimous- consent to of 10 cents per pair. extend my remarks in the RECORD on the tariff. By similar arguments our man11facturers of cotton goods The SPEAKER pro tempore. The gentleman from Indiana obtained an average tariff protection of 42 per cent against an asks unanimous con ent to extend his remarks in the RECORD average wage of 16% per cent of the factory selling :pl'ice, and { on the tariff. Is there objection? our silk goods manufacturers got 55 per. cent protection against ( There was no objection. an average wage of 15% peil.' cent. The viciousness of this silk Mr. CANFIELD. Mr. Speaker and gentlemen of the Hous~. duty is further shown in the fact that generally speaking the l an initial defeat is often the first step to a glorious victory. cost of the raw silk is one-half the cost of the finished good , I am one of many in this House who have earnestly strug­ and the raw silk like raw cotton is sold the woa.-ld over at the gled to secure relief for American agriculture, ·rellef from such same price with no duties against"' it in any country. Our financial distress as threatens the hopeless debasement of the present duty of 55 per cent on silk goods is, therefore, 110 30,000,000 people who live upon our farms and of the innumer­ per cent of the total wages, 01'"erhead, and J>rofit of the foreign able small merchants, professional men, and others in our ·small manufacturer, a' duty of 110 per cent to Pfl'Otect an American towns and villages who depend for their subsistence upon the wage of 15%, per cent of the American factory selling price, a adjacent farms almost as much as if they also tilled the soil. duty about seven times greater than the total wage. The duty This relief has been ref~ed by vote of this body. This <>n silk goods was ra.ised to 55 per cent in the present tariff, refusal brings agriculture to tne turn of the road. American although the testimony of a silk manufacturer in the l'ecrnrds· farmers need not be disheartened for they have gained wisdom of Congress shows that under the former lower tariff he made 1926 CONGRESSIONAL REOORD-HOUSE [1477 $14,000,000 in 16 years over and above his dividends, increas-· Allowing that our closely knlt steel makers can always ing his capital from $7,000,000 to $21,000,000 in that period. charge domestic consumers foreign prices plus the tarift, plus No wonder one of the most distinguished and public-spirited ocean freight, even on that basis the makers of our farm im­ clergymen of New England said of this New England manu­ plements are overcharged by the tariff $50,000,000 per year for facturer, " He's had his feet in the public trough long enough." their steel, wldch overcharge is doubled to our farmers in Silks are a large and necessary item in the purchases of every retail prices, making their tariff burden on farm implements wage-earning woman in the stores and counting rooms of $100,000,000 per year. America. It is a crime to tax these women so that the profits Other examples of tariff extortion can be given almost with­ of one manufacturer may rise from $7,000,000 to $21,000,000 out end. Let no one think that those who made these taritf and then to $40,000,000. - rates here mentioned made any different sort of rates for other So of woolen goods. The wool and woolen goods tariff was manufacturers who were able to organize and control pro­ written by experts, for themselves. The question of wages duction in this country. With them it has ever been " Each for has never been considered. The total cost of converting wool all and all for each." - into cloth is shown by every census in 25 years to be about 16 American farmers have been desperately f~oled by the tari1f per cent of the factory sales prices. In the last census, 1920, rates. American farmers sell " Europe minus " j that is, at 1t was 15%, per cent. The tariff is from 65 to 125 per cent. It Liverpool prices less freight. They buy, as in steel, a great ls so high that our wool clothing, without which we would perish part of their requirements at "Europe plus" ; that is, at Euro­ in wintertime, costs us double the prices abroad, where the pean prices plus the tariff, and often plus ocean freight. They wage cost is substantially the same as here per yard of product. sell free trade and buy in the highest market in the world at This tariff is so high that it shuts out the strong, good, prices that include not less than four to six billion dollars of coarser wools not grown in this country by rates running from profit that. is not "protection" in any sense, but is pure over­ 100 to 150 per cent, and sometimes 180 per cent. It forces the charge and exploitation, according to the definition of the pro­ use of 80,000,000 pounds of rags and shoddy, which are worked tectionists themselves. It is because of this that great num­ over and over again until they become " Mungo," a sort of wool bers of Democrats and kepublicans alike are against our dust, and American rags sell in free-trade England for 25 per methods of tariff making. cent less than the rags of any other country. The farmer's slogan must be " No proof, no protection." The Let no woolgrower or manufacturer take alarm. I would large manufacturer's cost book is his business bible. He never give him honest and fair protection, while reducing the cost of shows it to tariff committees of Congress. woolen goods $250,000,000 per year to American consumers, 1 Tariff hearings- would only remove 'the trickery from the wool and woolen Said Speaker Cannon, as reported by Mr. Riesenberg, of tariff-trickery which, as Garfield said, "1\Iakes me so angry Indianapolis- that I'd walk a mile to kick a sheep." Said President Taft, "It is indefensible." Said Chairman Payne, "I could fix it just as why, they're only a smoke screen any way. easily, if only they'd let me." So spoke honest protectionists. Instead of smoke screens farmers must require facts, facts Glucose is as bad. It is made of corn, the cheapest material such as the Tariff Commission gave in -abundance to Congress in tile world for the purpose. For 30 years the entire wage cost in 1922 and previously. What is more, Congress must be re­ of conveiting corn into glucose has been from 5 to 6 per cent quired to act upon these facts and in the open without smoke of the factory selling price. The tariff is 50 per cent-50 per screens. Then our tariff will be sufficiently protective, while cent on the raw material used by the competing foreign pro­ living costs will be four to six billion dollars less, and farmers ducer, 50 per cent on his wage cost, his overhead, and his profit. will get their necessary relief through a saving of about $2,000,- In three years just preceding the present tariff we exported 000,000 in their purchases and in such further economies as annually an average of $10,000,000 worth of glucose. In the their cooperative marketing associations have already developed face of all these facts Congress raised the duty from 15 per and are rapidly making effective in all directions. cent to 50 per cent. This is not a party matter, but a matter of good citizenship America makes 80 per cent of all the sewing machines that and good business only, in which all people should happily co­ are made in the world. It makes them as cheaply in Elizabeth, operate, irrespective of parties. N. J., as in free-trade England, according to the statement of Let no one think that these estimates are haphazard. They our principal manufacturer and yet Congress took them off the are all based upbn the careful calculation of experienced and free list and gave them 15 per cent r·rotection. dependable economists, and not disputed by anyone who has ( An American machine blows 50,400 pint bott~es in n 24-hour st'Udied them ; only lack of time prevents their full prosecution ( day with almost no labor except in oiling the machine. and yet here. Congress gave the bottle manufacturers a tariff of riO per eer +-. WHAT THE TAlHFF DOES TO INDIANA ~as this 50 per cent for the oiler or for the profit8 of the The following table, based upon Government's statistics and I manufacturer? ( approved by competent and dependable authorities, affords a There is 6 seconds of labor in cutting a spark plug out of a I sad picture of Indiana conditions : ( 30-foot steel rod. One man runs three machines and a spark plug drops out every 6 seconds. Is the 30 per cent of "pro­ [Census 1920 and 1924 where available, March 1, 192G] tection " for the wage earner? The tariff on steel bars averages about 28 per cent. The wage cost is 22 per cent of the factory selling price. Our steel ~~~:f~~li~!~~n~======~====~==::::::::::::::Nonfarm population------.---- 2.2,gg~;~~~ 023, 095 costs are substantially as low as any in the world because of Au1"ioolturaZ schedu,l-e our enormous mass production. Our costs are so low that the street-car companies of Manchester, England, bought rails from .,. Cost to the United States delivered in Manchester at 5 per cent less than Crops materially ben· Tariu gain Cost to nonfarm- _ Cost to Cost to United any British maker could quote.· At that time there were efited by the tariff ~~~:,; ~~~:r; ing popu- State States . 100,000 idle men in the British steel industries. lation Can you imagine that this 28 per cent protection was for 'the wage earner who got only 22 per cent of the American Wool______$692,230.00 $2, 495, 000 $5,563, 000 $8,058, 000 $300,000,000 Sugar beets!______166, 700. 00 1, 814,000 4, 046, 000 5, 860,000 216,000. 000 factory selling price? Flaxseed______10. 20 2i2, 000 607, 000 879,000 30, 000,000 Just before the con oliclation of our steel makers into a half Lemons __ .------' one. 90, 700 202, 200 293, 000 10, 000,000 dozen closely allied groups they were selling steel under sharp Tobacco ______Negligible. 154, 000 343, 000 497,000 53,000, 000 competition at 80 cents per hundred pounds to large users. For mnny years after the consolidations they charged just twice TotaL------859, 000. 00 4, 825,700 10, 761,300 115, 587,000 160il, 000,000 this, or $1.60 per hundred pounds. IOn the basis of 60 per cent of the sugar tariff going to farmers and 40 per cent to { Net long ago, when the price of the steel bars used in farm sugar factories. In the Mountain States t he farmers get only half of the dutr. ( implements was $1.60 per hundred pounds in Europe, Ameri­ Farmers as consumers lo e on agricultural schedule ______$-! , 82G, 000 \ can buyers had to pay for the American product on the basis A few farmers gain on agricultural schedule______s;m. 000 ( of this foreign price, $1.60; plus ocean freight, 23 cent.'!; plus ~ - the full tariff, 28 per cent ; p1us 7 cents for good measure; a Loss to farmers on agt·icultural schedule, neL______3, 967, 000 total of $2.40, or 50 per cent above the foreign price. And in the The State as a whole loses on agricultural schedule, net, $14,728,099. j Sf4.me year we were exporting about $200,000,000 of steel prod­ Farmers lo,:.e on their own schedule $5.60 to $1 ot gain. I ucts at international prices. The State loses on a.gticultm·al sched~e $17 to $1 of gain. I r 11478 CONGRESSIONAL RECORD-HOUSE JuNE 17

Jlarwta.cturers' 1chedul6 I • Manufacturers' sc~t!tae [On the basis of one-half of the duties being added to prices in certain [On the basts of one-half of the duties being added to prices in certain · industries] industries]

Cost to Cost to Cost to Cost to Cost to Cost to Oostto farmers as nonfarming Cost to State United - farmers as nonfan:ning State United consumers population States consumers population States

Heavy steel products ______Heavy steel products _____ $14,657,000 $43, 800, 000 $58, 407, 000 $375, 000, 000 $4,536,000 $7,080,000 $11, 616, 000 $375,000,000 Light steel products ______Light steel products ______6, 803,000 . 15, 173, 000 21,076, ()()() 750, 000, 000 23,548,000 93,823,000 117,371,000 750, 000, 000 General store merchandise ____ 21,768,000 48,552,000 70,320,000 2, 475, 000, 000 General store merchandise_ 75,412,000 363, 305, ()()() 865, 600, 000 2, 475,000,000 113,617,000 600, 928, ()()() 641, 468, 000 3, 600, 000, 000 TotaL------33,107,000 70,805,000 103, 912, 000 3, 600, 000, ()()() Total.------

Loss to farmers on manufacturers' schedules, $33,107,000. Loss to farmers on manufacturers' schedules, $113,617,000. Loss to State on manufacturers' schedules, $103,912,000. Loss to States o.n manufacturers' schedules, $541,468,000. This table shows that a few growers of wool and sugar beets Farmers lose on all schedules, net, $125,610,000, or $26 to $1 of gain. are benefited by the tariff to the extent of about $859,000. The three States as a whole lose, net, $620,008,000, <>r $130 to $1 of while Indiana farmers as a whole, as consumers of farm prod­ gain. ucts, lose $4,825,700. Indiana farmers lose on their own agri­ Against this Cssible, to determine how them ·comfort and the modest advantages that make life worth much of their tariff profits are enjoyed by the residents of these living. States. That the amount is great is beyond doubt. The tariff benefits go entirely, in any considerable amount, In the second group there is scarcely a factory that produces in to a mere handful of Indiana woolgrowers, who get $692,230 any considerable qualrtity these overprotected products. Practically from the tariff against which Indiana farmers as a whole, as without exception their factories are simply preparing foodstuffs for consumers of wool, lose $2,495,000, being a loss of $3.50 to $1 market, meat packing, canning and preserving, breadstuffs, ice cream of gain. and confectionery, etc. Or they are in the upkeep trades, the repair of Indiana as a whole loses $8,058,000 from the wool tariff, or railway cars and equipment and automobiles, foundries, and the build­ more than $11 to $1 of gain. ing trades, etc. . As stated elsewhere, there is no reason for such losses on The States in the first group are not prosperous on the whole and the wool tariff and the loss to the American people as a whole can not expect to be for many years with their agriculture degraded of $300,000,000 from the wool tariff. It should be rewritten to as it has been since the World War. protect woolgrowers as well as now and at the same time to The States farther west in the second group, barring a few wool save consumers about $250,000,000. and sugar mountain States in the West, will all but perish unless Indiana is not alone in tariff losses. I submit the following agricultural conditions improve, for they have no other dependence tables, figures, and statements put out by the Fair Tariff than agriculture. League, which show how badly Western and Southern States Fanners and the agricult-ural schedule-14 States suffer: What the tariff does to three States-OMo, Indiana, ana nlinois States [Census of 1920 and 1925 in part] March 1, 1926 GROUP 1 Population------~------15,654,784 Farm population------3, 144, 886 0 hio _-- ______------__ -- Number of farms------699, 000 Nonfarmers------12,509,833 AgriculturoZ schedule ~------1------~------~------~r~~=-=~======Total, 4 States ______l======f======~======: ======United States crops Tariff gain Cost to Cost to Cost to Cost to GROUP 2 materially bene­ to a few Canners as nonfarming United State States Iowa.------621,000 5, 239,000 4, 618,000 ------fited by the tariff fanners consumers population Minnesota ___ ------3, 813,000 5, 133,000 I, 320,000 ------Kansas ______------240,000 3, no. ooo a, 530, ooo ------Nebraska ______2, 396,000 3,107,000 711,000 ------WooL------$3,389,000.00 $8,647,000 $34,399,000 $43,046,000 $300,000,000 Colorado._------3, 967,000 1,669, 000 ------$2,298, 000 Sugar beets------11,367, 000. 00 6, 308, 000 25, 018, 000 31, 326, 000 216, 000, 000 Utah ______2,457,000 879,000 ------1, 578,000 Flaxseed______10.20 943,000 3, 753, 0<¥> 4, 696,000 30,000,000 Idaho ____ ------1, 042,000 1, 128,000 86,000 ------Lemons------None. 314,000 1,251,~ 1,566,000 10,000,000 Washington ______216,000 1, fiJ7, 000 1, 291,000 ------Tobacco______Negligible. 537,000 2, 125,000 2, 662,000 53,000,000 Oregon _____ ------302,000 1, 138, 000 836, 000 . ------598,000 9,837, 000 9, 239,000 ------Total ______4, 756,000.00 16,749,000 66, 546,000 83,296,000 609,000,000 Texas __ ------Total, 10 States_____ 15,652,000 33,407,000 21,631, 000 3, 876,000 I======F======~======F======1 On the basis of 60 per cent of the sugar tariff going to farmers and 40 per cent to Total, 14 States ____ _ 21,170,000 56, 459, 000 39, 165, 000 3, 876, 000 sugar factories. In the Mountain States only 50 per cent of the sugar tarlfi reacheS the farmers. Farmers as consumers lose on agricultural schedule ______$16,749, 000 As the table shows the farm population, which numbers 11,604,923 A few farmers gain on agricultural schedule______4, 756, 000 souls, in these 14 States, including some of America's greatest, recei;ed from the tariff $21,170,000, or $1.t'2 each man, woman, and child, as Loss to farmers on agricultural schedule, net______11, 993, 000 a tariff bait. The States as a whole lose on agricultural schedule, net, $78,540,000. They spent an ertra $56,495,000, or $4.96 each, tn fair price in­ Farmers lose on their schedule $3.50 to $1 of gain. creases to get back the same foodstuffs and wool that they parted with for $1.82 of tariff bait. The States lose on agricultural schedule $16.50 to $1 of gain. \ 1926 CONGRESSIONAL RECORD-· HOUSE 11479 · Their net loss in the transaction (which concerns their own sched­ because of her sugar and wool, I ' >: t only $14 to $1 of gain; Indiana ules only) was $39,165,000, less the small profits of two of these lost $44 to $1 ; Illinois, $65 to ~1 ; Wisconsin, $51 to $1 ; " Bleeding States whose wild-land woolgrowers and sugar factories, with their Kansas," $118 to $1 ; and Texas, representative of the Southern States, confederates in a few other like States, led all these people into the lost $267 to 1 of gain. tariff deal. These 14 States, as a whole, lost, net, $1,406,548,000. In Ohio, Indiana, Illinois, and Wisconsin, 4,064,923 farm people These tables prove conclusively that our present tariff law is got, as their bait, only $1.33 each, and to get their products on which not in the interest of our farmers, for with the exception of a they received this $1.33 back from near-by stores they paid the stores few woolgrowers, sugar-beet growers, and hard-winter-wheat as a fair price $5.67 each. They received from the tariff on their own raisers, none of them profit by the present tariff. schedule an extra $5,518,000, against which they spent $23,052,000. Western wool is grown not by farmers but by big flockmasters Petty figures these, as a lure to American farmers whose products, who live in towns and cities and have tij.eir flocks cared for by n 1925, were valued at $12,404,000,000. ~erders (two to each band of 2,000 sheep or less) in the Federal The third table shows what, with this $1.83 bait, was done. to these reserve forests and other wild land at a cost for pasturage of 11,604,023 farm people by a few very powerful manufacturers and 6 or 8 cents per summer per adult sheep, with no charge for their politicians and to some 23,000,000 other people in these States. lambs, which are 75 per cent as numerous as the adults. Win­ Propot-tion of tariff loss to gailfl,, a-ll schedules considered ter feeding costs from· 60 to 80 cents per sheep. It is the com­ bination of these big western sheepmen with Connecticut and Fourteen States "Farmers lose- The State loses- other similar manufacturing States that gets the majority votes m Congress for tariffs like the present. Ohio ______$14 to $1 of gain ______$68 to $1 of gain. · In Indiana only about one farmer in 330 raises sugar beets, Indiana ______------$44 to $1 of gain______$138 to $1 of gain. the crop being valued in the census of 1920 at $444,550, against illinois ______$67 to $1 of gain ______$416 to $1 of gain. the value for all farm products of $782,101,000. Wisconsin ______$51 to $1 of gain ______$155 to $1 of gain. It must not be thought that the entire duty of 1% cents per Iowa------$67 to $1 or gain ______$140 to $1 of gain. pound of sugar goes to the sugar grower. In most States one­ Minnesota_------$9 to $1 of gain______$2-5 to $1 of gain. Kansas ______$118 to $1 of gain ______$300 to $1 of gain. half of the duty goes to the sugar factories and accounts for Nebraska_------$17 to $1 of gain ______$35 to $1 of gain. their astonishing profits. In Indiana it is estimated that 60 Colorado ______$2.50 to $1 of gain ______$12 to $1 of gain. Utah______$2.50 to $1 of gain ______$5.50 to $1 of gain. per cent of the duty goes to the growers and 40 per cent to Washington ______$54 to 1 of gain ______$94 to $1 of gain. the factories. Oregon ______$30 to $1 of gain ______$21 to $1 of gain. $166,700 Idaho ______$8 to $1 of gain ______$7 to $1 of gain. A few growers of sugar beets get from the sugar tariff, while Indiana farmers as a whole lose $1,814,000 from Te~s------$267 to $1 of gain ______$65 to $1 of gain. the sugar tariff and the State as a whole loses $5,860,000 and the Nation as a whole $216,000,000. The sugar tariff could The two tables above show strange differences in tariff loss and easily be corrected to give farmers their present duty by pro~ gain to the farm people of different States. Wool and sugar are the viding, as the English law does, that the effective duty shall explanation. go directly to farmers and that there shall be no protection of Colorado and Utah, in the first table, are the only 2 States of the consequence to the sugar factories, who use only about 3 cents 14 whose farmers gain on their own schedule. Colorado and Utah of labor to each dollar of sugar produced. farmers, however, lose $2.50 to $1 of gain, when all schedules are The big thing in the tariff is to see it with clear eyes and considered, while the people of Colorado as a whole lose $12 to $1 of compel a revision with the facts on the table, a revision that gain, and Utah loses $5.50 to $1 of gain. Little Idaho fared almost will save American farmers one and a half to two billion dol­ as well in respect to her farmers in their schedules, while the State lars annually. as a whole loses $7 to $1 of gain. Add to these States Wyoming, At the present time the people living in the Middle West are Oregon, Arizona, and California, with their wool and ~ugar Senators, eager to understand and that they be understood. and we see where is the fervid advocacy of high farm duties. But in ·we are told that the high tariff on manufactured commod­ these mountain States, as elsewhere explained, the wool duties go ities is in the interest of manufacturers. If so, how can it be ( almost entirely to big sheep grazers on wild lands, who are not helpful to the people living in the West and Central West? farmers at aU, and half the sugar duties go to inordinately rich sugar Let us take for example the manufacturers of Nebraska, a > factories. Dirt farmers have no great advantage from either product. typical western agricultural State. The tariff has no other I How farmers and others fare, all schedules are considered, is shown effect upon manufacturing in Nebraska than to increase the f in the following table. cost of the raw material used in her factories, like steel, alu­ f Fourteen States-Tariff profit and lou minum, brass, wool, machinery, and textiles, and to lower the (All schedules considered} purchasing power of her wage earners and the profits of their employers. Farmers The census of 1920 showed 36,521 wage earners in the fac­ ( Farm State, loss, tories of Nebraska. Of these more than one-fourth. or 10,122, ~ Populatioo population net were in slaughtering and meat packing; 6,178 were in the con­ Gain, gross Loss, net struction and upkeep of her steam railroad equipment; 1,627 were in bakeries; 2,476 were printing newspapers, job printing, GROUl' 1 and so forth; 1,134 were in automobile repairing; and 607 were making ice cream and candy. Ohio ______------5, 759,394 1, 139,329 $3,220, ()()() $43, 37 4, ()()() $219, 652, 000 Indiana ______------2, 930,390 907,295 859,000 37,074,000 118, 640, 000 Every industry in the State was protected from foreign com­ Illinois_------6, 695,000 1, 098,262 677,000 45,163,000 281, 716, 000 petition by some 4,500 miles of distance over land and sea. Wisconsin ______2, 801,000 I 920,037 762, 000 I 39, 120, 000 117,418,000 They were predominantly local in their characteri~tics and I Total4 States _____ 4, 064,923 5, 518,000 164, 731, 000 concerned only in preparing her foodstuffs for market and in !' 18, 185, 784 ! 737, 426, 000 I the upkeep of her general economic equipment. Nebraska's most important industry was slaughteling and GDOUl' 2 meat packing, the second was flour ; the third, butter making ; Iowa _____ ------2, 404,021 984,800 $621,000 $87, 786, 000 the fourth, the repair and upkeep of railroad equipment; the Minnesota______2,387,125 897,181 3,813, 000 94,737,000 fifth, newspapers and publishing ; sixth, foundry and machine Kansas------1, 769,257 691,690 240,000 ~28,776, ()()() 71,572,000 Nebraska ______1. 296,372 584,172 2,396,000 37,503,000 791730,000 shops ; seventh, book and job printing; eighth. automobile re­ Colorado ______939,629 266,072 3,007,000 12,950,000 44,380,000 pairing; ninth, confectionery and ice cream ; tenth, food prepa­ Utah_------449,396 140,249 2, 457,000 5,119,000 15,939,000 rations ; eleventh, poultry killing and dressing; twelfth, coffee Idaho ______------432,000 201,000 1,042,000 7, 419,000 15,214,000 Washington ______1,357, 000 283,000 216,242 11,634,000 54,353,000 roasting and grinding. Oregon ___ ------783,000 214,000 301,725 8,648,000 30,304,000 We seldom think of the majority of these industries as manu­ Texas ______------___ 4, 663,228 2,Zl7, 773 5W,OOO 86,301,000 175, 107, 000 facturing. Think of poultry dressing, coffee roasting, and ice Total, 10 States_ 16,481,000 6,540,000 lo, 652,000 Zl2, 998, 000 669, 122, 000 cream as major manufacturing industries ! If we except slaughtering and -general railway shop repair­ ! 21,170,000 \ Total, 14 States_ 34, 666, 784 1 11, 604, 9ZJ 437, 729, 000 1, 406, 548, 000 ing, there remain 2,844 manufacturing establishments, so called, '. in Nebraska, with 20,221 wage earners, or an average of only As the above table shows·, 11,604,923 farm people, being more than 7 workers per factory. one-third of all America's farm population, received from the tariff What the tariff does to the manufactured food products in '$21,170,000, or an average of $1.83 each. They lost, all schedules States like Nebraska is hown by the recent experience in but­ included, $437,729,000. They lost $26 to $1 of gain. ter. On March 6, 1926, President Coolidge raised the tariff The 4,064,923 farm people of Ohio. Indiana, Illinois, and Wisconsin on butter from 8 cents per pound to 12 cent~. On that day rece1ved $5,517,000 from the tar:Ul and lost $164,731,000. Ohio, the price of butter of Danish quality-Denmark being our only ·11480 CONGRESSIONAL RECORD-- HOUSE ~UNE 17 considerab1e competitor-was 43lh · cents per pound in New unreasonable addition to· steel prices increases the retail prices York. Two weeks later, March. 20, it was 41% cents per of farm implements to American farmers $100,000,000. This pound. March 26 it was 41 cents, being the lowest price of the is on the basis that our Steel Trust could continue to add ccean year to that date. It was then 4% cents lower than on March freights to their prices under free trade, but could not add the 25, 1925. April 16, 1926, it was 37%, cents, a p.ew low mark tariff and sometimes a little more for good measure. Agricul­ for. the year to date. Instead of the price going up when the tural implements on the free list, forsooth! tariff was increased 4 cents per pound, the price went down There .are 35 other manufacturing industries in Iowa of less continuously, and was off 5%, cents in 40 days. consequence than those here noted, but they are of such char­ It was th~ same with wheat. On March 6, 1924, the Presi­ act~r and so small in the number of their wage earners and dent raised the duty on wheat from 30 cents a bushel to the their output as not to need special consideration. present ·rate, 42 cents. On that date the price ·of wheat in The following table gives the 25 major industries of Indiana Chicago was $1.15%. ·Almost immediately there was a slump as representative of that central sectio~ of the country: in the Liverpool market, and on March 27 wheat sold in Chi­ cago for $1.00lh per bushel-a loss to American farmers of 1118 INDIANA cents a bushel in 21 days, when some hopeful farmers might 1. Iron and steel, steel works. have expected, because of the new tariff, an increase in price 2. Slaughtering and meats. of 12 cents instead of a decline. In recent months the price 3. Automobiles. of wheat in Minneapolis has frequently been only from 2 to 6 or 4. Cars, steam railroad. 8 cents above the price in Winnipeg. 5. Foundry and machine shops. Manufacturing in other agricultural States is as like Ne­ 6. Flour. 7. Automobile bodies and parts. braska _ ~ two peas-in Kansas, the Dakotas, Idaho, Washing­ ton, Oregon,· Texas, Arkansas, and substantially all the South­ 8. Cars and general railway repair shops. ern States except in their cotton mills, where it is doubtful 9. Furniture. if it is of the slightest advantage because those mills make 10. Electrical machinery. the coarser grades of cotton goods, which are produced in this 11. Agricultural implements. country at less cost than in free-trade England, according to 12. Glass. 13. Bread and bakery. the. repeated and undisputed .findings of such investigators as ·14. Butter. President Taft's Tariff Board in about 1913 and the present Tariff Commission. · liS. ·Rubber ·tires. The South loses about one and one-half billion dollars from 16. Newspapers and periodicals. the tariff, with scarcely a dollar of offsetting advantage. 17. Canning and preserving. 18. Lumber. Manufacturing in the States a little farther east, like Wiscon­ 19. Paper and pulp. sin, Minnesota, Iowa, and Missouri, is somewhat more advanced, and still more advanced in Ohio, Indiana, and Illinois, where 20. Clothing, men's. are produced about one-fifth of the total manufactured prod­ 21. Engines-steam, gas, and water. ucts of the Nation; while in Connecticut, Massachusetts, New 22. Structural ironwork. Jersey, and Pennsylvania are produced a different type of 23. Planing-mill products. manufactured products in great volume and typical of the 24. Cement. Eastern States. 25. Gas. The following table gives the 25 major industries of Iowa as Of the 10 principal industries in Indiana, only the first, iron representative of the best of the agricultural States: and steel, and the tenth, electrical machinery, are touched by IOWA the tariff in any helpful way, and the few of her machine shops that make things that might be imported except for the 1. Slaughtering and meats. II 2. Butter. tariff. This last would not include general foundries and mis­ 3. Food preparations. cellaneous machine-shop products and automobile parts, which 4. Cars and general railway shops and repairl. constitute the larger part of the output of Indiana foundries 5. Glucose and starch. and machine shops. 6. Flour. Such residents of Indiana as own stock in her rolling mills 1 7. Newspapers and periodicals. undoubtedly get a high rate of profit on that stock, but these i 8. Brehd and bakery. steel stocks are mostly owned in the East and at·e bought and ) 9. Foundry and machine shop. sold in Wall Street like so much merchandise. . What a few ,I 10. Engines-steam, gas, and water. Indiana investors in her steel properties make it is impossible 11. Lumber and planing mills. to say. Evidently her people generally . are much hurt by 12. Confectionery and ice cream. steel prices that are 25 per cent higher than fair protection 13. Poultry, killing and dressing. would warrant. The pyramiding of the steel tariff on bars and 14. Washing machines. other crude products up through the successive processes to 15. Brick and tile. automobiles, skyscrapers, locomotives, typewriters, needles, and 16. Cement. cutlery, with the further price additions of wholesalers and I' 17. Canning and preserving. retailers, is a total tax on the public of more than a billion dol~ 18. Patent medicines. lars a year. It is $100,000,000 on farm implements only, and \! 19. Rubber tires. about $500,000,000 in the increase in freight charges. The first \ 20. Agricultural implement& step in the reduction of freights may well be a reduction in the 21. Automobile repairing. steel tariff that will save the railroads this great sum in their 22. Gas. annual costs of equipment. 23. Buttons. Electrical machinery, Indiana's tenth greatest industry, needs 24. Book and job printing. some protection. But the public should understand that for the 25. Coffee roasting. three years just preceding the enactment of the present tariff We find that manufacturing in Iowa ls a little further ad­ our manufacturers of electrical machinery in this country were vanced than in Nebraska, but food products, planing mills, and exporting an average of $95,000,000 annually with no imports. poultry dressing are important. Of the remaining principal industries of Indiana, from the Of her 25 leading industries, not one is helped by the tariff tenth to the twenty-fifth in importance, we find only twelfth, except glucose, which ranks fifth in importance. glass; fifteenth, rubber; and twenty-second, structural-iron Agricultural implements, which rank twentieth, are on the work, materially helped by the tariff. free list. Iowa has several great implement factories. The The Tariff Commission after thorough investigation has tariff does not benefit them but is against their interest. . It shown clearly that the ma~ers of window glass, plate glass, and makes them pay for the steel they use, as if it were made in pressed glass need no protection. One maker of window glass Europe and imported at the European price plus ocean freights, exported $3,000,000 worth of window glass in a single year. plus 28 per cent tariff. It makes them pay 50 per cent more The entire cost of packing for ocean shipment together with the than their foreign competitors, although Mr. Schwab and Mr. breakage in transit is so great as to afford a large measure of Carnegie have said that we are the cheapest producers of steel protection. Glass consists only of sand and limestone with in the world. Implement manufacturers are in desperate coal or natural gas to melt it and shaped by automatic or semi-. straits. automatic machinery. . Twenty of them lost $50,000,000 in a period of about four The following table shows the 31 major industries of Con­ years. Farmers are rightly disgruntled because an extra and necticut, representative of the Eastern States who have 1926 CONGRESSIONAL R~CORD-HOUSE 11481 always dominated completely in the making of tariff rates on A maker of a sheep-shearing machine recently wished to get manufactured products for 60 years with scarcely an excep­ the best possible quality of cutters. tion: The manuf.acturer ordered some of these sheep-shear cutters Ootmecticut of special quality from England expecting to pay a duty of TARIFF RATES 30 per cent as "manufacturers of metal," or 20 per cent as the Per cent tariff rate on hand and power cutters. Instead of this his 1. Brass, bronze, and copper------45 attention was called to paragraph 357, whereunder sheep-shear 2. Cotton goods-----L------42 cutters and animal c~ippers are taxed 15 cents each plus 45 3. Foundry and machine shops------30 per cent. 4. Silk goods------55 5. Hardware------40 Consequently, on an invoice of $1,026 he had to pay a duty of 6. Electrical machinery------40 $1,811, of 180 per cent. This duty trebles the price, and when the farmer gets the clipper he will have to pay at retail at the rate of $6 for each dollar of foreign factory price. This is usual j: f.~~~:;~~:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 70-l~g with many imported articles. 11. Pia ted ware ___ ------___ -----_------12. Boots and shoes, rubbeL------25 CLOCKS 13 Corsets------77 14." Worsted goods------70-100 Here again we see the fine hand of the Connecticut tariff maker. The rich purchaser who will pay at retail $150 or more l~: Wt~~efi~~:S======:=:::::::: :g for a wall clock will pay only 25 per cent duty, but the poor 17. Bread and bakerY------18. Suspenders, garters, etC------85-55 man who wants a kitchen clock must pay 130 per cent duty and 19. Typewriters------about the same on alarm clocks. 20. F1rearms------So of firearms. As no one wants muzzle-loading guns, the 21. Needles, pins, etc------.------45 22. Iron and steel forgings______l" ~g tariff is low on them-25 per cent. On breech-loading guns, 23. Paper and pulP------u-g which people do want, the tariff runs about 75 per cent. 24. Tools------5 It has taken 100 years to work out the present tariff rates 25. Clocks------with which Connecticut and the affiliated manufacturers of 26. Ordnance and accessories------28 near-by States confuse the public by provisions in the tariff law which only tariff experts can understand, and not then ~~: WI~-~~~~~~~=::::::::::::::::::::::::::::::=:::::::: ~& until they get confidential information about factory prices. ao: Cutlery and edge tools------40-230 81. Dyeing and finishing textiles------The tariff on manufactured articles of the kind that are mostly made "down east" and southward, including Pennsyl­ It is when we consider Connecticut and the eastern manufac­ vania, are made with no serious thought of the difference in turing States that we see what manufacturers are benefited by the cost of production in this and forel.gn countries. the tari..ff and where. No wonder the representatives from Con­ So long as western manufacturers, farmers, and wage earners necticut shout for a high tariff. will take this eastern tariff "hook, line, and sinker," they will In the tariff interests Connecticut duplicates Massachusetts, be drained by the ·East and the profits of eastern industries will Rhode Island, New /.Jersey, and Pennsylvania. continue to grow, and the West will continually lag behind. In the above table we see high tariff rates mean tremendous (Applause.) profits for every industry except the seventeenth in importance, High tari..ff is injurious to four-fifths of our manufacturers bread (in which Connecticut is interested only as a consumer), in the Central West and West. and in the nineteenth industry, typewriters, in the production To the organized manufacturers of the Eastern States, the of which American manufacturers more than hold their own in tariff is highly beneficial. It is their way of getting the food· all the markets of the world and prospe1· greatly UJ.lder free stuffs, the services, and the products of the Central and West4 trade-an indication of the low duties that would suffice other ern States at prices below costs of production, and too long American industries if only the public knew. have our people in the Central West and West sent men to Con­ The area of Connecticut is so small and .her manufacturers gress that helped these manufacturers write tariffs like the are so closely associated that it may be taken for granted that present. They can only blame themselves for laws being made the tariff is added to their prices in large amounts and often that are detrimental to their cause and when ·they wake up in full. to the fact that it is to their interest to send men to Congress Her manufacturers of brass, bronze, and copper products, who will do what they can to represent the farmers, laborers, with a production, according to the census of 1920, of and average business men of the Cent~al West, South, and West $169,550,000 and a tariff of 45 per cent, made a profit of instead of helping the manufacturers of the East by voting for $38,268,000 in 10 years. highway robbery tariff laws then and then only will laws be Cotton goods are said to be the basis of New England's wealth made that will be to their interest. from the beginning. Mr. Speaker and gentlemen of the House, in conclusion I Two-thirds of the 9,000,000,000 ya,rds of cotton goods made want to say that while there has been nothing done to help in the United States, being the cheaper and coarser grades, are the farmers of the country during this session of Congress, the made in the United States cheaper than anywhere else in the facts are there will never be anything done to help them as world and are exported freely. Connecticut gets the tariff for long as we have an administration that believes in a high pro­ reasons of profit only. Notwithstanding this the industry is tective tariff in the interests of the large eastern· organized suffering at present because of war-time overcapitalization and manufacturer of the country and agairult the interest of four­ the fact that cotton is being so largely superseded by silk. fifths of the people of our country. Silks, undel' the former silk tariff of 45 per cent, not a yard Our farmers have come to this Congress and asked for help of foreign silks were being imported except they were so through legislation that would make it possible for them to different in quality or design that our well-to-do women would take advantage of the tariff the same as the large organized buy a little regardless of price. Also there were considerable manufacturers are doing at the present time, but they have importations of the special cheap silks of China and Japan, of been told by the powers that be that it would be economically poorer quality than American mills are willing to make. unsound to give them what they ask for and that the thing The silk duty was increased on woven fabrics from 45 to 55 for them to do was to go home and work out their own salvation. per cent simply to increase· the profits of American factories, This they will have to do, for there is nothing else they can and in face of the fact that under the lower duty Connecticut's do; but, gentlemen, in my opinion, when they go back home to principal factory had increased its capital OJlt of profits $14,- work out their own salvation they are not going to work it out 000,000 in the 16 years ending with 1920; that is, from $7,000,000 the way the President would have them do it. They are not going to $21,000,000 in addition to its regular dividends. to work it out the way Mr. Mellon, the Secretary of the Treas­ Two more instances will suffice to show how the handy men ury, would like for them to work it out ; neither are they going 1 from Connecticut in the Congress of the United States serve to work it out the way the big interests of the country, who { Connecticut manufacturers. are being benefited by the present highway robbery tariff law, { CUTLERY would like for them to. work it out; but they are going home The cutlery manufacturers of Connecticut have been in price­ to work it out in an entirely di..fferent way. They are going fixing agreements, according to the best information, oft and to see that men are sent to Washington to represent them and ~ on for years. Just before the present tariff they were ex­ not only the large organized manufacturers of America, and porting 48 per cent of their entire production of table cutlery. they are going to demand that our present high tariff laws be In the face of this tbe duty was made 10 cents on a kitchen repealed and that fair tariff laws be enacted in their place, for knife that was selling at the factory for 4% cents, the duty most of them realize by this time that those in control of the being an inducement for the manufacturers to again lift the~ present administration do not have the interest of the farmer prices to the top of the tarur wall. ~t h~t. Jl!!d neither can they expect the relief they so justly ill482 CONGRESSIONAL RECORD-HOUSE JUNE 17 deserve until we have a fair tariff law that will be fair to all The tlag of truth will enlist followers where the mere appeal of the and men in charge of Government affairs who will see that the party fiag will fail. At the pre ent tlme, as never before, publicity is farmers, laborers, and average business men are a.ll given their needed to insure purification. It is needed also to check. the widening just consideration in legislative affairs. [Applause.] grasp of greed. Once the people become fulJy informed, there will follow a mighty uprising, and those who are responsible for this grow· ADDRESS OF HON. WILLIAM L NELSON, OF MISSOURI ing power of privilege will, despite full purses, be swept from high Mr. ROMJUE. Mr. Speaker, I ask unanimous consent to places. Once aroused, once given the facts, the .American voter will print in the RECORD a speech by my colleague [Mr. NELSoN] no more allow the dollar to be put above the man than would he permit over the radio yesterday. a foreign flag to float above Old Glory. The SPEAKER pro tempore. Is there objection? This I assert because I believe that there yet remains a public con· There was no obj ectlon. science, the greatest need of free people. I am no pessimist. I do not l\Ir. ROMJUE. Mr. Speaker, under leave granted to extend vision the collapse of our country. Never have I seen a flock of sheep my remarks in the RECORD, I ins·ert the following radio address ln which there were more black than white ones. I believe in the of Hon. WILLIAM L. NELsoN, of Missouri, delivered June 16, average man, regardless of race, creed, or color, or what his political 1926, in Washington, D. C., over ~adio station WCAP :· affiliations may be. It ls my thought that as we, not a partisans but FLAGS AND FACTS as Americans, join in mutual respect for the flag we will demand that we be given the facts. Then if they indicate wrongdoing we will go Monday marked the observance of Flag Day in America. We do out and figbt. well to honor this flag of the free. In all the world there is no other I can not vision above the Senate door a sign, "Seats for sale." It banner· so beautiful. Throughout its history it has symbolized strength, the ballot is used as it should be, the dollar can not dominate. epitomized progress, made for manhood, and heralded hope. Whether This leads me to say something of the primary system, and m so on a cheap bit of bunting or a costly field of silk showing the " red, doing I speak only for myself. white, and blue," we are careful to keep these colors clean. There is nothing wrong with the primary. It there ls any trouble, Yet, after all, America's chief concern ls not so much with thP. it is with the people. Voters seeking to be debauched may be de­ symbol as with the substance. The strength of our fiag is not in the bauched under any system. True, the primary may prove expensive mere material of which it is made but in the everlasti11g truths and and e pecially so for the bosses. It interferes with their business, and it undying principles for which stands. To prostitute these principles­ in this respect ls bad. In a convention made up of hand-picked to cater to privilege and corruption on the one hand while Cln the delegates it would be so much easier for the trusts and corporations to other denying to the masses right and justice-is to dishonor our control. There would be fewer " units" with which to deal, fewer flag as much as to drag it in the dust. receipts to write. We ought to have a flag day, and with it 365 fact days. In tile lack Obviously, primaries may be made expensive, but the more of honest of knowledge of public affairs, in the secret scheming on the part of the men and women who become aroused, the less expensive is the primary few against the many, lies our greatest danger. system for the honest candidate. Liberty-loving people do not demand Woodrow Wilson said: "What we are really after in the field of cash for voting their convictions. politics is to drive everything into the field of facts-drive everything Selfish interests have never liked the primary ; it gives too much into the open. The of all evil in politics is privacy and con· power to the people ; and once the people become aroused and con~ cealment." scious that they are being bound out to the -bosses or made dupes ot President Wilson was right. The American v!lter needs factK He the dollar, it ls impossible to control them. should know how the present administration, controlled to a larger The call is not for a repeal of the primary system but for the com­ extent by selfish big business than any other administration bas ever plete and conscientious use of tt. Such use ts insured, once the voters been, bas failed him; bow the corporation, the man-made man, is get the facts. favored over the individual, the God-made man. Speaking at this early hour in the evening, I know that I can not The battle cry of democracy in the coming campaign should be, reach my farmer friends. They are busy in the fields. Their day is .. Give lhe public the facts." There has been enough of propaganda. not yet done. They labor from daylight till dark. However, if I Let us have facts and have them freely; facts from· near and far and could be beard, I would say to you farmers of the Nation that while everywhere, facts having to do with the acts of a public official in others have been favored, you have been ignored or forgotten. Thls the Capital City ; facts from " out there in Kansas " where a Federal Congress, with its safe Republican majority tn House and Senate, prison is located. has refused to pass any e1!'ectlve farm-aid legislation. Yet with a On with the investigations. Only the guilty fear. Turn over the word from the President and the Secretary of Agriculture and without stones, what matters the scurrying and the squirming. the opposition of the Secretary Mellon favorable action would have Well may the Democratic Party in its platform proclaim to the men followed. ~nd women of America, "Ye shall know the truth and the truth shall The Associated Press of this afternoon carries a statement from make you free." .As these words were blazoned above the great bronze Representative DICKINSO~ (Republican), of Iowa, who says: "At last door of the Transportation Building in Chicago during the World's the administration is out in the open. When the statement of Secre­ Fair, in which was celebrated the discovery of .America, so they might, tary Mellon is stripped of all specious pretexts, it means· that the Inter· with more than passing propriety, yea, with urgent appeal, be fea· ests for whom he speaks ~ not willing that the protective system tured at the Philadelphia Sesquicentennial Exposition, now in progress. shall mean anything for the .American farmer." ContinUing, the Iowa Yes; we are getting some facts from Philadelphia and elsewhere in Representative, who has been a leader in the fight for justice for the Pennsylvania:-facts sufficient to cause the fluttering flags to drop half farmer, declared that it the Mellon view " is the verdict of the adminis­ way down their sta.ft':s and the leaders of the dominant part)' in that tration, then the thunderbolt that came out of Iowa the other day is i. boss-ridden State to bow in shame. merely the sheet lightning of the coming storm." In his reference 1 Can it be that among the master minds of the present administra· to the tarlft', Mr. DICKINSON might have added that in the very nature \. tion in Washington there is no one who dares vigorously to condemn of things the tariff can never be made as effective for agriculture as for such practices as have been disclosed in Pennsylvania l industry. Well may the honest men and women of the party whose representa­ In the last Republican national platform there was a plank declar· tives are charged with being guilty of offenses against good govern­ ing for a square deal fo:r the farmer. That pledge has not been kept. ment, against the ballot, cry out for such a leader as was the lamented The facts are there has been betrayal. In view of this, what confidence Lincoln, or such a champion of righteousness as was Roosevelt. can be placed in future platform promises? Imagine Lincoln, " Honest Abe," remaining silent under present cir­ I would not speak to the farmer alone, but to you of the cities as cumstances. well. You are interested ln the present farm problem. It is yours Think of it, my hearers, nearly $2,000,000 spent by and and for the quite as much as mine. Great as has been your prosperity, lt can not Republican candidates in a primary campaign in a State in which is long continue in the face of farm failures. now being held a national exposition commemorative of the Declaration Think not yourselves secure, you captains of industry, while enjoying of Independence, whose immortal author, Thomas Jefferson, dead a the subsidies represented in a high protective tariff framed for the few, century yet living, said : " Governments derive their just powers from or while profiting througb the passage of other special legislation. the consent of the go¥erned." It was this same Jefferson who declared, Your customers are in the country,. and the broke man is a poor buyer. "Whenever the people are well informed they can be trusted with their Furthermore, when the farms fail your factories must eventually close own government." and much of commerce cease. In other words, given the facts as-thanks to Senator JAMES A. The suggestion has been made that there is needed in national REEo of Missouri-the public is now getting them, the people will legislative halls great sending stations, so that speeches might be speak in no uncertain way. To some they will say, "Thou art weighed broadcast. My belief is that there is greater need o! receiving stations in the balances and art found wanting." so that those who have failed to keep faith with the public might Proper publicity will insure Democratic success in 1926, and that hear from home. success will represent the triumph of the people over privilege. Once There have been wrongs, but they can be righted. Whether you are \ the average voter gets the facts he will enroll for the fight and the Democrat or Republican, I would advise that you become familiar "most inspiring sport is fighting for the right." with your party's record. Get the facts! Prove that there is still 1926 CONGRESS! ON AL RECORD-HOUSE 11483 a national conscience. Make it plain that you believe that political where such population does not exceed 750,000; not more than four platforms are more than temporary structures upon which candidates such branches where such population does not exceed 1,000,000 ; and are to stand while being elevated into office, and that party declara· not more than five such branches where such population exceeds tlons are more than bids for votes. 1,000.000. Demand a fair and fearless press. A half truth may be worse " (e) In cases in which, under the provisions of this section, a than a whole lie. When the springs of information are dried up, national banking association is authorized to establish a branch or polluted or poi ·oned, governments of the people pelish. Insist upon branches within the limits of a city or town, the Comptroller of the a proper respect for facts as well as flags. Currency shall have the discretionary power to authorize the estab· COMPROMISE PROPOSAL ON AMENDMENT 26 OF BRANCH BANKING Ushment and operation of such branch or branches beyond the bound· BILL aries of said city or town, as strictly defined by law; but only within the same metropolitan area _as that in which the parent bank is The SPEAKER pro tempore. The gentleman from Pennsyl­ situated : Provided, howe-r;er, That he shall in no case authorize such vania [Mr. McFADDEN] is recognized for 15 minutes. establishment and operation except within the terdtory of a city, town, Mr. McFADDEN. l\1r. Speaker, on last Tuesday, as chair­ or village, the corporation limits of which at some point coincide with man of the committee on conference of the two Houses, I pre­ the corporate limits of the city or town in which the parent bank is sented a conference revort on the bill H. R. 2 for printing under situated, when in his discretion he shall determine, after public hearing, the rule, and reported a disagreement on amendment 26, which that the banking needs of the inhabitants of said contiguous and urban contains a compromise proposal, in accordance with my territory require the establishment of such branch or branches ; but previous assurance to the House to permit a separate vote on no branch shall be established under the authority of this subsection this amendment, whicll is in lieu of the so-called Hull amend­ in any part of a State to which the right of State banks, under the ment. As I want the House to be fully informed on this, and State law, to establish branches does not extend. I know many Members to be interested in it, and Members are "(f) No branch of any national banking association shall be estab­ asking what the compromise proposition is, and inasmuch as lished or moved fl·om one location to another without first obtaining it was not a part of the conference report, I want it to appear the consent and approval of the Comptroller of the Currency. in the RECORD for information of the Members on the House "(g) The term 'branch' as used in this section shall be held to on the banking bill. include any branch bank, branch office, branch agency, additional office, In this connection I would say that it has been arranged that or any branch place of business located in any State or Territory of the conference report will be called up next Tuesday, June 22, the United States or in the District of Columbia at which deposits after matters on the Speaker's table have been disposed of, are received or checks paid or money lent. and we are hoping to get definite action on the banking bill at "(h) ThJs section shall not be construed to amend or repeal section that time. 25 of the Federal reserve act, as amended, authorizing the establish­ Mr. MORTON D. HULL. Mr. Speaker, will the gentleman ment by national banking associations of branches in foreign countrieJ yield? or dependencies or insular possessions of the United States. Mr. McFADDEN. Yes. "(i) The words 'State bank,' 'State banks,' 'bank,' or • banks' as Mr. MORTON D. HULL. Mr. Speaker, the gentleman says used in this section shall be held to include trust companies, savings that it has bE:'en arranged that the bill will be called up next banks, or other such corporations or institutions carrying on the bank· Tuesday. Is the gentleman willing to arrange any disposition ing business under the authority of State laws." of the time? I understand that under the rules the time is prac­ tically in his control. THE COAL SITUATION Mr. McFADDEN. I do not think it is proper to discuss the The SPEAKER pro tempore. The Chair recognizes the question of time now. That is a matter that will come up on gentleman from New Yvrk [Mr. LAGuARDIA]. ~ruesday morning. .Mr. LAGUARDIA. Mr. Speaker, I ask unanimous con ent Mr. Speaker, I ask unanimous consent to have printed as a that the Chair recognize the gentleman from New York [Mr. part of my remarks the compromise amendment to No. 26 in JAcoBSTEIN] at this time, and I shall follow him. In other the bill in conference. words, we propose to change places. . The SPEAKER pro tempore. The gentleman from Penn­ The SPEAKER pro tempore. Without objection, the Chair sylvania asks unanimous consent to extend his remarks in the will recognize the gentleman from New York [Mr. JACOBSTEI ] RECORD in the manner indicated. Is there objection? for 10 minutes. There was no objection. Mr. JACOBSTEIN. Mr. Speaker and Members of the The matter refened to is as follows: House, the daily press reports to-day that the House Com­ In lieu of the matter proposed to be inserted in H. R. 2 by the ) mittee on Interstate and Foreign Commerce has very carefully (" Senate amendment insert the following: j put into cold storage until next December the coal bill known I "SEC. 5155. The conditions upon which a national banking asso­ as the Parker bill. This bill is very much like the Copeland ciation may retain or establish and operate a branch or branches are bill; which was reported favorably by the committee ·in the the following : Senate. I rise to address myself for a few moments to that "(a) A national banking association may retain and operate such subject. branch or branches as it may have in lawful operation at the date I have before me a statement given out by the spokesman this section as amended takes effect, and any national banking asso­ of the White House on April 3, 1926, in which .the President ciation which has continuously operated not more than one branch for / is reported as favoring and advocating the pa~sage of coal I a period of more than 25 years immediately preceding the date this legislation at this session of Congress. The following is quoted section as amended takes e1l'ect may continue to operate such branch. from" the United States Daily of_April 3, 1926: .~ "(b) If a State bank is hereafter converted into or consolidated with a national banking association, or if two or more national bank­ PRESIDENT FAVORS COAL LEGISLATION-LAW TO PERlfiT ME.DUTION IN EVENT OF STRIKES DESIRABLE, SAYS WHITE HOUSE SPOKESMAN­ } ing associations are consolidated, the consolidated association mat? retain and operate such branches, as any of said banks may have in LABOR-STRIKES-COAL MINING ( lawful operation at the date this section as amended takes effect. Legislation which would empower the President to appoint a media­ "(c) A national banking association may, after the date this sec­ tion board in the event of a strike or threatened coal strike and which tion as amended tslkes effect, establish and operate new branches would provide for machinery for coal administration and distribution within the limits of the city or town in which said association is in event of a fuel shortage is most desirable at current session of Con­ situated, if such establishment and operation are upon such date gress, it was stated at the White House, on April 2, by the official permitted to State banks by the laws ot the State in question, and if spokesman for President Coolidge. the population of such city or town by the last decennial census is in I have other references here to show that President Coolidge excess of 100,000. The determination of the number of branches which on two separate occasions advocated coal legislation very much any such association may establish shall be within the discretion of along the lines of that contained in the Parker bill. the Comptroller of the Currency. First, in the ·President's annual message for 1923 (p. 11), "(d) A national banking association, situated in any State which at speaking of coal, be said, among other things, this : the date this section, as amended, takes e1l'ect, does not permit the establishment of branches by the State banks, but which after such The cost of coal has become unbearably high. It places a great { date permits such establishments, may establish and operate new burden on our industrial and domestic life. The public welfare re­ I branches within the limits of any city or town 1n which said associa­ quires a reduction 1n the price of fuel. With the enormous deposits in f tion is situated if the population of such city or town is by the last existence failure of supply ought not to be tolerated. Those responsible C.ecennial census in excess of 100,000: Provl4ed, however, That not for the conditions in this industry should undertake its reform and I more than one such branch of any such association may be established free it from any charge of profiteering. ( in any such city or town where the population, so det~rmined, does The supply of coal must be constant. In case of its prospective in­ not exceed 250,000 ; not more than two such branches where such terruption the President should have authority to appoint a commis­ population does not exceed 500,000; not more than three such branches sion empowered to deal with whatever emergency situation might arise, .11484 CONGRESSIONAL RECORD-HOUSE ~UNE 17 to aid conciliation and voluntary arbitration, to adjust any existing or Mr. BEGG. Why I!Ot on everything, if he is so excited about threatened controversy between the employer and the employee when this? collective bargaining fails, and by controlling distribution to prevent Mr. JACOBSTEIN. I am not a partisan. I always cast profiteering in this vital necessity. This legislation is exceedingly my vote on the merits of the question. If the gentleman will urgent and essential to the exercise of national authority for the pro­ examine my record, he will find that I have voted many times tection of the people. Those who undertake the responsibility of with the adininistration when some of his own party have management or employment in this industry do so with the full knowl­ voted against the administration. edge that the public interest is paramount and that to fail through any 1\Ir. BEGG. Would the gentleman recommend legislation con­ motive of selfishness in its service is such a betrayal of duty as war­ trolling the oil business? rants uncompromising action by the Government. Mr. JACOBSTEIN. Yes. I think the Government should You will notice that in this statement the President says that step in and regulate as a semipublic utility any industry in the President should have authority to act in case of an emer­ which nature has given us a limited supply or a prospective gency. He also says: limited supply, which enables the owners or producers to control the price. As a matter of fact, the Interstate Commerce Com­ This legislation is exceedingly urgent and essential to the exercise of mission does have jurisdiction over the pipe lines through which national authority for the protection of the people. oil is pumped and transported. He says also : Mr. BEGG. On the coal proposition nobody says that an­ The cost of coal has become unbearably high. thracite coal is a nece sity. It is a luxury. I have not burned anthracite coal myself for 10 or 20 years. Then in his message to Congress in December, 1925 (p. 16), Mr. JACOBSTEIN. If the gentleman will read the reports the President says : of the Coal Commission he will find the following language on At the present time the National Government has little or no author­ page 1, volume 1: ity to deal with this vital necessity of the life of the country. It has Coal is quite as much a public necessity as gas, street-railway service, permitted itself to remain so powerless that its only attitude must be or any other service or commodity that has been brought under public humble supplication. Authority should be lodged with the President regulation. and the Departments of Commerce and Labor, giving them power to deal with an emergency. They should be able to appoint temporary And again the commission hold- boards with authority to call for witnesses and documents, conciliate the view that a limited natural monopoly like anthracite, held by a differences, encourage arbitration, and in case of threatened scarcity relatively small number of individuals, estates, and companies, and sup­ exercise control over distribution. Making the facts public under these plying a necessity of life for millions of our people, can not continue to circumstances through a statement from an authoritative source would be treated as if it were n{)t affected by a public interest. be of great public benefit. The report of the last coal commission 1\Ir. BEGG. But it is really a luxury. should be brought forward, reconsidered, and acted upon. Mr. JACOBSTEIN. The fact that .the price is high does not You will notice from this quotation that the President specifi­ make anthracite coal a luxury. cally states that- Mr. BEGG. Could you not heat your homes with soft coal? authority should be lodged with the President and the Departments of Mr. JACOBSTEIN. No; not conveniently and not practi­ Commerce and Labor, giving them power to deal with an emergency. cally. I burned soft coal and ruined not only the curtains in my house but the furnace as well. We burn hard coal for You will note that he explicitly sa7s that they should have eight or nine months in the year 1n our homes. It is a public power to appoint temporary conciliatory boards, should exercise necessity in the North and the Northeast. control over distribution, and that the facts should be made 1\Ir. LAGUARDIA. If anthracite coal is luxury in a con­ public. gested city, then pure air is a luxury. The United States Coal Commission, appointed by President Mr. JAOOBSTEIN. It is a necessity under modern condi­ Harding, in their report recommended coal legislation. One of tions of living. I the very important recommendations of this commission is Mr. WYANT. The gentleman is familiar with the Parker l neglected or ignored in the so-called Parker bill, but it does bill? contain at least three of the commission's recommendations, \ Mr. J ACOBSTEIN. Yes. \ namely, that .for a fact-finding and fact-publishing body, the i setting up of temporary conciliation boards, and control over Mr. WYANT. It provides for the furnishing of fuel in case ! of emergency to consumers at a fair price. Oil is used exten­ I distribution in time of emergency. sively for heating purposes, is it not? The Secretary of Commerce, Mr. Hoover, when he appeared Mr. JACOBSTEIN. Yes. To some extent. before the House committee on May 14, 19261 also recom­ mended coal legislation along the lines of the Parker bill. I Mr. WYANT. Would the gentleman be willing to add an amendment to that bill which included the regulation of oil as may say, however, that in reply to a question he did suggest a fuel? that perhaps this might well go over, so far as soft coal is con­ cerned, until December. We have, therefore, definite state­ Mr. JACOBSTEIN. I will say very frankly I have not given ments l)y the White House spokesman and by one of the most the same consideration to oil as I have to coal. I do not ·know influential members of the Cabinet committing the administra­ enough about the oil industry to answer. But if oil is as essen­ tion to coalleki.sla tion. The Parker bill, upon which action has tial to the consumer as hard coal in the Northeast and North been deferred until next December, follows in the main the lines and soft coal to the industries, I would say yes. Let me say • recommended by them, but is even more conservative and this to the gentleman from Pennsylvania and to the House m·oderate. that I am amazed that any committee should hesitate· very Mr. BEGG. Mr. Speaker, will the gentleman yield? · long to report a bill so mild and tame as the Parker bill. Mr. J ACOBSTEIN. Yes. Why, gentlemen, we have been engaged on coal legislation for Mr. BEGG. Will the gentleman tell us whether he would eight years, and this bill does not go as far as the bill reported favor legislation regulating the clothing industry and the shoe favorably out of the Senate. I can not understand how any industry as well as the coal industry? Those things are just committee could hesitate to recommend favorably a bill so very as necessary in my country as hard coal. conservative and harmless as the one the gentleman from New Mr. JACOBSTEIN. I would not put clothing and shoes in York [Mr. PARKER] introduced. the same class with coal. The Coal Commission very definitely Mr. WAINWRIGHT. Will the gentleman yield for a brief stated in its report that it ~regarded coal as a public or semi­ question? public utility. Mr. JACOBSTEIN. I will. Mr. BLACK of New York. Mr. Chairman, will the gentleman Mr. WAINWRIGHT. Will the gentleman, in the course of yield? his remarks, ·tell us exactly what recommendations the Execu­ 1\!r. JAOOBSTEIN. Yes. tive in his annual message to Congress made on that subject, Mr. BLACK of New York. The President has not asked for and also what were the recommendations of the Coal Commis­ any regulation of the clothing business. sion in regard to anthracite coal? Mlr. JACOBSTEIN. No; and neither has Mr. Hoover, and lli. JACOBSTEIN. I have given up more than half of my so far as I know no one else connected with this administration. time, but I will be glad to take the time of the House to do The point I am getting to is that the administration told the that. I understand, howeYer, that there are other Members public, told the people of the United Statesr that it was in fav.or who desire to speak, and I do nqt wish to trespass upon their of coal legislation, and virtually promised legislation at this time. I Will say this: The Parker bill embodies the major session of Congress. · recommendations of Secretary Hoover and the Coal Commis­ Mr. BEGG. Is the gentleman willing to say that he is sion, except that the seizure clause has been left out-seizure willing to do whatever the administration asks hini to do? ln case of an emergency. The recommendation of the commis­ Mr. JACOBSTEIN. I" will on this. . . . sion was that at a· time of emergency the President of the 1926 CONGRESSIONAL RECORD-· HOUSE ~11485 United States should have power to take over the mines and But I want to say this to the House-: You can go through the operate them for the public welfare. I can understand why hearings, and I challenge you to find anybody in the coal indus­ some Members should shy at this emergency seizure recommen­ try--operators, jobbers, retailers, or the unions-who want coal dation, but I can not comprehend how any considerable num­ legislation. Of course, they do not want it. They are going to ber of the committee could object to the ·provisions in the try to block legislation next December as they have blocked it Parker bill, which were recommended by the President of the now. I do not · see how you gain anything by postponing it. United States on three occasions, by Mr. Hoover, and the You are not going to learn anything in December that you do Coal Commission. not know now. :Mr. W AI~~RIGHT. Did not the President in addition ask Mr. FLETCHER. Mr. Speaker, will the gentleman yield? for legislation to enable the Executive to cope with an emer­ Mr. JACOBSTEIN. Ths. gency? Mr. FLETCHER. I understood the gentleman volunteered Mr. JACOBSTEIN. Yes. I will say this: The Parker bill to say that $500,000 had been expended to check this legislation. does not go as far as the administration advocated and prom­ Mr. JACOBSTEIN. Not this legislation; some previous ised to the people of the United States. legislation in the past Congresses. This powerful group, by Now, why did we not get coal legislation? Why, gentlemen, the use of their influence, were able to stop legislation. we have had coal investigations for eight years, s_even very Mr. FLETCHER. Will the gentleman tell us how that has important coal investigations, but somehow or other there was been done in the last eight years? some powerful influence in this country always able to check­ Mr. JACOBSTEIN. Well, it is difficult to get people to tell mate and block this legislation. I have been informed by who hand out money; in the State of Pennsylvania, for in­ people in the coal industry that several years ago this industry stance, as to the men who handled the money in the primary spent $500,000 in one campaign to block legislation. I do not contest, they will not swear why they gave it or where they mean to impute that any money was spent here to prevent this gave it, but we know that the money was spent. very fine committee from reporting this particular bill. I have Mr. FLETCHER. Does not the gentleman think he owes it been informed by people in the coal business that the four great to the country to demand that such an investigation be made? associations-the soft coal operators, the hard coal operators, Mr. JACOBSTEIN. I wish those interests could be exposed. the retail merchants' association, and the jobbers-by con­ I wish the investigation of the slush fund in Pennsylvania had certed action defeated coal legislation initiated during a session gone so far as to sh,ow how much had been contributed by the of Congress several years ago. coal interests of Pennsylvania, for example. The SPEAKER pro tempore. The time of the gentleman has Mr. BACii:l\IANN. Mr. Speaker, will the gentleman yield? expired. Mr. JACOBSTEIN. Yes. l\Ir. JACOBSTEIN. Mr. Speaker, in view of the fact that I Mr. BACHMANN. Can the gentleman tell us why the coal have given up so much of my time, I ask unanimous consent to operators and the miners do not want coal legislation? proceed only for five additional minutes. Mr. JACOBSTEIN. Of course, but they have different mo­ Mr. WYANT. Make it 10 minutes; I am very much inter- tives. The operators want to operate that industry unregu­ ested. _ lated by the Government, because they like to do business in The SPEAKER pro tempore. The gentleman from New York their own way. asks unanimous consent to proceed for 10 additional minutes. Mr. BACHMANN. You mean both the hard coal and the Is there objection? [After a pause.] The Chair hears none. soft coal? 1\lr. J ACOBSTEIN. So there is a powerful interest in this Mr. JACOBSTEIN. Yes. Both have resisted legislation and country blocking this legislation, advocated and promised us by will resist it next December. · the administration. Mr. BACHMAl\'N. Why do the hard-coal people resist it? It was told to me on good authority that one very important Mr. JACOBSTEIN. Well, this year the hard-coal people are individual in the coal business was a director of the largest charging from 60 cents to 75 cents a ton more than they trust company in these United States, and through his financial cha1·ged last year, without an increase of wages. They are interest had been able to reach people in authority and in­ selling coal now under certain trade names which ru·e not of the ( fluence in Washington. I do not mean to say to bribe them same quality content. They are selling stove coal and pea coal " and pay for their votes, but to influence them to postpone of inferior quality. If you had legisllition and had the Govern­ legislation. ment watching this, they would immediately let the people 1\lr. BEGG. Will the gentleman yield? know that there was adulterated coal being sold at an advanced Mr. J ACOBSTEIN. I will. price. The operators do not want that matter exposed. 1\lr. BEGG. The gentleman has made seve1·al pretty extrava­ Mr. BACHMANN. How about the soft-coal people? Have they been guilty of this practice? rI gant statements- 1\Ir. JACOBSTEIN. Very broad, but not extravagant. Mr. JACOBSTEIN. No; I do not know that there is such Mr. BEGG. Does the gentleman know of the accuracy of a practice in the soft-coal industry. However, there are re­ those statements to the extent he would be willing to go on a tailers who sold soft coal right here in the District of Colum­ witness stand under oath and make oath? bia to you and to me for $15 a ton during the last strike, call­ Mr. JACOBSTEIN. That information came to me from ing it " Pocahontas coal " when it was not Pocahontas coal ; but people in the coal industry who are in a position to know, and they passed it off on us. It was adulterated coal. you understand information like that is confidential, and you 1\Ir. BACHl\1ANN. Because some retailer has been guilty of can not very well reveal names. that false practice, does the gentleman include all the op­ 1\Ir. BEGG. I am not asking the gentleman to give a man's erators? name, but I am asking the gentleman if his information comes Mr. JACOBSTEIN. No; but the retailers blame the opera­ from such sources that he would be willing under oath to make tors and the operators blame the retailers, but always the con­ the same statement to the effect he is making it now? sumers suffer. The question was asked me, "Why do they re­ Mr. JACOBSTEIN. I will say that this information was sist regulation?" Every industry resists regulatory legislation. given to me by people working in and for the coal interests For 15 years they resisted pure-food legislation. For a genera­ ' and whose veracity I have no reason to question. tion the railroads resisted effective Federal regulation. Insur­ Mr. BEGG. I would say that that was going very far in the ance companies fought regulation in the States. Public utili­ way of disloyalty for an employee to make such a statement. ties fought regulation. lUr. JACOBSTEIN. It was made by people who were in a Mr. O'CONNOR of New York. Mr. Speaker, will the gentle­ position to know what was going on. man yield? l\Ir. LAGUARDIA. Mr. Speaker, will the gentleman yield Mr. JACOBSTEIN. Yes. there? 1\lr. O'CONNOR of New York. Have we not a Federal Trade Mr. JACOBSTEIN. Yes. Commission that takes care of these impositions as to brands of Mr. LAGUARDIA. The gentleman says the employee was coal? They do it in regard to other industries. If there is a disloyal in making the statement. What would you call the standard of what is stove coal or Jlocahontas coal, the Trade act of the employer who spent the money in that way? Commission can attend to it. 1\Ir. JACOBSTEIN. I tried to get several persons to give me Mr. JACOBSTEIN. I do not think they have the necessary permission to use their names, but I found that to reveal their machinery to do anything in that line effectively. identity would seriously embarrass them and jeopardize their Mr. O'CONNOR of New York. They do it on paint and bread. business. The fact remains that this powerful group has been Mr. J ACOBSTEIN. They can only investigate the industry able to influence the progress of legislation in Washington. to see if people are violating the law. Now, the committee has postponed action until December, 1\Ir. O'CONNOR of New York. They can determine if there is and is putting it on the calendar as its first order of business. misbranding. · .:11486 CONGRESSIONAL RECORD-. HOUSE JUNE 17 Mr. JACOBSTEIN. I am not interested in putting people trade classifications with established standards of heating in jaiL What I want to see. done is to have tl:!e Government units for each grade or size of hard coal. To-day when I buy regulate this industry as it regulates pure food, transportation, " stove " coal I do not get the same coal I got last year nnder gas, electricity, and so forth, for the benefit of the coal users. the same trade name because the operator has adulterated it. You a k me why they resist regulation. They do it for a lot When I order pe&. coal I get _too much buckwheat this year of reasons. For instance, without Government regulation they compared with two or three years ago. In fact, this abuse has can profiteer in a time of great emergency.~ reached a point where a ·pennsylvania Congressman saw fit to Mr. BEGG. What is the difference if I go down town and introduce a bill to correct the evils. I refer to H. J. Res. 165, buy coal that happens to be pea coal instead of stove coal? by Mr. KELLY, of Pennsylvania. That is two grades. I do not know, ' but that meets my desire 1\Ir. BLACK of New York. Will the gentleman yield? and my use. Where am I any the worse off than when I go Mr. JACOBSTEIN. Yes. down to a clothing store and the salesman says: "This suit is Mr. BLACK of New York. As a matter of fact, the coal all wool," when it may not be? Perhaps if I had with me an operators who have contracts with New York City have to de­ analytical chemist lie might say that it was worked-over wool. under certain specifications, which we could write in the Mr. JACOBSTEIN. Of course, but you might be deceived in law. both ca es. Mr. JACOBSTEIN. In conclu ion I simply want to say this: I am not advocating that the Government get into every You gentlemen who always stand by the administration ask line of business, but if a firm advertises a certain brand of yourselves this question: Why is it the administration recom­ clothes and offer to sell it for $40 and you get stung on that mended coal legislation and none is to be enacted at this ses­ suit of clothes you can turn to some other brand because there sion? Why is it the chairman of the committee [Mr. PARKER] is very keen competition in that line-not so with anthracite, on the floor of this Hou e promised us legislation and said he however, where ownership is highly concentrated in few hands. was going to report out a bill? The SPEAKER pro tempore. The time of the gentleman Mr. WYANT. Will the gentleman yield? from New York has expired. Mr. J ACOBSTEIN. Yes. Mr. CA.l\"'NON. Mr. Speaker, I ask unanimous consent that Mr. WYANT. I want to say to the gentleman that the gen­ the gentleman may have five additional minutes. tleman from New York [Mr. PARKER] did his full duty in at­ The SPEAKER pro tempore. The gentleman from Missouri tempting to comply with every statement he made on the floor asks unanimous consent that the gentleman fro~ New York of this House or elsewhere. may proceed for five additional minutes. Is there objection? Mr. J ACOBSTEIN. I will ask the gentleman from Pennsyl­ There was no objection. vania if it is not a fact that the chairman of the committee did Mr. :BEGG. Where is there any difference between a suit state in this House-and I have it here in the RECORD-that the of clothes and a ton of coal? If I do not like the Hart committee would report out a coal bill at this session? You Schaffner & Marx suit of clothes I can buy some other suit, will find that on page 8317 of the CoNGRESSIONAL REXJoRD of and if I do not like the hard coal I can buy, I may buy soft April 27, in which the following colloquy is recorded : coal. :Mr. TREADWAY. I want to call the gentleman's attention to the fact Mr. JACOB STEIN. That is just the rub-you can not sub­ that the committee has been at work steadily and that we have had stitute as easily as that. I live in Rochester, N. Y., where my several times as nrances by the chairman that the bill would be reported furnace is built to burn hard coal. When I can not get hard before adjournment. · coal I have to try to use soft coal, and I can tell you it is not Mr. JACOBSTEIN. I congratulate the committee on the earnestness and practicable, not desirable, and furthermore, I should not be sincerity of its work. All I wish is that the work had not begun so compelled to resort to an inferior substitute. late. We now have no bill from the committee before us for action. Mr. BEGG.- Let me ask the gentleman about that furnace. I want to say that 1t is possible now to take the :first step in the three I have had a good many furnaces and I have never had a. weeks that are left. The committee ought to report a bill in this furnace in my life that would not burn either kind of coal. Congress, even it It is not perfect in every respect. We must make a Mr. JACOBSTEIN. You can burn it after a fashion, but it beginning. It smokes up the house and it destroys the furnace. is hard Mr. PA.RKER. Will the gentleman yield? to keep your fires going. Mr. JACOBSTEIN. I will. Mr. BEGG. Why should a. house in the northeastern part .Mr. PARKER. It is the intention of the committee to report a blll of the country have any more right to protection from smoke very soon. than a house in Ohio? Mr. J ACOBSTEIN. There should not be any more protec­ Mr. JACOBSTEIN. I am happy to learn that we have the assurance o:t tion to the one than the other. But, as I have said, my furnace the chairman o:t his bard-working Committee on Interstate and Foreign Commerce that we are going to be called upon to vote or have an was built to burn the hard coal, and it is not practicable to burn soft coal in_it. Now, returning to the comparison between opportunity to take the fu·st steps in enacting coal legislation. a suit of clothes and a ton of coal, let me say that in clothing Mr. WYANT. I say in answer to that that 1\ir. PARKER did there is an unlimited supply with wilimited competition. This his full duty in attempting to comply with any statement he is certainly not true of anthracite coal. made upon the floor of this House or is quoted as having made Mr. BACHMANN. What about soft coal? by any paper. Mr. JACOBSTEIN. I am talking about hard coal. In hard Mr. J ACOBSTEIN. All I want to say is that the RECoRD coal you have a virtual monopoly, and therefore you can not shows that Mr. PARKER, chairman of the Committee on Inter­ turn to other producers if you are dissatisfied as to price, state and Foreign Commerce, stated on April 27 that a bill quality, or service. would be reported soon. To-day we learn this committee has Mr. BEGG. I was never rich enough to burn hard coal. put coal legislation in cold storage until December. What may Mr. WYANT. 'Viii the gentleman yield? happen then no one knows. Mr. JACOBSTEIN. Yes. . But the bill is not here. It is in cold stc,>rage. [Applause.] Mr. WYANT. The gentleman spoke of the Government regu- The SPEAKER pro tempore. The time of the gentleman lating the quality of the coal sold. Any person who ha~ had from New York has again expired. experience in the coal business knows this: You have one acre of coal which has a sulphur content of a fraction of a per cent. PERMISSION TO ADDRESS THE HOUSE That same coal has an ash content of 6 per cent and a \:arbon Mr. HAMMER. Mr. Speaker, I ask unanimous con ent to content of a certain per cent. Now, the acre that lies beside address the House to-mocrow for 15 minutes immediately after that coal may contain three times the sulphur, three times the the conclusion of the remarks to be made by the gentleman from ash, and much less carbon content. That condition prevails Virginia [Mr. MooRE]. all through the bituminous-coal region, and I will ask the gen- Mr. BEGG. Mr. Speaker, reserving the right to object, I ~ tleman how the Government can analyze and regulate the sale will ask the gentleman to wait until the floor leader comes of every particular car of coal that is sold? It is practically back· and then make his request. impossible. Mr. HAMMER. I have spoken to the fiooc leader about the Mr. JACOBSTEIN. I do not think they should, so far as matter, and he said he would not object. soft coal is concerned, but it is practicable in anthracite. The Mr. BEGG. Well, I am sorry, but the floor leader when he Government of the United States samples every car of wheat, left asked me to watch out for things, and I said, " Shall we and wheat is sold on the board of trade on the basis of tho e let any more speeches in now?" And he said" Ko." samples, and I say it is very practical as to bard coal. Soft Mr. HAMMER. Of course, I will wait if the gentleman coal is steam coal, and the industrial plants can and often do doubts what I say. The gentleman has certainly known me test the heating quality of the coal they buy. long enough to know I would not make that statement if it 'l'be individual who buys coal for domestic use can not test .were not true. his coal. The Governmep.t might :very well establish definite Mr. BEGG. I wish the gentleman would wait. 1926 CONGRESSIONAL RECORD-· HOUSE 11487 Mr. HA.MMER . I will wait and let the gentleman get a con­ Mr. WYANT. I would like to ask the gentleman from New &·mation of my statement, as he doubts my statement. York another question, since he 1s so well posted on the coal Mr. BEGG. I do not doubt the gentleman's statement. situation. - THE COAL SITUATION . Mr. LAGUARDIA. I am not well posted on the coal situ­ The SPEAKER pro tempore. The Chair recognizes the gen­ ation, but I am well posted on fundamentals. [Laughter.] tleman from New York [Mr. LAGUARDIA] for 10 minutes. Mr. WYANT. I think most of us understand that. I want Mr. LAGUARDIA. Mr. Speaker, it seems that the opposition the gentleman to explain why he insists upon -coal regulation. to re"'ulation of coal is based entirely on the principle that you Is it because there is an insufficient quantity of coal, or is it do n;t regulate other industries. Let me say to my friend the because coal ought to be regulated simply because it is coal? gentleman from Ohio [Mr. Bma] that the difference between Mr. LAGUARDIA. It ought to be regulated because it is a the suit of clothe , which be uses as an illustration, and coal fuel. Mr. JACOBSTEIN. Will the gentleman yield for a ques- is this : Clothes are made by Hart, Schaffner & Marx or Solo­ tion? · mon Levy & Co., by Clarence Miceli & Bros, or others, and coal was made by God Almighty for all of the people and not for Mr. LAGUARDIA. Yes. the profit of operators only. That is fundamental. Mr. JACOBSTElN. And also, of course, because expetience Mr. BEGG. Will the gentleman yield right there? has demonstrated that periodically we can not get it. Mr. LAGUARDIA. I only have 10 minutes. . 1\Ir. LAGUARDIA. And that is the situation all over the Mr. BEGG. I just want to ask the gentleman a question. world. England has had its trouble; France has had its troubie; and Germany has had its n·ouble. The whole world How are the people going to get anthracite coal who are a few has bad its trouble with coal. miles away from the district that is right near here where the Mr. WYANT. And-has not that trouble increased in propor­ preferred rich live who can afford the luxury of hard coal 1 tion to the extent that the Governmnet meddled in the coal Mr. LAGUARDIA. They will get it the same way they get business? water and the same way they get air. We have not a river running ·clown Broadway or on One hundred and sixteenth 1\lr. LAGUARDIA. If the gentleman calls it meddling, it was because the meddling was not intelligent. It was because Street, where the people can get water. The municipality ­ it was temporary just as was the subsidy given in England. nishes water to them. It is water created by nature, and your That is why I say regulation is not going to solve your prob­ coal and your fuel was created by nature,. or by God Alm~gbty, lems, and sooner or later you will have to take over coal and or by whatever you choose to call it. It 1s not the handiwork you will hav-e to take over oil. I will tell you why. of man at all. It was placed there for the use of all of the The gentlemen from the soft-coal region know that in a few people, and I deny the right of an! one man or. any group of years locomotives will not use soft coal. The up-to-date loco­ men to use that gift of God for their own exclusive profits. motive will be driven by electricity generated with Diesel There is one thing we all agree on. We must have regula­ engines. That is the new type of locomotive. The time is not tion. Most conservative gentlemen, Members of the House, are very distant, perhaps 5 or 10 years at the most, when all the urging regulation of the coal industry. We all agree that some­ locomotives will be Dieselized motors, burning crude oil, gener­ thing must be done. Personally I do not believe regulation will ating electricity to drive the trains, and as we substitute oil for be enough. I will come out flatly and tell you that I believe coal, naturally oil comes under the same category requiring the coal industry ought to be nationalized. All coal min~s regulation or Government operation the same as coaL ought to be owned and oper.ated by the Gove~nment. That IS Mr. MOORE of Ohio. The gentleman has stated very frankly where I stand on it. I realize that I am a bit ahead of some the legislation which he thinks desiJ;able, and he bases that of my colleagues and that my stand may see~ radical to-d_ay, upon the fact that this is a fuel. I take it from what the yet I can remember when water was sold by private compames, gentleman says he would nationalize the gas and oil industries and to advocate municipal operation of waterworks was also as well? considered radical at one time, and not so long ago. Mr. LAGUARDIA. I put oil with coal. Mr. BEGG. Will the gentleman yield again? . Mr. MOORE of Ohio. And the gas industry, too? Why not Mr. LAGUARDIA. Oh, the gentleman is now gomg to tell the gas industry? me about Government railroad operation or Government opera­ Mr. LAGUARDIA. I would municipalize that. tion of ships. Mr. MOORE of Ohio. In a sense it would be under Govern­ l\Ir. BEGG. If we were to nationalize anthracite coal, then ment control of some kind. the citizens of Idaho and Oregon would be just as much en­ Mr. LAGUARDIA. And every up-to-date municipality is now titled to their bushel or pound of coal as the citizens of New running its own electric light and gas plant, and let me say York or Pennsylvania. . further to the gentleman that the cost of gas in New York Mr. LAGUARDIA. Of course, and at the same pr1ce, natu­ Oity where we still suffer under a Gas Trust, is almost pro­ rally. Why not? hibitive so that a mother must really stop and think before she Mr. BEGG. No; it would be the business of the Government warms ~ for her children. We get a small, anemic flame, to bring them their share of the anthracite coal so they would hardly sufficient to heat and cook, and the price is exorbitant. not smoke up their curtains, which the gentleman's colleague The people can not put up wit~ it .J?lU~h .longer. spoke about. One is just as sensible as the other. . You gentlemen may think this question of fuel is not a prob­ Mr. LAGUARDIA. The citizen of Idaho would be entitled lem but I will tell you it is a problem, and it is one that enters to his coal at the same price as any other citizen, and there would int~ the welfare of every man and woman in this country. be no more profiteering. Mr. MOORE of Ohio. Will the gentleman allow another Mr. BEGG. No; the Government then ought to pay the dif­ question? ference in the cost of transportation so he can have his pro­ Mr. LAGUARDIA. Yes. portion of the hard coal. Mr. MOORE of Ohio. I take it the gentleman is not advo­ Mr. LAGUARDIA. Oh, no; the gentleman can not argue in cating the leglslntion from the standpoint of emergency. that way. Mr. LA-GUARDIA. I think the emergency is running and get­ Mr. WYANT. Will the gentleman yield? ting worse e\ery day. Mr. LAGUARDIA. Yes. :Mr. MOORE of Ohio. The gentleman does not contend that Mr. WYANT. Under the gentleman's scheme, would he give there is an emergency from the public standpoint in the soft- every man so much anthracite and so much bituminous coal, coal industry? _ re"'ardless of where he lived, or would the gentleman give the Mr. LAGUARDIA. Not for the moment, but I do think there pe~ple in New York State and in the New England States all is exploitation. the anthracite and let us poor people of the West use the Mr. MOORE of Ohio. Not from the operating standpoint. I bituminous coal? will say to the gentleman that lots of the best coal companies Mr. LA-GUARDIA. I expected a more intelligent question in Ohio and there are 5,000 to 10,000 men employed in my dis­ from my friend from the coal regions. trict, h~ve gone into the hands of a receiver. Mr. WYANT. I am attempting to show the gentleman how Mr. LAGUARDIA. Yes; but the gentleman has been com­ silly his argument is when applied practically. plaining about the high freight rates-- Mr. LAGUARDIA. The gentleman knows that in almost Mr. MOORE of Ohio. And is still complaining. every community we have a water meter in every house and we Mr. LaGUARDIA. When you get a report of the Interstate measure the water that is consumed, and it would be the same Commerce Commission on freight rates you will find that the way if we operated with respect to coal. You would measure high cosl; of coal is figured into the cost of transportation, and it and weigh it in just the same way. The people would pay that is reflected back in the freight rates which the gentleman a fair price; they would be certain of an uninterrupted supply complains of. and uniform quality, and profiteers would be unable to gouge Mr. MOORE of Ohio. With the many mines in the bitumi­ the people any more. · nous coal fields-~nd I am talking about something that I know 11488 CONGRESSIONAL RECORD-HOUSE 'JuNE 17 about-with the many mines in the bituminous field I will say costs, the public will be robbed and the miners will have a hard that there will be no emergency in the soft-coal industry as time in getting decent wages. Not regulation, such as is pro­ long as you keep cars to haul the coaL posed in the various bills introduced in the House, but nationali­ Mr. LAGUARDIA. And yet the gentleman is complaining zation is the only way to put the industry on a stabilized basis of the high freight rates. and to get rid of the secrecy that surrounds it to-day. Mr. MOORE of Ohio. Surely I do. Nationalization would mean that all coal coming to New Mr. VINSON of Kentucky. The gentleman is complaining York City would have practically the same price for each size, about the high freight rates, but they are asking for higher and that any dealer charging more than a fair price for storing rates and trying to make the differential las:ger. and delivering it would immediately be known. Profiteering Mr. MOORE of Ohio. The differenfial is not proper. such as exists to-day could be checked, and with the efficient - Mr. VINSON of Kentucky. They are asking to have the cooperation of municipalities might be stopped, I will say to freight rates increased. the gentleman from Pennsylvania. Coal could be deliver'ed 1\fr. MOORE of Ohio. We want a better differential more cheaply. The miners and the public would get the benefits Mr. WYANT. Will the gentleman yield? of increased economies and efficiencies in the industry. A Mr. LAGUARDIA. Yes. larger production would be encouraged rather than discouraged Mr. WYANT. Has it not developed on all the hearings on as, according to the Coal Commission, it is to-day. Nationaliza: the coal question relating to domestic uses that the retailers tion of the industry is coming, and the sooner 1t comes the purchase coal in the bituminous region anywhere from $1.50 better off the people of the country will be. a ton to $2.50 a ton, pay a freight rate of $2, and then sell Nationalization also, we are convinced, must be the ultimate it for $14 and $15 a ton? solution in the coal industry, anthracite and bituminous with Mr. LAGUARDIA. That is true in some cases; profiteering its scandalous wastes, its ruinous overdevelopment, and b{ some is not limited to operators always. districts its chronic civil war between the operators and the Mr. WYANT. Then why does not the gentleman go back workers. to New York to the retailers who are taking from the people The SPEAKER pro tempore. The time of the gentleman has a profit of $10 a ton instead of directing his attention to the expired. The gentleman from New York [Mr. BLAcK] is rec­ eoal operators 400 miles away? ognized for 15 minutes. Mr. LAGUARDIA. Because I want to correct all the evils Mr. BLACK of New York. Mr. Speaker, we have had some -by going right to the source. discussion to-day on the difference in literary style between the Mr. O'CONNOR of New York. Will the gentleman let me Democrats and the Republicans. Not all of us have the ex­ say in answer to the gentleman from Pennsylvania that the ceptionally literary ability of the gentleman from Texas [Mr. retailers of New York have had to pay .-$10 or $12 a ton during CoNNALLY], but there is one thing along literary lines that we the emergency for soft coal, and now the emergency is over Democrats will yield the palm to the Republicans, and that is they are stuck with high-priced coal on their hands and can when it comes to writing in beautiful style corrupting cam­ not sell it on the market and get their money back, and so paign checks you boys on this side of the House have it on the allegations against the retailers are not sound. William Shakespeare. [Laughter.] Mr. LAGUARDIA. Now, gentlemen, let us not fall for the Now, we had a form letter put in the REOORD this morning usual of getting the city fighting the producing districts. and I am going to write a little answer to it. ' The consumers of coal in the city just as the consumers of food ANY BANK IN PENNSYLVANIA have everything in common with the coal miners just as they have with the farmers. And the coal miners just as the DEAR REPUBLICAN COLLEAGUE: You are right about the hijackers farmers are not getting the prices which the city pays for their and the bootleggers and the saloon helping the politicians. We find products. In one case it is the middlemen, banks, speculators, that so in Pennsylvania. Tbey are beautifully nonpartisan. They and profiteers, and in the other it is a similar group of men take 1t from all sides, but when it comes to your yo, ho, ho and with different names, perhaps. a bottle of rum, forget the yo, ho, ho and just send us the bottle of Economic slavery was mentioned on the floor to-day. I have rum. Some of us need 1t badly. I had occasion to refer to economic slavery many times. And (Signed) ST. GEORGE PEPPER. 1. I maintain to-day that the industries of this country are at Deacon PINCHOT. the mercy of a highly monopolized coal industry and a perfectly, Uncle ANDREW MELLON. thoroughly monopoliztd oil industry. These men have it in .P. S. It was like giving money to churches. Kindly find out how their power to absolutely control industry. Just as the con­ much of Pepper's money the Vare crowd got. trol of fuel is necessary to the safety of a nation as against Mr. WYANT. Mr. Speaker, will the gentleman yield there? foreign attack so is it true that the control of the same fuel­ Mr. BLACK of New Yo&k. Oh, no. coal, gas, and oil-is necessary for the freedom of the people Mr. O'CONNOR of New York. Mr. Speaker, will the gentle­ within .the Nation. It is too important, too vital to life to be man yield to me? left in the hands of a few individuals. Mr. BLAOK of New York. No. I have got to be nonparti­ Experience of years has demonstrated that we have had san. [Laughter.] Mr. Speaker, the gentleman from New York nothing but constant trouble. People are paying too much for [Mr. JACOBSTEIN] asked why we do not get coal legislation. coal to-day. Miners are not being paid sufficient wage~. The The answer is simply that the administration has just gone on difference--in the two figures goes to pay watered stock, undue a strike. We had an editorial read to-day from the New York profits to a string of unnecessary middlemen, and to excessive World. I have an editorial from the New York World and I profits. We have had investigation after investigation-com­ shall read it at this point: missions, committees, bureaus, and every other kind of investi­ gation-reports, year after year, thousands and thousands and DOING NOTHING AND DOING IT BADLY thousands of pages of reports, and yet the problem has not The President's determination to do nothing about coal has finally been solved. provoked the Senate. Something of the sort was bound to happen, The coal industry is peculiarly ripe for nationalization. The for Mr. Coolidge's indifference and inaction are indefensible. anthracite miners in 1913 officially proposed a plan for the The World has never believed that the President ought to Intervene retirement of the capital by the industry itself. By the substi­ in order to settle this strike. But Mr. Coolidge has had the coal ques­ tute of 6 per cent bonds for outstanding capital stock all exist­ tion before him ever since he took office on August 3, 1023. He has ing capital could be retired in 50 years at a cost of 28 cents per been President during two strikes. And in _all the time that has ton, while the last official figures indicate a present cost for elapsed he has not made one serious efi'ort to establlsh peace in the interest, profit, depletion, and depreciation of approximately $1 industry. He made a tepid recommendation to Congress in 1923, never a ton. The anthracite mine owners have within the last 10 took the trouble to have a bill introduced embodying his recommen­ years levied against the public the sum of $200,000,000 in dations, forgot all about coal in 1924, and in 1925 made another tepid inflated valuations, which is charged up against the cost of recommendation, which he has not lifted a finger to have enacted. Is every ton of coal mined. One dollar in every three carried on it any wonder that the Senate has lost its patience? their books is water, according to the figures of the Coal Com­ It may be said, of course, that the Senale has asked the President mission. They will ask you to guarantee them a return on this to settle the strike instead of offering him the legislation which is inflation, although at the time its only excuse was to evade the needed in order to prevent strikes in the future. But when, pray, excess-profits tax. Moreover, they are evidently planning to did Congress ever work out far-sighted legialatlon adding to the inflate the industry another $400,000,000 as soon as they can. powers of the President if the President himself showed no interest There is no warrant for these increased capital claims. upon the in that legislation? The rebuke administered to Mr. Coolidge by tbe industry other than the growth in population of the country. Senate yesterday was invited by Mr. Coolidge's inveterate desire to But until the Nation decides that the industry is too important avoid the trouble and the political cost of national leadership. to be left to those who are more intent on speculating in it than If Mr. Coolidge had taken his own recommendations seriously when w mining coal, and nationalizes it on the basis o~ o1i~al Congress met 1n December, 1! he had mobilized opinion behind them, if 1926 CONGRESSIONAL RECORD-HOUSE lll489 be bad brought hls own party fnto line for them, be would not only power. Surely does the Presid'ent subscribe to the Barnum have exerted a powerful and probably decisive influence for the settle­ philosophy about the public instead of to Lincoln's. ment of this strike but he would not be chargeable with neglecting Since our friend VABE won out in the great primary sweep­ constru,ctlve action to. prevent another. The public has been patient and stake Cal is not so anxious to touch the sacred soil of Penn­ willing to suffer the inconvenience of this strike in the hope of obtain­ sylvania, the State of coal nuners· and political gold miners. in~ a lasting settlement. If Mr. Coolidge had the stutr of leadership The politicians there are all anthracite and can do a duty job 1n him, he would have made himself the spokesman of that public atti­ in the national convention. [Laughter.] tude and would have forced through legislation of permanent value. Many bills were offered, some including the President's ideas; Had he done that, as he was urged again and again to do, he would but the committee seemed to think such were unconstitutional, almost certainly have helped to settle the present strike without thus ~epudiating ~e President, who rode into the White House departing from the sound principle that it is not the business of a on a constitution frightened by the noise of the New York President to meddle ex officio in industrial disputes. For if the Presi­ Democratic convention. dent and Congress bad started to. work on permanent coal legislation I asked Mr. TILSON, the Republican :floor leader, on Decem­ the miners and the operators would have hnd other things to think ber 19, if he thought he would do something on the President's auout than their immediate difl.'erencee. message on coal by July 4. He said that ·the schedule of legis­ The whole incident reveals an alarming weakness in Mr. Coolidge's lation on the President's message would probably be arranged equipment. When there is nothing to do he has the good sense to do by that time. He evidently thought I meant July 4, 1950. nothing, and he does that very well. It is one of his virtues that he There is still time, my Republican friends, to get action for is not always anxious to do something, even if it is the wrong thing. the consumer before July 4, 1926. You could pass the debt But when there is a crisis, such as existed over corruption in the Harding settlements, you could talk the farm bills to death, you could · Cabinet, over the bonus, over Japenese exclusion, and over coal, Mr. Cool­ flirt with the rubber plants in the Far East, you could search idge just trusts to luck and the probabilities that the unpleasantness will for quinine to cure the people suffering from lack of coal, but blow over sooner or later. There probably has not been a public man rou turn down your President, who has asked on several occa­ of our time who placed so much reliance on the capacity of the voter sions to give him coal legislation. Either give us legislation to forget or did so much and so persistently to damp down the public or confess the truth, that you ~rein cahoots with the President interest in public questions. It is a policy of inertia founded on to fool the people; but look out that you are not just fooling apathy. The result in the coal question is two costly strikes in two yourselves. Come on, Mr. Floor Leader, you have only three years and not a single constructive act by the President and Congress. flat tires in the old G. 0. P. machine; you can still pull a ton And the whole trouble is that the day after the Pennsyl­ of coal across the line. [Applause.] vania primary my distinguished friend [Mr. WYANT], who The SPEAKER pro tempore. The Chair recognizes for 10 wants to interrupt me, called on the President and told him minutes, under the special order, the gentleman from West Vir­ where he got off. ginia [Mr. TAYLOR]. Mr. WYANT. Mr. Speaker, will the gentleman yield? Mr. TAYLOR of West Virginia. Mr. Speaker and Members Mr. BLACK of New York. I will not yield. of the House, the more I hear the coal situation discussed the Mr. O'CONNOR of New York. Oh, do not mind me, if the more sure I am that there is a world of ignorance concerning gentleman wants to yield to the gentleman from Pennsylvania. the production of coal. .A few years ago a man from down Mr. WYANT. I might tell what the President said. East came into my section of West Virginia. He saw a coal Mr. BLACK of New York. At the start of this more or mine perhaps for the first time in his life. He noticed that less puzzling session the Nation was informed that govern­ there was a :fine steel tipple at the railroad tracks, its com­ ment had returned to party control, with a complete coopera­ ponent parts fabricated in the East. He saw a long incline tion between the White House and the Capitol. The master 1,500 feet up the mountain, and that incline, of course, con­ mechanic, our well-esteellled Speaker, threw out all the excess tained. perhaps a mile of steel rail which was all fabricated J nuts and bolts and oiled up the machine with a few pleasant in the East. On that steel rail ran two monitors attached to 1 words. steel cables, all made in the East, used to bring the monitors Yes; the Republicans were going to give us party govern­ up and down froin the mine mouth to get the coal down the } ment with a vengeance-the insurgents were eliminated from mountain to the tipple. committees and things were going to hum. Congress was to Seeing this inclined plane up the mountain, he sensed a great stand by Cal, and there it still stands, except for the fallen economic loss and said : ( few of Pennsylvania, Illinois, and Iowa. ,· The President's message came in and was to be formally Wby in the name of high heaven don't they open tbat mine at the I adopted in a short and efficient session-but fpr the most part bottom of the hill and save all that track and all those thousands of dollars it took to build it up the mountain side? that message is still as promising as Europe's intention to disarm. [Laughter.] The President wanted, wanted very badly, power from Oon· Mr. Speaker, I feel confident that a great many men in the gress in the coal emergencies. These were his words : East think that these mountains are solid lumps of coal with At the present time the National Government has little or no au· just a little bit of dirt on top and that all you have to do is thority to deal with this vital necessity of the life of the country. to scratch the dirt off and load the coal onto cars and deliver in It has permitted itself to remain so powerless that its only attitude it to folks the East almost at the price of nothing to them. must be humble supplication. Authority should be lodged with the No emergency exists in the coal business. There is no occa .. President and the Department of Commerce and Labor giving them sion at all for the enactment of any legislation for the control power to deal with an emergency. of the coal business. The coal-consuming needs of this coun• try of ours are 500,000,000 tons of bituminous each year. W9 In plain English, if the President was sincere in this, his find that the industry is overmanned and overdeveloped, and obsequious party, now the party of obsequies, would have given during the war period men all over the country, wanting to him the power. When the President wrote this ~ winked the help their Government because the need then was for coal, put other eye. thousands and thousands of dollars into the coal business, on Hearings have been held in which Congressmen were asked which they hoped to realize a small return. When the read· to give their views, and operators were then invited to tear justment period came after the war these men found themselves them to pieces. The cllairman of the committee promised a with coal mines on their hands and without a eoal market, committee bill, but that is as dead as the Haugen bill, after and the very fact that the business is overdeveloped, the very Mellon, after the Iowa primades, issued his proclamation, fact that the country can keep warm from the exertion of cribbed from various speeches in the CoNGRESSIONAL REpORD. bituminous miners and operators is a guaranty to the people During the strike the President made no effort to intercede of the country that they can always get coal almost at their because the strike became an effort on the part of the opera­ own price. It is certainly a guaranty to the people of this tors to break the union, and Cui's heart bleeds White Rock country that there is no need for meddling in coal legislation, for the miners. He could not do anything because Congress because they can get coal whenever they want it at a fair gave him no power; that was the alibi of himself, speaking ex price. cyclone cellar as the official spokesman. The President could Mr. WYANT. Mr. Speaker, will the gentleman yield? get the House to tell the Senate to go in the World Court and Mr. TAYLOR of West Virginia. Yes. Senators into political darkness. He would by Executive order Mr. WYANT.· In view of the present production of bitumi· make a constable king of the Secret Service, but he could not nous coal, is it not true that if every antfiracite mine wera invite operators and miners down to the White House after flooded to-day and eT"ery union mine closed down, the nonunion breakfast and discuss their troubles. The President, the mines would produce more coal than is necessary to supply th9 leader ot his party, could not get that same p~rty to give 1!4n whole country? LXVII-723 11490 CONGRESSIONAL RECORD-HOUSE 'JUNE 17 Mr. TAYLOR of West Virginia. I think the statement is Britain, the long-distance results are unhappy. If we have legislation entirely correct. I believe that the bituminous mines of the giving the President authority to act in an "emergency," who is to country are in a position to furnish the world with coal and judge when that arises? We might have a socialistic President who that the anthracite operators can close their mines and allow would see an emergency, for political or other purposes, long in ad­ them to remain closed indefinitely and there will always be a vance of its arising. We have bad a coal strike. It led to undoubted supply of bituminous coal sufficient for the needs of the people inconvenience, but to no real suffering. Had the Government been a of the country. partner in the enterprise we should, as American consumers, be far Mr. JACOBSTEIN. 1\fr. Speaker, will the gentleman yield? less happily situated than we are to-day. Let economic law work l\Ir. TAYLOR of West Virginia. Yes. its way out. Let individual enterprise rather than bureaucratic over­ Mr. JACOBSTEIN. Does the gentleman mean to say, and sight determine our industrial future with coal as with other things. also does the gentleman from Pennsylvania [Mr. WYANT] want Gentlemen, I want_ to call attention to the fact that this it to be known to the people of the United States that bituminous comes fi·om Boston, the former home of the President, whom is in all of these cases a substitute for anthracite? gentlemen say is so interested in having some legislation for Mr. TAYLOR of West Virginia. I do not know what the the control of the coal industry. gentleman from Pennsylvania has to say, but I will say that Mr. WYANT. Will the gentleman yield? bituminous is not a substitute for anthracite but is a competitor .Mr. TAYLOR of West Virginia. I will. of it. · Mr. WYANT. The gentleman seems to understand the bitu­ Mr. JACOBSTEIN. What becomes of the question? What minous coal industry, and I want to ask him this question : In logic is there or what force is there in a statement that the view of the fact that the anthracite situation is settled for a · tonnage of bituminous is sufficient to cover both wants? When period of five years, and in view of the fact that the nonunion you want anthracite and you· can not get it, it does not do any bituminous coal fields can furnish more than the requirements good to say that there is bituminous in West Virginia when for the whole country, does the gentleman think there is any anthracite is all that I need and wish. danger of an emergency in the near future? l\lr. WYANT. Mr. Speaker, will the gentleman yield? Mr. TAYLOR of West Virginia. None whatever in the near Mr. TAYLOR of West Virginia. Yes. future in the coal industry. It occurs to me, if gentlemen Mr. WYANT. Will the gentleman give me some idea as to assume an emergency is likely soon to exist you can also as­ the percentage of bituminous coal that is used for domestic sume an emergency will exist in any other ·commodity. purposes? The SPEAKER pro tempore. The time of the gentleman has Mr. JACOBSTEIN. What does the gentleman mean by expired. that? Mr. RAGON. I ask unanimous consent that the gentleman Mr. WYANT. The percentage of bituminous coal used for have five additional minutes. domestic purposes. The SPEAKER pro tempore. Is there objection to the re­ Mr. JACOBSTEIN. Does the gentleman mean for compara- quest of the gentleman from Arkansas? [After a pause.] The _tive purposes? Chair hears none. .1\lr. WYANT. Just the percentage. Mr. RAGON. I want to ask one or two questions. I happen Mr. JACOB STEIN. I do not recall. to be interested in the hard coal and soft coal fields; that is my Mr. WYANT. What I mean to say is this-- district, and I want to know what you gentlemen characterize Mr. WAINWRIGHT. In the Northeast it is pretty nearly as an emergency? Do you characterize a condition that ex­ 100 per cent. isted last year when we had a strike? Is that what gentlemen Mr. JACOBSTEIN. I think what the gentleman from Penn­ call an emergency ? sylvania wanted to know is what percentage of the total Mr. TAYLOR of West Virginia. I should say not. bituminous is used for domestic purposes. I do not recall. I Mr. RAGON. What would constitute one? know this, that users of anthracite, both at the time of the l\1r. TAYLOR of West Virginia. r think we had an emer­ strike and after the strike, could have bought bituminous very gency dUJring war time, when our Government took full con­ cheaply, but they still go back to anthracite. They said, " If trol of the coal situation. you teach the people how to use bituminous coal they will Mr. RAGON. Getting back to the fundamental pi'oposition, never go back to anthracite." But experience shows that some of us do not seem to have the same idea of the character anthracite is what they want and what they will get. That is of the two coals. As I understand it the anthracite or hard the point I want to make. coal is essentially a domestic coal. You can not use that suc­ Mr. WAINWRIGHT. Will the gentleman yield for a brief cessfully for steam? question? Mr. TAYLOR of West Virginia. No. .Mr. TAYLOR of West Virginia. I will. Mr.' RAGON. On the other hand, the bituminous coal is es­ 1\Ir. WAINWRIGHT. I want to say to the gentleman that sentially a steam-producing coal, and better adapted to that the people in the northern part of the country are accustomed pUJrpose than the anthracite coal. Now do you contend for a to using anthracite, and their furnaces, ranges, and heating moment that your soft coal is as good for domestic use as the plants are adapted only to the use of anthracite. Now, should Pennsylvania anthracite coal? they not have anthracite when they want it, and why should Mr. TAYLOR of West Virginia. I want to say that the they be compelled to use bituminous coal when they do not bituminous coal is used throughout the country with great want it? success. l\Ir. TAYLOR of West Virginia. Why should the men pro­ Mr. RAGON. I use them both in my home. But do you ducing bituminous coal be compelled to comply with some law conteud that bituminous coal is a good substitute for Penn­ which will be passed or would be passed under the Parker bill sylvania anthracite coal? that would allow you folks who have always been using anthra­ Mr. TAYLOR of We..;t ViJrginia. Well, I would not say that cite to continue its use? corn bread is always a good substitute when you want wheat Mr. J.A.COBSTEIN. Who knows more about the business bread, but ~have eaten corn bread, and have been very glad than the people who are interested in it, the operators who indeed to get it. mine hard coal and sell hard coal. They would know better Mr. RAGON. In our country we sometimes have to u e slack than anybody else what the market demands. If they thought as a substitute. In New York and Massachusetts and these for a moment soft coal could be substituted for hard coal as places they have a substantial interest in the subject of coP.l, readily as some people think, do you think they would have and they are not to be criticized by us who llave coal in ot.r increased the price of hard coal this year-- districts. If you use this Pennsylv~nia anthracite, I do not 1.\'Ir. TAYLOR of West Virginia. I am not making any de­ consider it a luxury either. If you use that Pennsylvania coal, fense of hard coal. The gentleman asks me who knows more my experience in using it in a limited way leads me to contend about the business than the coal operators. It occurs to me that you have to be prepared to use it, and when once a man that some New York Congressmen know more about the busi­ sets up facilities in his home or in his office for the use of Pennsylvania anthracite coal he will find difficulty in substitut­ ness than the operators themselves in this respect. [Laughter ing the use of bituminous coal. and applause.] I want to read this in the RECORD. Here is a Mr. TAYLOR of West Virginia. That might be so under statement f1·om the Boston Herald: certain circumstances. YO COAL J,EGISLATIOY l\Ir. BACHMANN. 1\!r. Speaker, will the gentleman yield? Our idea is that Congress would do well to adjourn without passing Mr. RAGON. Yes. any coal legislation. Any business which is open to so wide competi­ Mr. BACHMANN. Then why do you want to regulate the tion as coal mining will take care ot itself, just as does the textile soft-coal industry? manufacturer and countless others. When governments get into the Mr. TAYLOR of West Virginia. This is taken from my time, game, as the British Government did with the coal industry in Great gentlemen. 1926 CONGRESSIONAL RECORD-HOUSE 11491 Mr. RAGON. I am glad the gentleman called that to my dealer, then you know the retail coal dealer is adding more attention. I am not in favor of any regulation. But this is a than he should to the transaction. matter of general interest. I am against the proposition of the ·Mr. BACHMANN. Will the gentleman tell the Members gentleman from New York [Mr. LAGUARDIA] ·of nationalizing something about the competition in the coal industry in West the coal industry. I think that would be a great mistake. But Virginia at the present time? I am concerned by the fact that soone~ or later, with conditions Mr. TAYLOR of West Virginia. Yes; I shall be glad to do such as you had last winter, you are going to have a sentiment that. I figured up some time ago that I had 450 mines in my growing up in this country for a strict regulatiDn of the coal district. Of course some companies have more than one mine, industry. I do not think our coal operators and miners in the but I imagine there must be in my district 300 different coal coal industry in general are quite aware of just exactly how operators operating mines separately and independently from strong this sentiment is. the others. There is the keenest kind of competition; and if M:r. TAYLOR of West Virginia. In answer to the gentleman we were to pass a bill such as the Parker bill, which would give from Arkansas I refer to the article I read in the Boston the Secretary of Commerce power to demand from the oper­ Herald to the effect that some inconvenience, but no suffering, ators of the country their trade secrets, it would break down resulted. We are h·eading on dangerous ground when we at­ competition. I believe the coal industry is already well regu­ tempt by legislation to regulate every American business and lated because of the fact that if two or more operators get regulate the coal business to the extent of nationalization, as together and conspire to raise the price of coal or to set a price the gentleman from New York [Mr. LAGUARDIA] suggests. If on it they immediately come under the ban of the Sherman we do so we will find that the factories in the East can no longer antitrust law, and they are liable to prosecution. depend on the coal fields of West Virginia for a market, and The SPEAKER pro tempore. The time of the gentleman your smokestacks will be roosting places for the bats and your from West Virginia has again expired. railroads will be big streaks of rust, and that conditions wiU Mr. MURPHY. Mr. Speaker, I ask unanimous consent that exist in this country which will be a real emergency because the gentleman may have five more minutes. The gentleman the Government has meddled in business into which it ought knows the coal business and is an expert. I want th'ese men not to go. who do not know anything about the coal business to listen The SPEAKER pro tempore. The time of the gentleman to him. from West Virginia has expired. Mr. WAINWRIGHT. We may .not know about the produc­ Mr. TAYLOR of West Virginia. May I have five minutes tion of coal, but we certainly know something about the con­ more? sumption of it and what we have to pay for it and what other The SPEAKlDR pro tempore. Is there objection to the re­ consumers have to pay for it. quest of the gentleman from West Virginia? Mr. JACOBSTEIN. Will the gentleman yield? There was no objection. Mr. TAYLOR of West Virginia. Yes. Mr. RAGON. Let me ask the gentleman this additional ques­ Mr. JACOBSTEIN. The gentleman has criticized one sec­ tion to make myself clear. I think the gentleman and I agree tion of the Parker bill. As I understood the gentleman, he on the question of nationalization. But if we have u condition sa.id this might reveal trade secrets which might be injurious. such as we had last winter with reference to Pen,nsylvania Where does the gentleman find that in the bill? • . anthracite, are we not li~ble to be finally overwhelmed by public Mr. -TAYLOR of West Virginia. I can not turn to it right opinion to such an extent that they will force the nationaliza­ now, but it was my understanding that the Parker bill provides tion of the industry? That is what is worrying me. that all of the books of the coal operators of the country are Mr. TAYLOR of West Virginia. It seems to me that public to be open to inspection. opinion has not reached that point where we can expect na­ Mr. JACOBSTEHN. May I say this, and I think this will tionalization of the coal industry in the near future. It is only be borne out by the committee-! am not a member of the those who want to burn hard coal and find it an inconvenience committee-that the bill was drawn along the lines suggested to burn bituminous coal who want this legislation. very largely by Mr. Hoover, and Mr. Hoover's idea is that the Mr. WAINWRIGHT. Mr. Speaker, will the gentleman yield information would practically be given by the industry and there? worked up in cooperation with the industry. If I am wrong, I 1\Ir. TAYLOR of West Virginia. Yes. want to be corrected. Mr. Hoover suggested that it be a co­ Mr. WAINWRIGHT. The gentleman has asked the question, operative scheme and the operators would be asked to supply What constitutes an emergency? Was there not an emergency information about the coal industry periodically. ( Mr. TAYLOR of West Virginia. Yes; bvt if the law is ) in the country where you could not get any anthracite coal : and where bituminous coal went up to $20 a ton? passed the operators will be compelled to supply that informa­ Mr. RAGON. And that occurred last year, if I am not mis­ tion or the law will not be effective. taken. Mr. JACOBSTEIN. I should like to have the gentleman Mr. TAYLOR of 'Vest Virginia. Well, all my life I have seen point out any section in the bill which would reveal trade r' cartoons in the eastern papers about the time it is necessary secrets. ( I to fill the coal bins of tile coal operator, and he was pictured as Mr. TAYLOR of West Virginia. As I say, I can not turn to a plutocrat wearing diamonds as big as hickory nuts, and the that right now, but that is my understanding of the bill. consumer was delineated as a poor, decrepit man begging for Mr. MOORE of Ohio. If the gentleman will permit, not coal. The emergency arises in your community where the only are they required to furnish all of the information that retailer in coal charges you an extravagant and outragequs might be asked for, but there is quite a penalty provided in price. I know an operator in my district, whose word is as the bill if they do not supply the information. good as his bond, who knew of a coal dealer · in the East who Mr. JACOBSTEIN. What section of the bill provides that had a contract to buy coal at $4 a ton and who occasionally trade secrets which are important to the industry would be went into the market and bought spot coal at $9 a ton, and revealed and which would be dangerous to the industry? he would use that invoice showing that he had paid $9 a ton Mr. MOORE of Ohio. I do not know that the words "trade to show to consumers when the fact was that 98 per cent of secrets " are used, but I know there is certain information the coal he was selling was contract coal bought at $4 per that can be called for. ton. Back in my State, where we have the finest bituminous Mr. TAYLOR or West Virginia. I want to say that the coal coal that exists in the world, coal is now selling at little more business is highly competitive and no one operator has the than $2 a ton. Perhaps you can buy lump coal at $3 a ton, right to look at the cost sheet of another operator. Com­ and some may be selling at much less than that. The freight petition is very keen. If a man can ·produce his co~ and sell rate has not been such as to cause retail dealers to charge it for $2 a ton, it is not right that he be compelled to expose $16 a ton in any city along the seaboard. The coal dealer who his cost sheet to another operator, who, perhaps, can not does that is trying to take advantage of the situation. Be produce and sell his coal at that price. has been trying to make it appear that the coal operator back A gentleman has handed me a copy of the bill, and it at the mines is the one who is to blame for the high prfce. provides: I want to say that is an erroneous conception in the minds That in order to protect the Government and its agencies the in­ of the people in the East wh'o · burn bituminous coal and who strumentalities of interstate or foreign commerce and the public from have been compelled to pay a high price for it. . shortages of coal, and to have adequate and necessary facts available I want to put in the RECORD some :figures as to the freight 1n the event of an emergency- rates from West Virginia to the Atlantic seaboard. I want to show that you can buy lump coal there for $3 a ton or less And so forth. and the freight rate on it will permit you to lay down that lump The Bureau of Mine.s, Department of Commerce, in addition to ita coal in the city of Boston for about $9 a ton. If you pay more other functions, shall ascertain, from existing agencies of the Govern­ than a reasonable price in addition to that to the retail coal ment (subject to the provisions of law applicable thereto), or by in- 11492 CONGRESSIONAL RECORD-HOUSE JUNE 17 vestigations or reports, and shall publish from time to time information delivered there at $8.58, for which these gentlemen state they and statistics in respect of the production, storage, transportation, paid from $16 to $20 a ton. distribution, :free-on-board-mine prices, margins of profits of owners, Mr. LOWREY. I was interested to know what it really ought operators, terms, and conditions, including royalties and rentals. to cost here in Washington, because some o'f us have been If that is not giving away the trade secrets of the coal decidedly interested in that matter. operators as far as their royalties are concerned, ?r as far as Mr. TAYLOR of West Virginia. It seems to me that if it their margins of profits are concerned, then I fail to under­ could be sent from my State to Boston for $5.58 it ought to stand the English language. This bill would do the very thing be shipped here for something like $3. the gentleman from New York says it would not do. Mr. 'VYA.NT. If the gentleman will permit, I will answer Mr. JACOBSTEIN. What is dangerous about that? that question. From the Somerset; district the freight to Wash~ Mr. TAYLOR of West Virginia. If you are in business •. do ington is $2.84 a gross ton. you want your competitor to know what your raw materials Mr. WAINWRIGHT. At what was it retailing here in cost you and to know what your margins of profits are? Washington? Mr. JACOBSTEIN. Does this bill say "cost"? Mr. WYANT. And at the same time that coal was selling Mr. TAYLOR of West Virginia. It says: here at $16 a ton the Somerset operators in Pennsylvania were pleading for orders and offering coal at $1.50 to ·$2.50 a Margins of profits of owners, operators, terms, and conditions (in· ton. eluding royalties and rentals). Mr. WAINWRIGHT. What is the gentleman's suggestion to Mr. JACOBSTEIN. Does the gentleman mean to say that meet a situation of that kind? the commission would reveal the individual name of the mine :Mr. WYANT. If the gentleman will permit, I will state and show what its costs and royalties are? where the domestic consumers' trouble comes from. It is diffi­ Mr. MURPHY. It naturally would, because no two mines cult to handle coal for domestic consumers unless you have a have exactly the same operating costs. tipple especially arranged for it at its termination. There are 1\fr. JACOBSTEIN. Do you mean to say the Government possibly a half dozen men in Washington who have such facili­ would reveal the name of the individual mine? ties. The result is that the men who have these tipples and Mr. MURPHY. I know this: That the gentleman from West unloading facilities and bin facilities are able, under those Virginia has 300 mines in his district, and I have about the circumstances, to charge almost any price, although they pay same number in my di trict, and there are no two cost levels only $2.50 a ton at the mine for the coal, and the consuming the same. public can not resist them. I might add in this connection Mr JACOBSTEIN. Does the gentleman mean to say the that if the people who are complaining about the cost of coal Gove~nment would reveal the name of the individual mine for domestic consumption in some manner could institute pro­ and the production costs of that individual mine? ceedings against the retailers, they would find they are Mr. MURPHY. The ·bill requires the operator to publish profiteering upon them during strikes to the extent of from those very facts. $6 to $10 a ton in many cases. There is your difficulty. [Ap- Mr. JACOBSTEIN. Oh, no; it says the Government shall plause.] Furthermore, if the gentleman will yield-- . collect the facts, but not report them by individual concerns. Mr. TAYLOR of West Virginia. I will be glad to yield to Mr. TAYLOR of West Virginia. The bill says "shall publish the gentleman. from time to time." Mr. WYANT. It is the custom among all coal-dealers, whQle­ Mr. VINSON of Kentucky. Will the gentleman yield? salers and retailers, to purchase coal by the year at a fixed Mr. TAYLOR of West Virginia. I yield. price, regardless of any labor disturbances whatever, and Mr. VINSON of Kentucky. Referring to the keenness of much of this coal that is purchased and sold in this District competition and the small profits and the c-ondition in which the and elsewhere for domestic purpo es is purchased at a :fixed industry exists at this time, I will ask the gentleman if he does price of possibly $3 a ton throughout the year. They pay $2 not know of many instances where there have been material or $3 freight and retail that same coal here in Washington, losses among the coal companies in the coal regions that the as I have seen myself, at $16 a ton. I want to add further, gentleman represents? with the gentleman's permission, if there was some system of Mr. TAYLOR of West Virginia. I certainly do. licensing the retailers so as to make every man who attempts Mr. VINSON of Kentucky. I may refer to one specific in­ to retail coal in this country secure a licen e to sell coal at stance that came under my observation : A coal company own­ retail, and whenever a man refused to obey the law and at­ ing several hundred acres of land, which sold for $300,000 tempted to practice extortion on the people during times of shortly after the World War. This last year that same coal emergency the licen e could be revoked, all this talk and company sold under the hammer for $20,000. complaint against the coal operators 500 miles away from your The SPEAKER pro tempore. The time of the gentleman city would cease and they would experience no criticism what­ from West Virginia has expired. ever.

1\Ir. TAYLOR of ·west Virginia. 1\Ir. Speaker, I ask unani- Mr. RAGON. Will the gentleman yield in connection with \ mous consent to proceed for five additional minutes. that statement? \ The SPEAKER pro tempore. Is there objection? The SPEAKER pro tempore. The time of the gentleman I There was no objection. from West Vjrginia has again expii;ed. Mr. LOWREY. Will the gentleman yield? Mr. SCHAFER. Mr. Speaker, I ask unanimous consent that Mr. TAYLOR of West Virginia. In just a moment. Let me the gentleman may have five additional minutes. first reply to the gentleman from Kentucky [Mr. VINsoN]. The SPEAKER pro tempore. Is there objection to tile re· I think what the gentleman from Kentucky has stated with quest of the gentleman from Wisconsin? respect to the coal industry is true. The coal operators have There was no objection. taken a great many losses in the last few years. They .find l\Ir. WYANT. I will say to the gentleman that I expect to that coal property is not as valuable as they thought during the address the House in the course of the next three or four day" World War it was going to be, and a number of coal companies on this question, and I will give the gentleman an opportunity in my State have gone into bankruptcy, and a great number of to interrogate me about it. the small "wagon mines," as we call them, have been forced to Mr. RAGON. Right in connection with the gentleman's close indefinitely because of the fact the business is over­ statement, where he spoke of a law that would give us some manned. I now yield to the gentleman from Mississippi. authority to control the retailer, I think the gentleman's pre­ Mr. LOWREY. I wonder if the gentleman can tell us what it mises are quite correct in most instances, but is not the gen­ has cost to lay down coal from his district here in Washing­ tleman now getting the matter within the purview of the ton during the past season? Parker bill, where you do more or less regulate the coal in­ Mr. TAYLOR of West Virginia. I do not know that I can dustry? I think the trouble we are having with the coal propo­ give it to the gentleman at Washington. sition in this country is not so much due to the initial price M.r. LOWREY. Or what it would cost now. back at the mines, but it is the price which is added between Mr. WYANT. From what section of the country? the top of the mine and the man who is consuming the coal here. Mr. TAYLOR of West Virginia. The rate from West Virginia Mr. VINSON of Kentucky. Then why regulate the oper· to New Haven, C01m., for example, is $4.69. ators? Mr. LOWREY. That is the freight rate? Mr. RAGON. I am not speaking of regulating the operators; Mr. TAYLOR of West Virginia. Yes. From my section but I think the coal industry should have orne kind of regula­ to Waterbury, Conn., the rate is $5.32; from my section to tion, and if we go about it in earnest I think we can provide Boston, Mas ., $5.58. That is the freight rate, $5.58 f. o. b. something that will be beneficial. Boston. Add $5.58 to the price of the coal, which, as I stated 1\Ir. WYANT'. I will state to the gentleman my position. I before, may be $3 for lump coal, and you have lump coal believe the municipality or the State ought to have vested in it 1926 CONGRESSIONAL RECORD--HOUSE tn· some way the power. to regulate dlstrlbutfon of coal by times when there is no other recourse except to speak out retailers. plainly. Mr. RAGON. What State? In my opinion, Mr. Speaker, the regulation of coal is the Mr. WYANT. Any State, New York and Massachusetts. biggest issue before Congress affecting the health, the lives, the Mr. RAGON. I agree with the gentleman on that. comfort, and the happiness of millions of coal consumers. Mr. WYANT. License the retailer and take his license from It is far more important even than the Mellon tax reduction him if he attempts to practice extortion on the consumer and bill. It affects a great many more peopl8. It affects not only you will have no difficulty. the comfort but the pocketbooks of a great many more people Mr. RAGON. Would you get uniformity of regulations that than the Mellon tax reduction bill. It affects primarily the would be healthy for the industry? poor people, millions of poor people who can not afford to send Mr. WYANT. Let every State regulate its own retailers. lawyers here to represent them. The rich man can pay the Let the State of New York, let the city of Boston, the District few additional dollars a month that are added on his coal bill of Columbia, license the retailer and you would not experi­ by unscrupulous anthracite-mine operators in order to make up ence the difficulty complained of in the last year. for thelr losses in the strikes, but it is a great hardship to the Mr. RAGON. I have not read the bill as perhaps I should wage earners. have, but it does seem to me that we should give the President This great multitude of people of moderate means and of the of the United States or somebody, the power to keep the peo­ poorer classes are unheard. ple from being robbed as they were in the strike of last year I want to emphasize the fact that there is a great deal of dis­ and right under the nose of Congress. The President was as content among these people, and I believe rightly so. powerless as any man could be. • It seems to me that the Congress has been inexcusably Mr. WYANT. I have been advised that during the last negligent, almost criminally negligent, in dealing with the coal strike a proposition was made to the Governor of New York situation. Some few months ago the leaders in the House by the coal dealers of Pennsylvania offering to furnish bi· announced immediately after the strike that we would have tuminous coal from $2.50 to $3.50 a ton in New York, and they coal legislation. They announced that a coal bill would be received no answer. passed by the House of Representatives at this session in Mr. WAINWRIGHT. If the gentleman will yield, I want time to send it to the Senate to be enacted into law before we to express my agreement with the gentleman from Arkansas adjourned. I have here in my hand an extract from the New [Mr. R.Aao:N]; we were looking to the Interstate Commerce York Times of Fehrnary 13, the day the anthracite strike was Committee to bring in something that would save us from settled: another situation such as we were in in the emergency • • • Assurance that the House will pass a bill at this session last year. vesting the President with power to intervene in future coal strikes Mr. CAREW. Will the gentleman yield? was gi-ven to-day by Republican leaders following the receipt of news Mr. TAYLOR of West Virginia. I will yield. from Philadelphia that peace had been restored between the Pen~ Mr. CAREW. I do not know very much about this, but from sylvania miners and operators. what I do know during the strike it was imposslble for the city After a meeting of the HoWle Republican steering committee an­ of New York or the State of New York to use soft coal. Their nouncement was made that the Interstate Commerce Committee stoves and furnaces are all constructed for the use of hard would consider coal legislation as recommended in the annual mes­ coal, so that the offer to furnish bituminous coal was like dead­ sage of President Coolidge, submitted to Congress in December. To­ sea fruit, it was like giving them an apple that crumbled into day's meeting of tbe steering committee, which is an unofficial body ashes right away. We need hard coal until we get adjusted to charged by the Republican organization with the duty of devising the use of soft coal. But I want to state to the gentleman legislative progralilB, was attended by Representatives FISH, TOLLEY, that if they keep on making it impossible for the city of New and WAINWRIGHT, of New York, GIBSON, of Vermont, and TBEADWAY, York to use hard coal, we will make arrangements to use oU of Massachusetts. or soft coal, so that you can keep your hard coal and do what Chairman PARKER, of the Interstate Commerce Committee, said his you please with it. committee would take up legislation proposed 1n connection with the Mr. WYANT. I hope the State of New York will take steps coal strike, and he expressed the opinion that an appropriate bill hastily to use substitutes for anthracite coal. could be passed by the House 1n time for concurrence by the Senate Mr. TAYLOR of West Vlrginia. Mr. Speaker, I agree with long before the current session ended. the gentleman from Pennsylvania [Mr. WYANT], and I urge Here we are about to adjourn without a sign of coal legisla­ the gentleman from New York [Mr. OAREW] to make arrange­ ments to use soft coal. I feel that we have enjoyed our "coal tion. On February 13 Mr. TILsoN made his famous address, in forum," and I now yield back such time as I may have left. the House, in which he said to those who were interested in the [Applause.] regulation of the coal industry to protect the public from being mulcted," Put up or shut up." And as a result of that some 40 LEAVE TO ADDRESS THE HOUSE bills were introduced. They went to the Committee on Inter­ Mr. BEGG. Mr. Speaker, a few minutes ago the gentleman state and Foreign Commerce. Mr. TILsoN said: from North Carolina [Mr. HAMMER] asked unanimous consent Now that the strike is settled the Congress may proceed to a consid­ to address the House for 15 minutes to-morrow after the other eration of the President's proposal for extending the executive powers special orders. I object , thinking the program was full to­ to meet a future emergency, etc. morrow. I find that I am mistaken, and I therefore withdraw my objection and make the request for him. But apparently nothing has hap~ned, and legislation is still The SPEAKER pro tempore. The gentleman from Ohio asks very far off. unanimous consent that the gentleman from North Carolina What is baek of the failure of Congress to act? What has [Mr. HAMMER] may address the House for 15 minutes after kept the committee? What has kept the Congress from acting conclusion of the other special orders to-morrow. Is there and protecting the interests of the public ; because if the Con­ objection? gress falls to act to protect the health and lives of the people, Tt .. re was no objection. then all government fails. There is just one thing blocking the coal legislation, and it has been blocking coal legislation for LEAVE OF ABSENClD years and years past. That is the invisible government, the Mr. OAREW. Mr. Speaker, two or three weeks ago my col­ invisible government as represented by the highest paid lawyers league, 1\Ir. BLOOM, of New York, collapsed on the floor of the in America. I am not criticizing the companies for spending House because of illness. He has been obliged to leave the city their good money to get the best legal talent. That is their to recuperate, and I ask unanimous consent that he be given right, that is the right of blg organizations ; but I mean by the leave of absence for the balance of the session. invisible government the professional lobby working day in and The SPEAKER pro tempore. The gentleman from New day out. A Member of Congress not only works at his own York asks unanimous consent for leave of absence for his col­ legislation but he must attend committee hearings, pa.rticipate league [Mr. BLOOM] for the balance of the session. Is there in the actiYities of the House, and answer his mail, and so objection? forth ; but the professional lobbyist is sent down here to do There was no objection. one thing, either to pass or kill legislation. If they want to kill a bill there is one way above all to kill it, and that is to THE COAL SITUATION chloroform it in the committee. Added to the professional coal The SPEAKER pro tempore. The Chair recognizes the gen­ lobby we have in this House a large number of Members of tleman from New York [Mr. FrsH] for 15 minutes. Congress from soft-coal districts and from hard-coal districts, Mr. FISH. Mr. Speaker and Members of the House, I am comblning to kill all coal legislation, particularly from soft­ not one of those that deslre to criticize the House of Repre­ coal districts, because that takes in the States of Ohio, Indiana, sentatives for sins of omission or commission, but there are Illinois, Missouri, Kentucky, West Vlrginia, Alabama, and so on .. 11494 CONGRESSIONAL RECORD-HOUSE JuNE 17 Mr. WYANT. Mr. Speaker, will the gentleman yield for a these operators are that pass on $250,oo0 a day to the public question? because of the recent anthracite strike. Mr. FISH. Yes. Mr. JACOB STEIN. Will the gentleman ~ield? Mr. WYANT. I might state to the gentleman at this time Mr. FISH. I will. that there are 20 other States interested in this coal business, Mr. JACOBSTEIN. In support of the gentleman's pl'oposi­ and I want to say to him here and now that the coal operators tion be will be interested to know that Secretary Hoover ap­ of these 20 States hav~ been treated like bootleggers on the floor peared before the committee, and while he advocated legisla­ of this House for the past five years, and the Representatives tion be recommended the postponement of legislation for the of those States are prepared hereafter to see to it that the soft-coal industry and did not say for the hard-coal industry. men engaged in the coal business receive fair treatment on the Mr. FISH. It is a different IJd'Oposition, as there is a g1·eat floor of the House. deal of competition among the soft coal mines all over the coun­ Mr. FISH. I am not speaking for the operators, but I am try, but I think we ought also to consider the establishment of speaking for 100,000,000 coal consumers among the American boards of arbitration and conciliation, because we are facing the people who have been mulcted by these operators and owners, possibility of a strike at the end of next March, 1927. and these operators that you are trying to paint as angels are Mr. WYANT. Will the gentleman yield? the men who are passing on the price of the strike to the Mr. FISH. No; I will not yield any more. I do not want public. · · these coal operators to be put in the l'ecord as angels. I can Mr. WYANT rose. already almost see their wings sprouting. Mr. FISH. I do not yield. I want to continue niy speech. The SPEAKER pro tempore. The gentleman declines to Who is delaying action? Why, such men as yourself, a yield. member of the Interstate and Foreign Commerce Committee, a 1\!r. FISH. Now what is our duty as Members of Congress? former mlne owner and an operator, who goes down to the By your vote you have appropriated $600,000 to secure the President and says, " We people in Congress do not want any facts. The Hammond fact-finding commission I'eported back legislation." Did you tell the President that you were a mine to you thn:ee years ago, recommending regulation of the coal operator? industry. Who were on that commission? John Hays Ham­ Mr. WYANT. Will the gentleman yield for a question? I mond, one of the best known engineers in America ; not mine want to say to the gentleman that if that statement is as owners, but public-spirited citizens. Who else? A former accurate as others that he has made, he can not be relied on. Vice President, Thomas Marshall, was on that commission, a Mr. FISH. I am asking you if you told the President that great Jeffersonian, who did not believe in Government regula­ you were a mine operator? tion and did not believe in interference with business, but he .Mr. WYANT. I told the President nothing of the kind. a:-ecommended, as far as the coal industry was concerned, that Mr. FISH. That is just it; and you go down there as a it should be re,o-ulated. He agreed to all the recommendations Representative of the people of this country, asking that no of the United States Coal Commission. regulation, no laws regulating the anthracite or bituminous If the Committee on Interstate and Foreign Commerce or the industry be passed. Is that a fair position to take? You rep­ House of Representatives worked day in and day out for an­ resent your district, and I do not blame you for that, and you other year, they would never be able to secure so much infor­ represent your own views on the committee, but that is the mation, so much constructive information, as contained in the reason why there was no coal bill reported by the committee, Hammond report which was presented to this House some because five of its members come from soft-coal districts. That three years ago. Besides that we have two recommendations is the reason why for 20 years we have had no legislation to from President Coolidge, two different and distinct recom­ regulate the coal industry. mendations. One back in 1923. And what does it say?- I want to point out to the Members of the House that 1t The President should have authority to appoint a commission empow­ took 20 years to defeat the railroad lobby, that it took 20 years ered to deal with whatever emergency situation might arise to aid con­ to pass the parcel post laws against the express company lobby, ciliation and voluntary arbitration ; to adjust any existing or threat­ and that it is very apparent from the remarks made by the gen­ ened controversy between the employer and the employee when collec­ tleman from Pennsylvania [Mr. WYANT] that it may take years tive bargaining fails; and by controlling distribution to prevent profiteer­ to pass any coal regulation in the interest of the people of this ing in this vital necessity. This legislation is exceedingly urgent and country. essential to the exercise of national authority tor the protection of the Mr. OLDFIELD. Does the gentleman think that the rail­ people. road lobby was defeated when they passed the Esch-Cummins law? The President made that statement December 6, 1926. Are Mr. FISH. I was not here at the time. The gentleman prob­ the Republican Members of the House prepared to take ex­ ably has his own views about that. ception to it or to question the wisdom of it? Mr. OLDFIELD. Does the gentleman think the railroad Mr. WAINWRIGHT. Tell us what he said in his last mes­ lobby has been defeated? sage. Mr. FISH. I think we have railroad regulation in this Mr. FISH. President Coolidge said: country, but it might be improved. Those who undertake the respo.nsibillty of management or employ­ Mr. OLDFIELD. We probably got the kind that the rail­ ment in this industry do so with the full knowledge that the public road lobby wanted. interest Is paramount, and that to fail Arough any motive of selfish­ Mr. FISH. What has happened to coal legislation? By a ness in its service is such a betrayal of duty as warrants uncompro­ tie vote, announced in the press, it has become the unfinished mising action by the Government. business of the Committee on Interstate and Foreign Com­ The following is an extract from the message the President merce, as it has been the unfinished business for the past 20 sent to Congress December, 1925 : years of the House of Representatives, and it may continue for such as long as the public permits the situation to go on. The perennial conflict of the coal industry is still going on, to the Mr. BEGG. Mr. Speaker, will the gentleman yield? great detriment of the wage earners, the owners, and especially to the Mr. FISH. Yes. public. With deposits of coal in this country capable of supplying its Mr. BEGG. Can the gentleman point to a single commodity needs for hundreds of years, inabillty to manage and control this used by the human family that has become cheaper after the great resource for the benefit of all concerned is very close to a Government undertook to regulate the price of it? national economic failure. It has been the subject of repeated investi­ ' l\1r. FISH. I will answer the question, but I want to ex­ gations and reiterated recommendations. press my own views first. I will not read further, as Members of the House are Mr. BEGG. I want the gentleman to answer that question. familiar with the message. Mr. FISH. I am not here to advocate taking over and The SPEAKER pro tempore. The time of the gentleman has operating the mines. I am against that. I am not here to rec­ expired. ommend any form of price fixing. I am against that. But I 1\Ir. FISH. I ask for five additional minutes. do believe that the Government should have some power to The SPEAKER pro tempore. Is there objection? [After a regulate at least the anthracite industry, which of necessity is pause.] The Chair hears none. a monopoly because there is practically no competition. Mr. TUCKER. Will the gentleman yield? The hard coal of the country comes from a very small section Mr. FISH. I will. of Pennsylvania. I say at least we should be able to write a Mr. TUCKER. May I ask the gentleman if he has a scheme law regulating the anthracite industry and should see to it that to work out this proposition? pitiless publicity is glven ~regarding the cost of production and Mr. FISH. Yes. I agree it is a difficult matter and a deli­ the profits of the operators, and then we will see what angels cate matter to write proper constructive coal legislation, but :.

1926 CONGRESS! ON AIJ RECORD-HOUSE 11495 I believe that we could have in this session, or could have at Mr. McKEOWN. Reserving the· rlght to object, Mr. Speaker, least laid the foundation for adequate coal legislation just the I would like to ask the gentleman from Ohio [l\fr. Bma] if way you build a house. You do not put the roof ·on first, but there is anything else to be taken up this afternoon except you build your bouse from the foundation up, and that in this these speeches? instance would be a fact-finding commission to give pitiless Mr. BEGG. There are more speeches to be made under the publicity as to the quality of the coal, the profits of the opera­ orders of the House, and it seems to me that unless the House tors, the costs, and so on down the line. Then apply the prin­ wants to stay here until 6 o'clock we had better terminate some ciples of the railroad labor act which passed the House re­ of these speeches and limit them to 15 minutes or 30 minutes. cently to the coal industry, and carry out the recommenda­ Mr. WYANT. I would like to ask the gentleman something tion proposed by the President to establish boards of con­ about the coal interests. Of course a great deal of what the ciliation and arbitration, which, together with the principles gentleman has said is, in my judgment, grossly exaggerated. of the railroad labor act, would be an effective and construc­ Mr. CONNALLY of Texas. Mr. Speaker, a point of order. tive step to prevent strikes. Later on, but not in this session, The SPEAKER pro tempore. The gentleman will state it. provide for some emergency legislation for distribution of coal. Mr. CONNALLY of Texas. I do not want to cut off what is We might have easily passed legislation to take the first and happening here, but there was an objection made to the exten­ second of these steps dming this session. sion of time. Mr. WAINWRIGHT. Is not this what the President said in Mr. McKEOWN. I withdraw my objection. his last message in December : Mr. PEERY. Mr. Speaker, will the gentleman yield there? Authority should be lodged with the President and Departments of Mr. FISH. Yes. Commerce and Labor, giving them power to deal with an emergency. Mr. PEERY. The monopoly argument does not apply to the Mr. FISH. My colleague from New York has read a part soft-coal industry. I suppose the gentleman will further admit of the President's message. I do not think that there is any that 1n so far as the people themselves can right their own Republican who will take exception to the recommendation of troubles they should do so without appealing to the Govern­ the President or differ with him as to the statement of facts. ment, but I would like to ask if the people of New York, in­ ·These recommendations have been pending for a long time and stead of insisting upon the use of anthracite coal, which is in we have had no action on them. Somebody just stated the a sense a luxury, could substitute smokeless coal-if they could fact that we are guided by party government. If that is use smokeless coal, soft coal-would not that have a better true-and I believe it should be so--then, of course, a large effect on the producers of anthracite coal than coming to Con­ responsibility rests upon the Republican membership of this gress for regulation? House. I, for one, deplore that we are going to adjourn with­ Mr. FISH. I will say to the gentleman that if the soft coal out enacting some constructive coal legislation to protect the sold in New York City was smokeless, it would help solve the interests of the public and assure a continuity of coal at a problem; but we find tlJ,at the soft coal sent to us is not smoke­ reasonable cost to the consumer~. less, a'-d as a result the sunlight is shut off. Here is the point that most of the Members from the South Mr. PEERY. Pocahontas coal is smokeless, and it can be and West overlook, and that is that in the city of New York had, and had at a very much less price than anthracite coal. there are 6,000,000 people living in a congested area, and the Mr. FISH. I admit that if we had smokeless coal it would gentleman from Ohio says, " Why do they not burn soft coal? go a long way to help, so far as the city of New York is con­ We do it in our town." Well, the reason why they do not cerned; but even so-called smokeless coal creates fumes and burn soft coal in New York City is that the people have not soot. the proper stoves in the congested tenements, and when they Mr. WYANT. The gentleman referred to death and dis­ are forced to burn soft coal by necessity in New York City the comfort resulting from the use of soft coal in New York City fumes and smoke from the soft coal rising to the sky creates during the recent strike in the anthracite region. In the city a fog, a cloud, that hangs over the city days and days at a of Pittsburgh scarcely any anthracite coal is used. The city time and shuts out the sunlight. What about the babies in of Pittsburgh is surrounded on all sides by great steel mills New York? What about the children there, who are deprived and great coke works, and yet we db not find any diseases pro­ of the sunlight? This is a proposition which New York City duced by the use of bituminous coal there or the smoke from is more interested in than any other, whether it be reduction of the furnaces; and Chicago, with a very large population, uses taxes or anything else, because it affects the lives and the 85 per cent of bituminous coal, and we do not hear complaints welfare and the health of millions of children, to say nothing from there that it affects the health of the people of that city. of the adults. I defy anybody, any operator, any Representa­ We do not find any complaint there of sickness resulting from tive from a soft-coal district, to deny this statement of fact. the use of that coal, and why is it that it affects New York so The coal problem is a serious one for the poor 1n New York rna terially? · City and even for those of moderate means. The rich can Mr. FISH. Why, simply because in New York City we have always buy expensive substitutes or move out of the city 6,000,000 people living in a congested area; but, of course, in a temporarily. city like Washington, with a half million, spread all over Mr. McKEOWN. Mr. Speaker, will the gentleman yield? creation, it is not so much of a problem. Mr. FISH. Yes. Mr. WYANT. I was speaking of Pittsburgh and the city of Mr. McKEOWN. I am very much interested in the gentle­ Chicago, which compare favorably with New York City. man's complaint. We have a number of coal operators that Mr. FJSH. I have only a few minutes more. I want to are broke. We want to know if there is anything b this plan make it clear that I do not agree with one of the speakers who that will help us to get started? tried to put the blame on the retailer, because they ha-ve to Mr. FISH. The gentleman refers to soft coal people. My take what they can get from the operators. I would like to remarks are directed primarily to anthracite, which is almost put in the RECORD a letter written to me by Mr. August Heck­ a necessity in New York City. scher, one of the greatest pP,ilantbropists that ever lived in New Mr. PEERY. Mr. Speaker, will the gentleman yield? York City, a man worth scores of millions, and who has given Mr. FISH. Yes. a large part of it away to the poor of New York City. The Mr. PEERY. You base your ar~ent for the control of letter reads as follows : anthracite coal on the proposition that 1t is a monopoly? Mr. FISH. Ob, no. 60 EAST FORTY-SECOND STREET, NEW YORK. Mr. PEERY. I understood you to say that. Hon. H.!MILTON FISH, Jr., Mr. FISH. I said it is a monopoly. Hrruse of RepresentaUves, WasMngtQn, D. 0. Mr. PEERY. That reason does not apply to the bituminous MY DEAR MR. FisH: I am delighted to find that you propose an industry, does it? investigation by Congress of the reasons for the present high price ot Mr. FISH. No. anthracite coal and correction ot that evil, U correction can be had. The SPEAKER pro tempore. The time of the gentleman May I add the following, from a 14 years' intimate knowledge of the from New York has expired. anthracite coal industry, in which I was engaged from 1868 te 1882: Mr. PEERY. Mr. Speaker, I ask that the gentleman from We used to ship coal. We were more honest presumably in those New York may have five minutes more. days than are the operators at this time. It may have been that we The SPEAKER pro tempore. Is there objection to the had to be. What we receive as coal to-day is about one-third slate and request of the gentleman from Virginia? bone. I speak from knowledge. Bone is a substance that is slate, with Mr. SCHAFER. Reserving the right to object, Mr. Speaker, very thin layers of coal, that make it shine and look a little like coal. I just wanted to :find out when the gentleman will answer It is worse than slate, because it cllnkers on the grate and gives no the question that I propounded to him, as to whether he heat to speak of. Slate is a dark gray substance without sheen or was wet or dry? shine, and is exactly what rock would be for combustion. .·" ... 11496 CONGRESSIONAL RECORD-HOUSE JuNE 17

It is -utterly dishonest to ship slate and bone. Both are easy to to the south and free !rom the extreme cold of the State ~ to the north. remove and both are left in the coal to make weight and charge one­ In fact, the climate is ideal, and every other qualification exists for third more than the coal would weigh and be worth. an ideal location of the home. The great additional damage resulting is that the. bone and slate Our State stands ready to grant any possible concession of assist­ clinker on the grates and make proper combustion of the coal practi­ ance to those in charge of the establishment of the home, and I will cally impossible. be pleased to cooperate in every way. It would pay to remove these obnoxious substances even after the Trusting that you can succeed in having the home established and coal is received in the yard or in the home. That would advance the located in Georgia, I am price of the coal another 33% per cent, but if so delivered it would go Very sincerely yours, farther than in its present condition. CLIFFORD WALKER, Gove1·nor. This has reference more particularly to the larger sizes of anthracite Then come resolutions unanimously adopted by the Legis­ from which, as I have stated above, the refuse is readily eliminated. lature of Georgia ; then a vigorous declaration from those In the smaller sizes slate is removed by water and gravity. With the sturdy citizens represented by the State Convention of the large-sized coal we used to remove it by hand, and this iS still done Georgia Federation of Labor; and time and space would fail where the coal is dry as it comes from the mine. me to read to you all the warm-hearted words of indorsement Very truly yours, and welcome written and spoken by the patriotic people of my A. HECKSCHEB.. section. P. S.-When we relinquished control of our mining properties at In addition to powerful editorials in Atlanta's great trium­ Shenandoah, Schuylkill County, Pa., in 1882, anthracite coal, all sizes, virate of daily papers, the Atlanta Constitution, the Atlanta on the average, was costing us $1.15 per ton f. o. b. cars at the mine. Journal, and the Atlanta Georgian-American, calling for the We have sold the best sizes, free of slate, as low as 90 cents per ton. building of this home, I give here the list of organizations that Within six months after we relinquished control to the Reading Coal have taken not only favorable but enthusiastic action: Fulton & Iron Co. the same coal was costing them $2.30 per ton, for no good County Board of Commissioners, the City Council of Atlanta, reason other than ca.reless management. the Chamber of Commerce, the Atlanta Federation of Trades, I went over all these figures in detail· at the time. NothinK was the Argonne Post of the American Legion, the 0. M. Mitchell being shipped smaller than pea-coal size, while the shipments now are Post of the Grand Army of the Republic, the Fulton Connty largely buckwheat, No. 1 buck, No. 2 buck, etc., which at this time Chapter and the Atlanta Chapter of the United Daughters of presumably make up some 20 or 30 per cent of all shipments. As to the Confederacy, the Atlanta Woman's Club, the Fifth District the latter figure I am not fully informed, because in our day we threw Federation of Women's Clubs, the Woman's Pioneer Club, the th1s coal away or burned it under the boilers at the mine. Witches' Club, the Atlanta Kiwanian, Rotarian, Lions', and Civitans' Clubs, the Atlanta Ladies' Memorial Association, the The SPEAKER pro tempore. The time of the gentleman North Boulevard Park Civic Club, the Fitzhugh Lee and the from New York has again expired. Roosevelt Camps of the United Spanish War Veterans, the NATIONAL SOLDIERS AND SAILORS' HOME IN ATLANTA Georgia Department of the United Spanish War Veterans, the The SPEAKER pro tempore. The Chair recognizes the gen­ National Encampment of the United Spanish War Veterans, tleman from Georgia [Mr. UPSHAW] for 10 minutes. and both of the Atlanta Women's Auxiliaries of the United Mr. UPSHAW. Mr. Speaker and ladies and gentlemen of Spanish War Veterans, and the Joseph Habersham Chapter of the House, I have introduced a bill appropriating the sum of the Daughters of the American Revolution, the United Con­ $1,000,000 to build in or near the city of Atlanta . a national federate Veterans, and the National Pipe Smokers of America­ home for disabled, aged, or infirm soldiers and sailors of all for they propose to encourage the sons and soldiers of all wars wars. . and all sections to smoke the pipe of peace together amid the While this bill was introduced primarily at the request of the warmth of southern sunshine and beneath the balm and calm of Fitzhugh Lee Camp No. 6 and Theodore Roosevelt Camp No. 8 southern skies. of the Spanish-American War Veterans in my home city, thls And there in that wondrous ozone of beautiful elixir for body action of these patriotic neighbors and constituents of mine and soul these veteran defenders of our common flag will re­ was in consonance with a resolution passed by the national con­ ceive the constant ministrations of Georgia's wonderful, win­ vention of the Spanish-American War Veterans when they met some womanhood that will make those old soldiers feel that at Michigan City two years ago not only calling for the build­ they are dwelling in a land enchanted, for, Mr. Speaker- ing of such a national home in the heart of the South but There are no skies like southern skies, naming Atlanta, Ga., as the place. And there are no eyes like southern eyes I Realizing, of course, the parliamentary impossibility of pass­ [Applause.] ing this legislation at this session I wish as an educational Allow me to stress the "eternal fitness," 1f you please, in preparation for its favorable consideration at the next session establishing such an institution at such a climatic, geographical, of Congress to direct attention to the great unanimity of re­ patriotic, educational, commercial, and religious center as sponse with which the proposition has been received not only .Atlanta. With an altitude of nearly eleven hundred feet, with in Atlanta but widely over the South. a rare mean of climate and a maximum of healthful atmos­ I declare to you without hesitation or qualification that I phere, which makes Atlanta's death rate the minimum, keeping have never known any similar movement dependent on congres­ the people of that section drinking eternally from the Ponce sional action to be so widely and enthusiastically indorsed as de Leon fountain, certainly no spot in all the South, with such thi national home for soldiers and sailors, and too much railroad facilities, can offer a more inviting location. can not be said in praise of the dynamic energy and genius for But, Mr. Speaker, ladies, and gentlemen, there is another organization displayed in mobilizing this community, State and great reason for locating this home of national fellowship South wide sentiment, by Col. Sam C. Crane, prominent lawyer in or near Atlanta, and that is the fact that it will be on soil and Spanish-American War veteran of Atlanta. He and his made sacred by the baptism of fratricidal blood, where the supporting comrades have dreamed about it by night and intrepid Joe Johnston and his gallant heroes in gray held worked for it by day, until the people far and near have become their arresting tournament with Sherman and his brave "boys patriotically aroused and radiantly expectant. in blue" as they marched through Georgia to the sea; and Behold the imposing array of personages, gi'oups, organiza­ there these comrades, contenders of many a hard-fought field, tions, civic, educational, patriotic, and religious, that have can look on those smoking ashes of the sixties transformed united their voices of welcome m extending that rare and into bricks and mortar, into marble and marvel, towering away beautiful virtue known as "southern hospitality" to this pro­ in the sunlight of southern progress as the crystallization of posed home for the aged or dependent defenders of our country. the ideals and the activities, the purpose, and the power of the So widespread are these indorsements that it only needs the most dynamic and progressive city of 300,000 people on the favorable action of Congress to make it nationally unanimous. American continent-a city of such wonderful potentialities, [Applause.] Hear the list: First of all is the following ring­ I remind you, that although the thirty-second city in popula­ ing letter from Gov. Clifford Walker, of Georgia: tion in the United States is the fifth city in b&nk clearing in MARCH 80, 1926. all America. Hon. W. D. UPSHAW, And, Mr. Speaker and fellow Members, there is yet another Washington, D. 0. compelling argument for locating this natlonal home in the DEAB MR. CoNGRESSMAN: The people of the State of Georgia are capital city of Georgia-it is the argument of proximity to and united in thelr indorsement of the movement to establish within the fellowshlp with two other patriotic shrines. It is just about State a national soldiers and sallors' home for veterans of all wars. equidistant between Kennesaw Mountain on one side, which is I am joining in the personal indorsement of the movement and in the soon to be dedicated, we trust, as the result of pending legisla­ expression of the united interests of the State of Georgia. The State tion, into a great national park, and on the other side, mar­ is blessed with a climate free from the extreme warmth in the States velous old Stone Mountain in all the grandeur of its isolation- 1926 CONGRESSIONAL RECORD-HOUSE 11497 Stone Mopnl:ain, the largest rock on earth, on whose grim face To the President 'of the United Statu anll Honorable Tariff Oom.misBi

same process of asking that legislative body to disregard their vote ~ About 50 per cent of the total of our population is cia sed as rural on the subject and regard it merely as a political joke, with the joke and about 60 per cent of this, or 80 per cent of the total number, on themselves either way 1t turns out. And for that reason the South really live on the farms. has been the standing political joke of the age and will continue to On this estimate it may be said that at least 30 per cent of the be just that, and no more, as long ns it is continued. remaining free imports, to a value of $750,000,000, are aJ o used di· How much longer is this sort of thing going to continue? How rectly or indirectly by the farmer. This added to the $154,000,000 of much longer can the South expect the other sections of the country to free imports directly used by the farmers gives a total of over $900,· save it from its own political folly, with special reference to tari1r 000,000, or around 34 per cent of our total free imports from which issues? How much longer will the Republican Party continue to the farmer directly benefits by having them imported free. bestow protection favors on a solidly hostile section at the cost of T~ sum up, judging from the duties paid on imports in 1925, farming hundreds of thousands of votes, possibly millions, in those other sec­ received more actual protection in dollars and cents than did all the tions that want lower-priced sugar, cotton, rice, cottonseed oil, vegetable other industries, and it is further shown that practically everything oils, peanuts, hides, lumber, and other southern products? It is one used exclu ively by the farmer on the farm came in free of duty. of the political mysteries that some day will be solved, why the Re­ The figures on actual imports should be convincing and they entirely publican Party does not acquiesce in the demand from all other sections refute the tirade of the demagogue against the tariff as it affects tbe for free-trade competition by foreign farmers and factories producing farmer. these staples exclusively produced in the hostile South. Such action might awaken the South to its duty to vote its sentiment, to vote for 1\Ir. BEGG. Mr. Speaker, on behalf of my collearnP the what it wants rather than for partisan success. gentleman from Michigan [Mr. McLEOD], I ask unanim~us' con­ The South never bas helped elect a Republican President or Congress, sent that there may be inserted in the RECORD a petition from yet it is continually petitioning them for n protective tariff on its certain widows of veterans of the Civil War. · products in direct contradiction or its sentiments as expressed at the Mr. McKEOWN. Mr. Speaker, reserving the ri..,.ht t.o ob­ polls. The Republican Party stands to lose nothing at all, with every­ ject, why can not the petition be presented in the regular way? thing to gain, in granting the demands of the other sections of the '!~ have a number of petitions coming here from variou::; country for reducing the high cost of living by taking the tarifr ofr Citizens; why should they not all follow the usual procedure sugar, rice, cotton, and other exclusively southern products. Every and be referred to the committee concerned? State in the South is olidly Democratic, and will remain that way as Mr. BEGG. I am through with my request and the gentle- long as the present policy of the Republican Party continues, whereby man can object if he wants to. ' the South may vote against the Republican Party and its protective .:\Ir. 1\lcKEOWN. I shall object to the petition goin(J' in the tariff and still get the full benefits of that tarifr that creates and per­ RECORD. Let it follow the usual course of such matters~ petuates the welfare, prosperity, and progress of the South. It is Mr. BEGG. Then the gentleman can object. I have done my entirely too unselfish to be a political poiicy. duty, and so has the gentleman from Michigan. If the South goes to the polls next N_oyember and again emphasizes its Mr. McKEOWN. I do object to its going in the RECORD, hostility to the Republican Party and the protective tariff by voting but I do not object to its following the usual procedure. as it always has voted in the past, it has been suggested that the The SPEAKER. Is there objection to the request of the Republican Party try a new political expedient, that of giving the gentleman from Ohio? South exactly what it Yotes for-free trade and open markets for the M.r. McKEOWN. Mr. Speaker, I object. world to come here and compete with our producers on an equality of AMENDMENT OF THE NATIONAL PROHffiiTION AOT trade privileges, including the tariff. The South can not get tariff pro­ tection from the Democratic Party, because it is, and always has been, 1\Ir. TUCKER. Mr. Speaker, I ask unanimous consent to file pledged to free trade and equal rights in the home markets for the minority views on the bill (H. R. 12215) to amend and entire world to compete with home producers. Therefore the South strengthen the national prohibition act and the act of Novem­ would have to either accept what It has been voting for-free trade-­ ber 23, 1921, supplemental thereto, and for other purpose , re- or change its political alignment to get the tarifr restored. ported from the Judiciary Committee. ' In other words, the policy of the Republican Party should be revised The SPEAKER. The gentleman from Virginia asks unani­ so as to say to the South, " Your petitions for tarlfr and other Repub­ mous consent to file minority views on the bill H. R. 12215. lican administrative favors must be ftled in the ballot box in the future. Is there objection? Petitions seeking to set aside and annul the will of the people as ex. There was no objection. pressed at the polls will b~ disregarded." That is the only sort of EXTENSION OF REMARKS policy that ever will break up the solid South. .Mr. CROWTHER. Mr. Speaker, I ask unanimous consent to Now, Mr. Speaker and gentlemen of the House, let me close revise and extend my ·remarks in the REOOIID. with a few facts concerning the farmer and the tariff: Mr. CONNALLY of Texas. Mr. Speaker, reserving the right FARMER AND THE TARIFF to object, what remarks does the gentleman refer to? A ·great deal baa been said in recent months about the farmer and Mr. CROWTHER. The ones you did not like. [Laughter.] the protective tariff. Mr. CONNALLY of Texas. That does not distinguish them, Free h'aders have sought to make 1t appear that the present tarifr because I never did like anything the gentleman said. [Laugh­ law taxes the farmer on the articles he consumes and gives him little ter.] I want to ask the gentleman if he will be kind enough to or no protection on the articles he produces. observe the rules of the House and not denounce the gent1eman An examination into the official figures of our imports for the year from Texas for trying to get him to yield when the gentleman 1925 shows the utter fallacy of this argument. had no intention of asking the gentleman to yield. According to these figures, which are official, the total imports com· Mr. CROWTHER. Of course, Mr. Speaker, I am not as well ing into the United States during the year 1925 amounted to $4,227,- versed in parliamentary procedure as the gentleman from 995,000. Of this tremendous amount $2,652,020,000 came in on the Texas, who knows almost everything about everything; and if free list without paying any tariff at all. The total of dutiable goods I committed any very grave error, of course, I am very sorry. imported amounted to $1,575,975,000. Mr. CONNALLY of Texas. Still further reserving the right In other words, only 87.3 per cent of the goods which came in paid to object, the gentleman disclaims any pretension to any in­ any duty at all, while the other 62.7 per cent of our imports came in formation, and the compliment which the gentleman undertakes free. to pay him in a rather ironic, sardonic, and sarcastic form has But let us look into these figures a little further. Of this amount of hardly any basis in fact. Furthermore, I would like to ask the goods which paid duty $280,048,000 was in the class called luxuries, gentleman whether he agrees with Secretary Mellon's state­ the duties on which did not atrect the average citizen either in the·town ment on the farm relief bill that it is wrong to permit our farm or the country. producers to sell their products abroad to foreigners cheaper This cuts down the value of goods on which duty was paid to than they are sold here in our own markets? $1,295,92'T,OOO so far as the average man is concerned. Mr. CROWTHER. I think we should sell our products From here on the figures are even more significant. Of this total of abroad if we can keep our mills running six days a week by $1,295,927,000 in dutiable goods the sum of $735,166,000 in tariff was selling our surplus products in that way. - paid on agricultural goods in competition with what the farmer pro­ Mr. CONNALLY of Texas. How about running our farms? duces at home, while the duty paid on goods in competition with what Mr. CROWTHER. If the gentleman had been here and had the city and industrial population produces was only $560,761,000, so listened to the speech of the gentleman from Nebraska [Mr. that the farmer received more actual protection on farm products than SHALLENBERGER], he would have found out the condition of the the industries received on their products. farmers in a very great State of the West. In addition to this, it is to be remembered that in the two-thirds of Mr. CONNALLY of Texas. The gentleman agrees with Mr. our imports on the free list are included jute, manila, sisal, binder :rt1ellon's statement? twine, fertilizers, and many other minor commod.ltiea in which the Mr. OROWTHER. I agree very largely with the statement farmer is directly interested. of the Secretary. 1926 .OONGRESSION AL RECORD-HOUSE .11499

Mr. CONNALLY of Texas. If the gentleman will just keep tleman should be selected out of all the rest. I can give the on extending his remarks, I shall not object. gentleman no more definite answer. . The SPEAKER. Is there objection to the request of the gen­ Mr. SIMMONS. We would like to have the gentleman give it tleman from New York? careful consideration. There was no objection. Mr. TILSON. We will give it consideration. ORDER OF BUSINESS ADJOURNMENT Mr. TILSON. Mr. Speaker, I ask unanimous consent that Mr. TILSON. Mr. Speaker, I move that the House do now it may be in order to consider the Private Calendar to-morrow adjourn. in the House as in Committee of the Whole, and that considera­ The motion was agreed to; accordingly (at 4 o'clock and 55 tion of th~ calendar begin at Calendar No. 527, which is the minutes p. m.) the House adjourned until to-mocrow, Friday, single star. J~e 18, 1926, at 12 o'clock noon. Ur. McKEOWN. Is that where the consideration of the calendar last left off? COMMITTEE HEARINGS Mr. TILSON. Yes; and that we proceed to the end of the Mr. TILSON submitted the following tentative list of com­ calendar with bills unobjected to; that when the calendar is mittee hearings scheduled for June 18, 1926, as reported to the completed we return to· Calendar No. 431, where one objection floor leader by clerks of the several committees: has been made heretofore; and that in the consideration of bills between No. 431 and No. 527 three objections shall be COMMITTEE ON AGRICULTURE required to stop consideration. (10 a.m.) Mr. McKEOWN. That is under the same rule- To amend the packers and stockyards act, 1921 (H. R. 11384). Mr. TILSON. Yes; under the same rule we had the other SPECIAL JOINT COMMITTEE day. (10.30 a. m.) The SPEAKER. The gentleman from Connecticut asks To investigate Northern Pacific land grants, unanimous consent that to-morrow it may be in order to con­ sider bills on the Private Calendar in the House as in Com­ COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE mittee of the Whole; that consideration shall begin at Calendar (10 a.m.) No. 527, where the one-objection rule shall apply; and if the To promote the unification of CB.I'riers engaged in interstate Private Calendar shall have been concluded before adjourn­ commerce (H. R. 11212). ~ent the House will then retUrn to Calendar No. 431, and betw~n No. 431 and No. 527 the three or more objection rule EXECUTIVE COMMUNICATIONS, ETC. shall apply. Is there objection to the request of the gentleman Under clause 2 of Rule XXIV, executive communications from Connecticut? were taken from the Speaker's table and referred as follows : There was no objection. 592. A communication from the President of the United ADJOURNMENT OVER States, transmitting a supplemental estimate of appropriation Mr. TILSON. Mr. Speaker, I ask unanimous consent that for the Department of State for the fiscal year ending June when the House adjourns to-morrow, Friday, it adjourn to meet 30, 1926, amounting to $699.33 (H. Doc. No. 443) ; to the Com­ on Monday next. mittee on Appropriations and ordered to be printed. Mr. SCHAFER. Mr. Speaker, I object to that. We have a 593. A communication from the President of the United lot of bills here that we should consider. States, transmitting a deficiency estimate of appropriation for Mr. TILSON. Then, Mr. Speaker, I move that when the the Deptlrtment of Justice for the fiscal ye8J.' ended June 30, House adjourns to-morrow it adjourn to meet on Monday. 1925, amounting to $3,512.53 (H. Doc. No. 444) ; to the Com­ r.rhe motion was agreed to. mittee on Appropriations and ordered to be printed. Mr. CONNALLY of Texas. Will the gentleman from Con- necticut yield to me for a . question? REPORTS OF COMMITTEES ON PUBLIC BILLS AND Mr. TILSON. Yes. RESOLUTIONS Mr. CONNALLY of Texas. In connection with the adjourn­ Under clause 2 of Rule XIII, ment to-morrow what information can the gentleman give us Mr. HAYDEN: Committee on Indian Affairs. S. 3361. An as to the adjournment sine die? act to purchase la.nds for addition to the Papago Indian Reser­ Mr. TILSON. We are waiting until the final vote is taken vation, Ariz.; without amendment (Rept. No. 1505). Re­ on the farm relief bill now pending in the Senate ; as soon as ferred to the Committee of tbe Whole House on the state of the that bill is acted upon I think it will be possible to arrive at Union. some sort of an idea as to . when we may adjourn. Until that Mr. BURDICK: Committee on Naval Affairs. H. R. 3936. A bill is \Oted upon I think it futile to speculate. bill to repeal the laws authorizing the purchase of uniforms, Mr. CONNALLY of Texas. If something should happen in accouterments, and equipment from the Government at cost ; some other body and that bill should be killed, does the gentle­ with amendment (Rept. No. 1506). Referred to the Committee man think that we would adjourn within a few days? of the Whole House on the state of the Union. MI.'. TILSON. I do not wish to attempt to cross the bridge Mr. HASTINGS: Committee on Indian Affairs. H. R. 12390. until we get to it. A bill to authorize the payment of drainage assessments on LEAVE TO ADDRESS THE HOUSE Absentee Shawnee Indian lands in Oklahoma, and for other purposes; with amendment (Rept. No. 1507). Refened to the Mr. McSWEE~TEY. Mr. Speaker, I ask unanimous consent Committee of the Whole House on the state of the Union. that to-morrow after the other special orders, I may address Mr. M.cSW .AIN : Committee on Military Affairs. H. R. the House for 10 minutes on the life and seiTices of the late 12592. A bill to provide for the inspection of the battle field of Vice President Thomas R. -Marshall. Kings Mountain, S. C.; without amendment (Rept. No. 1508). The SPEAKER. The gentleman from Ohio asks unanimous Referred to the Committee of the Whole House on the state of consent to address the House for 10 minutes to-morrow imme­ the Union. diately after the other special orders. Is there objection? Mr. HAYDEN: Committee on Indian Affairs. H. R. 12596. There was no objection. A bill to authorize the leasing of unallotted irrigable land on LEAVE OF ABSENCE Indian reservations; without amendment (Rept. No. 1509). Re{erred to the Committee of the Whole House on the state of Mr. SPROUL of Kansas, by unanimous consent, was given the Union. leave of absence indefinitely on account of illness in his family. Mr. NELSON of Maine: Committee on Interstate and For­ ORDER OF BUSINESS eign Commerce. S. 2320. An act to safeguard the distribution Mr. SIMMONS. Mr. Speaker, I would like to ask the gentle­ and sale of certain dangerous caustic or corrosive acids, alka­ man from Connecticut a question. It is evident that we are lies, and other substances in interstate and foreign commerce; going to have somewhat of a lame duck Senate next session. with amendment (Rept. No. 1512). Referred to the Committee I was wondering whether we could not consider the so-called of the Whole House on the state of the Union. lame duck constitutional amendment while we are killing time. It is futile, of course, to object to adjourning over on Satur­ REPORTS OF COMMITTEES ON l'RIVATE BILLS AND day, ·but there are a lot of us who would like to have it RESOLUTIONS brought up. Under clause 2 of Rule XIII, Mr. TILSON. There are a large number of other bills on Mr. BOYLAN: Committee on Military Affairs. H. R. 2420. the calendar that individual Members would like to have acted A bill for the relief of James Neal; with amendment (Rept. upon. I know of ~o ;r~aso!! ~hy tb.~ bill ptentio~ed by Ule ge~- No. 1510). Re.ferr~d tQ ~e Oo!Ilmittee of ~e Wb:ole House. 11500 CONGRESSIONAL RECORD-HOUSE !JUNE 17 :Mr. SPEAKS: Coinmlttee on Military Affairs. H. R. 10193. By Mr. RUBEY: A bill (H. R. 12914) gmnting an increase A bill for ·the relief of Lewis H. Easterly; without amendment of pension to Clara Blunt ; to the Committee on Invalid Pen­ (Rept. No. 1511). Referred to the Committee of the Whole sions. House. By Mr. SANDERS of New York: A bill (H. R. 12915) grant­ ing an increase of pension to Cynthia L. Lewis; to the Com­ PUBLIC BILLS AND RESOLUTIONS mittee on Invalid Pensions. Under clause 3 of Rule XXII, public bills and resolutions By 1\fr. S'J,'ALKER: A bill (H. R. 12916) granting an in­ crease of pension to Emeline L. Carr ; to the Committee on were introduced and severally referred as follows : Invalid Pensions. By Mr. FRENCH: A bill (H. R. 12888) to amend an act entitled "An act to provide revenue, to regulate commerce with Also, a bill (H. R. 12917) granting an increase of pension to foreign countries, to encourage the industries of the United E. Mary Agnor; to the Committee on Invalid Pensions. States, and for other purposes"; to the Committee on Ways Also, a bill (H. R. 12918) granting an increase of pension to Catherine A. Thompson; to the Committee on Invalid and Means. Pensions. By Mr. HILL of Alabama: A bill (H. R. 12889) to relin­ qui h the title of the United States to the land in the claim of By Mr. SWEET: A bill (H. R. 12919) granting a pension Moses Steadham, situated in the county of Baldwin, State of to Myron Lyman ; to the Committee on Invalid Pensions. Alabama; to the Committee on the Public Lands. Also, a bill (H. R. 12920) granting an increase of pension By l\Ir. LEHLBACH: A bill (H. R. 12890) to amend an act to Emma A. McGrath ; to the Committee on Invalid Pensions. entitled "An act to authorize the granting of leave to ex-service By Mr. SWING: A bill .(H. R. 12921) granting a pension men and women to attend the annual convention of the Ameri­ to Hannah J. Prewett; to the Committee on Invalid Pensions. can Legion in Paris, France, in 1927," approved May 20, 1926; By Mr. UPDIKE : A bill (H. R. 12922) granting an honor­ able discharge to J. H. Hulse; to the Committee on Military to the Committee on the Civil Service. Affair·s. By l\fr. GRAHAM: A bill (H. R. 12891) to permit the United States to be made a party defendant in certain cases ; to the Also, a bill (H. R. 12923) grunting an increase of pension Committee on the Judiciary. to Sarah C. Stephens ; to the Committee on Invalid Pensions. Also, a bill (H. R. 12924) granting an honorable discharge to George Fling; to the Committee on Military Affairs. PRIVATE BILLS A....l'{D RESOLUTIONS By l\lr. WATSON: A bill (H. R. 12925) granting an in­ Under clause 1 of Rule X:X:Il, private bills and resolutions crease of pension to Cornelia D. Haslet; to the Committee on were introduced and severally referred as follows: Invalid Pensions. By ~Ir. ARNOLD: A bill (H. R. 12892) granting an increase By 1\Ir. WOODRUFF: A bill (H. R. 12926) granting an in­ of pension to Sarah A. Sloan; to the Committee on Invalid crease of pension to Margaret Angus; to the Committee on Pensions. Invalid Pensions. Also, a bill (H. R. 12893) granting an increase of pension to By Mr. ZIHLMAN: A bill (H. R. 12927) granting an in­ Sarah A. Dinnel; to the Committee on Invalid Pensions. crease of pension to Henrietta Dickerhoff; to the Committee By 1\Ir. BRAl\TD of Ohio: A bill (H. R. 12894) granting an in­ on Invalid Pensions. crease of pension to Mary M. Pyers; to the Committee on In­ valid Pensions. PETITIONS, ETC. Also, a bill (H. R. 12895) granting an increase of pension to Under clause 1 of Rule XXII, petitions and papers were laid Effie Washington; to the Committee on Invalid Pensions. on the Clerk's desk and referred as follows: Also, a bill (H. R. 12896) granting an increase of pension to 2546. By 1\Ir. ANTHOI\TY: Petition of citiz·ens of Wetmore, J osie McDorman; to the Committee on Invalid Pensions. Kans., urging passage of Civil War pension bill; to the Com­ Also, a bill (H. R. 12897) granting an increase of pension to mittee on Invalid Pensions. Jane Burtis; to the Committee on Invalid Pensions. 2547. Also, petition of citizens of Atchison, Kans., urging By 1\fr. CANFIELD : A bill (H. R. 12898) granting an in­ passage of Civil War pension bill; to the Committee on Invalid ( crease of pension to Lizzie Alice King; to the Committee on Pensions. Invalid Pensions. 2548. By Mr. BEGG (by request) : Petition of voters of \ By Mr. DICKINSON of Missouri: A bill (H. R. 12899) grant­ Bradner, Ohio, urging passage of Civil War pension bill; to ing a pension to James S. Nichols ; to the Committee on Invalid the Committee on Invalid Pensions. Pensions. 2549. By Mr. BRIGGS: Petition of Mr. Edward D. May, Mr. By l\fr. EATON: A bill (H. R: 12900) granting an increase W. E. Gunderman, Mr. J. 0. Lowry, and other citizens of Gal­ of pension to Rebecca Bruno; to the Committee on Invalid veston Oounty, Tex., urging prompt consideration of measure Pensions. relating to Civil War Pensions; to the Committee on Invalid Also, a bill (H. R. 12901) granting an increase of pension to Pensions. Sarah F. Bishop ; to the Oommittee on Invalid Pensions. 2550. By Mr. BROWNING: Petition of a number of citizens By l\fr. ESTERLY: A bill (H. R. 12902) granting an increase of Benton County, Tenn., urging immediate action of a bill to of pension to Annie Painter ; to the Committee on Invalid increase the pensions of Civil War veterans a:nd their widows; Pensions. . to the Committee on Invalid Pensions. By Mr. FAIRCHILD: A bill (H. R. 12903) for the relief of 25G1. By Mr. BEERS : Petition from Miffiin, Juniata, Union, Abraham H. Tompkins ; to the Committee on Military Affairs. and Perry Counties, Pa., voters, urging passage of the Civil By Mr. GARDNER of Indiana: A bill (H. R. 12904) grant­ War pension bill; to the Committee on Invalid Pensions. ing a pension to John 0. White; to the Committee on Pensions. 2552. By Mr. CANFIELD: Petition of Crawford A. Peters By Mr. HAYDEN: A bill (H. R. 12905) granting an increase and 27 -voters of Aurora, Dearborn County, Ind.; to the Com­ of pension to John Donovan; to the Committee on Pensions. mittee on Invalid Pensions. By Mr. KETCHAM: A bill (H. R. 12906) granting a pension 2553. By Mr. DICKINSON of Missouri: Petition in ~half o{ to Estella Cowell; to the Committee on Invalid Pensions. the legislation for the benefit of the Civil War soldiers and R.r Mr. KIRK: A bill (H. R. 12907) granting a pension to their widows ; to the Committee on Invalid Pensions. Elizabeth McKee; to the Committee on Invalid Pensions. 2554. By .Mr. GALLIVAN: Petition of the Tudor Press By 1Ur. KURTZ: A bill (H. R. 12908) granting an increase (Inc.), 251 Ca. use way Street, Boston, Mass., recommending of pension to Mary A. Butts; to the Committee on Invalid passage of the McKellar bill providing for a revision of postal Pensions. . rates ; to the Committee on the Post Office and Post Roads. By Mr. :1\icLAUGHLIN of Kebraska: A bill (H. R. 12909) 2555 . . By 1\Ir. HALL of North Dakota: Petition of Mrs. Jen­ granting an increase of pension to Mary E. Perky; to the Com­ nie E. Wilson and four others of Sawyer, N. Dale, and vicinity, mittee on Pensions. urging the immediate passage by Congress of legislation for the Also a bill (H. R. 12910) granting an increase of pension to benefit of veterans of the Civil War and their widows and 1\Iarth~ W. Cassell; to the Committee on Pensions. dependents ; to the Committee on Invalid Pensions. By :\Ir. MAcGREGOR: A bill (H. R. 12911) for the relief of 2556. By Mr. HAMMER: Petition of citizens of Asheboro, the owner of the scow Bell,· to the Committee on Claims. N. C., requesting Civil War pension legislation; to the Com­ 'By Mr. MAPES: A bill (H. R. 12912) granting an increase mittee on Invalid Pensions. of pension to Martha J. Taylor; to the Committee on Invalid 2557. By Mr. HAUGEN: Petition of 92 citizens of Clayton Pensions. County, Iowa, urging passage of Civil War pension bill; to the By 1\Ir. l\100RE of Ohio: A bill (H. R. 12913) granting an Committee on Invalid Pensions. increa e of penSion to Oathryn Eicke; to the Committee on 2558. By Mr. HICKEY: Petition of Mrs. Mary Ann Fuller Invalid Pensions. and other citizens of La Porte, Ind., urging that immediate 1926 CONGRESSIONAL RECORD-SENA-TE 11501 steps be taken to bring to a vote the Civil War pension bill; to 2580. By Mr. YATES: Petition of Mr. Mahlon C. Tunison, the Committee on Invalid Pensions. 736 Center Street, Elgin, UI., and 38 others of Elgin, IlL, urg· 2559. By Mr. KET@AM: Petition signed by a number of ing the passage of the Civil War pension bill, a measure for the citizens of Otsego, Mich., urging immediate action on a bill the relief of the aged veterans and widows ; to the Committee to increase the pensions of Civil War veterans and their on Invalid Pensions. widows; to the Committee on Invalid Pensions. 2560. By Mr. LEATHERWOOD: Petition of citizens of Salt Lake City, Utah, praying that Congress pass the Civil War pen­ SEN.ATE sion bill before 1t adjourns; to the Committee on Invalid Pen­ sions. FRIDAY, J'li:ne 18~ 19~8 2561. By Mr. LEAVITT: Petition of residents of Glasgow, ·(Legislative day of Wednesday, June 16, 1926) Mont., favoring passage of Civil War pension legislation at the present session of Congress; to the Committee on Invalid Pen­ The Senate reassembled at 12 o'clock meridian, on the expira­ sions. • tion of the recess. 2562. Also, petition of residents of Livingston, Mont., favor­ The VICE PRESIDENT. The Senate will receive a mes­ ing passage of the Elliott bill providing for increases of pen­ sage from the House of Representatives. sions for veterans of the Civil War and their widows; to the Committee on Invalid Pensions. MESSAGE FROM THE HOUSE 2563. By Mr. McLEOD: Petition of sundry citizens of Detroit, A message from the House, by Mr. Haltlgan, one of its clerks, Mich., urging the passage of the Civil War veterans' pension announced that the House had passed the bill ( S. 481) to amend bill; to the Committee on Invalid Pensions. section 8 of an act entitled "An act for preventing the manufac­ 2564. By Mr. MAJOR: Petition of a number of voters of ture, sale, or transportation of adulterated or misbranded or Polk County, Mo., urging prompt action on the Civil War pen­ poisonous or deleterious foods, drugs, medicines, and liquors, sion bill; to the Committee on Invalid Pensions. and for regulating traffic therein, and for other purposes," a~ 2565. By Mr. O'CON1'-.TELL of New York: Petition of Friends proved June 30, 1906, amended Augus~ 23, 1912, March 3, 1913, of Irish Freedom, of New York City, protesting against the and July 24, 1919, with amendments, in which it requested the immigration law of 1924; to the Committee on l.mm.L,<7fatlon and concurrence of the Senate. Naturalization. 2566. By Mr. OLDFIELD: Petition urging the passage of ENROLLED BILLS SIGNED Civil War pension bill (H. R. 4023) now pending on the Union The VICE PRESIDENT announced his signature to the six Calendar ; to the Committee on Invalid Pensions. enrolled bills received late on yesterday from the House of 2567. Also, petition of Randolph County, Ark., urging the Representatives, which had previously been signed by t'le passage of House bill 4023, proposing to grant increases in the Speaker. present rates of pensions for Civil War veterans and their CALL OF THE ROLL dependents now pending on the Union Calendar; to the Com­ mittee on Invalid Pensions. Mr. CURTIS. :Mr. President, I suggest the absence of a quo­ 2568. By Mr. RAGON: Petition of citizens of Little Rock, rum. Ark., favoring the passage of the Elliott bill granting pensions The VICE PRESIDENT. The clerk will call the roll. and increases of pension for Civil War veterans and their The legislative clerk called the roll, and the following Sen­ widows; to the Committee on Invalid Pensions. ators answered to their names: 2569. By Mr. ROl\fJUE: Petition of Orner B. Sharp, H. L. Ashurst Fess Lenroot Sheppard Pierce, and others of Stahl, Mo., asking for prompt action on Bayard Frazier McKellar Shipstead legislation granting more liberal pensions to veterans of the Bingham George McMaster Shortridge Blease Gerry McNary Smoot Civil War and their widows; to the Committee on Invalid Borah Glllctt Mayfield Stanfield Pensions. Bratton Glass Means Steck 2570. By l\fr. SPEAKS: Petition of 200 citizens of Wester­ Broussard Goff Metcalf Stephens Bruce Gooding Moses Swanson ville, Ohio, urging the passage, before adjournment of Congress, Butler Hale Neely Trammell of a bill granting increase of pension to veterans of the Civil Cameron Harreld Norbeck Tyson War and their widows; to the Committee on Invalid Pensions. Capper Barris Norris Wadsworth Caraway Harrison Oddie Walsh 2571. By Mr. SPROUL of Illinois: Petition from 600 men of Copeland Heflin Phipps Warren Auburn Park Council, No. 1678, Knights of Columbus, Illinois, Couzens Howell Pine Watson protesting against the deportation from Mexico of Archbishop Cummins Jones, N.Mex. Ransdell Wheeler Curtis Jones, Wash. Reed, Pa. Williams Caruana as a contemptuous disregard of the rights and privi­ Deneen Kendrick Robinson, Ark. Willis leges of an American citizen ; to the Committee on Foreign Dill Keyes Robinson, Ind. Affairs. Ernst King Sackett 2572. By Mr. STRONG of Kansas : Petition of William Fernald I .. a Follette SchaU Garber and other voters of Republic, Kans., urging passage of The VICE PRESIDENT. Seventy-seven Senators having an­ the bill to increase pensions of Civil War veterans and their swered to their names, a quorum is present. widows before adjournment of Congress ; to the Committee on Invalid Pensions. PERSONAL EXPLANATION 2573. Also, petition of Mrs. Marilda J. Cooney and other Mr. WILLIS. Mr. President, I rise to make a brief statement voters of Clay County, Kans., urging that immediate steps be as a matter of personal privilege. My attention has been drawn taken to bring to a vote the Civil War pension bill in order to the fact that there is a statement in the· morning edition of that relief may be accorded to needy and suffering veterans and the Washington Herald to the effect that four Se.nators and four their widows ; to the Committee on Invalid Pensions. Members of the House of Representatives have accepted fees 2574. Also, petition of Mr. John R. Smith and other voters of from the Anti-Saloon League for making prohibition speeches. Salina, Kans., requesting that favorable action be taken at once My name is given in the Herald article as one of those so on Civil War pension bill; to the Committee on Jnvalid Pen­ receiving compensation. Also in the Washington Post of this sions. date I find the following statement on the first page reporting 2575. By Mr. SWING : Petition of certain residents of Lemon the inquiry which was made in one of the investigating com­ Grove, Calif., urging that the Civil War pension bill be brought mittees, the Senator examining the witness asking him: to a vote immediately; to the Committee on Invalid Pensions. 2576. Also, petition of certain residents of California, urging Have you not a list of Congressmen who are frequently called upon that immediate steps be taken to bring to a vote the Civil War to make speeches and receive pay for it? pension bill; to the Committee on Invalid Pensions. Mr. Wheeler hesitated while the audience remained silent and puzzled, 2577. By Mr. TOLLEY: Petition of sundry citizens of and Senator REED kept his eyes riveted on the witness. Finally Mr. Broome, Chenango, Delaware, and Otsego Counties of New Wheeler stated that 'among the speakers receiving pay from the .Anti­ York; to the Committee on Invalid Pensions. Saloon League in the form of expenses and " an honorarium " are the 2578. By Mr. VARE: Petition of citizens of Philadelphia, ·following- Milton, Cardington, Waynesburg, Manayunk, and Germantown, Pa., urging passage of Civil War pension bill; to the Commit- He there gave a list, and my name appears in that list with tee on Invalid Pensions. others. Then further down in the statement occurred this 2579. By Mr. WINTER: Petition of sundry citizens of Shert­ lapguage: , dan, Wyo., urging the passage of the Civil War pension bill; " WILLIS, of Ohio," continued Senator REED. Do you know where he to the Oommittee on Invalid Pensions. spent his activities?