286 CONGRESSIONAL -RECORD-SENATE JANUARY· 11 Maj. Gen. Charles Bertoddy Stone IlI, 66A .The following-named officers for tempo selfish ends. Give us the wisdom that (brigadier general, U. S. Air Force), Air rary appointment in the Air Force of the comes from contemplation of Thee and Force of the United States. United States under the provisions of sec from introspective thought and love of Maj. Gen. Laurence Sherman Kuter, 89A tion 515, Officer Personnel Act of 1947: Thy Son. Guide us, use us, give us (brigadier general, U.S. Air Force), Air Force To be major generals of the United States. courage. In Christ's ·name· we pray. Maj. Gen. Joseph Hampton Atkinson, 90A Brig. Gen. Hugo Peoples Rush, 75A, United Amen. States Air Force. (brigadier general, U.S. Air Force), Air Force ATTENDANCE OF A SENATOR of the United States. Brig. Gen. Charles Edwin Thomas, Jr., Maj. Gen. Gordon Philip Saville, 48A (brig 192A (colonel, U. S. Air Force), Air Force of KARL E. MUNDT, a Senator from the adier general, U. S. Air Force), Air Force of the United States. State of South Dakota, appeared in his the United States. Brig. Gen. Frank Alton Armstrong, Jr., 209A (colonel, U. s. Air Force), Air Force of seat today. To be brigadier generals the United States. THE JOURNAL Brig. Gen. Warren Rice Carter, 181A (colo Brig. Gen. August Walter Kissner, 386A On request of Mr. LucAs, and by unani nel, U.S. Air Force), Air Force of the United (colonel, U. S. Air Force), Air Force of the mous consent; the reading of the Journal States. United States. Brig. Ge:e.. Thomas Herbert Chapman, 189A Brig. Gen. Archie Jordan Old, Jr., 605A of the proceedings of Tuesday, January (colonel, U. S. Air Force), Air Force of the (colonel, U. S. Air Force). Air Force of the 10, 1950, was dispensed with. United States. United States. ~SAGES FROM THE PRESIDENT Brig. Gen. Charles Edwin Thomas, Jr., 192A (colonel, U. S. Air Force) , Air Force of the To be brigadier generals Messages in writing from the Presi United States. . Col. Joseph Henry Davidson, 121A, United dent of the United States submitting Maj. Gen. Francis Leroy Ankenbrandt, Jr., States Air Force. nominations were communicated to the 267A (colonel, U. S. Air Force), Air Force of Col. Edward Holmes Underhill, 421A, Senate by Mr. Miller, one of his sec the United States. United States Air Force. retaries. Maj. Gen. Morris Robert Nelson, 277A Col. Albert Boyd, 424A, United States Air (colonel, U. S. Air Force), Air Force of the Force. CALL OF THE ROLL United States. Col. Kingston Eric Tibbetts, 436A, United · Mr. LUCAS. I suggest the absence of Maj. Gen. Kenneth Perry McNaughton, States Air Force. a quorum. 278A (colonel, U. S. Air Force), Air Force of Col. Frederick Rodgers Dent, ·Jr., 444A, The PRESIDENT pro tempore. The the United States. · ' United States Air Force. Brig. Gen. Elmer Joseph Rogers, Jr., 294A Col. Stuart· Phillips Wright, 510A, United clerk will call the roll. (colonel, U. S. Air Force), Air Force· of the · States Air Force. The roll was called, and the following United States. · -col. Mark Edward Bradley, Jr., 552A, United Senators answered to .their names: Brig. Gen; Clarence Shortridge Irvine, 296A States Air Force. Aiken Hayden Morse (colonel, U. S. Air Force), Air Force of the Col. Robert Edward Lee Eaton, 594A, United Anderson Hendrickson Mundt United States. States Air Force. Brewster Hickenlooper Myers Brig. Gen. George Robert Acheson, 335A Col. Sydney Dwight Grubbs, Jr., 660A, Bricker Hill Neely United States Air Force. · Bridges Holland O'Conor (colonel, u. S. Air Force), Ai~ Force of the Butler Humphrey O'Mahoney United States. Col. Phillips Walter Smith, 897A, United Byrd Hunt Robertson Brig. Gen. George Warren Mundy, 358A States Air Force. Cain Ives Russell (colonel, U. S. Air Force), Air Force of the AIR NATIONAL GUARD OF THE UNITED STATES Capehart Jenner Saltonstall United States. Chapman Johnson, Tex. Schoeppel Brig. Gen. Roscoe Charles Wilson, 360A The officers named herein for appointment Connally Johnston, S. C. Smith, Maine in the ·Air National Guard of the United Cordon Kefauver Smith, N. J. (colonel, U. S. Air Force), Air Force of the Darby United States. States of the Air Force of the United Statee Kem Sparkman under the provisions of ·section 38 of the Donnell Kilgore Stennis Maj. Gen. Walter E~win Todd, 361A (colo Douglas• Knowland Taft nel, U.S. Air Force), Air Force of the United National Defense Act as amended: Downey Langer . Taylor States. · · To be brigadier generals Dworshak Leahy Thomas, Okla. Eastland Maj. Gen. Bryant Le Maire Boatner, 362A Brig. Gen. Chester Andrew Charles, Lehman Thomas, Utah (colonel, U. S. Air Force) , Air Force of the Ecton Lodge Thye A0132773, New Jersey Air National Guard, to Ellender Long Tobey United States. date froin October 19, 1949. . Ferguson Lucas Tydings Maj. Gen. Samuel Robert Brentnall, 864A Brig. Gen. Clyde Henry Mitchell, A0263935, Flanders McCarran Vandenberii (colonel, U. S. Air Force), Air Force of the New York Air National Guard, to date from Frear McCarthy Watkins United States. - October 19, 1949. Fulbright McFarland Wherry Maj. Gen. Frank Fort Everest, 366A (colo George McKellar Wiley nei, U.S. Air Force), Air Force of the Unitea .Brig. Gen. Oliver Hart Stout, A0120652, Glllette McMahon Wllliama Indiana Air National Guard, to date from States. Graham Magnuson Young October 19, 1949. Green Martin Maj. Gen. William Henry Tunner, 874A Gurney Maybank (colonel, U. S. Air Force), Air Force of the - Brig. Gen. James Lawton Riley, A0426156, United States. Georgia Air National Guard, to date from Mr. LUCAS. I announce that the Brig. Gen. August Walter Kissner, 386A Decem'ber 15, 1949. Senator from Connecticut [Mr. BENTON], (colonel, U. S. Air Force), Air Force of the the Senator from North Carolina [Mr. United States. Maj. Gen. Emmett O'Donnell, Jr., 387A HOEY], and the Senator from Montana (colonel, U. S. Air force), Air Force of the SENATE [Mr. MURRAY] are absent on public · United States. · business. Brig. Gen. William Maurice Morgan, 439A WEDNESDAY, JANUARY 11, 1950 The Senator from New Mexico [Mr. (colonel, U. S. Air Force), Air Force of the CHAVEZ] and the Senator from Oklahoma United States. [Mr. KERR] are absent on official business Maj. Gen. William Evans Hall, 460A (Legislative day of Wednesday, January (colonel, U. S. Air Force) , Air Force of the 4, 1950) as members of a subcommittee of the United States. Committee on Public Works, holding Maj. Gen. Frederic Harrison Smith, Jr., The Senate met at 12 o'clock meridian, hearings on various fiood-control and 461A (colonel, U. S. Air Force), Air Force on the expiration of the recess. public-works projects in the State of New of the United States. . Rev. Alvin C. Murray, minister, First Mexico. Maj. Gen. William Fulton McKee, 467A Methodist Church, Berryville, Ark., of The Senator from Colorado [Mr. (colonel, U. S. Air Force) , Air Force of the fered the following prayer: JOHNSON] and the Senator from Ken United States. Maj. Gen. Richard Clark Lindsay, 476A Our eternal and ever-present Father, tucky [Mr. WITHERS] are absent on offi (colonel, U. S. Air Force), Air Force of the God, we are always conscious of Thy cial business. United States. goodness in the interest of our affairs. The Senator from Arkansas [Mr. Mc Maj. Gen. Thomas Sarsfield Power, 481A, We thank Thee that Thy hand has been CLELLAN] is absent by leave of the Senate (colonel, U. S. Air Force), Air Force of the seen using mysterious ways Thy wonders on o:fficfal business as a member of a sub Un.ited States. Maj. Gen. Donald Leander Putt, 494A to perform in the history and the life committee of the Committee on Public (colonel, U. S. Air Force), Air Force of the of man. We pray that Thou shalt work Works, holding hearings on various United States. through us to accomplish Thy ends, that fiood-controi and public-works projects Brig. Gen. Alfred August Kessler, Jr., 216A we might achieve noble purposes in all in the State of New Mexico. (colonel, U. S. Air Force), Air Force of the our endeavors. Give us grace to examine . The Senator from Florida [Mr. PEP United States. our motives rather than simply to seek PJi:Rl is absent by leav-e of the Senate. 1950 CONGRESSIONAL . RECORD-SENATE 287 Mr. SALTONSTALL. I announce that an accompanyin g statement); to the Com tian Church, Methodist Church, and the Senator from Colorado [Mr. MILLI mittee on the Judiciary. Baptist Church, of Mount Rainier, and KIN] is absent by leave of the Senate on REPORT OF CONTRACTS N EGOTIATED BY COAST the Methodist Church of Brentwood, all official business. GUARD in the State of Maryland, praying for the TJ::e Senator from Nevada [Mr. A letter from t he Commandant, United enactment of legislation to prohibit the MALONE] is absent by leave of the Senate States Coast Guard, transmitting, pursuant transportation of alcoholic-beverage ad on official business of the Committee on to law, a report on cont racts negotiated for experimental, developmental, or research vertising in interstate commerce. I pre Public Works. work by the Coast Guard, for the period July sent the petitjons for appropriate refer The PRESIDENT pro tempore. Eighty 1, 1949-, to December 31, 1949 (wit h an ac ence. five Senators have answered to their compan ying report); to the Committee on The PRESIDENT pro tempore. The names. A quorum is present. Armed Services. petitions will be received and refer red to TRANSACTION OF ROUTINE BUSINESS REPORT OF GEORGETOWN BARGE, DOCK, E LEVATOR the Committee on Interstate and Foreign & RAILWAY CO. Commerce. Mr. THYE obtained the floor. A letter from Steptoe & Johnson, attorneys Mr. WILLIAMS. Mr. President I am Mr. LUCAS. Mr. President, I ask at law, Washington, D. C., transmitting in receipt of a letter from Mrs.' Nora unanimous consent that Members of the pursuant to law, a report of the Georgetown B. Powell, State legislative director Senat e be permitted to introduce bills Barge, Dock, Elevator & Railway Co., for WCTU, New Castle County, Del., trans~ and joint resolutions, present petitions the calendar year 1949 (with an accompany mitting petitions signed by 1,637 citizens and memorials, and submit routine mat ing report) ; to the Commit tee on the Dis of New Castle County, Del., and 353 citi ters for the RECORD, and that the Senator trict of Columbia. zens of Kent County, Del., in support of from Minnesota [Mr. THYE], who now PETITIONS AND MEMORIALS legislation now pending before the Sen has the floor, will not lose his rights to Petitions, etc., were laid before the ate Committee on Interstate and Foreign the ftoor thereby. Commerce to prohibit the transportation The PRESIDENT pro tempore. Is Senate, or presented, and referred as indi<;:a~ed: of alcoholic-beverage advertising and there objection? , The Chair hears none, the advertising of alcoholic bever-ages and it is so ordered. By the PRESIDENT pro ter-.pore: A resolution adopted by the Great Amer over the radio. I ask that the petitions EXECUTIVE COMMUNICATIONS, ETC. ican Prospectors' Association, favoring the be referred to the Senate Committee on The PRESIDENT pro tempore laid be payment of the legal monetary price of silver Interstate and Foreign Commerce for its fore the Senate the fo!lowing letters, to American prospectors and miners begin consideration. which were referred as indicated: ning February 15, 1950; to the Committee I am also in receipt of a letter from on Banking and Currency. Mrs. Cora S. Palmer; legislative director, · REPORT ON POSITIONS ESTABLISHED BY The petit ion of Elbert Jefcoat, of Shingle, WCTU, Sussex County, Del., trans DEPARTMENT OF DEFENSE Calif., relating to old-age and survivors insur A letter from the Secretary of Defense, ance; to the Committee on Finance. mitting similar petitions signed by 1,073 transmitting, pursuant to law, a report on Resolutions adopted by the Fourth Con citizens of Sussex County, Del., urging the number of positions established by the grei::sional District Townsend Council, and the enactment of that legislation, and Department of Defense, for the calendar year a Sunday rally of citizens held in Lumus request that they be referred to the 1949 (with an accompanying report); to the - Park,· Miami, both in the State of Florida, ·· Committee on ·Interstate and Foreign Committee on Armed Services. · favoring the enactment of the so-called Commerce. Townsend plan, providing old-age insurance; The PRESIDENT pro tempore. The REPORT OF FEDERAL TRADE COMMISSION to the Committee on Finance. A letter from the Acting Chairman of the A paper in the nature of a petition, signed petitions presented by the Senator from Federal Trade Commission, transmitting, by Hans J. Isbrandtsen, president, Isbrandt Delaware will be received and referred pursuant to law, the thirty-fifth annual re sen Co., Inc., of New York, N. Y., relating to the Committee on Interstate and For port of that Commission, for the fiscal year to attacks by the Chinese on American-flag eign Commerce. ended June. 30, 1949 (with an accompanying ships; to the Committee on Foreign Rela Mr. FULBRIGHT. Mr. President, I report); to the Committee on Interstate and tions. present for appropriate reference a peti Foreign Commerce. A letter in the nature of a petition, signed tion signed by 650 citizens of Stuttgart, REPORT OF FEDERAL TRADE CoMMISS!ON ON by Mrs. Mary Klepinger, of Union, Ohio, re Ark., praying for ·the enactment of · RATES OF RETURN lating to the enactment of legislation pro hibit ing the transportation of alcoholic bev Senate bill 1847, to prohibit the trans- · A letter from the Acting Chairman of the portation of alcoholic beverage advertis Federal Trade Commission, transmitting a erage advertising in interstate commerce; report entitled "Report of the Federal Trade to th~ Committee on Interstate and Foreign ing in interstate commerce, and I ask Commission on Rates of Return for 528 Commerce. unanimous consent that the text of the Identical Companies in 25 Selected Manu A letter in the nature of a petition from petition be printed in the RECORD, without facturing Industries-1940, 1947, and 1948, Max Kloen, of Oyster Bay, Long Island, N. Y., the signatures attached, with the nota Based on a Report to the Commission by Its relating to the reissue of ·certain letters tion that it is signed by 650 citizens of Bureau of Industrial Economics" (with ac patent; to the Committee on the Judiciary. Stuttgart, Ark. companying papers); to the Committee on A resolution adopted by the Colfax County There being no objection, the petition Interstate and Foreign Commerce. Education Association, of Clarkson, Nebr., favoring the enactment of legislation pro was referred to the Committee on Inter AUDIT REPORT OF TENNESSEE VALLEY viding Federal aid to education; to the Com state and Foreign Commerce, and AUTHORITY mittee on Labor and Public Welfare. ordered to be printed in the RECORD, with A letter from the Comptroller Gener.al of Resolutions adopted by the Mercer Dental out the signatures attached, as fallows: the United States, transmitting, pursuant to Society, of Trenton, N. J., the Ninth District law, an audit report of the Tennessee.Valley Dental Society, of New York, and the Wash PETITION TO THE SENATORS OF THE STATE OF Authority, for the fiscal year ended June 30, ington State Dental 'Association, of Seattle, ARKANSAS RE LANGER BILL (NO. I847) WHICH 1949 (with an accompanying report); to the Wash., protesting against the enactment of WOULD PROHIBIT THE TRANSPORTATION IN Committee on Expenditures in the Executive legislation providing compulsory health in INTERSTATE COMMERCE OF ALCOHOLIC BEVER Departments. surance; to the Committee on Labor and AGE ADVERTISING AND STOP ITS BROADCASTING OVEn THE AIR AUDIT REPORT ON CORPORATIONS OF FARM Public Welfare. By Mr. JENNER: We, the undersigned citizens of Stuttgart, CREDIT ADMINISTRATION Ark., favor the passage of the Langer bill and A letter from the Comptroller General of A petition signed by sundry citizens of the State of Indiana,· praying for the enactment urge your support of it. the United States, transmitting, pursuant to Increasing numbers of arrests, in our little law, an audit report on corporations of the of legislation to prohibit the transportation of alcoholic beverage advertising in inter city, for driving while under the influence of Farm Credit Administration, for the fiscal alcohol and for drunkenness, is noted. year ended June 30, 1947 (with an accom state commerce; to the Committee on Inter state an& Foreign Commerce. Drinking at football games and most all panying report); to the Committee on Ex public places is not only on the increase but penditures in the Executive Departments. PROHIBITION OF LIQUOR ADVERTISING it is disgusting to the average citizen, and STATEMENT OF EXPENDITURES OF UNITED STATES PETITIONS sets a bad example for the children of school COURT OF CUSTOMS AND PATENT APPEALS Mr. LANGER. Mr. President, I am in age. A letter from the Director, Administrative receipt of a letter from Lucy M. Bon This lncreai::e in drinking, no doubt, has Office of the United States Courts, Washing come along with attractive ads which glamor ton, D. C., transmitting, pursuant to law, a Durant, member .Loyal Women Bible ize drinking as socially correct, seeking to statement of expenditures of the United Class, Christian Church, Mount Rainier, create a false security in moderation. States Court of Customs and Patent Appeals, Md., transmitting petitions signed by the We feel that "beer belongs" is the most in for the fiscal year ended June 30, 1949 (with adult Sunday school classes of the Chris- sidious form of advertising, because it entera 288 ' CONGRESSIONAL RECORD-SENATE JANUARY 11 - the sanctity of the Christian family circle. mission of Israel to the United Nations Or ment as well as in every other field of The ads are misleading because they show ganization: and national endeavor. only scenes before drinking and not the Whereas the security of Israel is now be I send the resolution to the desk for finished product. ing threatened, this time by the United Na Only you and other good Senators, by your tions Conciliation Commission's plan to appropriate reference, and ask unani vote, can put the Langer bill across. Won't sever Jerusalem from Israel, a plan which mous consent that it be printed in the you, therefore, please attend the committee would place all of the Holy City within a 60- RECORD. . hearing -on January 12. square-mile enclave under the "full and There being no objection, the resolu Signed by 650 citizens of Stuttgart, Ark. permanent authority" of the United Nations; tion was referred to the Committee on and 4-H CLUB EDUCATIONAL PROGRAM AND Expenditures in the Executive Depart Whereas the Jews of Jerusalem, having un ments, and ordered to be printed in the FEDERAL ADMISSIONS TAX-RF.SOLU dergone the most extreme suffering during TION OF SWIFT COUNTY (MINN.) FAIR the war when their city was under siege and R!!:CORD, as follows: ASSOCIATION in difficult straits, are now being called upon Whereas the cost of Government, Fed Mr. HUMPHREY. Mr. President, I to surrender their city to an alien supervi eral, State, and local, has continued to in sion; and crease until today more than 25 percent of present for appropriate reference a res Whereas the siege of Jerusalem was lifted, the national income is taken in the form olution adopted by the Swift County not by a United Nations truce, but by the of taxes for the operation of Government; Fair Association, Appleton, Minn., relat military strength of Israel who, though and ing to the 4-H Club educational program sorely pressed for its rwn survival summoned Whereas the Maryland League of Build and Federal admissions tax. all of its resources to relieve stricken Jeru ing, Savings, and Loan Associations, like There being no objection, the resolu salem and save it from strangulation; and similar associations throughout the United tion was ordered to lie on the table, and Whereas the city of Jerusalem is predomi States, represents thousands of substantial nantly Jewish in population (comprising citizens who are either buying their homes to be printed in the RECORD, as follows: approximately 90 percent of its total inhabi on monthly or weekly payments or who by Whereas the county fairs of our State and tants), in art, culture, educational, and med self-denial are endeavoring to accumulate by Nation serve a useful and educational pur ical institutions; commerce; trade; and savings a down payment on a home which pose, promoting and encouraging improved industry; and they hope some day to own, and yet another agricultural production, promoting and sup Whereas for 3,000 years the Jewish people group who by small we~kly or monthly sav porting the 4-H Club movement, and where have looked upon Jerusalem with special ings are endeavoring to build a modest com exhibits are a guide to improvement of farm reverence, regarding it as the spiritual cen petence for their old age; and crops and livestock; and ter of the Jewish religion: Therefore be it Whereas every dollar expended by the Vlhereas the county fair is an altruistic Resolved, That we, representing the Zionist Government, whether Federal, State or local, organization not operating for profit and is organizations of Oregon do hereby call upon is a dollar taken from these thrifty citizens therefore supported by State and county the United States Government to repudiate and handicaps them in their efforts toward appropriations; and the impractical and unjust plan of United personal security-a situation existing not Whereas the Federal Government now Nations Palestine Conciliation Commission only in Maryland but in every State in the takes in admissions tax an amount equiva which would cut off Jerusalem, the city of Union: Therefore be it Zion, from Israel; and be it further lent to the county and State appropriations: Resolved, That the Maryland League of Therefore be it Resolved, That while we are mindful of Building, Savings, and Loan Associations on Resolved at this the special meeting of the international character of the Christian this, its twenty-ninth annual meeting, calls the Swift County Fair Association, That the shrines and holy places in Jerusalem we would recommend that only these sites-and upon our representatives and Federal, State, Federal Government be urged to support and local Government officials to give heed to this educational institution which is help no more-be placed under the supervision of tb.e United Nations; and be it finally the excessive cost of Government and bend ing to develop the work of over 50,000 boys every effort to reduce expenditures and par and girls as members of the 4-H Clubs in Resolved, That copies of this resolution be sent to President Haz:ry S. Truman and be ticularly to eliminate unnecessary services. the State of Minnesota; and be it further The secretary is hereby instructed to for- · Resolved, That such Federal support be brought to the personal attention of Con rendered by the elimination of Federal ad gressman HOMER D. ANGELL and United ward copies of this resolution to Representa missions tax now exacted from county fairs, States Senators WAYNE L. MORSE and GUY tives in the Congress of the United States as so that county fair associations will have that CORDON. . well as State and local officials. additional money to further develop their SYDNEY E. STERN, EDWARD J. BANEY, institutions to better serve the public; and President, Zionist Organization of President. GEORGE J. CLAUTICE, be America. it further Secretary. Resolved, That a copy of this resolution NATHAN DIRECTOR, be forwarded to Members of Congresfl with President, Mizrachi Men's Organi DISMANTLING OF CERTAIN GERMAN the request that they introduce and support zation. PLANTS-PETITION AND LETTER legislation which would carry out this Miss ROSALIE HORENSTEIN, purpose. President, Junior Hadassah. Mr. McCARTHY. Mr. President, I ask Mrs. NORMAN BERENSON, unanimous consent to have inserted in INTERNATIONALISM OF JERUSALEM President, Portland Chapter Ha the RECORD, without the signatures at RESOLUTION OF PORTLAND (OREG.) dassah. tached, two items. One is a petition ad ZIONIST COUNCIL Mrs. M. FRAGER, dressed to the President of the United President, Mizrachi Women's Organ Mr. MORSE. Mr. President, I am in ization. States, signed by 700 workers of the receipt of a letter from A. Victor Rosen A. VICTOR ROSENFELD, Hochfrequenz-Tiegelstahl G. m. b. H., at feld, chairman, Portland Zionist Coun President, Portland Zionist Council. Bochum, Germany. cil, of Portland, Oreg., transmitting a GOVERNMENT SPENDING-RESOLUTION The other is a letter from Dr. John B. resolution adopted by that council with Crane in regard to the continued dis reference to the internationalism of Jeru OF MARYLAND LEAGUE OF BUILDING, mantling of German plants. Two dif salem. I ask unanimous consent that SAVINGS, ANP LOAN ASSOCIATIONS ferent committees were called upon to the resolution be appropriately ref erred Mr. O'CONOR. Mr. President, during study phases of the dismantling program and printed in the RECORD. the interim following adjournment of in Germany, one headed by Mr. Keena11, There being no objection, the resolu the Congress I received a resolution from the other the Humphrey committee. tion was referred to the Committee on the Maryland League of Building, Sav Both of them unanimously recommended Foreign Relations, and ordered to be ings, and Loan Associations, Baltimore, that the steel plant at Bochum, Germany, printed in the RECORD, as follows: Md., which deals with a subject of the should not be dismantled. Mr. Keenan Whereas Israel, having won its war of inde utmost importance to the future security declared it was indispensable to the re pendence, has now taken its rightful place of our country, Government spending. covery and successful operation of the as a free and independent state among the I may say that the resolution is typical coal mines. The Humphrey committee nations of the world and as a member of the of the sentiments of a great number of declared the plant was essential to the community of nations-the United Nations individuals and business groups in Mary efficient operation of the German steel Organization; and land who feel very definitely, as I do, that industry and to the economic recovery Whereas American Jewry, which has sub there must be established a policy in the of western Europe. stantially aided in the fulfillment of the Zionist ideal, is eternally grateful to the Government's fiscal operations which Despite the unanimous opinion on the United States Government for the leading wm recognize that the sound and proved part of the two committees, this steel role it played in the effectuation of Pales business practice of living within one's plant, upon the insistence of Great Brit tine'.s partition and in the subsequent ad- income has its application in govern~ ain, is being destroyed. "Dismantling" 1950 CONGRESSIONAL RECORD-SENATE 289 is the wrong word-it is being scr'apped. 1n the Ruhr making high alloy heat-resistant months, is it desirable deliberately to in If we can believe our two committees, it steels) at Bochum has been 85 percent dis'." crease this unemployment by the disman is going to affect very seriously the eco mantled as of December 21, 1949, and the · tling of a nonw~r steel plant? completion of the dismantling is scheduled The British admit that the Hochfrequenz nomic recovery of Europe, and, while we by the British for Janual'y 25. steel plant is not a primary war plant, 41lnd are tearing down this steel plant, we Any further dismantling of the plant will that almost all of its production has always have just completed spending $45,000,000 affect key furnaces and equipment, and will been for major peacetime industries such as building a huge steel plant in France. cause the shut-down of the plant, with over the railway industry, the coal-mining indus I may say I think the British and our 600 workers losing their jobs shortly after try, the electric utility industry, etc. State Department and the ECA are going January 15. ADENAUER INTERVENES TO SAVE HOCHFREQUENZ a long way toward making it impossible EFFORTS PREVIOUSLY MADE TO STOP DISMAN• Dr. Adenauer, the Reichs Chancelor of the for many of us to vote further ECA aid TLING OF THIS PLANT new Federal Republic of Western Germany, to Great Britain. The American Government made two in has just intervened to try to save the Hoch There being no objection, the petition vestigations of the Hochfrequenz steel plant frequenz plant at Bochum. At the last meet and letter were ordered to be printed in at Bochum in 1948. One of these was 'made ing of the three Allied high commissioners the RECORD, without the signatures at by Mr. Keenan, and one by a group headed for Germany, held on December 16, 1949, at by Mr. Wolf, who worked for the Humphrey Petersberg, near Bonn, Dr. Adenauer pleaded tached, as follows: committee (Paul Hoffman's committee). In for the saving of the Hochfrequenz plant. PETITION OF THE WORKERS OF THE HOCHFRE• both cases the American experts unanimously The commissioners replied that since the QUENZ-TIEGELSTAHL G. M. B. H. recommended that this steel plant be saved. plant was not included in the list of plants BocauM (WESTPHALIA), December 20, 1949. Mr. Keenan declared that it was indispensa agreed upon at Paris in November, it was not The Honorable HARRY s. TRUMAN, ble to the recovery and successful operation within their jurisdiction to consider his re President of the United States, of the German coal !nines. Mr. Wolf de quest. The White House, Washington, D. C. clared that the plant was essential to the It should be noted that the decision to dis DEAR MR. PRESIDENT: It ls with heavy hearts efficient operation of Germany's steel indus .mantle · the Hochfrequenz plant was made that we come to you this Christmas season try and to the economic recovery of western without any reasons ever being given in de for help in our despair. Europe. ' fense of such action, and without the Ger We are 710 workers in the German steel Several United States Senators have in mans ever being told why the plant was to plant at Hochfrequenz-Tiegelstahl at Boehum tervened with the State Department on be be dismantled, or ever being permitted to in the Ruhr. During these next 2 weeks, half of this plant. Among those who have refute err.oneous statements which have been in a season most sacred of the year to our tried to save this plant are Senator GEORGE, made about the plant. families, as to all Christian workers through chairman of the Senate Finance Committee, It is the consensus of opinion of American out the world, we are to see the complete. and Senator McCARRAN, chairman of the ECA experts who have carefully studied the destruction of the plant which is our liveli "watchdog committee." Moreover, Senators Bochum situation that the major motive be hood. BRIDGES and WHERRY have been active in hind the British .insistence . on dismantling The reason for this we can never under trying to save this and other steel plants. the Hochfrequenz plant is the desire to elim stand. Our badly damaged p1ant was in inate German competition. PAST AND PRESENT DISMANTLING STATUS OJ' formed on February 21, 1947, by a written Of great significanc~ in this regard is the statement o.f the military government that HOCHFREQUENZ-TIEGELSTAHL PLANT fact that the American High Commissioner it was withdrawn from the dismantling list. During the war the Hochfrequenz steel for Germany, John J. McCloy, told me tn a We rejoiced. With our own hands and no plant was badly damaged by bombings. The conference in his office at Frankfurt, Ger more pay each day than the value of a cig British decided the plant was not a war many, on December 19, 1949, that he person arette, despite great hunger, we speeded up plant and gave the plant a work permit to ally would like to see the Hochfrequenz plant rebuilding the walls of our factory and the resume operations, and removed the plant saved. from the reparations list in February 1947. reconstruction of the machtnery. Three of AN IMMEDIATE MORATORIUM ON DISMANTLING IS our skilled steelworkers lost their lives in With the plant removed from the repara NECESSARY this sacrifice, because they were inexperi tions list early in 1947 the management and enced in construction work. At last our. workers got busy and rebuilt the plant with If the Hochfrequenz steel plant at Bo factory was once more in useful operation. an expenditure of over 4,000,000 marks. chum ts to be saved, an immediate mora Then the blow fell. With no explanation Over 2 years later, on May 5, 1949, the Brit torium on further dismantling is necessary. to us we were placed again on the disman ish notified the plant that it would be dis Such a moratorium should be for 60 or 90 mantled beginning July 1, 1949. days, or whatever period is required for the tling list. appointment of a special committee to inves Mr. President, from that day to this our As a result of the intervention of Senators lives have been filled with uncertainty and tigate and report on the situation at Bochum. GEORGE, McCARRAN, and others, the British No harm could result from such a moratorium anguish. We have learned that all United, withdrew the dismantling order temporarily, States investigating committees argued that and investigation, while such an inquiry but gave out· a new order a month later. might well prevent a grave injustice being our plant-was necessary and should be saved. They ordered the dismantling to begin Au All political parties in Germany have spo'ken done. gust 3, 1949. Dismantling has been 1n prog Sincerely yours, out for us. And still we are doomed. ress since that date and still continues. Mr. President, this Christmas season 1s JOHN B. CRANE, .. In justifying their new order to dismantle Wa_shington, D. C. one of deepest sorrow for us, and we ;face the Hochfrequenz steel works the British the new year with despair. In our town of Government told the State Department that REPORT OF A COMMITTEE Bochum there are already several thousand duplicate capacity existed in other German The following report of a committee metal workers out of jobs. What then can steel plants and that the output of the small was submitted: we look forward to? Among us is a larger Bochum plant could easily be ta.ken over by percentage than in most German factories other steel plants. They said the workers By Mr. HAYDEN, from the Committee on of partially disabled workers. These live could readily be absorbed in other industries Rules and Administration: absolutely without hope now. when the plant was dismantled. S. Res.180. Resolution to amend rule XXV of the Standing Rules of the Senate with re . We trust you will believe our sincerity I have just returned from Germany where when we say we long only to produce things I took occasion to Visit the Hochfrequenz spect to a quorum of committees and sub which wm be useful in a. peaceful world. plant and to talk With the management. committees; without amendment (Rept. No. At this Christmas season we say from the They declare that the bulk of their produc 1208). depths of our hearts we long only for peace tion cannot be produced in any other steel FUNERAL EXPENSES OF THE LATE on earth, good will to men. But to show this plant in Germany as it requires special fur SENATOR REED, OF KANSAS a.nd to be convinced democrats, we must be naces and highly specialized equipment not permitted to earn our livfog with our own available elsewhere. The dismantlement of Mr. HAYDEN. Mr. President, by di hands. · their plant will make them dependent on rection of the Committee on Rules and Dear Mr. President, if you can't help us Administration, I report favorably, With and help us quickly, we and our ;families imports from the British and French alloy will be lost. Will you not, as the leader of steel industries. out amendment, Senate Resolution 201, the greatest and most humane nation in Moreover, I checked with the mayor's office and ask unanimous consent for its pres the world, save our plant and make it possi 1n .Bochum and found that the town already ent consideration. ble for us to live as decent, useful people? has over 2,500 unemployed metal workers 'as There being no objection, the resolu In love and hopefulness, we ask this. a result of the recent dismantling of the tion
SPAIN HAS VITAL SIGNIFICANCE TO WESTERN REPEAL OF OLEOMARGARINE TAXES have been made not only by my colleague PLANS The Senate resumed the consideration the Senator from Minnesota [Mr. HuM 6. No one disputes the fact that if an of the bill (H. R. 2023) tq regulate oleo PHREY] but also by the Senator from American Ambassador represents our inter Iowa [Mr. GILLETTE] and other Senators, ests there, he can look after the needs of our margarine, to repeal certain taxes relat citizens, serve as a listening post, conduct ing to oleomargarine, and for other pur who have called specific attention to the high-level talks, if necessary with Spanish. poses. international cartels and international officials, report to our Government on trends The PRESIDENT pro tempore. The organizations which are hoping to en in that area of Europe and. elsewhere, etc. pending question is on agreeing to the gage or which are engaged in the proc This is wholly aside from the question of amendment proposed by the Senator essing of oleomargarine. the present status of our fight against com from Wisconsin [Mr. McCARTHY], insert Mr. President, it was just a few years munism throughout the globe. ing certain language after line 1O, on ago that a subcommittee of the Senate 7. But now, at this point, let us add the crucial fact that we are engaged in a cold page 4 of the original bill. Committee on Agriculture attended a war with the anti-Christian and revolution Mr. THYE. Mr. President, I rise to hearing ·at Memphis, Tenn.; and from ary conspiracy of the Soviet Union. We have support the Gillette-Wiley substitute to Memphis we went to Muscle Shoals. poured untold billions of dollars since the H. R. 2023. Because I am convinced that While we were examining that plant and end of the war into Europe to stop commu removal of restrictions relating to oleo the TVA development, some of the soil nism. We are right now pouring a billion margarine colored yellow in imitation of conservationists took us into the coun dollars of 1ums into the western European butter would have a serious adverse effect tryside and showed us some farms which countries, We are not being choosy about on the dairy industry, and eventually the had been eroded by row-crop operations the politics of some of our friends, because we have no alternative but to side with those entire agricultural economy, I have in years past. Then they showed us who sincerely oppose communism. joined with a group of 25 Senators in another farm, one of several hundred We sent military missions to Greece al sponsoring this amendment in the nature acres. "This farm, as you see it now, is though we had doubts about some of our of a substitute to House bill 2023. The a much better looking farm unit than it friends there; but we had no doubts about amendment would repeal the Federal was when we first commenced to work the murderous Greek Communists who were taxes on oleomargarine, but would make on it a few years ago," they said. "This destroying that unhappy little land. We are unlawful the manufacture, transporta particular farm you now look upon was pouring economic and other aid to Red .tion, or sale of yellow oleomargarine in as badly eroded as some of the fields you turncoat Marshal Tito, although the memory is still fresh in our mind that he was blithely interstate commerce. This measure is see over on yonder hillside. And nothing shoo.ting down American airmen but a few along the lines I believe necessary as a .very much other than weeds and brush years ago. fair safeguard to consumers and pro were growing on that long general slope ducers of both dairy products and sub- · that you are now looking at.'• FEW NATIONS ENJOY AMERICAN-STYLE LIBERTIES stitutes. The Portuguese Government ls a party io We were on the roadside, looking up the North Atlantic Treaty, although her peo Yellow oleomargarine manufactured over more than half a mile of general ple do not enjoy the rights that our own or colored within the borders of a State slope, and it was then beautifully ter ·people do. In fact, if we were to withdraw or Territory in which it is consumed raced, and grass was growing on it. our ambassadors from every country whose would not be subject to the provisions of Herds of dairy cattle could be seen graz people do not enjoy American-style civil lib the proposed act, but would be subject to ing over the general slo~e of that coun erties, we would have an army of unemployed the laws and regulations of the State or tryside, and we saw some excellent, well American envoys, including United States Territory. The application of Federal improved farm buildings. It was a unit diplomats from every country behind the pure-food laws would not be lfmited by which had been developed or created on iron curtain. We thus see that a realistic view of the the act, and the enforcement provisions land which had been so badly eroded situation requires that we utilize every in of those laws are specifically cited in con that only a short time before it had been strument available in our fight ,against com nection with the new provisions to be ad- laid aside as useless or wash land. Yet munism or else we will simply be cutting off . ministered by the Administ.rator of the by its rebirth, so to speak, the contouring our nose to spite om: face. We will be failing Federal Security Agency. · and reestablishment of grass on the land, to fully recognize General Franco's govern In all areas except those adjacent to and the establishment of a dairy herd, ment because of some obsolete decisions large metropolitan centers, the dairy pro the operators of that farm were bring made by the UN which are by no means ducer is dependent on the butter market. ing about a production from land which binding. The dairy farm lends itself to the most at one time had been laid aside as useless. SPAIN'S INTERNAL AFFAIRS ARE SPAIN'S BUSINESS practical type of diversified farming. It The dairy cow fitted into the picture 8. To return our Ambassador to Spain does is a family-type farm operation, and that there. Without the aid of the dairy not mean that we approve -of the Madrid is just what we are trying to continue in cow, it would have been useless, and an· government's policies any more than we America, with its individual ownership, utter waste of time, for the operators necessarily approve any other government's policies. Spanish internal affairs are the individual management, and individual of that farm to attempt to reestablish the business of the Spanish people themselves. opportunity for the children of a family fertility of the soil by means of the use No one disputes the fact that General Franco to assist in the farm work. of commercial fertilizers and the con is now, always has been, and always will be We have appropriated hundreds of touring of the land, because unless the a powerful opponent of communism. The millions-of dollars for soil conservation land is tied down with a grass crop, it position of Spain at Gibraltar and at the and soil-building practices. Butterfat will erode again as soon as the rains ·Pyrenees is of obvious military importance comes from dairy farms which, with come. But with the grass crop and the · in future operations. their acres of pasture lands and legumes, hay lands or meadowlands which were To return our Ambassador to Madrid does not mean, of course, that we are committed build the soil. A large percentage of . furnishing dry legumes and feed for the to defending western Europe only at the oleomargarine is processed from vege dairy cows, the operators of the farm Pyrenees (as against defending it at the table oils produced from row-crop opera were establishing a very profitable unit. Rhine.) tions, such as soybean and cotton pro I have cited that case to show how the The Madrid government is·stable. It pos duction, which deplete the soil. dairy cow fitted into the picture for the sesses all the qualities of a state, and it is Even in the South, progressive agri reclamation of some badly eroded land ridiculously inconsistent for us to pursue a culturists have endeavored to establish· in the vicinity of Muscle Shoals or TVA, policy which is now completely outdated, livestock and diversified farm manage in the section of the country from which which is not doing us any good, the devout ment in the development of family-type Spanish people any good, or western Europe the President pro tempore of the Senate any good, but which is only helping our com farms. If we now yield to the great pres comes. I could cite many other proj mon foe-the brutal Communist clique in sure of a few large processors of oleo ects-for instance, some in Arkansas, in the Kremlin. margarine, some of whom are interna Mississippi, and elsewhere in the South tionally involved-a pressure aided by the where such reclamation projects or op CONCLUSION Cotton Council-we shall be taking a step I, therefore, urge the President and his erations involving the reclamation of Secretary of State to reconsider their policy backward in respect to the continuance badly eroded lands have been developed, and to change it in the light of present-day and growth of family farms in this Na and where the family type of farm and realities. I urge them to make the strongest tion. the dairy are now providing prosperity, possib!e representations accordingly to the I wish to call the attention of Senators opportunity, and hope .to the individual United Nations. to some of the previous statements which farmer or individual family man. 1950 CONGRESSIONAL RECORD-SENATE 295 I can cite instances of family men No. 32, at Duluth, Minn., has sent me could be explained in this manner: If coming before the committee at that the following: cattle are on green pasture, the milk it hearing and telling how well they were Our union is definitely on record opposed self will have a yellow tint, and the but progressing now that they had intro to the coloring of oleo. terfat definitely will come out quite yel duced the diversified type of farming, low. If the cattle are on dry feed and had ceased growing row crops, and were Gene Larson, of Minneapolis, chair man of the International Conference of have been confined to the barnyard or engaged in animal husbandry or in the wit~in buildings, as they must be in the care of dairy cows. That necessarily Dairy Employees, affiliated with the AFL, winter months, the butterfat then will meant that there was a creamery adja asks for delay in considering the present not be so yellow. In order to have uni cent to that particular farm unit or farm legislation, so that his union organiza formity, there has been a practice of operator's location, in order that he tion could have time "to prepare our selves to be in the best possible position yellowing the butter, so that the season would be able to dispose of the butterfat will make no difference in the shade of produced on his farm, because unless to def eat legislation sponsored by the yellow when the butter is processed. such a farm operator is located very close oleo interests." · When color is added to butter it is for to a large, metropolitan milk-consuming Eugene R. Hubbard, vice chairman of the sake of uniformity-not for the pur area, he is dependent upon the processor this group of employees, has sent various pose of making it look like some other of butter to process the commodity or Senators the following telegram. product. product of his farm into a salable prod International Conference of Dairy Employ Mr. President, in considering .the pro ees, Division of International Teamsters Un uct. . ion, affiliate of American Federation of Labor, posals now before the Senate, H. R. 2023, I have cited these instances in order representing more than 100,000 union em as reported by the committee, and the that we may better appreciate what we ployees in dairy plants of the Nation re substitute sponsored by 25 Senators, we shall be confronted with if we take such spectfully urges your support of Gillette are agreed that the· present Federal t ax action as will permit a synthetic product Wiley amendment to H. R. 2023, now on Sen of one-fourth cent a pound on uncolored to take the market of a genuine product ator Calendar. It repeals oleo taxes b·1t pro oleomargarine and 10 cents a pound on like butter. tects consumers and dairy industry from the colored product, as well as the manu By destroying the butter market we imitation of yellow butter, in interstate com facturers', whoiesalers', and retailers' may help a few large processors of the merce. fees and taxes should be removed. W.e substitutes, but we shall put out of busi Now, Mr. President, what is the main agree on this simply as a matter of Fed ness thousands of small creameries all argument on this question? It has been eral tax policy, but we ought not to be over the land. There are 348 coopera heard in this legislative Chamber time misled by false propaganda which a tive creameries and 146 independent and again for the past half century. The well-financed iobby has circulated that creameries in Minnesota alone. These whole argument involves the restriction the 9% cents added tax on the colored creameries serve the thousands of indi on color. Despite all the propaganda product has worked a hardship or added vidual farmers residing in our State who that has been circulated, there has been an expense to the consumer. The 9% have no fluid-milk market. wisdom in the continued restriction of cents is assessed only against the colored The eastern markets are closed to the sale of oleomargarine when camou product. When the product is pur these farmers by the milk-marketing ft.aged to resemble butter in every de chased uncolored, the tax is not imposed. control legislation, which protects the tail. Color restriction does not deny the As for the consumer, no one pays the producers in areas adjacent to our great consumer a food product, nor does it im 10-cent tax unless he purchases yellow .metropolitan centers. I myself could pose a financial burden on anyone. oleo. The old contention that the home not bring a can of milk into the Wash Color adds nothing to the food value of coloring of oleo is tedious and wasteful ington market this morning, in competi oleomargarine. no longer holds water. Modern pack tion with the milk sent into the Wash The simple fact is that the processors aging enables a housewife who wants ington market by the producers who of oleomargarine are attempting to du yellow oleomargarine to color it very operate in this area. I could n-0t do so plicate butter to the last degree. They easily. quickly. and without waste. I may even if I desired, and even though the have, already, successfully incorporated explain why I say that. A small capsule milk would qualify as grade A milk, be · the flavor of butter into the substitute of coloring matter is placed in a 1-pound cause there is a milk board which has product. They have made oleomarga package of oleomargarine, and all the control of this mark.et, as well as of the rine resemble butter in texture by add housewife has to do is to sc;:ueeze the markets in :Baltimore, Philadelphia, and ing preservatives. They have packed pack a few times. The capsule bursts the other Atlantic seaboard cities. For the oleomargarine in packages made to and the coloring matter spreads through that reason the milk produced in the resemble butter cartons, even to the ex the oleomargarine, after which the Midwest in the diversified-farming areas tent of putting farm scenes and pictures housewife breaks the pack. In ·this must be separated, the butterfat must be of dairy cattle on them and displaying manner the oleo is as beautifully colored churned, and the butter must then have the word "butter." If they are now al as the processor himself could possibly a market. If oleomargarine takes over lowed to color oleomargarine without make it, and the housewife is not re that market, what are we going to do restriction, they will have duplicated but quired to pay the tax of 9% cents. with the milk we produce in areas where ter in every detail. There can be only I may further say that, once the proc we do not have a large milk-consuming one reason for all this. It is all for the essor is given the unrestricted right to population or a large milk-consuming purpose of benefiting from the age-old color the product, without an additional market to which to sell our milk? consumer habit of using butter. tax because of the coloring, the house There are more than 3,500 creameries Oleomargarine is not entitled to the wife will pay dearl~ for the product. The 1n this country, employing about 40,000 yellow color. They claim that oleo has makers of oleo, by reason of its imitating people. There are only 26 oleo manu as much right as butter to the yellow butter, will then bring their price up to facturers, and, according to their own color is false. Oleo in this country is about the price of butter, and it will re admission, their work force at the pres largely produced from the oils of cotton main there so long as they can find a ent amounts to only 4,619 persons. seed and soybean..,. The oleo industry market. Of course, they will find a mar Thus, 10 times as many workers in dairy claims it must bleach these oils white be ket, if the product looks like butter, plants alone would face cuts in salary or cause of Federal laws. The real reason smells like butter, has the texture of but possible lay-offs as a result of the serious is that when cottonseed oils are turned ter, and is branded as butter. blow to the dairy industry which the re into fat they become grey, and when soy Furthermore, oleomargarine already peal of regulations on oleo, as contem bean oils are turned into fat they become has been given competitive privileges plated by House bill 2023, is certain to green. In order to have a uniform color which are denied to butter. It may be cause. the oleo manufacturers must bleach out flavored with butter flavor and preserved Union leaders are alive to the danger the grey and green colors. It is impos with a preservative. Neither of these facing the skilled workers in dairy plants sible to produce a natural yellow oleo nor any other extraneous substances- all over the country. . Many have tele margarine from domestic oils. may be added to butter. · graphed me concerning the matter. Butter, on the other hand, is always Yet, the basic purpose of the 10-cent Ray Johnson, business agent of the yellow-although at some seasons of the tax on oleomargarine colored yellow in Milk Drivers and pairy Employees Local year it is less yellow than at others. That imitation of butter is not to tax onP. food 296 CONGRESSIONAL RECORD-SENATE JANUARY 11 to protect the market of another. Its gular in shape. By "pats" I refer to the ceived the butterfat emulsified back into purpose is intended to protect the con- familiar servings of individual portions skim milk did as well as those that received sumer, just as our pure-food laws are - of butter or oleomargarine on a small whole milk. intended to do, against adulteration and dish. The oleomargarine used in a Those are remarks of Dr. Petersen, the substitution. Fundamentally, there is no sandwich, of course, would lose its iden great dairy specialist of the University restrictive tax on oleomargarine excep't tifying triangular shape, and served in of Minnesota. when it masquerades as butter. half-pounds or quarter-pounds in a dish The scientist added that the experi Other imitations of good butter are on a table it would not have its triangu ments have not yet revealed what it is taxed; why should oleo be exempted? lar shape. Very few people would exam in butterfat that makes it superior to Adulterated butter-which, lil{e oleo, is ine the walls of a public eating place for other fats. ''There are certain things an imitation of good butter-carries the a sign to indicate that they were being we have eliminated," he stated. "For sf!,me per pound tax and the same man served oleomargarine. . That, of course, instance, vitamin deficiency is not the ufacturers', wholesalers', and retailers' is what House bill 2023 proposes to do. factor as the addition of all known vita occupational taxes as does colored oleo. It proposes that there_shall be a sign in mins to these calves failed to prevent the . There is no reason why an exception the restaurant saying, "We serve oleo onset of the disastrous symptoms." should be made for oleomargarine. Or margarine here." The oleomargarine I have heard the question asked-in do the proponents of removing all Fed would ·have to be served in a small tri fact, the same question has been asked eral restrictions on yellow oleomargarine _angular pat to indicate· that it was not of me-"Why the contention, if ·you intend to come forward with a .repeal of butter: cannot detect th-e difference 'in taste be the taxes on adulterated or _reprocessed If House bill 2023 is _allowed to pass, tween oleomargarine and butter?" That butter? Senators have never heard it oleomargarine will enjoy every market question was asked me in a Senate sub mentioned. Would such action be in the ing advant£i,ge of .butter, and the age committee hearing a year ago, and I public interest? The answer, of course, is . old taste for butter is in the market simply answered in this manner: "You "No." that the processor of oleomargarine is cannot detect strychnine in milk by the It is my prediction that repeal of the striving to capture. taste, but certainly your stomach will present laws, as contemplated b~· H. R. The processor of oleomargarine con know the difference. Likewise, you can ~023, would prove costly to the con tends that he has successfully incorpo not detect the difference between butter sumers. rated all of-the food and nutritive values and oleomargarine as it is now processed, Already in the city of Washington, of butter in oleomargarine. This ques but your stomach will soon detect it, as for example, colored oleo has sold on the tion, of course, could be debated at great there are certain oils -which can be used · same day at from 14 to 20 cents a pound length. Speaking from my own expe in the making-of oleomargarine which more than uncolored brands. A recent rience, I know we cannot successf ul.ly the-body cannot assimilate in the same nationa1 survey shows that in cities where raise a calf by extracting from the milk manner as it assimilates butterfat." yellow oleg may be sold, its price ranges all the butterfat and substituting other At this point, I ask unanimous consent as much as 30 cents more a pound than fats in the same quantity. In · nearly white oleo. The average mark-up in to have printed in the RECORD, as a part all such cases the calf will die. There of my remarks, a letter which I recently nine cities was 21.8 cents a pound. The have been scientific experiments made tax is only 10 cents a pound. It is a prod received from Mr. Henry J. Hoffman, by some of the leading dairy specialists chief chemist of the Minnesota Depart uct that carries only a tax of 93,4 cents, of the Nation, and their experiments provided it is colored. Yet, when it is ment of Agriculture, Dairy and Food, have also proved this to be true. who has had wide experience in the marketed after being colored, and is sold In a radio broadcast on January 2 where permitted to be sold, in such States problem of enforcement of food laws. I of this year, Dr. William E. Petersen, personally served as deputy commis as do not have regulations on the sub professor of dairy husbandry in the Ag ject, it will oftentimes carry a price, sioner of agriculture in Minnesota and ricultural College of the University of had charge of enforcement of the food when colored, of as much as 30 cents a Minnesota, described experiments con pound more, when in reality the tax im laws, so that ·I can speak from personal ducted at the Minnesota station by Dr. experience as wen as quote Mr. Hoff posed is only 9% cents a pound. Gullickson. . man's letter. Who gets that exorbitant overcharge? I know both those gentlemen very well, It certainly is not '.;he farmer. No, Mr. · and I know that Dr. Petersen is one of There being no objection, the letter President, I assure you that farmers the greatest dairy specialists and one was ordered to be printed in the RECORD, never see a penny of that extra money of the greatest students of the dairy cow as follows: the consumer pays. in the entire United States. STATE OF MINNESOTA, DEPARTMENT OF And what will happen to the price of AGRICULTURE, DAIRY AND FOOD In this radio broadcast Dr. Petersen Senator E. J. THYE, oleo if the present laws are repealed? described experiments conducted at the Senate Office Building, The production of colored oleo could be Minnesota station by Dr. Gullickson, Washington, D. C. expected virtually to displace uncolored where various fats have been emulsified DEAR S EN ATOR THYE: At the reauest of the oleo. There would be nothing to prevent into skim milk including butterfat after Minnesota Dairy Industries Committ ee, the the colored product from being sold at being taken out of the milk and reemul writer would like to point out the following substantially higher prices than the un sified into the skim milk. These various facts in the butter versus oleomargarine con- colored-with little or none of the uncol fats put into skim milk-such as butter troversy which is now raging. . ored available. How would that help the 1. The State dairy commission was origi oil and corn oil, soybean oil, peanut oil, nally created in 1885 -for the sole purpose consumer? hydrogenated vegetable oil and animal of regulating oleomargarine. At that time, The touching concern of the oleomar fats such as lard and tallow-have been oleomargarine was being freely sold in imita garine interests for the consumer, aided compared for rates of growth ·and gen tion of butter, and the great bulk of oleo by certain· metropolitan newspapers, eral well-being of the calves over a period margarine sales were as yellow oleomarga which have been misled by the so-called of many years. rine, palm ed off as butter. The legislature housewives' revolt, is about as synthetic What were the results? saw the need of a law which would enable as the product they would exploit at the Dr. Petersen replied to that question the public to readily differentiate between butter and oleomargarine. Hence, the law expense of our dairy industry. in these words: was passed prohibiting the coloring of oleo The American housewife is being The results have been r ather striking. It margarine, and this department (then called fooled in this fight. Another segment of is proven that there is something in butt er the Minnesota Dairy Commission) was cre the public, restaurant patrons, are likely f at that is not found in any of the other ated to enforce the law. to be fooled, too. In the event all Fed fats because the calves on butterfat h ave 2. Butter has always demanded a higher eral taxes are removed and there are no done so much bett er than those getting an price than oleomargarine, and since the restrictions on how oleomargarine is to equivalent of other animal fats, but the public is willing to pay this higher price, most striking results of these experiment s they are entitled to reasonable protection be marketed, it will be used in restau has been the observation of the vegetable to insure that they get ·the product that rants where rnme 60,000,000 meals are f ats when emulsified into skim milk and they pay for. The public's protection is the served daily. The sponsors of H. R. 2023 to resemble whole milk have been toxic to distinguishing color between white oleo propose that the pats of oleomargarine calves. As a matter of fact, all calves on margari:qe and yellow butter . . The house served in public eating places be trian-. such diets have died, while those that re- wife who ccmplains about the efiort used· to 1950 CONGRESSIONAL RECORD-SENATE 297 color her oleomargarine yellow at home -16 percent· of all dairy cash income and Mr. AIKEN. Mr. President, will the would be the first one to complain if she is the outlet of 27 percent of all milk Senator from Minnesota yield? paid the price for . genuine butter and re- . ceived yellow oleomargarine. Experts- produced in this country, most of our Mr. THYE. I am most happy to yield chemists, nutritionists, food officials, doctors, dairy-farm leaders are convinced that to the Senator from Vermont. and the like-will have little difficulty de loss of the vital butter market will mean Mr. AIKEN. Would not the Senator tect ing oleomargarine from butter even 1! an agricultural depression. like to point out that the dairy industry both were yellow, but laws are not enacted Certainly, the effect on an important of this country, first, furnishes one of for such experts, they are enacted to pro segrr.ent of American agriculture will be the largest single items of tonnage which tect th e everyday layman who, not being very serious. endowed with sufficient knowledge, is the the railroads and other means of trans one who will be defrauded. And such lay First, in the Midwest our diversified portation carry? They transport fer men are the great purchasing public, not farm operation will be jeopardized. ·tmzer to the farms, milk to the cities; the few experts. Without the butter market there is no and dairy products of all kinds. More 3. The magnitude of enforcing the law outlet for the products of the dairy farm important than all else is the transpor and insuring people that butter was genuine, because, as I have stated before, the tation of grain to the dairy farmer. I if yellow oleomargarine was permitted to be great metropolitan fluid-milk markets do not know how much grain my small sold, would be so great and so expensive that are closed as a result of existing legisla 'State now uses, but 10 years ago we were the cost of administrative effort would be tion. The two and one-half million importing over 500,000 tons of grain an prohibitive. 4. There is no value, either nutritional dairy-farm families would be injured in nually into that one small State. When or ot herwise, to the color the oleomargarine every State in the Union. There would ·we multiply that by the amount of ton manufacturers wish to add to their product. be 40,000 milk-processing plants, and nage that moves over all our roads we Its only purpose is to cause their product. to their employees that would be adversely can easily see what the effect would be resemble butter. Why do the oleomargarme -affected. The eventual effect on dairying of losing a considerable part of that ton . manufacturers not direct the effort now as a whole would be drastic and would nage. It would mean that a bad situa expended seeking yellow oleomargarine to lead to changes in our diversified agricul tion would be made very much worse, if some worth-while project such . as extolling the merits of their pure white product? ture. not even desperate. · 5. Most food manufacturers, including One of the most serious results of this Mr. THYE. The very able Senator oleomargarine manufacturers, make an ad trend would be the effect on our soil from Vermont is indeed correct when he vertising point of calling to the public atten resources by discouraging dairy farming, says products of the dairy industry con tion that their products are free from arti the most important contributor to sound stitute one of the greatest sources of ficial color and flavor-yet here is a product soil conservation. · traffic which the railroads have an op- which is free from such ingredient, yet the The dairy-farm movement has been portunity to transport. · manufacturer wishes legislation so that he extended into the South to reclaim land Mr. AIKEN. I should like to point out can add them. How can such controversial that has lohg ago been depleted of its ideas be reconciled? also that it takes almost five times as Let it be further pointed out that butter top soil by constant row-crop operation. much man-labor to make 1 pound of m anufacture is the cornerstone of the dairy I have visited ·farms in many areas of butter as it does to make 1 pound of oleo. industry, and that dairying is one of the most the South where the dairy cow is now When we consider the two or three mil important functions of the American farmer. utilizing the legumes and pasture lands lion people who today are employed in Our whole economic structure is based upon which are helping restore the soil. If we the production of. dairy products, who the products of the soil and the producers destroy the butter market by the pend are employed the year around, 365 days of such product--the farmer. To permit the ing legislation, we shall handicap the wholesale defrauding of the American public of the year, and compare that labor with in one of the key items of the diet--butter Extension Service and the Soil Conser the seasonal labor which is required to Will, without question, upset the price differ vation Service of the Department of Ag produce oleomargarine, we can form ential now existing between butter and oleo riculture in their endeavors to introduce some idea of what the effect will be on margarine, and conceivably upset our present diversified farming in areas of the South our labor supply and on the standard of economic picture still further. It is true that where they have found it is not sound living of our workers. today the price of butter is high, but let us practice to continue to grow the row Mr. THYE. I thank the able Senator not forget that oleomagarine, too, has trebled crops. from Vermont for adding those facts to in price. This is ~ fact which the oleo If legislation is enacted which does margarine manufacturers have spent con the discussion. siderable effort in soft pedalinJ. We should destroy the butter market, we are placing Mr. President, let us examine some of not be concerned so much with price in this the huge holdings of butter of the Com these surplus problems. In 1948 approx controversy, as we should in price differential. modity Credit Corporation in a precari imately 55,000,000 bushels of corn alone Lastly, it should be pointed out, American ous position. were placed under loan or purchase manufacturers are constantly extolling the Mr. President, I hope my colleagues agreement. The support price was $1.44, individuality of their products, and through will pay strict attention to the holdings advertising seek to point out the, distinguish which represents a commitment of ap which the Commodity Credit Corpora proximately $821,400,000. It is impos ing features of their products-yet here come tion now has of butter, cheese, and the oleomargarine manufacturers who wish sible to state how much of this corn the to submerge the identity of their product in powdered milk. Government now actually owns and how the shadow of another. They are disinter In order to support butter prices in much is still under loan or will be re ested in making their product an individual 1949, the Commodity Credit Corporation sealed under some future loan. As of unit, but, rather, would have it be an imita purchased 115,000,000 pounds of butter November 30, 1S49, 19,235,372 bushels of tion. When such efforts are made, we should at an average cost of only 62 cents a investigate them thoroughly, because, usu the 1949 crop had been placed under pound. This represented a cost of $171,- loan or purchase agreement, involving a ally, fraud and deceit are coupled with such 300,000, and the Commodity Credit Cor efforts. poration, in order to further support commitment of $26,929,000. Sincerely, dairy prices and to maintain dairy prices If we take a look at the cotton situa HENRY J. HOFFMAN, tion we find of the 1948 crop 5,271,772 Chief Chemist. somewhere near 90 percent of parity, purchased 26,000,000 pounds of cheese bales were placed under loan. Of this, Mr. THYE. Mr. President, what are at only 12 % cents per pound, and the 1,490,772 bales were redeemed by the end the dangers to the agricultural economy total sum so expended was $8,255,000. If of 1949, leaving 3,781,000 bales under of the United States if we lose the butter we aestroy the butter market many of Government ownership or commitment. market to this synthetic product that the farmers who are today engaged in The average support price in 1948 was looks like butter, tastes like butter, and is growing legume crops and who have $158 a bale. Thus there was a total in sold in cartons that have the appearance many good fertile acres of land in pas vestment of $597,3S8,000 in the 1948 crop of butter cartons? ture will have to turn to raising another as of December 31, 1949. That is sur I hope each Senator will ask himself type of crop. That will greatly aggra plus cotton that is held by the Commod that question. vate our surpluses of corn and wheat, ity Credit Corporation, because there is The dangers are far more serious than but it will be agreed it w111 also aggravate no domestic demand or any exportable app(sar on the surface in what, in a nar the cotton problem in the South. We demand for it at the time. row sense, is the proposed removal of an need only examine the figures to see that What we need to do is to find some excise tax. Sin~e butter accounts for we do have a problem. way of diverting some of these cotton 298 CONGRESSIONAL RECORD-SENATE JANUARY 11 acres to some other kind of crop, in or because there are peak and low seasons within a short distance, and its ships are der that we may not have the surplus of production. between Formosa and China, as anyone problem in cotton as I have described it. To go back to the farmer's letter, he knows who read this morning's news If we increase our corn acreage, we are says further: papers. Formosa is a hundred miles going to have an aggravated surplus From our Minnesota Department of Agri from the mainland and there can be no problem on our hands, and we already culture we learn that there are 7,000 farms crossing if our Navy makes it clear that have a problem of surplus corn. So what in Minnesota that had dairy cows on th3m ships carrying troops will not be allowed we need to do is to expand our dairy in 19~0 that do not have any dairy cows in to cross. In fact, probably there would industry, and induce more families to 1949. This trend away from dairying is sure be no such attempt at all if the State De engage in dairy farming and soil build to increase if this bill is passed in its present form. partment made it perfectly clear that we ing, rather than to throw them further · Third, the consumer should ba interested do not intend to permit Communist oc into the category of adding to the cot in l{eeping the young men on the farm, where cupation of Formosa. ton surplus, as well as the corn surplus. they are needed to produce food. Every ob The basis of our foreign policy in the In the event we destroy the butter mar stacle placed on agriculture tends to increase last 3 or 4 years, if there has been ket, we can, rest assured that some of the drift of farm boys to the cities, where any consistent foreign policy, is to con- those now engaged in diversified types .they can have such privileges as the 40-hour . 'tain communism where it is and prevent of agriculture in Alabama, Mississippi, week, time and one-half for overtime, etc. We see indications every day that can stop any single step of advance, because suc 'and all the other Southern States, in us and make us wonder as.to what direction cess in any such step is certain, consid cluding Arkansas, will turn back to some we are going. For e.n example, a good 120- ering the character of communism, to 'kind of a row crop, whether it is pea acre farm with a full line of good buildings ·lead to another step. We, therefore, nuts, or cotton, or soybeans. was sold recently in this neighborhood for sent our military aid and our officers I merely call to the attention of my $12,000. This would only buy a modest mod into Greece, although it might easily colleagues that we need to think: seri ern home in Litchfield or any other town have involved us in war. We have given ·ously this afternoon and in the remain in the land. · · · I am still farming the farm where I was military aid to Turkey and to Iran. We ing hours or days before we cast our born, and have a'1ot of first-hand experience have stood firm against Communist ad votes on the pending question and de with the problem of farming. In my opinion, vance ir. Korea and provided the Koreans cide whether we are going to disrupt our the passage of the oleo bill will not only be with large amounts of military aid and whole agricultural economy, or whether a disastrous blow to agriculture but it will American advice: In undertaking the .we are going to reject the demand on react indirectly and unfavorably to the best air lift in Germany, we certainly risked the part of the oleo processor to be al interest of the consumer. war with Russia in order to maintain lowed to sell his product competitively Yours sincerely, N. 0. EVENSON. unimpaired our position in Berlin. We with butter, in all its synthetic duplica are asked to appropriate billions of dol .tion of butter. Mr. Evenson was thinking soundly on lars to arm western Europe, although The total investment in cotton of the this question. there i..; no evidence that at the present two crops as of the end of 1949 was Mr. President, dairy farmers do not time the Russians contemplate any mili $947,043,350. object to fair and honest competition, tary attack in that area. We have given If, by destroying the but~er market, we but they vigorously resent unfair com notice to Russia, by the adoption of the stop the trend toward diversified farming petition from an imitation product. Yel Atlantic Pact, that if its troops advance and the introduction of the dairy cow low oleomargarine lends itself readily to across the boundaries of Italy or the into the Southern States we are going to fraudulent substitution. Therefore, a American or British zones of Austria or have a greater clamor for cotton acreage law to bar interstate shipment of yellow Germany or Danmarlc or Norway, it will quotas and a greater demand to grow oleo is eminently fair, since it leaves to find itself at war with us. In our policy cotton than there is at the present time, the individual States the right to regu of laying down the law, "this far you as I stated earlier in my remarks. late its manufacture and sale within their shall go and no further" we have not As an example of the reactions of dairy own borders. hesitated to risk war. There is not the producers to the controversy in which we Oleomargarine should be sold as a sep slightest evidence that Russia will go to are engaged, I wish to read a letter from arate and distinct product with an iden war with us because we interfere with a Minnesota farmer, Mr. N. 0. Evenson, tity of its own. Had the oleomargarine a crossing to Formosa. It is hardly pos of Litchfield, Minn.: industry the courage to market its pro sible to see · how the Chinese Com LITCHFIELD, MINN., January 3, 1950. uct on its own merits, and not as an munists by themselves can begin a war The Honorable EDWARD J. THYE, imitation of another product, little regu against the United States, or why they Washington, D. C. ·lation would be necessary. should do so. DEAR SENATOR THYE: I know that you are Leading dairy and farm organizations In China for some reason, the State ,doing valiant work in behalf of the Ameri favor the repeal of all Federal taxes and can farmer in your stand opposing the oleo Department has pursued a different pol license fees on oleomargarine. They icy from that followed thr0ughout the margarine interests in pending legislation .m urge, however, a ban on the interstate this question. I am writing you, thinking rest of the world. There is not the you may be interested in receiving some shipment of oleomargarine colored yel slightest doubt in my mind that the opinions of farmers on this question. low in imitation of butter. proper kind of sincere aid to the Nation I will make my comments brief; for this The Gillette-Wiley substitute, which is alist Government a few years ago could reason I will not mention some of the sponsored by 25 Senators, is designed to have stopped communism in China. strongest arguments we have regarding the accomplish both of these purposes. I But the State Department has been oleomargarine issue, such as the dairyman's firmly believe that adoption of the sub rights to the yellow cola:· guided by a left-wing group who ob stitute amendment would be in the pub viously have wanted to get rid of Chiang, This is a farmer writing to me: lic interest. and were willing at least to turn China I will confine my letter to some of my I most sincerely hope that the substi over to the Communists for that purpose. thoughts as to how this legislation can ef tute amendment will receive the support They have, in effect, defied the general fect the consumers, who at present seem to of at least a majority of the Members of policy in China laid down by Congress. be 100 percent on the oleo side of the the Senate. In recent months it has, of course, been question. STATEMENT BY SENATOR TAFT ON First, the coloring of oleo yellow will tend very doubtful whether aid to the Na to raise the price of oleo and lower the price FORMOSA tionalist Government could be effective, of butter. This will reduce the anticipated Mr. TAFT. Mr. President, shortly be and no one desires to waste American saving to the consumer. fore the first of the year, I expressed the efforts. But Formosa is a place where Second, the dairy farmer is not compelled opinion in an interview in Ohio that we a small amount of aid and at very small to keep on producing dairy products. should hang on to Formosa and pre cost, can prevent the further spread of Give thought to that. He says the vent Communist occupation of Formosa, communism. Such action does not com butter farmer is not compelled to keep op even though it involved the use of our mit us to backing thE. Nationalist Gov producing butter products. If he did Navy. I did not suggest the occupation ernment in any prolonged war ag~inst not continue, I am. afraid there would be oL Formosa, nor the seneing of any the Chinese Communists. We can de times in the year when the consumer army, or even the -sending of any navy. termine later whether we ever wish to would be drastically short of fluid milk, Our Navy is there already, with bases recognize the Chinese Communists and 1950 CONGRESSIONAL . RECORD-SENATE 299 what the ultimate disposition of Formosa is an exact reproduction of the argu The President announced last week the shall be. ment used in support of the policy of United States will not give .military aid or advice to the defenders of the big island As I understand, the people of Formosa Mun!ch. Strange to say, the same col which is the Chinese National Government's if permitted to vote would probably vote umnist is all for extending aid to Burma last stronghold. to set up an independent republic of and Indochina against Communist CONNALLY told a news conference yesterday Formosa. The status of Formosa, there attack, although it is infinitely less prac the committee might call on the Joint Chiefs fore, should certainly be kept free for tical and more e~pensive and difficult and Secretary Johnson for a report on the determination until the peace treaty has than the maintenance of an independent far eastern strategic situation. been written with Japan. Formosa must Formosa. But he made it clear this morning he be legally a part of Japan, for it is diffi Another columnist argues that if we plans no action at present in this direction. "It would serve no good purpose to call cult to see how the mere declaration of do not immediately extinguish the Na them at this time," CONNALLY said. "I am the President at Cairo or Potsdam can tionalist Government, Red China will not satisfied the President made his decision with change that status without a treaty. be able to demobilize to carry out eco the full knowledge of all the facts involved." One thing is certain, if the Communists nomic reconstruction. Therefore, he take over Formosa, we will have just as argues, we should recognize the Commu I should like to ask the Senator much chance of setting up an independ nist government. Whatever may be the whether he knows of any way the Con ent republic of Formosa as we have of arguments for such recognition, it is gress of the United States can come to returning the western German provinces quite certain that it will in no way tend sound decisions in connection with the from Poland to Germany. V.7 e know that to reduce the armies of the Chinese performance of its constitutional obli the Communists will give up nothing Communists. Russia has continued to gations in meeting the defense needs of which they have occupied. Certainly, maintain a huge army, although it is the Nation and in helping to formulate we do not desire or intend to under faced with no threat of invasion what foreign policy, if the Congress is to be take an aggressive war to recover land ever. I think it is safe to predict that denied information to which it is en the Communists have occupied. On the it will be many years before the Chinese titled and upon which it could base those other hand if, at the peace conference, Communists reduce their armies by one judgments. it is decided that Formosa should be set soldier, because only by those armies can Mr. TAFT. No; I think Congress is up as an independent republic, we cer they possibly hope to control China. entitled to such information, and must tainly have the means to force the Na The question of the containment of have it in order to reach sound judg tionalist's surrender of Formosa. communism is largely a practical one. ments. Of course, the strategic im The President's statement on January The only reason so much heat has been portance of Formosa is something upon 5 follows the usual course of setting up engendered about the Formosan situa which I have not undertaken to pass a straw man and then proceeding to tion is the bitter resentmen.t of the State in my statement. I do not know. But knock him over. He said: Department and its pro-Communist obviously its strategic importance is a The United States has no predatory de allies against any interference with its vital factor in the determination of the signs on Formosa or on any other Chinese policy of liquidating the Nationalist Formosan policy; and obviously the Joint territory. Government. Chiefs of Staff should be listened to·; and No one has suggested that it has. No two men are more familiar with the obviously we should have the best pos Far East than General MacArthur and sible advice on the question of whether The United States has no desire to obtain Formosa is a strategic place, from the special rights or privileges or to establish former President Hoover, and both of military bases on Formosa at this time. them are able to see the obvious military point of view of war. and political facts of the situation. Here Mr. KNOWLAND. I merely wish to No one has suggested that it has such is a small area of the world where, with say, as one Senator who is not a member a desire. no difficulty or expense, we could prevent of the Foreign Relations Committee, that The United States Governm~nt wlll not the spread of communism to an island I hope the committee will press for an pursue a course which wlll lead to involve which might be of great strategic value answer to these questions. ment in the civil conflict in China. and whose people desire to be inde- As a member of the Armed Services The course suggested will not lead to pendent. . Committee, despite the quotation of the any such involvement, although, of Mr. KNOWLAND. Mr. President, will chairman of the committee to which I course, we have involved ourselves in the the Senator yield? have referred-and I hope he is not cor civil conflict in Greece, in Korea, and Mr. TAFT. I yield. rectly quoted in the article -appearing elsewhere. When the President, how Mr. KNOWLAND. I should like to today-I intend to bring that matter be ever, says, "Similarly, the United States know if the able Senator from Ohio is fore the Armed Services Committee. I Government will not provide military aid familiar with the press dispatch which think it is one which vitally affects the or advice to Chinese forces on Formosa," came over the teletype a short time ago, def ens es of the United States. But if he is departing from the policy pursued and which I now wish to read into the we cannot succeed, through either of by us in every other part of the wor1d RECORD as follows : those committees, we shall make every where the question is whether commu WASHINGTON.-Two Democratic Senate effort to do so through the Appropria nism shall be checked. While he states leaders today rejected a Republican demand tions Committee, when· the National De that we will continue the present ECA that the Joint Chiefs of Staff be called to give fense Establishment comes before us for program of economic assistance, it is Senators a report . on the strategic value of funds to support Okinawa and other quite clear from the past course of the Formosa to America's far-eastern defenses. bases in ·that area of the world, and Chairman CONNALLY of the Senate Foreign when there is good reason to believe that State Department that they have not Relations Committee and Chairman TYDINGS the slightest intention of giving such of the Senate Armed Services Committee both the loss of Formosa into. unfriendly ai!!Sistance in any effective way in such turned thumbs down on the proposal made hands may jeopardize our strategic po a manner as to assist the occupants of by Senator KNOWLAND. sition in our other island defenses. In Formosa and defeating a Communist KNOWLAND said he plans to place his re one of those committees we certainly in attack. quest in writing before the armed services tend to get the answers to these ques Those who argue against any action group. But TYDINGS said this was a matter tions. for the Foreign Relations Committee to We certainly did not get the answers in Formosa are curiously inconsistent. handle. The distinguished Senator from Texas And CONNALLY told a reporter: "The Presi to the questions in the Foreign Relations shudders at the possibility of war, al dent already has made his decision on For Committee yesterday. though the chance we are taking is 1 in mosa. I have no intention at present o! Mr. TAFT. Mr. President, it seems to 10 compared to that we are taking 1n asking the Joint Chiefs for their views." me that we certainly should have the Europe today. CONNALLY said the Joint Chiefs are due to best advice in regard to what the mili One. columnist fears that any action visit the Far East next month. After their tary facts are. I see no reason why we in Formosa different from exactly the return, his committee may ask them to make should not demand that they be given a report--but not before. to us, entirely apart from what the for action of the State Department would KNOWLAND wants to know 1f the State antr.gonize the leaders of India and In Department and the President had the views eign policy of the State Department may donesia. His theory seems to be that of the Joint Chiefs of Staff and other mili be. the way to stop communism in India is tary experts before arriving at the hands Mr. .VANDENBERG. Mr. Presiden~. to permit it to move into Formosa. That ofI decision on Formosa. will the Senator yield? 300 CONGRESSIONAL RECORD-SENATE JANUARY 11 The PRESIDING OFFICER (Mr. STEN Mr. FERGUSON. Mr. President, will Mr. BREWSTER. The Senator has NIS in the chair) . Does the Senator the Senator yield for a question? suggested a very interesting question from Ohio yield to the Senator from Mr. '!'AFT. I yield. which, I take it, referred to the powers Michigan? Mr. FERGUSON. The first answer of the President of the United States in Mr. TAFT. I yield. which has been given would, it seems to time of war to make agreements of a Mr. VANDENBERG. As I have said me, indicate the correct view, for other military character. I take it that ques before, Mr. President, I do not wish to wise would it not be possible, and even tion is to some extent implicit in this enter this . debate until all tl;le facts are probable in this case, that we would find problem. available. My interest has been in the ourselves, so far as Germany and Japan I do not know to what extent hitherto development of the facts. were concerned, in the position that se th::i,t has been a matter of concern; but is I know nothing about the authenticity cret agreements had been made at some it not obvious that if the principle of of the statement read by the Senator of the conferences, and therefore the en the power of the President to make, in from California [Mr. KNOWLAND]; but, tire peace had already been determined, time of war, agreements of primarily a in view of its purport, I must say, with and there would not be -anything for the military character, in return, let us say, the greatest respect to my distinguished peace treaty to take up? for the entrance into the war, at a cer colleague, the chairman of the commit Mr. TAFT. I do not think we can tain time, of a particular country, in re tee, that so far as I am concerned, I can -admit-whatever the moral obligations turn for which the President has prom not feel that I have obtained adequate may be-that we are in any way legally ised certain territories, can be estab information in respect to the facts, with bound by declarations of the President, lished, then, despite the provision of the out the testimony of the Defense Estab either in secret or made openly, as to the Constitution, as it is stated very plainly lishment in general, and of the Secre disposition of different parts of the in section 2 of article 2, namely- tary and of the Chief of Staff in particu world. He- lar. So far as I am concerned, I would Mr. FERGUSON. Is it not one of the consider that testimony to be not only purposes of the provision of the Consti That is to say, the President- pertinent, but indispensable. tution which calls for ratification by the shall have power, by and with the advice Mr. SALTONSTALL. Mr. President, Senate of peace treaties and all other and consent of the Senate- will t he Senator yield, to permit me to treaties, that there must be formal ac And I labor the word "advice" some ask a question? tion by both the President and the Sen what- Mr. TAFT. I yield to the Senator ate in passing upon questions which to make treaties, provided two-thirds of the from Massachusetts. might involve us in war? Senators present concur- Mr. SALTONSTALL. The Senator Mr. TAFT. Yes; I agree with the has expressed himself in regard to the Senator. The President's power will be unlim defense of Formosa, and so forth. Per Mr. SMITH of New Jersey. Mr. Pres ited, will it not? haps the question I shall ask is a little ident, will the Senator yield? If there is no limit on the Presidential beside the point; but inasmuch as the Mr. TAFT. I yield to the Senator from power to make agreements in time of Senator is still on his feet and has spoken New Jersey. war, then the entire function of the Sen on this subject, I should like to ask him Mr. SMITH of New Jersey. I came ate in that respect might easily be elimi a question on a subject which was dis into the Chamber just at the end of the nated. Is that correct? cussed the other day by the Senator from Senator's remarks. Of course, I was very Mr. TAFT. Yes; I think so. The New Jersey [Mr. SMITHJ. Has the Sen much interested in them, in light of the President has rather encroached already ator from Ohio given any consideration, position I took here a few days ago. on the powers of the Senate; and .now a as a Senator and as a lawyer and as a I shall say to the Senator, if he will good many things which used to be done citizen, to the title, let us say, to Formosa permit me to do so, that the proposition by treaty are do.ne by agreement. at the present time? Does the Senator I discussed 2 days ago was based upon But certainly the disposition of the consider Formosa to be a possession of the assumption-and apparently the territory of another nation is something the Nationalist Government, a part of Senator from Ohio makes the same as which still must be done by treaty, and China, or an island whose final disposi sumption-that until the peace treaty is cannot be done by executive agreement. tion .awaits further treaties and further signed, there is a question about the If we admit any such power to proceed discussions of Formosa? status of this particular part of the by way of executive agreement, we cer Mr. TAFT. It seems obvious to me world. tainly very much curtail the powers that legally Formosa was a part of Japan Mr. TAFT. That is as far as we 'have given to the Senate by the Constitution. for 50 years, and was so recognized by to go. Mr. BREWSTER. And is it not highly the world. I do not know how that Mr. SMITH of New Jersey. Yes; that important that the Senate, if it has any status could be changed, except by is as far as we have to go. regard for the importance of its constitu treaty. I do not think it could be Mr. TAFT. Because if there is a ques tional functions, should see to it that · changed by Presidential declaration at tion, we at least should keep the field there is some determination of this right, Cairo or Presidential declaration at Pots open, so that we can decide that ques before we completely surrender it, par dam. Whatever its status, I think it is tion as it should be decided. But once ticularly since we now have involve something different from the status of the Communists are there, we shall no ments in so many sections of the world? the mainland of China. I think that is longer be a free agent in respect to de Moreover, are we not now still at war? entirely clear. ciding that question, unless we are will Mr. TAFT. I do not know that we are So I think we are entirely free, when ing to undertake an aggressive war. at war. We have not yet disposed of the we participate in the treaty with Japan, Mr. SMITH of New Jersey. Then the questions arising from the war. I sup and I think the other nations participat Senator from Ohio will agree with me, pose that technically we are still in a ing in the treaty are entirely free, to set will he not, that there is a responsibility state of war, for the purpose of many up an independent Formosa. I do not on the part of the United States, if there statutes and for various other purposes. think our hands are necessarily tied by is a question as to whether Formosa is For some purposes, I would think we are any other action taken by the United or is not a part of Japan, to see that the not at war. States. status quo is preserved, for the protec Mr. BREWSTER. If in a time of ac Mr. SALTONSTALL. Then, is it the tion of everyone concerned-the peo tual hostilities the Presidential power Senator's opinion, from his knowledge of ple of the island, the Chinese Nationalist were established to make agreements the law and of the general situation, that Government, the Communists-if they which would bind us, might not it be pos Formosa cannot be turned over to the have any rights there-and ourselves sible that then we could easily move into Chinese Nationalists by any surrender and our own interest? a twilight zone-whether we call it war. agreement or papers signed there? Mr. TAFT. I agree with the Senator. or regardless of what we call it-in which Mr. TAFT. No; I thinl{ they are Mr. SMITH of New Jersey. I thank the President could continue to assert the merely in possession there today, ~Y gen the Senator from Ohio. right to make agreements which would eral consent. But I cannot see how Mr. BREWSTER. Mr. President, will bind the country under certain eventu China, whatever China is, has yet ac the Senator yield? alities, if we continued to permit this quired. any legal title to Formosa. Mr. TAFT. I yield. encroachment upon the power of the 1950 CONGRESSIONAL RECORD-SENATE 30l Senate and this expansion of Presiden previously· held for sale only ·have become I have before me the official returns of tial power? available to tenants, rental units have been the election, showing that the dairy State released by tenants who have purchased Mr. TAFT. Yes; I think'that is true. homes, residential construction has been ac of Colorado cast its six electoral votes f o'r Mr. SALTONSTALL. Mr. President, celerated as have the sales of homes, and Mr. Truman for President of the United will the Senator yield at this point? existing rental accommodations have be States, because the Democrats received a Mr. TAFT. I yield to the Senator come rapidly more attractive because the majority of the votes of the State of Colo from Massachusetts. owners have remodeled, repaired, and re rado. As one reads through the list he Mr. SALTONSTALL. So as to carry decorated their facilities. These are bene finds Idaho, with 4 votes in the Truman out what the Senator has just said to the fits which every State and community must column, Iowa with 10, Minnesota with 11, desire. These are but some of the benefits 4, 26, Senator from Maine, and to bring the which have come to decontrolled American Montana with Ohio with Utah with matter to a logical conclusion, let me ask communities and the case histories of the 4, Washington with 8, Wisconsin with 12, this question: In a case in which ou·r communities in question will be used by rea and Wyoming with 3. It is simply a country has been at war with another sonable Members of both parties in the Con matter of arithmetic to conclude that if country, and the other country has sur gress to make certain that there will be we total those electoral votes, deduct rendered, its title to its possessions can· no extension of the Federal rent law be them from the 383 votes the President not be turned over to another country yond June. In wiring you of my convic received, and add them to the 189 Gov· tion that an end to Federal rent controls ernor Dewey received, the Republicans without the consent of the Senate, can is certain I hope that I am rendering a con it? Is not that a logical conclusion? structive service to you and to every other would have won by an electoral vote of Mr. TAFT. Yes; I think that is a log State in the Nation. Those in the Congress 272 to 220. ical conclusion. who ·reel as I do want no State or commu Mr. President, before I go into the FEDERAL RENT CONTROL-TELEGRAM TO nity to say in coming months that they merits of the oleomargarine bill itself, 1 GOVERNOR DEWEY BY SENATOR CAIN hadn't been informed that Federal rent con wish very briefly to address myself to tb.e trols would expire on the last day of June. broken promise made by the Democratic When President Truman requested an ex Mr. CAIN. Mr. President, the junior Party, year after y~ar, that they were Senator from Washington felt con- tension of Federal rent controls as being going to enfoz:ce the Sherman Antitrust strained yesterday a.fternoon to send a necessary for another year he indicated to me at least that he knew distressingly little Act. During the course of the debate telegram to the Governor of New York about the history of the problem, and con yesterday, the distinguished Senator State. I wish to read the telegram, tinues to ignore and disregard the economic from Arkansas [Mr. FULBRIGHT] · as which speaks rather plainly for itself, facts involved. I take it to be a foregone shown on page 26i of the RECORD, ~-aid~ and to draw its substance to the thought conclusion that Mr. Truman's own party in the Congress won't support the President's Mr. President, I should like to quote it for ful consideration of my colleagues. It the Senator's info:r;mation a ; this time. It is reads as follows: demand. The time is long overdue when New York State and every other State in not very long. I read froni page 64 ot the WASHINGTON, D. c., January 10, 1950. the Union ought to be completely accounta report of the Federal Trade .Commission on Gov. THOMAS E. DEWEY, ble to their citizens for the fundamental the concentration of productive facilities, Albany, N. Y. and important issues involved in the man 1947. This is the statement of the Federal DEAR GOVERNOR: The New York Times Of agement of their priva.te-property-rights 'J'rade Commission. Monday, January 9, carried a front-page story question. I am certain that every State will I am simply quoting what was said by its Albany correspondent, Leo Egan, in attempt to rid itself of all rent controls which it was ·stated that you and your ad everywhere at the earliest possible moment. yesterday by the dfatfoguished Senator visers are considering the advisability of re If the Federal Government is permitted to from Arkansas. H·e proceeded to quote placing the prevailing Federal rent law in extend rent controls into our new decade from the report of the Federal Trade the near future with a State rent-control those restrictions against property rights will Commission, as fol.lows: system. It would not be proper for me to probably remain forever_. Congress is pos "The pattern of control in the processing say that rent · controls have outlived their sessed of too much common sense and sense usefulness in New York State -because I and ~arketing of dairy products is rather of simple justice to permit this to happen. similar to that of the meat-pac.king industry. am not familiar with the facts in your area I would urge you and your legislature tb of jurisdiction but I am·qualified to venture Before World War I the dairy-products in do what it thinks is right for New York dustry was made up of small local units, a prediction that President . Truman's . re State without any further daad-hand con quest for an extension of the 19,49 Rent Act either independently owned or under coop trol by the Federal Government. With COil• beyond its termination date of June 30, 195(,), erative control. The contrast between the · dial best wishes for your happiness and suc past and the present state of concentration will be denied by a majority o.f the Repub cess in the new year. licans and Democrats in the Congress. Those is perhaps more striking in this field than in HARRY P. CAIN, any other manufacturing industry. of us in the Congress who have considered United States Senator. the rent-control question since 1946 to be "As the concentration curve for the in an economic rather than a political prob REPEAL OF OLEOMARGARINE TAXES dustry shows, the two leading dairy corpora lem are now completely certain that we can tions, National Dairy Products Corp. and the defeat the proposed extension of the Federal The Senate resumed the consideration Borden Co., clearly dominate the industry, law by using only the economic facts which of the bill (H. R. · 2023) to regulate oleo holding 27.5 and 21.4 percent, respectively, of have resulted in those scores of American margarine, to repeal certain taxes relat the industry's net capital assets." communities of all sizes which have been ing to oleomargarine, and for other pur There is nothing comparable to this in decontrolled in the last year. Those for poses. the field of margarine manufacture. That is whom I speak will use every conceivable legit Mr. LANGER. Mr. President, I wish my statement. I continue to read from the imate means including whatever time is re to address myself very briefly to the con report of the Federal Trade Commission: quired to prevent the Federal Government "Thereafter the slope of the curve becomes from any longer mismanaging and interfer sideration of the bill H. R. 2023, to regu much more gradual, with the third firm, ing with the property rights of American late oleomargarine, to repeal certain the Carnation Co., holding 6.9 percent and citizens throughout the Nation. It is un taxes relating to oleomargarine, and for five other corporations, with assets ranging realistic to assume that the Congress will other purposes. from 2 to 4 percent of the industry's total, authorize Federal rent controls for the be At the Democratic Convention, which I owning an additional 15.5 percent. Thus the ginning of our new half century . . If there eight largest firms control 71.3 percent of are isolated communities in America which was not privileged to attend, but to whose proceedings I listened over the radio, I the total net capital assets of all corpora can establish a proven need for continuing tions operating primarily in this field. rent controls those communities or their remember very distinctly that about 2 parent States must be charged with a full "Even these figures, however, substantially o'clock in the morning President Tru understate the degree · of concentration af responsibility for managing their own · af man, in the course of his address to the fairs. New York City may be an exception fecting the ultimate consumer. This under to the general rule that only good will re convention, stated that the farmers of statement stems from two factors: (a) With sult from the decontrol of rents. In prac the United States would be guilty of in in the broad industry groups, concentration tically every instance where a city of any gratitude if they did not vote for the is frequently higher for important indi. size has been decontrolled the following Democratic ticket nominated at the con vidual products; and (b) many of these benefits to the community have been in vention. He went on to say that labor individual products are highly perishable evidence: Restoration of the historic Amet likewise would be guilty of ingratitude if and can only be shipped within a limited ican right of free collective bargaining be market area, a circumstance which fre tween tenant and owner, large numbers of it did not support the Democratic ticket. quently results in a higher degree of concen locked-up rental units have been returned Apparently the farmers of the country tration in local markets than is true of the to the rental mark.et, large numbers of homes took the President a~ his word. country as a whole." 302 CONGRESSIONAL RECORD-SENATE JANUARY 11 So, Mr. President, what do we have? Did the Democratic Party put in jail dollar a pound. The price of butter went What have the American people got aft any of the monopolists who were robbing up and up. They said, "We want oleo er all these years of Democratic rule in the American people? Not one. Were margarine." Yet, I repeat, when it this country? The great Democratic any monopolists put in jail in 1934? Not looked as though the measure was going Party, which says it is for the little· fel one. Were any of them put in jail in to pass and the tax would be taken off low, which accuses the Republicans of 1935? Not one. oleomargarine, three companies got con representing large corporations, has done In 1936 we again heard the Democrats trol of oleomargarine all over the world. nothing to prevent.monopolies. We find say upon the husting·s, "We are the party They did it almost in the twinkling of an the distinguished Senator from Arkan of the little fellow. We are here to pro eye, and the price of oleomargarine sas [Mr. FULBRIGHT] quoting the Federal tect the consumer." jumped 23 cents a pound. Trade Commission and showing the few According to the speech of the distin Is that the way the Democratic Party companies which he enumerated having guished Senator from Arkansas [Mr. protects the poor people? Is that the control of 71.3 percent of the dairy indus FULBRIGHT] yesterday, certain corpora way the Democratic Party protects the try. tions have made one combination after consumer? I stood upon this floor only a few another, but, as yet, none of the monop Only a short time ago President Tru months ago protesting the nomination of olists have been jailed. man said that the farmers would be the leader of certain trusts to be Ambas What has the Democratic Party been guilty of ingratitude if they did not vote sador to Argentina. The President doing, Mr. President? The people took the Democratic ticket, yet today we find chose a man for that position who had them at their word in 1936, and monopo the Democratic Party double-crossing raised the price of ice cream and milk to lies grew and ·grew and no monopolist the dairy farmers in the States which I little children. The great Democratic was jailed in 1936, in 1937, in 1938, or have named, and which voted for them. Party brags about representing the little in 1939. The Democratic Party is double-crossing fellow, the poor man, but it picked the In 1940 there was a request for more them-for whom? Why, Mr. President, greatest monopolist of them all, a man appropriations. Representatives of the for the greatest monopoly that ever ex who had organized the dairy industry Department of Justice said they did not isted in the world. which, in 1 day, in three States, grabbed have enough money. So the Senate Referring again to the Fortune maga all the manufacturing plants and formed gave them practically all the money they zine article for December 1947, let me them into a monopoly, and he has been asked for in order to carry out the anti give Senators some idea as to how large nominated as Ambassador to Argentina. trust statutes. What happened? this organization, this monopoly, is. I do I ask this question, Mr. President: There was another election in 1940, not desire merely to gloss over, or not Whom have the Democrats named to be and again and again we heard the can to go into detail. The Senator from general manager of all their Jefferson didate for the Presidency tell the people Minnesota described it pretty well yester Jackson Day dinners? Out of the that the Democratic Party was the only day in his speech on the Senate floor, 150,000,000 people in the United States, salvation of the poor man; that it was but I desire to go into a little greater Mr. President, whom has the Democratic against the wicked, terrible trusts wnich detail, to point out exactly who will be Party chosen? I shall· give his name in a were supporting the Republican Party, benefited if the pending measure shall be few moments, but before doing so I wish and that if the Democratic Party was enacted. This measure is going to hurt to make it very plain that in behalf of voted in, what would it not do to those agriculture and the farmer. Whom is it the American people we are dealing to trusts. But 1941 went by, and no mo going to help? As I have said, the Sena day with perhaps the largest trust, the nopolist was put in jail. The years 1942 tor from Minnesota covered that pretty largest monopoly, in the world. and 1943 went by, and still the antitrust wen' yesterday when he mentioned this I hold in my hand a copy of Fortune laws were not enforced. monopoly. Now let us go into some of magazine for Dec.ember 1947. I want to I now come to 1944, when again the the details of it. read the first four lines of an article en Democrats repeated upon platforms all Referring now to page 88 of Fortune titled "The World of Unilever": over the Nation that they were going to magazine for December 1947, it says: put monopolists in jail if the people This industrial omnium-gatherum- . Seen from the Old World, the United States would only once more entrust them with is a - commercial paradise, where almost Referring td Unilever, this corporation, every prospect pleases and only Tom Clark that power. annoys. I t is the one place in the world There is not a Senator on this floor this monopoly- · where only crackpots want to nationfiliZe who can name one man who was put in is built on as homely and vital a raw ma industry. jail for a violation of the antitrust law terial as it is possible to find-on what is up to 1946. Not one man was put in jail. known redundantly as fats and oils (an oil I call the attention of every Senator The only one who was put in jail was is a liquid fat). The fats are extracted from upon the floor to the first three lines vegetables like peanuts and coconuts, and which I have read: Eugene Debs. He was put in jail, not in from animals like cows, pigs, and whales. the enforcement of the Antitrust Act, People encounter them most commonly in Seen from the Old World, the United States but because of the violation of an in butter, margarine, lard, and soap, and with is a commercial paradise, where almost every junction. out them, as without grain, people obviously prospect pleases and only Tom Clark annoys. Now we come to the oleomargarine would have a tough time getting along. Uni At that time Tom Clark was Attorney matter. As was stated by the distin leyer is the biggest single factor in the world guished Senator from Minnesota [Mr. supply of fats and oils, purchasing and proc General of the United States, Mr. Presi essing more than 2,000,000 of the 5,800,000 dent. He had brought various antitrust HUMPHREY] yesterday, one of the great tons of fats and oils normally finding their suits under the Sherman law. The est monopolies of all time is the one way into world commerce. Sherman Antitrust Act was passed in which is going to benefit in case the 1891. The years 1891, 1892, 1893, 1894, pending bill becomes law. There we get an idea as to how big 1895, went by, and not a single monopo A year ago, Mr. President, when it _this corporation is, Mr. President. It list was put in jail. 1910, 1920, and 1940 looked as though we might repeal the controls 2,000,000 of the 5,800,000 tons passed, yet, under an antitrust statute tax on oleomargarine, this great monop of fats and oils in all the world. I con over 50 years old, not one monopolist oly, together with the Best Foods Co., tinue reading from the article: was put in jail. I could forget it if the who had sold one of its subsidiaries to it, It makes no butter- Republicans did not put anyone in jail, and who controlled the price of oleo "It makes no butter"- because the opposition has always said margarine in 3 weeks, raised the price and renders little lard, but it manufactures the Republican Party was the party of by 23 cents a pound. If that is not true, more soap and margarine than any other the trusts. If we go out among the peo let someone refute it. Where was this company-about two-thirds of the soap ple it will be found that the Demoerats great Democratic administration then? used in the British Empire, and about 12 have given the Republicans that reputa Was anyone arrested? percent of world consumption; about tion. One of the principal arguments at 75 percent of the margarin~ eaten in Europe in and about 40 percent of world consumption But 1932 the Democrats took over. that time was that butter was too high (outside Russia). Even in 1946, with They said they were going to protect in price. The argument was that it was supplies far short of prewar and rationed the little fellow, the poor man. I heard, so high that a poor man could not buy almost everywhere, Unilever turned out over the radio, their candidate for Presi it. The price of butter was 70 cents, 75 -750,000 to11s of soap and 560,000 tons of dent say that time and time again, cents, 80 cents, and 85 cents, up to a margarine, for which .\t received the equiva- 1950 CONGRESSIONAL RECORD-SENATE 303 lent of $445,000,000. In crushing palm ker bring that to the Senator's attention so ferson-Jackson Day dinners? I will tell nels, copra, peanuts, and other oil-bearing that the record may be clear. the Senate in a moment. The Demo raw materials, it was left with 1,256,000 tons of residues, which it sold as cattle feed for Mr. LANGER. I thank the distin cratic Party, which says it is for the the equivalent of about $67,000,000. It also guished Senator from Minnesota. I am little people, has chosen to handle the processed and sold nearly 600,000 tons of delighted that Dan Tobin of the team Jefferson-Jackson Day dinners a man oils to other manufacturers and the Govern sters' union, and his union, and other whose name I shall give in a moment. I ment for $144,000,000. Despite its dominant A. F. of L. unions are with us in this shall show how the Democratic Party position in the Empire and on the Continent, fight. I am delighted to have the RECORD picked him out of 150,000,000 people. Unilever feels compelled to promote and. ad vertise its products as no others in the in show that fact. The party which says it is against trusts dustrial canon are promoted. It was before Let µs now go over to Africa, where and against monopolies has chosen for the war, one of the world's biggest adver this monopoly also operates. I quote this purpose a man who heads a great tisers, spending almost $50,000,000 to sell from Fortune magazine of December monopoly. products like Stork and Blue Band marga 1947: I read again the quotation from the rine, and Lux, Lifebuoy, Rinso, Persil, and Unilever's most extraordinary excursion London Economist: · Sunlight soap. into other fields arises from its quest for raw The Unilever combine and communism But the basic fat and on products ac materials. The United Africa Co., a huge count for only 60 percent of the company's have not a few points of similarity-in a. wholly owned subsidiary that accounts for strictly business sense. The combine is gov turn-over. Unilever also does at least a. just about a quarter of its consolidated sales, $25,000,000 business in canned goods, of not only grows oil palms and buys raw mate erned by committees innumerable. It con which some $12,000,000 is in canned peas. rials of all kinds from the natives of West trols the working life of the vegetable-oil Before the war it sold more than $7,500,000 Africa and the Congo, it sells everything sal industries almost as completely as the Soviet worth of Wall's ice cream (in Britain), most able to them. It is, as a matter of fact, the monopolizes the working life of the Russian of it through white-clad v~ndors on tricyc4es world's largest trading company. An article people. It embraces every activity from the bearing the legend "Stop me and buy one." 1n a later issue will be devoted to its chro production of the raw materials to the retail It owns MacFisheries, Ltd., of Britain, the matic activities; suffice to say here that selling of finished goods. And, curiously world's largest chain of fish stores (356), through U. A. C. the Unilever organization enough, both Soviet and Unilever catch which last year sold about $35,000,000 worth finds itself right in the middle of one of whales in the Antarctic. For the investor of fish and game. Besides dozens of other the world's most explosive race situations and economist, however, the significant fea products, it sells more than $35,000,000 worth besides running one of the largest General ture is that the more enlightened and effi of toothpaste tpepsodent and Solidox) and Motors overseas distributorships, a shirt fac cient Unilever and the Soviet become, the perfumes and cosmetics. It owned paper and tory, a full-sized steamship company, and more difficult it is to investigate their opera textile mills in Germany, and is half owner of one of the biggest stores in Istanbul. tions and to analyze their accounts. Thames Board Mills, the U. K.'s largest paperboard maker. Mr. President, I have a definition of Mr. Plummer, in his book, Interna Now I shall take this company to this company given by the London Econ tional Combines in Modern Industry, omist. This is what the London Econo has this to say: Africa, Mr. President, to Africa, where mist says about the monopoly which is 20 cents a day is paid for labor. We find The truth of the last sentence becomes Senators on this ftoor saying they are trying to force the farmers of the United patent when we try to trace the combine's for the pending bill, but we do not find States out of the dairy business: ramifications through to the subsidiaries. The Unilever combine and communism- In England, for instance, Unilever, Ltd., con the CIO or the A. F. of L. here fighting trols English Margarine Works, Ltd., and the for the farmers: They are not lifting a These are not my words, Mr. President. British section of the Van den Bergh under hand. So far as American farmers are These are the words of the London Econ taking, through V{hich it controls Meadow concerned, they are abandoned by labor. omist, one of the most conservative news Dairy Co., Ltd., which in turn controls Some of us who come from the dairy papers in England. Pearks Dairies, Sherry's Dairies, Brough 's States find that we have been unable to The Unilever combine and communism Tea, Ltd., and Neale's Tea Stores. Uni get any support of any kind from labor have not a few points of similarity-in a lever, Ltd., also holds a substantial interest in this fight. Perhaps some of the labor strictly business sense. That combine is gov in Home and Colonial Stores, Ltd., through erned by committees innumerable. It con which it is linked with Allied Stores, Ltd., leaders are here, within the sound of my Liptons, Ltd., and Maypole Dairy Co., Ltd., voice. The time will come when labor trols the working life of the vegetable-oil industries almost as completely as the Soviet and, through the latter, with Maypole Mar will need the farmer again, and while I monopolizes the working life of the Russian garine Works, Palmine, Ltd., and British will not say it will be refreshing, at least people. It embraces every activity from the Oil Works. This is but a sketch of the com one ·wm have the satisfaction of saying, production of the raw materials to the retail bine's ·English interests, and it is no more "When our backs were to the wall, where selling of finished product. And, curiously than a corner of the whole vast area of its was labor?" enough, both Soviet and Unilever catch ramifications, for it controls the major part So I want to take this company over to whales in the Antarctic. For the investor of the margarine industry of Europe, and had· Africa, where 20 cents a day is paid to a and economist, however, the significant fea interests iri oil-crushing and refining fac ture is that the more enlightened and effi tories and .allied industries, with their dis laboring man to compete with the farm cient Unilever and the Soviet become the tributing organizations, in Britain, Holland, ers of the United States engaged in the more difficult it is to investigate their opera France, Belgium, Germany, Norway, Sweden, dairy business. tions and to analyze their accounts. Denma;rk, Italy, and the Dutch Indies. Mr. HUMPHREY. Mr. President, will the Senator yield? Mr. President, is it not strange that Here we have a man heading a great Mr. LANGER. I yield to the Senator even a United States Senator cannot find monopoly chosen by the Democrats, who from Minnesota. out what companies are included in this love the common people, to manage the Mr. HUMPHREY. I know the Sen merger? I tried and tried; I went to Jefferson-Jackson Day dinners this year. ator from North Dakota, with his demon every source possible in Washington, and I will give his name in a moment. I con strated friendship for the workingmen I was unable to find anywhere, in any tinue to read from Mr. Plummer's book: of this country, would like to know that book, a list of the various companies that The comblne's West African interests are at least one section of the American are amalgamated and affiliated, which 1n the care of the United Africa Co., Ltd., tn Federation of Labor has been in support are subsidiaries of this giant monopoly, which the combine holds 80 percent of the of the Wiley-Gillette substitute. Men I received some 45 names. share capit al and a dominant proportion of and women working in the creameries, A few months ago I placed in the REC• the voting power. Moreover, the United those who drive the milk wagons, trucks, ORD the report of the death of the presi Africa Co. holds, directly or indirectly, con and so on, have, through -their labor dent of this company, who died in Min trolling interests in no fewer than 66 com neapolis, Minn., while there on a visit, panies carrying on operations in different organizations, supported the substitute~ parts of the world. The branch of the American Federation In the Minneapolis newspapers appeared of Labor known as the teamsters' union, an obituary. The obituary contained Altogether there are now 616 compa and other American Federation of Labor the statement that he was the president nies controlled by this combine. At the unions have supported us in this fight of 613 companies, different corporations, time its president died the combine con against the monopoly the Senator is so and that they were doing business in 40 trolled 613 companies, and 3 more have well describing, and against this kind of different countries. been added since. Since I made my last what we might very well call attack upon Mr. President, who have the Demo speech on the subject 3 more companies small business enterprises. I simply crats chosen to be chairman of the Jef- have been included malting the total 616. CONGRESSIONAL RECORD-'SENATE JANUARY 11 Alfred Pll:lmmer in his book -entitled divided into a number of groups of com Now I read from page 207: panies. There are separate directors and '.'International Combines in Modern His The story of margarine, man's most suc tory," published tiy the Pitman Publish managers for each group, and a small num ber of directors whose special function is to cessful attempt to compete with the cow, is ing Co., New York City, · 1938, had. this keep constantly in touch with the gro:up mostly the story of Margarine Unie's prede further to say: executives so as to maintain uniformity of ·cessors. ' As an example of a great international policy. Mr. President, perhaps most of us re trust recently in the public eye we may cite Unile·1er Ltd., which was registered in No So the entire 616 companies will ·have alize that if we go out on the street vember 1927 as Margarine Union, Ltd., and the same kind of policy, which, of course, and talk to the people we meet there, having acquired all the ordinary share capi is robbing tbe common people along the we find ·that today the average man tal (£6,500,000) of Lever Bra's., Ltd., it same lines all the time. · does not know where oleomargarine changed its name.to Unilever, Ltd., in Sep Referring again to the article which comes from or what it is made of. Of tember 1929. This combine inc;ludes Van appeared in Fortune magazine, I wish to course, those who want to cram it down pen Berghs, Ltd., the well-known dealers 1n say that on page 90 appears the picture the throats of the American people leave margarine and similar P.rod1;cts, incorporated of the man selected by the Democratic off · the word •toleo," and just call it in 1895, with a capital of over £3,000,000. For many years there was stiff competitio11 Party. to be the general manager for its margarine, because margarine sounds between Van den Berghs, Ltd., and Anton Jackson-Jefferson Day dinners. But I better; it sounds something like "Mar Jurgens & Co., a Dutch firm, and in 1908 the do not wish to give his name yet. In a jorie" a girl's name. So the producers competitors thought that· it .would be to their moment I will tell the distinguished of oleomargarine like to call it marga :p1utual advantage to enter into an agreement g·entlemen on the other side of the aisle rine, and leave off the word "oleo." for sharing profits. Accordingly, over a pe who he is. But I assure you, Mr. Presi But I wish to state exactly how it came :riod of years three pooling agreements were dent, that every farmer who tried to about that we ever had such a thing as entered into. The first agreement, dated make a living when this man was ap February 13, 1908, contained many compli margarine or oleomargarine in the first cated provisions, but broadly its effect was pointed to a responsible position a few place. I read further from the article that each company acquired an interest ~n years ago by the President, knows, to appearing in Fortune magazine. the profits of. the other. There .was a sup his sorrow, who he is. The story goes back to the middle lEOO's plemental agreement in 1913 whereby it was I shall read further from the Fortune and the little town of Osch (later Oss) in agreed that subject to certain modifications article. When "this monopoly got to the kingdom of the Netherlands, where there the principal agreement of 1908 should con work and started out, it did a great deal flourished two friendly rivals, butter ex tinue in force until the end of 1940. After of advertising, promoting, and compet porters. They made their living buying sur the settlement of· a complicated dispute ing. The article states: plus butter all qver the Continent, refresh arising out of these agreements, the members ing it by a simple churning process, and ex pf -the Van den Bergh and Jurgens families · Advertising, promoting, · and competing, porting the revived product. One of the decided to consolidate their interests by Lever expanded rapidly, andJle made soap a firms belonged to Anton Jurgens and his forming a Dutch holding company and an mass-produced item by the simple device of sons, Jan, Arnold, and Henry, devout Catho English holding. company .. selling it as a specialty. In 1888 he started lics; the other t.o Simon Van den Bergh, a a huge soap factory and model worker's vil Mr. President, it was only a few years pious, kind-, philoprogenitive Jew who, when lage in a dreary marsh across the· Mersey he got rich, spent great sums in helping ago when, under a Democratic President, River from Liverpool, and called it Port Sun refugees from the Russian pogroms flee to the SEC bill was passed, and holding light. It is still the world's largest soap America. · factory, and is served by the world's largest companies apparently were outlawed Then, in 1870, came the Franco-Prussian forever. Yet today whom do we find the privately owned · dock. He flooded England with Sunlight, sent it overseas, and was soon War, which caught France short, among Democratic Party taking to its bosom? manufacturing it all over the world, in other things, of butter. But Napoleon III Who is going to be the general manager, Switzerland, Australia, Canada, Belgium, had anticipated the short~ge, and before the all over the Nation, of the Jackson-Jef France, the Netherlands, the United States, war had commissioned a chemist named ferson Day dinners? Wait a little, Mr. and Germany. To secure his raw-material Mege_.Mouriez to experiment on a substitute. ' President, and I will tell you. Who of supply he picked up 200,000 acres of land in Mege-Mouriez wisely studied the cow. He the British Solomons, on which he proposed noticed that unfed cows continued for days the 157,000,000 people in the United to deliver milk rich in butterfat but lost States has the Democratic Party picked? to plant coconut trees, and got a 1,875,000- acre concession in the Congo for growing oil their animal fat in the process. He naturally The report further states that palm trees, where he built houses, schools, concluded that the butterfat in the milk had : In association with the Dutch- and hospitals for the natives. been derived from the cow's fat, and verified But like most born competitors of his his conclusion by pressing caul fat (from They have now formed a Dutch holding time, Lever turned out to be a born monopo around the heart) with milk, and so making company and an English holding com list. The older he grew, the less he slept, the an artificial butter. For good measure, he pany. They were not satisfied with one more he saw, the more he wanted, and the invented the name "margarine" to describe holding company; they organized two. more he bought. In 1906 he promoted an this butter. In association with the Dutch sister con amalgamation of the leading soap makers, Jan Jurgens heard about the process while cern, Unilever N. V., Unilever Ltd., now con but it was attacked furiously by some of the in France and immediately got the rights to trols not only the Jurgens and Van den press, which printed evidence of fraudu manufacture margarine. At this point the Bergh groups of companies, but also the lent trading and other malpractices. narrative can be taken up by an extract from Schlicht and Hartog concerns, both of which the Van den Berghs touching little family Mr. President, the article is too long history. manufacture soap and margarine, the former to read in full or even to have printed mainly in central and eastern Europe, and · Mr. President, I need not go into all the latter in Holland. In 1931, two additional in full in the RECORD; but I have picked companies were formed under the names of out the most pertinent parts of it. The the family history, but the article states Unilever (Raw Materials), Ltd., and Unilever following appears on page 204: what bitter rivals those two men became, Grondstoffen Maatschapij N. V., in order to Besides getting into the British margarine after they had been friends almost from facilitate the buying, holding, and admin business (margarine had been imported childhood. istration of stocks for the English and Dutch mostly from the Netherlands, so during Later on in the article we find this groups of companies, respectively. This World War I the Government asked him to quotation from a newspaper headline: colossal international combine now includes make it) he founded the MacFisheries firm, "Margarine king dead." over 600 companies- bought a whaling company and built it up, and acquired a half dozen leading British The Dutchman had died in 1907. In N amely, 616 companies, in 40 different soap, soap flake, chemical, oil cake, and other words, the heads of those two fami· countries. candle companies. Among them was the lies had been fighting each other, but in I read further: eminent Joseph Crosfield & Sons, Ltd., 1907 one of them died. supreme twin holding companies (Unilever makers of soaps and chemicals, which had After that, Simon's sons commanded the Ltd. and Unilever N. V.) are kept separate been the first (in 1906) to hydrogenate fight against the Jurgens. But the Jurgens not only for organizational reasons but also hithert.o distasteful fats like whale oil and were led by Henry's son, Anton, the strong in order to avoid the costs and complications render them first rate for any use. By 1920- est and ablest of the bunch-a sharp-faced, of double taxation. But the real nerve cen Thirty years ago- shrewd little man with an overpowering am ters are to be found in the interlocking direc he had gathered unto him more than 75 per.. bition to run the whole margarine industry. torates of two private companies, each of cent of the. British soap business. Remembering that William Lever had come which controls 50 percent of the voting power to the Netherlands and had tried to sell in Unilever Ltd. and Unilever N. V.; so that So, Mr. President, away back in 1920 Uncle Jan on the brand idea (Jan had called the British and Dutch interests jointly con he was doing three-quarters of all the Lever a fanatic), Anton had taken a leaf trol both. The whole vast organization is soap business in England, from Lever and pioneered branded mar- 1950 CONGRESSIONAL RECORD-SENATE 305
garine. He also had been bitten by the mo Lever Bros. & Unilever N. V. his cup of. tea, dons his white pith helmet, nopoly bug- [All figures in millions of pounds) and strides along the palm-bordered graveled walk leading from his house, down the stor:e As was so well described yesterday by Sales Profit stairs to the Dayspring wharf. It looks as i-f the distinguished· juriior Senator from it would be a busy morning. Up river to the Minnesota [Mr. HUMPHREY]. left and out of sight around the bend, the 1.8 Then we find this: Germany.------35 yellow tide is dotted ~ith nat~ve du?out United States of America. ------i ~ 1. 3 The Netherlands...... canoes their paddles glittering m a bit of At first he didn't get very far, but about that has managed to sllp through the time of the depression of 1907 competi France ...... ------·------~ sunshi~e tion got so ferocious and duplication of the sodden, lowering clouds. Dozens of ~c°~~a-iiii.~~=====::::::::::::~::::::: 4 .9 traders are already unloading their valuable facilities so flagrant that a profit-pooling ar Eastern Europe...... ~ rangement was concluded. Switzerland .....•....••••...•...... •.. cargoes of palm oil and palm kernels. Philippines. ------5 Among them is L'Nemchaku, one of the great So instead of dividing the stock and Others ...... ••...•.•••••...•..•••...•. ______middlemen of the Ibo Tribe, dressed in gold the control, they made an agreement to 89 4.0 and white like a prophet, and bringing 14 Total.._------___ .-----.••••••.. puncheons containing 9 tons of oil worth in divide the profits 50-50. all nearly £250; and Mercy Pepple, one of the Mr. President, I ask unanimous con The war changed these proportions radi oldest female traders on the coast, dancing sent to have printed at this point in my cally, and put N. V. in an even worse position. around and chattering, offering a few hun remarks page 213, beginning with the The Continent faded out of the picture, and dredweight of palm kernels. words "mostly because of this decline," Germany, Austria, and the countries east of · Mr. Humphrey's corps of African helpers and continuing to the end of ·the para the Stettin-Trieste · line· are still excluded are already on the job-sampling and grad . graph on page 214. from the accounts. The United States now ing the kernels with a terrific swagger and earns practically all N. V.'s profits. Yet total flourish, unloading and rolling the puncheons There being no objection, the extract turn-over for 1946, excluding intracompany into the storercoms with a straining and was ordered to be printed in the RECORD, transactions, was around £270,000,000, or groaning and chanting as if each barrel were as follows: £80,000,000 more than the combined gross heavy as a steam roller. There is, however, Mostly because of this decline, the direc shown above, and total profits were £12,000,- none of the old struggling and ·screaming tors decided to redistribute the assets of the 000, or hardly below the 1937 figure. What about prices. These · are still fixed by the two holding companies so 'that the British happened, as the Continent passed out, .was government, and all Mr. Humphrey does is · and the Dutch sides of the business would that business in Britain, the United States, initial the chits for payment after carefully be more nearly equal in volume and profits. and in the domain of United Africa Co. ex checking them against the produce-£100 . This seemingly odd decision goes back to the panded by more than enough to compensate for this trader, £8 for that one, £75 10s 5d for European declines. United Afrfca proved days of Margarine Union and Mar~arine Uni~, for the other. which were tied together by a umque equali to be the star performer, almost doubling its Within the hour a big part of this pay zation agreement designed to get the bene-· 1937 turn-over and profits. Despite rationing ment, which can total as much as 40,000 fits of consolidation without incurring and short supplies, the British and American shillings (natives dislike folding money), the penalties of double taxation. Under the companies more than held their own, ~artly will be rolling back into Mr. Humphrey's till. agreement the companies , had identical •because of an acquisition program designed For on each wharf is a store belonging to to compensate for the loss of Germany. The boards and their stockholders had equal sub~idi United States company bought Pepsodent; the United Africa Co., or one of its .rights, and each was bound to he:p pay aries like Miller Bros. or African & Eastern the preference dividends of the other, if need and N. V.'s Lipton Tea Co., tea blenders in the whose names are preserved because soine arose, and· to pay the same dividend _on its United States, went in heavily for dehydrated traders long ago pinned their loyalty to ·common. -When the Unilever compames re soups. The British company got the right to them. But here ·again is no bargaining manufacture and distribute Birds Eye frosted agr~e palaver, no wrangling among the stores for .placed the Margarine companies, the foods outside the United States, and pur ·ment remained in force. In 1937, what with chased Batchelor's of Sheffield, world's biggest the traders' custom. Nearly all the stores falling Dutch profits and no prospect of get pea processors and canners. And last year are owned by UAC, prices are controlled, and ting anything out of Germany, it looked as Smethurst Ltd., fish curers of Grimsby, came the stocks of flamboyant cottons, cigarettes, if the English company's dividends would be into the fold. salt, and so on, are so low that everything not ·held down by the imbalance in earning power. reserved for favored traders is snapped up at So the assets were distributed by giving near Mr. LANGER. When Fortune maga once. The West African describes a superior ly everything outside the British Empire, in zine started to write up the monopoly, its object as "fine pass" this or that, and the cluding the prosperous American company, editors apparently thought they could do finest of all as "fine pass kerosene.'' . "Fine to the N. v. side of the business and· leaving it all in one article. Before they finished, pass kerosene," duly says the clerk, display the rest with the British side. At the same ing a dubious roll of United States-made they found it required three editions of shirting. "Everything firie pass kerosene to time, Lever Bros. was completely merged Fortune. They treated it serially, as a with Unilever Ltd., and the names of the day," comments the trader mournfully. And two great holding companies were changed continuing story. We turn now to For in terms of price and scarcity, everything is. tune for January 1948. A little while ago · Last year Mr. H·umphrey bought upward of to Lever Bros. & Unilever, Ltd., and Lever £200,000 worth of palm oil and palm kernels, Bros. & Unilever N. V. If it had not been I made the statement that all the labor ers in Africa were paid was 20 cents a . and one of the major sorrows of his life is for the double taxation, to repeat, the t wo that he couldn't sell as many pounds' worth originally would have been consolidated into day. I call attention to page 62, where, of merchandise because it wasn't there. one, and the question of redistributing the as a part of the article, there are pictures assets would of course never have arisen. showing the laborers doing various kinds TRADING ON THE GRAND SCALE How American profits helped shore up the of work, under which is this note: Compressed into a single instance and oversimplified, this is the current success N. v. side of the combination-remember, . West African labor is poorly paid because Germany's profits were blocked--:may be de story of the United Africa Co., Ltd., the big as a whole it is very unproductive. The gest enterprise in all Africa, the world's larg duced from the following estimate of Uni 80 men hauling the logs, for example, get lever's 1937 sales and profits by cou!ltries. est trading company-and a wholly owned so little-20 cents a day-that they are al subsidiary of the Anglo-Dutch Lever Bros. Lever Bros. & Unilever Ltd. most as cheap as a tractor, which is still un and Unilever combine, whose history was [All figures in millions of pouiids] available. recorded in last month's Fortune. The basic Mr. President, I ask unanimous con operation at Opobo, one of the last of the old Sales Profit time river stations, is repeated, on both sent that this entire article, dealing with smaller and larger scale, all over central and the monopoly, be printed at this point in west Africa-up at Kano, 700 miles north, Great Britain.------55. 0 my remarks. the world's greatest groundnut (peanut) Soap .... ------15. 0 There being no objection, the article market, capital of the Hausa Tribe, the larg Oil cake ...... ------15. 0 5. 6 was ordered to be printed in the RECORD, est and most ancient Mohammedan city west Margarine . .. ------8. 0 MacFisherics...... 8. 0 as follows: of Istanbul, where the howl of the muezzins Paperboard...... 3. 0 wakes you at daybreak every morning; over Foods, glycerin, etc...... 6. O UNILEVER'S AFRICA-LEVER BROS.' UNITED at Ibadan, the largest and most "modern!' === AFRICA Co. Is THE WORLD'S LARGEST TRADING city of Nigeria, where nearly half a million Empire .. ------.---- 47. 0 ------COMPANY-THOUSANDS OF NATIVES PROFIT people spawn and trade under an ocean of FROM IT BUT THOUSANDS MORE DISLIKE AND Africa...... 40. O 1. 6 galvanized-iron roofs. Last year UAC bought Australia...... 3. O FEAR IT nearly $115,000,000 worth of African produce Canada.------l. 5 1. 5 Promptly at 7 a. m., almost as if he had from natives and their middlemen, raised India...... 1. 5 South Africa...... 1. O been set off by the strokes of the ship's bells (6,000,000 worth of oil on its plantations in mounted on the wharves below, Cecil Hum . West Africa and the Congo; took in some Total.______102. O 8. 7 phrey, manager of the United Africa Co. $8,000,000 from its 518 craft on the Niger trading station at Opobo, Nigeria, puts down and the Congo and from its wholly owned XCVI--20 306 CONGRESSIONAL RECORD-SENATE JANUARY 11 line, which operates a 15-ship, 120,000-ton ess of decortication and expressing the palm As it was, the two companies almost com fleet between the United Kingdom and West oil, and to grow the palms on plantations, peted themselves broke in the early 1920's. Africa. On the other side of the ledger, it where the yield and quality per tree could They had overextended before and during sold nearly $145,000,000 wort.h of merchan be more than doubled. When Lever tried to the war, duplicating stores, warehouses, and dise, mostly in West Africa and the Congo. do business, however, he banged up against ·trading stations, and were now overpaying (For an account of the odds and ends of its British protectorate policy, forbidding Euro traders and brokers. The general unprofit operations see the note on page 132.) peans to buy Nigerian land or even lease it ableness of the operation was aggravated by All this. amounts to nearly $300,000,000 for long terms. This idealistic policy was the fact that trading could not be tightly worth of business-about 45 percent of the and is based on preserving native land-tenure . controlled by the home office. Gone were produce buying and 30 percent of the mer laws and on the concept of trusteeship, of the old days of the palm-oil ruffians, when chandise sales in all West Africa, and nearly saving Africa for the Africans and letting a shipload of assorted junk, mostly empty as much in the Congo.1 This great terri their wants determine their development; gin bottles, was enough to make a man's tory stretches more than 3,000 miles fromi the and although the arguments against it have fortune. Not yet gone were the old and hump of West Africa in Senegal through the increased in cogency with time, Parliament romantic characters like A. C. Butler, the Congo to East Africa. It includes British, and the colonial office, determined to pro palm-oil king of dpobo, with his enormous Belgian, French, Portuguese, and Spanish tect the natives a_gainst the soap boilers of and picturesque library and gargantuan colonies, which have different customs and the world, have clung to it. palm-oil chops. The palm-oil chop, still degrees of development but are alike in that Lever stormed and raved, but all he could the Saturday dish of traders, consists of they are more than 99 percent native and do was buy a small trading company, put chicken, prawns, and almost any other avail more than 99 percent illiterate. Its area is up an experimental kernel-crushing mill, able meat or fish cooked in fresh red palm roughly equal to that of the United States, and stamp off to the Belgian Congo. This oil and served on rice and fu-fu (mashed and its population is some 50,000,000. land, whose moral atmosphere was so mag yams) . Butler and his chieftain friends, UAC's great strength and two-thirds of its nificently rendered in Joseph Conrad's sluicing down the gory-looking chop with business lie in the Gold Coast and Nigeria, Heart of Darkness, was just then struggling a bottle of gin apiece, would eat and drink the latter now the largest country (23,000,000 out from under Leopold Il's atrocious exploi themselves asleep, and part of Butler's special approximately) under the British Colonial tation. The Belgian authorities, looking for fame derived from his ability to rise early Office, where it alone does 60 percent of the a new enlightened system, gave Lever a next morning and gorge himself on the re buying and nearly half the merchandise cordial reception. In 1911 he founded the . mains of the feast. Not yet gone, either, sales. Eight other relatively small European Huileries du Congo Belge, with a concession were the days when company-employed companies, with which it is on the best of to develop 1,875,000 -acres provided he paid traders worked their own little game on the terms, do the bulk of the rest. Wherever you agreed minimum wages, established schools, side, buying palm kernels when the price go in this region-the size of Germany, hospitals, etc. Today Huileries du Congo was low and not entering the purchase on France, and Italy combined-UAC is su Belge has nearly all its acreage in oil palms, the books until the price reached its peak. preme. Its stores and warehouses seem to 80,000 on a plantation basis, employs up And by no means gone were the competitive take up half the town, its trading posts cover wards of 40,000 natives, and produced 37,000 days when a trader used every trick and the bush, its managers' houses are the finest, tons of oil and 16,000 tons of kernels last strategy ever heard of to take business away and its managers' "chop" (African for food) year. Although it technically stems from from another trader. the best. "UAC be government," say the Huilever, a Belgian subsidiary of Unilever, By 1929, A. & E. was in the hands of the natives, logically identifying the most impor it is really part of UAC. bankers, who brought in Sir Robert Waley tant and powerful organization in the land In 1920, not long after he had publicly Cohen, head of Shell Oil, to run it. One of with the official manifestation of power. denounced the Nigerian Government for the first things Sir Robert did was to pick UAC of course is not the government. It is its bureaucratic, highhanded methods, Lever up where Lever had left ott: and make a deal simply in the position of doing a large part of tried again to establish plantations in Brit with Niger to combine on a 50-50 basis. of the business there and maintaining com ish West Africa. The Governor of Nigeria, The result was UAC. Not even the com mercial relations, free of antitrust legislation, Sir Hugh Clifford, invited him to dinner at bined company could stand the depression, with the rest. UAC is disliked by the people. Government House in Lagos. The blunt, im however. It lost millions, had to be writ It is disliked and feared all the more because portunate Lever argued his case violently, ten .down from £15,700,000 to £11,000,000, the people can't do much about it, because while Sir Hugh replied firmly and with some and passed almost entirely into the hands their whole economic present and future annoyance that the fundamental doctrine of of the Unilever interests when A. & E. could seem bound to it-and because they are the system of developing agricultural re not meet its bankers' demands for money. black and largely primitive and prone to dis sources through the agency of indigenous But in 1931 UAC began a housecleaning trust and dislike even the most uncommer inhabitants was the only justification for that is still talked about with awe in the cial Europeans. British rule in tropical countries. The argu jungles of Nigeria and along the reaches of the Congo. Down to Africa sailed two di FROM COMPETITION TO COMBINATION ment got to the point where they would have exchanged blows had they been any rectors, who then proceeded to reduce the It took a long while to achieve this un number of stores and the · stafI of both the comfortable eminence, but in some ways it thing but British. The next day Lever in vited Sir Hugh to dine with him on his yacht, West African operation and Huilever's surely would have pleased the man who SEDEC (Societe Anonyme d'Enterprises started it all. He was the extraordinary· the Albion. Sir Hugh declined. "My duty compels me to be hospitable to you," he ex Commerciales du Congo Belge) by no less William Hesketh Lever, the Viscount Lever than 60 percent. The operation temporarily hulme, of the Western Isles, founder of Lever plained, "but it does not compel me to accept your hospitality." killed the company's morale, but it revived Bros., who about the turn of the century its financial standing. By 1933, UAC was was driving toward the domination of the But Lever was already embarked on a move in the black again. · British soap industry. Tropical oils were that was eventually to get him what he wanted. At this time two large outfits did One of the three managing directors at already being refined and used instead of that time was a shrewd, intense young man tallow for both soap and margarine, and the the bulk of the trading. One was the Royal Niger Co., which had operated under a royal named Frank Samuel, who at 21 had gone monopoly-minded Lever wanted to be sure of into the family musical-instrument business his raw materials. Having bought 200,000 charter empowering it to maintain the peace. It achieved a virtual commercial monopoly, in London. He invented the first portable acres and planted 17,000 acres of coconut gramophone, which he called the Decca, for palms iri the Solomons, he turned his atten but the charter was repealed in 1900, when the government decided to do the governing. no part\cular reason except that the name tion to Africa, whose principal oils were and sounded good, and shortly set up the Decca ar.e palm oil and palm-kernel oil, squeezed Nineteen years later a company called the African & Eastern, a new combination of Gramophone Co.. Convinced that radio had from the fruit of the oil-palm tree. This ruined the phonograph, he sold out the com fruit, growing in huge clusters, somewhat several small firms, emerged as the Niger's chief rival; and in the· boom times toward pany to its present owners for £450,000, made resembles tiny, 3-inch coconuts. The farm a trip around the world, and looked for ers shin up the tall trees, pick the fruit by the end of World War I, A. & E. was as big something to do. His friend, Sir Robert hand, and extract oil from the pericarp by as Niger. The two became fiercely compet stewing it and squeezing it in a crude press. itive as only tropical traders can become. Waley Cohen, asked him to take a whack at And in their spare time their women crack Lever thought such competition idiotic, ~nd merchandising with UAC. Mr. Samuel took the nuts, whose kernels are nearly always itched to buy and merge them. Since raw a whack and was at the point of giving up exported and pressed abroad. materials were at the highest prices in his when he decided to go to Africa and have a This method not only wastes time and oil tory, he was prepared to pay appropriately look for himself. but produces a low-grade oil with a high free for the companies: £8,500,000 or five and a There he changed his mind so effectively fatty-acid content; and at the outset Lever, half times the par value of its shares for that in 1931 he was appointed a director, who certainly had what Americans used to the Niger Co., and a complex but costly bid and early in the war, when the other two call vision, wanted to mechanize the proc- for A. & E. The Niger purchase went directors went into government service, he through, but the A. & E. deal hung up on took over. Some idea of the importance 1 Besides those under UAC's jurisdiction, litigation. Meantime the bottom fell out Unilever attaches to its biggest subsidiary Unilever's African interests include soap and of the market, and Lever was probably lucky may be derived from the management set-up margarine factories and food-processing it did. The beating he took on Niger badly of UAC. Chairman is the famous Viscount companies in South Africa, the Rhodesias, bent Lever Bros., and the loss he would Trenchard, marshal of the Royal Air Force, Nyasaland, and West Africa. have taken on A. & E. might have broken it, Chief of Staff of tbe British Air Staff from 1~50 CONGRESSIONAL RECORD-SENATE 307 1918 to 1929, who fougP,t f_oi: 7 years in prices comfortably higher-high enough at ber in Nigeria, but it probably exceeded Nigeria at the beginning of the century and any rate to keep the produce coming steadily 100,000. The one big ambition of the smart knows the country well. He has be~n chair· to market. On the other hand, he naturally West African native, male or female, as soon man since 1936. The rest of the board con aims to drive as hard a bargain as he can for as he or she donned a loin cloth and began sists of 15 members, including, besides Mr. the money the native has to spend. To the to comprehend the weird and intricate ways Samuel, 4 other members of the Unilever native chief who remembers fondly only the of the white man, was to forsalrn the jungle board: Geoffrey Heyworth and Paul R ykens, feast of the feast-or-famine days of competi and become a trader or middleman. But, of chairmen of the parent companies, Sir Her tive buying and selling, such stability seems course, the middleman needed money, and bert Davis, and R. H. Muir. No other Uni like a big squeeze play by the trading com the only way European firms could get prod lever subsidiary has such a team at its head panies, by the civilized world on the primi uce was to advance the money to the brokers, or is so closely integrated with the parent tive areas, by the white race on the black who advanced it to the middlemen at 40 to board. race. 50 percent interest, and so on down the line One reason trading companies in the Trop EVERY PRICE HAS ITS COSTS to the farmer. The native brokers, like the ics formerly competed so savagely was that white traders of an earlier day, quickly found In the last few years UAC has achieved they had relatively high overhead costs. out that the capital they had to work with what no company in Africa has enjoyed since There are only some 1,125 UAC European presented tempting opportunities for clean the days of the Royal Niger-stability in both employees in West Africa and the Congo, but ing up on their own. buying and selling, an almost complete he Europeans in the Tropics are expensive ani A good example of how they worked is gemony of the field; and the irony in the fact mals. The company provides them with provided by the prewar cocoa situation. As that the wartime controls of the government houses and "boys"-its total investment in the buyer of 40 percent of the cocoa in the have helped the company to its unprece houses runs into millions-and grants them Gold Coast and in Nigeria (the source of dented heights is surely not lost on Mr. a month's leave for every 5 months on tour, half the world's supply), UAC advanced hun Samuel, whose devotion to success is com with round-trip fare to London or Brussels. dreds of thousands of pounds to brokers. plemented by a sardonic sense of humor. A few older men are still on a bonus basis, They in turn would buy cocoa at, say £25, And UAC is successful. Last year profits, the bonus varying with profits and amount and enter their purchases on the books at £30 after taxes, were somewhat more than $10,- ing to as much as twice the salary, but this or £35 if the price later went up that far, but 000,000, or nearly a quarter of Unilever's con has been largely supplanted by a pension at the actual buying figure if it fell; with the solidated profits, or about 4 percent on scheme enabling a man to retire at 53 result that the European companies were left UAC's sales and 18 percent on its original on half salary-not too early nor too holding the bag no matter which way the capitalization. much for anyone who has steamed out the market happened to go. UAC claims it lost What this success means will become clear best years of his life in the Tropics, fighting £1,338,000 in cocoa buying between 1930 and after we consider the nature of UAC's dysentery, consorting with the same bores 1937, overpaying brokers by some £350,000. business, its relation to Unilever, and the day after day, swallowing pounds of quinine So practically all the European firms got normal conditions under which it works. Its or atabrine in a futile attempt to forfend together and formed a cocoa-buying pool activities sound simple. Its primary func malaria, and giving up his children (if he has that divided the market and "stabilized" tion is to get tropical produce and sell it in any) for a dozen years or more because the prices. Just about this time, the world the world market (it never buys directly for Tropics are bad for them and there are no price of cocoa, infiuenced chiefly by the de Unilever), and it naturally would lik'J to see schools there anyway. While salaries are not cline in New York prices, fell abruptly. The a comfortable spread between the price it high by American standards-only a few bewildered natives and their chiefs could pays and the· price it sells for. In the early managers make more than $10,000 a year not or did not want to understand the rea days a trading company kept native prices they are high by colonial standards, and son and blamed the price· decline on the buy low by offering the cheapest possible mer personnel costs impose a fixed burden that ing pool. They organized a strike or "hold· chandise for the biggest possible amount of can be absorbed successfully only with great up," and native sales and merchandise pur produce. Manhattan Island, remember, was volume. Competition, of course, was worst chases fell off to practically nothing. The bought for $24. But after the transaction when times were tough and volume hard to British Government investigated, and print became monetized a strange complication set come by, and a native would walk 25 miles to ed a report recommending, among other in. AB soon as the native got money to save threepence. And the worst competition ·things, a farmers' cooperative to eliminate spend, and got it from sources other than was provided not by the European compa usury, misweighing, and other abuses of the the traders, the companies found themselves nies but by price-cutting Syrians, Lebanese, middleman system. developing merchandising organizations and Greeks, who slept behind their· shop But shortly afterward the war began, and whose prosperity depended on the native's counters, and did not have to worry about the Britif:h Government, through traders, having money to spend-which he did not houses, bonuses, retirement pensions, district did all the buying. It still has a monopoly have when prices were ruinously low. And managers, or area supervisors. on West African cocoa, and with the world experience showed that trading companies price around £250 a ton, it is buying cocoa SWARMS OF MIDDLEMEN for around £75 a ton, and has already made almost invariably made more money when UAC's chief purchases, in the order named, prices were high than when they were low, a profit of some £20,000,000. The Colonial are palm oil and palm kernels, cocoa, ground Office says it will set aside these profits to and made more money on merchandising. nuts, and hides, and it harvests and saws World prices that were too low to cover trans bolster the price in future years at about timber. Most of the cocoa comes from the the level it is paying now; and despite the portation costs to Europe would mean no Gold Coast, and most of the rest from Nigeria business for anybody. howls and laments of American chocolate and the Congo. The company buys this prod makers apparently intends to continue price This logic may seem to place Mr. Samuel uce · in 1,771 stations, some doing a business in an odd, not to say dichotomous, position. controls indefinitely. Through the 1946-47 of $5,000,000 or more a year, others consist season it fixed not only prices but buying As UAC's managing director, charged with ing of a native employee or concessionaire on quotas, the latter on an "as is" or "past ma!cing it proiltable, he should prefer high a commission basis, with a stock of matches, performance" basis. UAC had no kick world prices. But as a director of UAC's cigarettes, soap, tin pans, and . plain and coming; it made at least a decent profit and parent, Lever Bros. and Unilever, which buys printed cotton goods under a little tin-roofed any kind of ·stability was better than the colossal amounts of fats and oils and con shack of a store .. olc:!-time anarchy. Last fall, however, the verts them into soap and cooking fats and All these stations, however, are not any Government suddenly knocked the props out margarine, he should prefer low worl(. prices. where near enough to contact the so-called from under this stability by canceling quotas It wot~ld be easy to conclude that Mr. Samuel farmers out in the depths of the bush. Na but still continuing to fix the buying price. is beaten down by the rest of the Unilever tive farmiID.g consists mainly of climbing oil The companies must theoretically now bid board, which theoretically should sweat to palm trees and picking the fruit, knocking for tonnage with very little room to bid in, drive produce prices as low as possible. As pods off cocoa trees at the right time, and and some kind of buying agreement is ob a matter of fact, prices fiuctuate regardless cultivating patches of groundnuts; and even viously in the offing. of the wishes of Mr. Samuel or Unilever; and when the farmer has enough wives to do the Wartime price controls had and still have it is more valid to conclude that Unilever is work, he rarely pursues his calling assid-u a salutary effect on other produce. UAC more interested in the prosperity of the ously. In the main, he sells not for the · (and its predecessors) had habitually made trading business as owner and buyer than necessities of life, which he raises or picks trade agreements with European competi only as a buyer. This is just another way from trees, but for luxuries like matches, tors-firms like Paterson Zochonis, of Man of saying that the Unilever-UAC vertical cigarettes, bicycles, sewing machines, gramo chester; Compagnie Frangaise de l'Afrique combine, like most vertical ccmbines, results phones, and Xavier Cugat records. Occidentale, of Marseille; John Holt & Co., almost automatically in a corporate urge to Partly because he has to be coaxed, partly of Liverpool. But it had no sooner made balance prices and costs so that each of the because he is so inaccessible, a hierarchy ')f agreements than new competitors began to company's components turns a profit; and native middlemen factors or brokers has take advantage of the opoprtunity-just as the key to the balance is stable prices. One risen up to fetch his produce to market and the textbook says they should. In the late can believe Geoffrey Heyworth, chairman of to take merchandise to him. Local brokers 1920's, for example, the European firms at Unilever, when he says: "We run our business sell to district middlemen, the district Kano got together, agreed on prices, and positively, keep it healthy and growing, and middlemen to lower middlemen, and so on. made allocations of groundnuts, e.nd it let the chips fall where they may." In 1937 there were some 1,500 brokers or fac looked as if they would enjoy the blessings So Mr. Samuel is certainly in no danger of tors and 3'7,000 subbrolcers in the Gold Coast; of stability. But a Tripolitan named S. going schizoid. He would like to see produce no attempt was made to estimate the num- Raccah got into the export trade, offered 308 CONGRESSIONAL RECORD-SENATE JANUARY 11 native middlemen and other sellers a better selves vastly superior to the native farm the experience and that was that. And only price than the European firms. He went methods. The forest ls cleared and the last November 6, Mr. Strachey again gave the broke in the middle 1930's, but came back young palms are planted, and they begin to company a pat on the back. "I believe that strong by working hard and late, dealing bear within a few years. Since other trees the UAC and all those who have been through brokers in Europe, and dickering do not keep the sun from them, they do o.fficially and unofficially responsible for the for lower than conference steamship rates. not grow long trunks, and thus harvesting very rapid launching of Operation Ground By 1938 he was exporting a third of the becomes· easier and safer. The trees are nuts deserve well of the people of Great groundnut crop, and of course the European more than twice as productive, and the Qil is Britain." agreement in effect broke down. The war of consistently high quality, being expressed UAC not only started the project, it did so intervened, and the British Ministry of Food from the pericarp in plants right on the es without fee. Yet this was not wholly an controlled and set quotas for West African tate. Total cost ·has been cheaper than the eleemosynary gesture. Eventually the plan produce, allocating UCA nearly half of the price paid for native produce in all except tations may produce 600,000 tons of nuts a groundnut crop on a 3-year average. the deep depression years. And today the year, more than Nigeria's exports of palm The only noteworthy UAC activity that finest palm oil can be produced for about kernels and groundnuts combined, and the perhaps hasn't gained by Government con half of the £25 a ton that the inferior native oil will not only enable Unilever to make trols is the practically noncompetitive lum product brings. As a result of such differ more soap and margarine but will almost ber and timber business, which accounts for ences in cost, the plantation-farmed Nether certainly have a stabilizing effect on world a rather small part of the company's revenues lands East Indies passed Nigeria in palm-oil prices. As the world's largest buyer of fats and an . undisclosed but certainly very nice exports in 1936 and the Congo ls rapidly and oils, Unilever will benefit immensely. part of its profits. It harvests tropical tim catching up. Apd if the day again comes when there is a ber of all kinds on a concession basis in the Whether the plantation is socially superior glut, Nigerian farmers will doubtless pay lowland jungles of Nigeria and the Gold to native farms ls not quite so easy to say. for the illusion of running their own af Coast, saws it up in a mill at Sapele, Nigeria, The Colonial Office's contention that it would fairs-unless the Nigerian Government pro and· sells the lumber to the Ministry of Sup leave the native high and dry when profits fail motes its own plan~ation schemes. In that ply. A few years ago Mr. Samuel got inter has not been borne out, for during the de sense the groundnut scheme was a victory ested in plywood, and UAC is now com pression plantation workers got along some for UAC-and for the ideas and ambitions pleting a huge factory with an annual output what better than farmers. UAC planta of oM Lever himself. of 40,000,000 square feet of ~fo -inch plywood, tions have provided the native much better worth $3,00-0,000. The ·mills are on tide housing than he has in the bush, plus free TROUBLE IN PARADISE water-logs float from the forests, and lum hospitals and clinics, schools, medical treat Meantime, the native farmers are making ber and plywood are loaded onto UAC ment; and the difference between the Congo a lot of money and UAC is making a lot of steamers at the door. UAC is spend plantation worker and bush native in health money taking their money. Probably no ing money on houses and a hospital for 2,000 and general well-being impresses even the company in the world sells a wider variety native workers; and the plywood mill, the most skeptical visitor. Huileries du Congo of merchandise. More than a third of its first of its kind in the Tropics, involves con is starting to raise a herd of cattle to pro $145,000,000 sales comes under the general siderable risk and experiment, including air vide red meat for its native employees, and heading ·of textiles-180,000,000 yards a conditioning to combat humidity. But has just founded L'Ecole Superieure D'Agri year-consisting mostly of cotton baft UAC has to pay the workers only about culture-Huilever s. A. to teach bright Con (heavy gray goods), and gaudy but imagina 50 or 60 cents a day, and the mill is poten golese to become estate managers. The only tive cotton prints, carefully designed to sat tially extremely profitable. Another is way native standards can be raised ls by in isfy the wierd and changing taste in each planned for the Gold Coast. creasing native productivity, and the planta section of the country. Next on the list, The British Government may not control tion system has done it faster than the slow accounting for about 10 percent of sales, the price of lumber and plywood by the time educational system of the Colonial Office. are cigarettes. After that come salt and these mills are running, but it surely will The counterargument goes that the ~ative anything else any department store can con control fats and oils for a long time. It on the plantation ls deprived of his old vil ceivably carry, from Sunlight soap made in seems determined, indeed, to peg them until . lage life and of the chance to process his the local factory to Czech hardware and gas the world supply, now a bare 17,500,0flO tons, produce as well as raise it, is fastened to a engines and wine and cosmetics and ma is somewhere near the 22,000,000 tons needed new kind of existence, and robbed of the· chetes and General Motors refrigerators and to put per capita consumption on a prewar illusion of running his own affairs. And cars. More than three-quarters of UAC's basis. A question that will inevitably arise it may be somewhat idealistic to expect a na sales are wholesale, made in small, dumpy when controls are repealed concern Unilever's tive to be more advanced than civilized peo holes in the wall bearing the name of a pred buying power. One of the arguments for the ple who have fought for the illusion of run ecessor or subsidiary like W. B. Maciver, merger of the Dutch margarine and British ning their own affairs. which markets most of the company's tex soap interests that resulted in the Unilever Neither groundnuts nor cocoa, however, are tiles. As a matter of general policy, UAC combine was that together they could buy yet raised on African plantations. There is wants to forsake retailing almost entirely more than a third of the 5,800,000 tons of some doubt about whether cocoa trees could and leave it to the African. With that aim fats and oils normally handled in interna be; the best ground for them in the Gold in mind it is refurbishing and concentrating tional commerce. Unilever was accordingly , Coast seems to be the middle of slopes, and its retail activities in a chain of modern, charged with having a powerful depressing it ls of course terribly difficult to get enough sometimes elegant Klngsway stores, nearly influence on world prices. As we have noted, middles of slopes together to make a planta half of whose customers are Europeans, and however, Unilever does not care to see prices tion. The company, not missing a bet, has will maintain them mostly as show places depressed too far. And with a Labor govern nevertheless planted 6,000 experimental acres and pilot plants. · ment doing the stabilizing, UAC and Uni of cocoa in the Congo. There is no doubt, The story of merchandising competition is lever have to worry only about the rather however, about plantation culture of ground the same as that of produce competition; it interesting charge, sometimes made, that they nuts. In 1946, while on a tour of East Africa, used ·to be devastating. Besides the Euro are running the Labor government. Even if Mr. Samuel got the idea of developing huge pean companies, there were upstart Greek they were, they wouldn't have to; the govern groundnut farms in the vast uninhabited and Levantine traders wbo showed a dismay ment's desire to maintain controls happens expanses of East Africa, where the soil seemed ing ability to cut prices, squeeze along, and to coincide with Unilever's yearning for sta about right. But if Unilever proposed to buy stay in business. They even decided to im bility. hun dreds of thousands of acres of land, the port for themselves, a decision that Man LEVER'S DREAM COME TRUE native leaders might have been down on its chester and German textile manufacturers What the Labor government has found out, neck. Accordingly, Mr. Samuel developed were only too glad to abet for a while-until ironically, ls that Unilever's interests and the idea on a colossal three-and-one-quarter one Syrian ordered a lot of textiles from the British national interests coincide so million-acre basis, which no private company Manchester and refused to accept them when. much of the time lately that it is sometimes could very well swing, and turned it over to they arrived. When they were auctioned off, difficult to recognize the company as the the Ministry of Food as Unilever's contribu his confederate, supplied with the Syrian's biggest octopus in the whole Old World. And tion to the solution of the world fats-and cash, got them for about 60 cents on the dol Mr. Samuel's latest accomplishment is not oils shortage. lar. Of another shrewd trader his competi only another example of such a coincidence; The ministry sent out a mission to report tors say he hires a claque to stir up a crowd, it can be interpreted as a victory in the on the proposal. Soon after the mission re whereupon he sells a piece of baft, say, at 25. Lever organization's 40-year-old fight with turned, Food Minister Strachey, author of percent below going price in the morning the Colonial Officer over plantation versus The Coming Struggle for Power, got up in and gradually raises the price as the crowd native farmer. Parliament and explained the scheme, adding gathers and the day wears on. In addition to the 80,000 acres of planta that His Majesty's Government had asked As times picked up, UAC and eight other tions run by Huileries du Congo Beige, UAC (one of the favorite targets of his companies, accounting for the bulk of the UAC Pamol Ltd. operates palm-oil planta Socialist friends) to manage the undertak merchandise trade, got together and suc tions in Nigeria and the Cameroons. The ing until it was in production. It was al ceed.ed in stopping the cutthroat competition latter dates back to Gennan control and most as if Churchill got up and said he effec;tively enough to double mark-ups on the other to a temporary excess c;>f leniency wanted Aneurin Bevan as Prime Minister. some ftems. This get-together is frequently_ on the part of the Nigerian Government, There was derisive laughter from the right, confused with the Association of West African which allowed it to be set up as an experi and sharp questions from the left, ancf Merchants, an entirely different body com ment. The plantations have proved them- Strachey could only reply that UAC had prising the principal trading firms and found- 1950 CONGRESSIONAL RECORD-SENATE 309 ed during World war I. At the outbreak of cott. "Never thought they could do it," ad Ing, ancl other benefits bringing the grand World War II, the West African and home mits a UAC man. "Anyway, the reason Afri total up by 50 percent-while merchandise governments called it into consultation on cans complain about the inordinate profits of is generally higher in Africa than in Britain. import controls, price-fixing problems, and the Syrians is they want to make the profits." Naturally, a bicycle or a bottle of hair schemes for boosting native production. Whatever the facts, UAC settled the boy straightener costs a little more in Africa than Even the whites, identifying it with high cott by agreeing to create 50 African traders it does 5,000 miles closer to the place it was prices, call it the Association of Waylayers at the expense of the Syrians, and so far it made; and the African, until he is more pro and Mercenaries. The get-together is cur has found 14 natives capable of being made ductive, cannot expect to earn as much as rently unnecessary, for the government still traders. The settlement, reached only after European labor. (To pay him high wages fixes prices and allocates imports, more or the Africans had demonstrated their strength, now in the last analysis would be to do him less on a past-performance basis, and by obviously did not do UAC any good. It out of a job.) Which ls not to say that and large the situation is beautifully under strengthened the native's antagonism to the European companies do not take advantage control for UAC. As a part of a large in company and, more important, gave him of low prevailing scales, set by governments, vestment program, UAC has formed a jointly confidence in his ability to fight it. As every the largest employers of native labor, to get owned construction company with Taylor company knows, a strike means bitterness, productive jobs filled cheaply. Woodrow, well-known British contractors, and losing a strike means losing prestige. As for the literate African, he would be has a one-third interest in a 500,000-gallon In UAC's case the loss was even more severe hard to handle even if he were getting a brewery being built at Lagos, and is spending because the strikers had different-colored much better deal economically and were $5,000,000 on its river fleet and docks. It is skins and a different psychology. always treated as the adult he is. Neither also finishing a banana-flaking plant (to the British nor French in West Africa nor ,be supplied from its banana plantation in the THE WHITE MAN' S BURDEN the Belgians in the Congo tolerate the color Cameroons), and planning to produce con Nineteen years after its founding, UAC has line that is a feature of life in South Africa centrated orange juice. If anything is to be arrived at an admirable commercial su as well as the American deep South. But developed in West Africa UAC will surely premacy. Although its relations with the the mere absence of a formal color lines does have a go at it. natives are better than they used to be they not affect things very much. The more en The only notable fly in the ointment is a have not yet matched its commercial progress. lightened the native, the more he is aware bold Gold Coast Greek named A.G. Leventis The company is probably still vulnerable that his brothers and uncles and aunts come whom UAC sacked in 1936. He had little commercially-a new American or British closer to monkeys than Europeans seem to; past performance in most of West Africa, but company with plenty of Negroes in its man and unless ·he is a man of immense talent, today he is one of the big retailers in the agement might give it a devastating ride. al:l the confidence he can muster in himself ·area. His white, modern, three-story build UAC is also ·vulnerable to public opinion. and all he knows about the stupidity anci ing at Lagos, for example, is always crowded Now· that India is practically independent. venality of the white man isn't enough to with merchandise and native buyers scream West Africa is one of the most critical fron cover his discomfort. ing to be waited on. The question of how tiers on earth, one of the few remaining The situation presents obvious and enor Mr. Leventis imported his merchandise was chances for liberal western civilization to mous opportunities for a demagog, and the subject of a government investigation, give a good account of itself. As the dom one has appropriately arisen. The most which mentioned the irregular! ties of cus inant enterprise in this area, UAC has to publicized native in West Africa is one Dr. ' toms officials and United States Army officers. define success as a performance that does Nnamdi Azikiwe, better known as Dr. Zik, Leventis is unquestionably resourceful. The credit not only to itself but to the free a well-educated man with a gift for noble native is so proficient at the art of drumming enterprise system. It has to bridge the gap phraseology. He prints several Nigerian pa that it is sometimes quicker to send messages between the middle 1800's and middle 1900's. pers, and his program is independence for by drum than by telegraph, and the story This is not an easy job, and there is much Nigeria, justice for the Africans, "the right goes that Leventis bought up the free time to be said for UAC. It is not and cannot be to work if a man has to," freedom from of a whole army of drummers, and that the expected to be responsible for 50,000,000 UAC, the destruction of AWAM, and coastal jungles now vibrate to the Yoruba Africans. To assure every native connected so on. Frequently he is unintentionally or Ibo equivalent of "Buy from Leventis-he with the fats-and-oils business a decent liv funny. One of his papers recently created undersells everybody." ing by European standards, soap and mar a particularly anguished furor with the news Yet Leventis does not seem to worry UAC garine would have to sell for $5 a pound. that a UAC manager employed a dog as too much. Presumably it expects him to sell The West African economy cannot be ap night watchman at a higher wage than he out as others have sold out when the time praised in terms of the European or American paid some of his help. Dr. Zik's editors is ripe. In any event, UAC has been going its social or economic cliches any more than its missed the point. This manager, who has way more or less unconcerned, accumulating living standards can be assessed in terms of since been fired, used the dog to patrol his its good share of profits and ill will. To be American standards. The seeming rapacity place and hit upon the whimsical and touch sure, it is blamed for sins it doesn't commit. of the trading companies often sprang from ing idea of entering the dog's name on his It is blamed, for example, for the fact that the competitive spirit that is the legal ideal pay roll along with· several fictitious names. most of the stuff it imports reaches the na of United States industry. Competitive as Of Dr. Zik and his papers and activities it tive consumer at anything from 100 to 500 sailability created the will to monopoly; trad is fair to observe they are one of the best percent above what it should sell for. Ac ing companies have abused their position in arguments extant for making Nigeria a crown tually, UAC sells to middlemen traders at one place to recover what they lost by exces colony, but his line nevertheless is sometimes gove:-nment-fixed prices, and the traders sell sive competition in another. just and generally plausible-and packs a big and resell the stuff for whatever traffic will Under ordinary circumstances, a company appeal. Dr. Zik cannot be pooh-poohed, as bear. Caustic soda, used by local roap mak could partly compensate for all this by wise, he is, on the ground that only a small literate ers and dyers, is very scarce, and last August deft handling of personnel relationships. minority knows him. UAC and the other caustic soda sold by UAC for $9 a ton was Even this is not so easy as it sounds. The Europeans almost certainly underestimate fetching $88 a ton in the free market. The bulk of the natives are not only illiterate, him, just as they tend to underestimate the natives have accused UAC of taking advan they are stupid, listless, and exasperating, as forces that have generated him. tage of the situation by making traders take Europeans would be if they and their families UAC has done something to improve its some of the things they don't want in order were plagued with malnutrition, malaria, relations with the natives. It has appointed to get other things they do want. dysentery, yaws, sleeping sickness, leprosy·, a personnel manager, and has sent several The traders themselves are far from blame and outsized umbilical hernias. The average of its African managers on extended trips less. In Ibadan, last August, Yoruba female native knows the European mostly in the re through the United Kingdom: It has set up traders had overstocked themselves with lation of boy or servant to master. This pensions and sick-leave benefits. For econ Guinea gold cigarettes and were selling them is partly unavoidable, because nearly all Eu omy as well as good will it makes a policy of in the street at less than wholesale price, ropeans in UAC territory are executives of upgrading native personnel to managerial hoping, in the words of one UAC man, "that one kind or another, and would be masters jobs as soon as they can handle therr .. In their big orders of cigarettes would entitle if their employees were white. Anyway, the Togoland, all its staff is African. Although them to better allocation of scarce stuff, average native almost compels the European Africans are generally paid considerably less which they could mark way up." This is a to be the white master. Accustomed to the for the same work, most students of West variation of an old prescarcity practice known most despotic kind of rule by his native over African economics agree that equal pay for as gold coasting, or buying easlly salable lords, he regards the European who tries to equal work would be a mistake. It costs the items on chit, selling them below cost if be democratic as a weakling and a fool. He European much more than the native to live necessary, and lending the cash to needy responds to being treated fairly-a circum in the tropics, and a European scale for the traders or natives at 30 or 40 percent. stance overlooked by many white master~ African, besides being too far out of line with Last June the natives of Ibadan, led by a but the fact remains that he seems to per the lowest native wages, would tend to keep youth movement called the Discrimination form best when treated firmly. So the aver him out of government and business jobs Watch Committee and · the newly formed age European inevitably regards him as a that he should be trained to hold. But even Ibadan Wholesalers and Retailers Union, pro child, and ts disposed to treat him economi when the native sees the point of this con tested tie-in sales, unsuitable merchandise, cally as a child. cept, which he rarely does, he naturally be and what they thought was the European Complicating all this are the native work lieves that UAC abuses . it. During the importers' partiality for profiteering Syrian ers' low wages-as low as 20 cents a day, war, UAC upgraded many Africans, and traders. They organized an effective boy- with "cola" (cost-of-living allowance), hous- 1n the inevitable housecleaning after the war 310 CONGRESSIONAL RECORD-.SENATE JANUARY 11 some lost out. The instinctive native re now does very well indeed, has gone into the But shortly afterward the war began, and action that the company was reviving color wholesale business, and exports and imports the British Government, through traders, discrimination was taken up by the Zik press. everything from airplanes to tobacco (it did all the buying. It still has a. monopoly What UAC has on its hands, in other ·sold 200 de Havillands last year). In Iran, on West African cocoa, and with the world words, is a. full-blown public-relations race Iraq, Mesopotamia., and Syria, UAC buys price around 250 pounds a. ton, 1t is buying problem about which it ought to do more wool from the tails of desert sheep, much in cocoa for around 75 pounds a ton, and has than it has done. It could, for example, give demand by United States carpetmakers. In already made a profit of some 20,000,000 thoroughgoing courses in race relations to the Canary Islands it runs a. general import pounds. young trainees and future managers, who export business, importing grain and maize now go down to Africa with only their own from Argentina and water pumps from the That is, they buy it for around 75 wisdom and imperfect knowledge to guide United States, and exporting tobacco and pounds a ton, and sell it for about 250 them. London seems to have decided it has highly profitable homemade cigarettes to pounds a ton. a. responsibility to the native, and Lord Spain. In Morocco it specializes in import The Colonial Office says it will set aside Trenchard has stated that it is UAC policy ing Chinese green tea, a staple of Moroccan these profits to bolster the price in future to cooperate more and more with colonial diet, and exports Moroccan leather, which years at about the level it is paying now, governments, but the company surely has really comes across the desert from Kano, and despite the howls and laments of Ameri not been able to sell itself or its good inten Nigeria. Finally, it scrapes a. few thousand can chocolate makers apparently intends tions to the natives. It might we"!. l study the dollars worth of guano off one of the Sey to continue price controls inde1'.nitely. methods of old Lord Leverhulme, who was as chelles, north of Madagascar. All these ac Through the 1946-47 season it fixed not only hardboiled as they come but knew what he tivtties gross it around $8,000,000 and make prices but buying quotas, the latter on an was up against. "A native," he wrote in it a good fat profit. As Mr. Heyworth says, "as is" or "past performance" basis. 1924, "cannot organize. He cannot run even "When profitable loose ends can be tacked a wooding post on the river satisfactorily." on by ad hoc methods, why throw them Further on, at page 136, the article Nevertheless he felt that it was important out?" says: to generate their good will, and suggested the Mr. LANGER. I now come to page The British Government may not control publication of a magazine for African dis the price of lumber and plywood by the time tribution with a cover showing a white hand 134, a continuation of the article pre viously placed in the RECORD, discussing these mills are running, but it surely will clasping a black one and helping the native control fats and oils for a long time. It up a hill. The diagram might make a few the monopoly. The little children in seems determined, indeed, to peg them until sophisticated Africans guffaw, but the motive America buy Hershey bars, for example, behind the idea is today more relevant than the world supply, now a bare 17,500,000 tons, on every one of which England, in con is somewhere near the 22,000,000 tons needed ever. trol of Africa, makes an outrageous to put per capita consumption on a prewar Mr. LANGER. Mr. President, some of profit. Hershey and other chocolate basis. • • • One of the arguments for the slaves of this great monopoly become bars are made from cocoa. Reading the merger of the Dutch margarine and educated. At the bottom of page 64 from page 134: British soap interests that resulted in the there are pictures of some of the na Unilever combine was that together they A good example of how they worked is could buy more than a third of the 5,800, .. tives, accompanied by the following note: provided by the prewar cocoa situation. As 000 tons of fats and oils normally handled in The fatalistic Mohammedan Hausa and the buyer of 40 percent of the cocoa in the international commerce. Unilever was ac Fulani of northern Nigeria (middle photo) Gold, Coast and in Nigeria (the source of cordingly charged with having a powerful boast a civilization that hasn't changed in a half the world's supply)- depressing influence on world prices. thousand years, yet is centuries ahead of the The article is dealing with the monop Congolese. Along the seaboard, the Sierra. There was one fell ow <:>ver there who Leone and Gold Coast natives are considered oly- objected to the monopoly. His name was most adaptable to European ways, with Yor UAC advanced hundreds of thousands of Zik. He is a well-educated man, with a ubas and Ibos of -southern Nigeria c1ose pounds to brokers. They ln turn would buy gift for noble phraseology. So that behind. "And when they advance, that's cocoa at, say~ 25 pounds, and enter their when they get hard to handle," says a purchases on the books at 30 pounds or 85 -everyone who reads the RECORD may UAC omcial. pounds if the price later went up that far, know what happened t<:> him when he but at the actual buying figure 1f it fell; fought this gang, I ask unanimous con When they get a little education, they with the result that the European companies sent to have that part of the article, become hard to handle. I can under were left holding the bag no matter which commencing on page 142, with the para: stand that a man getting 20 cents a day, way the market happened to go. UAC graph starting with the words "the situ when he finds out how much people get claims it lost 1,338,000 pounds in cocoa buy ation presents," through to the end of in other parts of the country, may be ing between 1930 and 1937, overpaying brok the article on page 144, inserted in the come rather hard to handle. ers by some 350,000 pounds. RECORD at this point in my remarks. We turn now to page 132. I as~ unani What happened? The VICE PRESIDENT. Is there ob• mous consent that the article in the bo~ So practically all the European firms got jection? entitled "The Foundlings on the Door together- There being no objection, the Portion step," be printed at this point in my Here is where our American boys again o! the article referred to was ordered to remarks. be printed in the RECORD, as follows: There being no objection,· the article got gypped- and formed a cocoa-buying pool that divided The situation presents obvious and enor was ordered to be printed in the RECORD, mous opportunities for a demagog, and one as follows: the market and stabilized prices. Just has appropriately arisen. The most pub about this time, the world price of cocoa, THE FOUNDLINGS ON THE DOORSTEP licized native in West Africa is one Dr. influenced chiefly by the decline in New York "There are k .. ts of funny bits lying about Nnamdi Azikiwe, better known as Dr. Zik, a prices, fell abruptly. The bewildered na well-educated man with a gift for noble the company,'' says Geoffrey Heyworth, chair tives and their chiefs could not or did not man of Unilever Brothers & Unilever Ltd. phraseology. He prints several Nigerian "It is like having a foundling on the door want to understand the reason and blamed papers, and his program is independence for step; you don't slit its throat, you bring the the price decline on the buying pool. They Nigeria, justice for the Africans, "the right to thing in and take a. look at it.'' Mr. Hey organized a strike or holdup, and native work if a man has to," freedom from UAC, worth was talking about several odd, de sales and merchandise purchases fell off to the destruction of AW AM, and so on. Fre tached, and very profitable activities of practically nothing. The British Govern quently he is unintentionally funny. One United Africa Co. that function under an ment investigated, and printed a. report rec of his papers recently created a particu odd, detached, and profitable man named ommending, among other things-- larly anguished fur-Or with the news that a ,John Wigraln Shepherd. Most of them date UAC manager employed a. dog, as night back to the exploits of a. director of African What did they recommend? They -watchman at a higher wage than he paid & Eastern (one of UAC's predecessors), Maj. recommended a farmers' cooperative.:.....a some of his help. Dr. Zik's editors missed the Gen. W. H. Grey, C. B., C. M. G., who dur farmers' cooperative, such as the Tax point. This manager, who has since been ing and after World War I picked up a Equality League wanted us to put out "fired, used the dog to patrol his place and hit lot of bargains for his company in the ()f business. When they got all through, upon the whimsical and touching idea of en Near East. He bought into the business of that is what they recommended, some 35 tering the dog's name on his pay roll along buying and shipping dates out of Iraq, and with several .fictitious names. UAC now ships 100,000 boxes of the 500,- years ago. or Dr. Zik and his papers and activities it 000 going to the United States in the annual The British Government investigated, and 1s fair to observe they .al'e one of the best date rush. He bought the G. & A. Balter printed a report recommending, among other arguments extant for making Nigeria. a crown store in Istanbul, which got its start ped tblngs, a farmers' cooperative to eliminate colony, but hls line nevertheless is sometimes dling cloth to the members of the Sultan's usury, misweighing, and other abuses of the just and generally plausible-and packs a big harem. It lost money for a long time, but middleman system. a.ppeal. Dr. Zik cannot :be pQOh-poohed., as 1950 CONGRESSIONAL RECORD-SENATE 311 he is, on the ground that only a small liter colored yellow. The three alternates in oleo Mr. LANGER. They are engaged in ate - minority knows him. UAC and the bill for identification purposes will not be manufacturing margarine. other Europeans almost certainly under effective and cannot be enforced. Our bill estimate him, just as they tend to underesti leaves color issue up to individual States. Mr. THYE. And selling it? mate the forces that have generated him. Since dairy farmers' amendment takes tax Mr. LANGER. Yes. UAC h as done something to improve its off oleo and complie::: with Democratic plat Mr. THYE. If they should be per relations with the natives. It has appointed form relative to oleo legislation, we sincerely mitted to color oleomargarine without a personnel manager, and has sent several request that you ask administration and paying a Federal tax, the ability of this of its African managers on extended trips leaders to reverse pressure and line up with great organization to make sales would through the United Kingdom. It has set two and one-half million dairy farmers. The make it possible to flood this country up pensions and sick-leave benefits. For present administration objective merely aids with oleomargarine to such an extent economy as well as good will it makes a 30 oleo manufacturers who have stirred up policy of upgrading native personnel to man consumers on tax issue with $6,000,000 worth that butter would no longer be found on agerial jobs as soon as they can handle them. of propaganda. Please help us to get a the market. In Togoland, all its staff is African. Al square deal. Thanks. · Mr. LANGER. That is exactly the though Africans are generally paid consider RICHARD L. DUNCAN, point. They are hiring native labor at ably less for the same work, most students of Falls Cities Cooperative Milk Pro 20 cents a day. West African economics agree that equal pay ducers Association. Mr. THYE. With such sai.es ability for equal work would be a mistake. It costs they could sell oleomargarine to persons the European much more than the native to Mr. LANGER. We now come to live in the Tropics, and a European scale for volume 3 of Fortune, with its article con who did not even want to use it. Will the African, besid~s being too far out of line cerning this great monopoly. It is the the Senator give us the name of the cor with the lowest native wages, would tend to issue of February 1948. As I said, the poration, in order that we shall not lose keep him out of government and business first one was the issue of December 1947, sight of the Senator's argument? jobs that he should be trained to hold. But the next, January 1948. I want to quote Mr. LANGER. It is known as Lever even when the native sees the point of this what one. of their directors said. Per Bros. in the United States, and outside concept, which he rarely does, he naturally the United States it is known as-Unilever, believes that UAC abuses it. During the haps some of those who have been voting war, UAC upgraded many Africans, and in to give billions of dollars away will not be Ltd. the inevitable housecleaning after the war quite so anxious to continue doing so Mr. THYE. What is the name of the some lost out. The instinctive native reac when they understand the attitude of general manager? tion that the company was reviving color dis certain people. The article gives the Mr. LANGER. Charles Luckman. I crimination was taken up by the Zik press. names. It shows that this outfit has want the Senator to see his picture. What UAC bas on its hands, in other directors. This great trust operates in the words, is a full-blown public-relations race Mr. THYE. Mr. President, will the problem about which it ought to do more United States, the general manager of Senator yield further? than it bas done. It could, for example, give which is in charge of the Jefferson-Jack Mr. LANGER. I yield. thorov,ghgoing courses in race relations to son Day dinners for the Democratic Mr. THYE. Does the Senator think young trainees and future managers, who Party-the one man they chose out of that the butter and milk producers of now go down to Africa with only their own 150,000,000 . other persons in the United North Dakota would have any chance to wisdom and imperfect knowledge to guide States. · sell their product against such ability as them. London seems to have decided it has that which the Senator has indicated? a responsibility to the native, and Lord Let me tell the Senate where this out Trenchard has stated that it is UAC. policy fit operates and where it has its factories. Mr. LANGER. I can quote a letter to cooperate more and more with colonial It has factories in Belgium, Denmark, from the daii'y commissioner of North governments, but the company surely has not France, Finland, Germany, Netherlands, Dakota, William J. Murphy, saying that been able to sell itself or its good intentions Italy, Norway, Sweden, Switzerland Aus that !{ind of competition would be abso to the natives. It might well study the tria, Czechoslovakia, Poland, Hu~gary, lutely ruinous to the dairy farmers. methods of old Lord Leverhulme, who was as Yugoslavia, Rumania, Belgian Congo Mr. THYE. The very backbone and hardboiled as they come but knew what he was up against. "A native," he wrote in Burma, China, India, Ceylon, Siam, New~ strength of the producers in the Sen 1924, "cannot organize. He cannot run even foundland, Canada, British East Africa ator's State, as well as the Minnesota a wooding post on the river satisfactorily." and Egypt. ' producers, are the dairy farmer and the Nevertheless he felt that it was important to When the Democrats looked around for livestock man, because they can weather generate their good will, and suggesed the a good general manager, one who had a drought and can carry livestock publication of a magazine for African distri a wide acquaintance, they certainly chose through even an extremely dry season, bution with a cover showing a white hand a good man, because his companies oper which would kill the wheat and barley clasp.i.ng a black one and helping the native crops. But if this international organ up a hill. The diagram might make a few ate in all these countries, and he can sell sophisticated Africans guffaw, but the mo. tickets at $100 apiece to Jefferson-Jack ization, with its ability to sell, and its tive behind the idea is today more reievant son Day dinners. ability to capture man's imagination by than ever. I continue: Palestine, North and South pictures and artistic drawings, could take the market, the farmer, who is de The VICE PRESIDENT. At this Rho.desia, Union of South Africa, Aus tralla, New Zealand, Pakistan, Philippine pendent on his small cream check, would point, if the Senator from North Dakota be put out of business. That is what the will permit, the Chair lays before the Republic, Malaya, Netherlands East In dies, and the Solomon Islands. Senator is trying to show us, is it not? Senate a telegram from Richard L. Dun Mr. LANGER. I may say to the dis can, of the Falls Cities Cooperative Milk It may be that the Democrats should give a prize to those who sell the most tinguished Senator that when the Producers' Association, J...s0uisville, Ky., drought was very severe in the North relating to the repeal of oleomargarine tickets to the Jefferson-Jackson Day dinners. western States, butterfat dropped to 16 taxes. Without objection, the telegram cents, but the farmers were able to exist will be printed in the RECORD, and lie on This monopoly also has factories in Uruguay, Argentina, Chile, Brazil, and because even at 16 cents they could man the table. The Chair hears no objection. age to make a small amount of profit. The telegram was ordered to lie on the the Canary Islands. I do not know whether there will be I assure the Senator, however, that if this table and to be printed in the RECORD, outfit comes into the United States, as follows: any canaries singing at the Jefferson Jackson Day dinners. spending $50,000,000 for advertising, LOUISVILLE, KY., January 9, 1950. Mr. THYE. Mr. President, will the how, in heaven's name, can the farmers Mrs. FLo BRATTON, of the Northwest compete? Office, Vice President, Senate Office Senator yield? Building: Mr. LANGER. I yield. Mr. HUMPHREY. Mr. President, will Will you please convey to Mr. BARKLEY the Mr. THYE. To what kind of plants is the Senator yield? following message? the Senator referring? Mr. LANGER. I yield. The real issue in the oleo controversy is the Mr. LANGER. I am referring to the Mr. HUMPHREY. Is it not a fact that color, yellow. Our amendment takes tax off plants of this one giant monopoly, the this outfit is already in the United all oleo and it is not our desire to prohibit States-the John. Jelke Co.? sale of oleo; every day that our. 65,000,000 chairman of which is the general man meals served in public eat~g places .you and ·ager of the Jefferson-Jackson Day din- Mr. LANGER: Yes. I and other millions cannot' tell difference .ne1;s forthe·Deinocratic Party. - Mr. HU1\1:PHREY. Is it not a fact that between butter aad high.:.grade -oleo 'product . Mr. THYE. In what are they engaged? the president· of that company said that 312 CONGR-ESSIO-NAL RECORD-- SENATE JANUARY 11 the oleomargarine plants under the con leader for the great insight ·he has given · The Senator is entitled to credit for trol of this company would be the biggest to us and for the help he has given to having ·brought to the attention of the oleomargarine plants in the world? some of us who are just as much against country that much of the lip service on Mr. LANGER. That is their boast. monopoly as he is. I may say to him the Democratic side of the Senate against Mr. HUMPHREY. It is a company that both the Democrats and the Re what are called trusts, corporate inter which now produces 75 percent of all the publicans are somewhat guilty of lip ests, is nothing but lip service. oleomargarine for Europe, outside the service in the fight against monopoly. They have put in charge of the Jack Soviet Union, and we are asked to place Much talk has been heard throughout son Day dinner one of the great outstand our dairy farmers and independent the country about monopoly and about ing economic royalists of the country. operators against that sort of an indus our dislike of it, but neither party has What is more, they precipitate, at the trial giant. had .the courage to do much about it. same time, into the forum of America Mr. LANGER. That is correct. The I think one of the reasons for that is the very significant fact, which is en people took the Democratic Party at its that the Republicans are involved in . it titled to a great deal of consideration, word, and the dairy farmers helped to so deeply they do not dare talk, and the that those who are pushing this fight to elect that party, acting upon the word Democrats have been dirtied up with it take color from butter and give it to of the President of the United States in a little bit so that they do not dare talk. oleo are likely to succeed unless we have his Philadelphia .speech. So, not being a monopolist myself, com more men of courage and understanding Mr. HUMPHREY. Does the Senator ing from a Dema.crat-farmer-labor like the Senator from North Dakota. recall that yesterday, when I was deliv State, at least from a progressive State, I should like to ask a question of the ering my remarks, I made some mention .where even the i:tepu_blicans are progres distinguisJied Senator from North Da of the fact that the farmers of this coun sive, I should like to join with the Sen- kota. Does the Senator remember that try had some idea of what was i_n the ator from North Dakota. . it was Lever Bros. who went into court platform, speaking of the Democratic Perhaps it would be a good idea for us to sustain their right to the color of a Party platform? to join up and call both parties to task certain ·soap? Mr. LANGER. Yes. and say, let us come clean on the ques Mr. LANGER. Yes; I remember that, Mr. HUMPHREY. I also went on to tion of trusts, monopolies, and cartels, and I shall read that into the RECORD say that the. farmers had something to let us enforce the law. give .the antitrust later. do with the result of the election, and I division the money it needs, and not do Mr. WILEY. That is significant, Mr. pointed out that no monopoly was going as we did a few years ago, take away President, when we consider not only to be 2 ble to do for the people of the some of the money. Let us give them the 2,50J,OOO farmers whose economic country what the farmers were able to some of the attorneys they need, too. life is involved, but all the others in the do for them. Mr. LANGER. One way by which the chain of economic living who are con I further pointed out that this was not Senator can do that is to buy a member ,nected with the farmers and whose sub an issue as to whether oleo was to the ship in the Non-Partisan League of sistence is dependent upon whether or best interests of the consumer, but an North Dakota for $16 a year. [Laughter.] not the oleo monopoly shall take more issue between the independent operator Mr. HUMPHREY. I should be de of the spread market than they already and a giant international cartel which lighted to buy such a membership if I have. Stop and think of it. The spread has been masquerading around this only lived in the great State of North market in ·this country consists of about country until I think it has even fooled Dakota, but since we are being so gra 2,300,000,000 pounds. Already this year, the Democratic Party. I do not suppose dous to each other, possibly we could the evidence shows, oleo interests have there is one Democrat ·out of a million exchange honorary memberships. I captured 40 percent of that spread mar who realizes the connections and rami could give the Senator one of ours in ket, or more than 900,000,000 pounds. fications of this international cartel. the Democrat-Farmer-Labor Party in Another significant thing is that less Many Democrats will be embarrassed Minnesota, which, by the way, is only a than 10 percent of that spread is in the after the pronouncements which have dollar [laughter J, and I should be glad yellow color. Why do they want to use been made here by the Senator from to accept the $16 one from North Dakota. the yellow color? They want to use it North Dakota. I think the best way for Mr. LANGER. We will negotiate. merely just to perpetuate their monop them to save their face is to vote for the olistic activities. Gillette-Wiley substitute and to vote Mr. FULBRIGHT. Mr. President, will I should like to say to the Senator that down House bill 2023 and investigate this the Senator from North Dakota yield? the American people owe him a tre oleo monopoly and cartel. I think that Mr. LANGER. I yield to the Senator mendous debt, because he has deJI1on would save the day, and we could then from Arkansas. strated for the first time on the floor of go home with clean consciences. Mr. FULBRIGHT. Inasmuch as we the Senate the fact that the Democratic Mr. LANGER. I agree with the Sen are talking practical politics, if the Sen Party, which has posed all the time as ator, but I think we should also investi ator feels that. what is done will have a the party of the people, the party of the gate how, in heaven's name, the Demo great influence on the farmers, it seems common man, as serving the interests of cratic Party, at a time when the Attor to me he might insist that the Demo the common man, is now really serving ney General of the United States was crats are making a great mistake in re the interests of one of the greatest mo bringing a case aginst this monopoly, pealing this law, and then perhaps the nopolies, not only in the United States, could name the general manager of that Republicans might have a chance to win but in the world. outfit as general manager of the Jeffer an election sometime. The distinguished Senator from North son-Jackson Day dinners all over the Mr. LANGER. The regular Republi Dakota has said something about mo United States. can Party is not interested in WILLIAM nopoly in this country. Does he know Mr. HUMPHREY. Mr. President, will LANGER. I am in a branch of it by my that this same organization is spending the Senator further yield? self, the farmer-labor branch of the Re $25,000,000 putting up plants in Cali Mr. LANGER. I yield. publican Party, and I am protecting its fornia? The purpose of that, of course, -Mr. HUMPHREY. I think we as interest here today. is to take over the west-coast spread, Democrats must say we are deeply in Mr. WILEY. Mr. President, will the as we call it. In California the same debted to the distinguished Senator from Senator from North Dakota yield? monopoly has been seliing oleomargarine North Dakota on an occasion when it is Mr. LANGER. I yield to the Senator for as low as 20 cents and as high as 60 very difficult to find out his politics. He from Wisconsin. cents. What is more, in order to capture is a good nonpartisan leader-- Mr. WILEY. I desire to compliment that spread, they have indulged in the Mr. LANGER. I am a good nonparti the distinguished Senator from North practice of giving to anyone who buys san all the time. Dakota, first, because he has brought to 1 pound of yellow oleomargarine a cer Mr. HUMPHREY. That is wonderful. the attention of the country a very sig tificate entitling him to a free pound. It requires that sort of a clean-cut mind nificant fact, namely, the choice of Mr. Again I say, let us consider the terrific frankly to state the case. We did not Luckman by the Democrats-I must say impact upon the economic life of the receive any information from the policy that when I have listened to my good country if the business of some 3,000,- committee of the Republican Party as to friend from Minnesota, this corporation 000 farmers and those who are connect what was happening to us. So we want would appear to be lily pure, as he made ,ed with them is paralyzed. That is to thank the North Dakota nonpartisan it out. something we cannot reckon. It maY, 1950 CONGRESSIONAL RECORD-SENATE 313 start a tailspin that cannot be stopped. United States are entitled to know what . dent, Vice President, electors for President or Personally, I think it would be something this company is and where it operated, Vice President, or for Senator or Member of really catastrophic. and what it sold and traded in and dealt the House of Representatives, is not and shall not be deemed a qualification of voters 'Vie have heard on the ftoor of the in. It dealt in household and laundry or electors voting or registering to vote at Senate debate on danger in the foreign soaps, in soap powders, in ftake soaps, in primaries or other elections for said officers field-in China, in :i:1ormosa-and debate toilet soaps, in medicated soaps, in within the meaning of the Constitution, but about Tito. I think the idea that the scourers, in soapless detergents, and in is and shall be deemed an interference With green pastures are always farther afield water softeners. the manner of holding primaries and other is a wrong philosphy. I think we had When it comes to oleomargarine, it elections for said national officers and at better look to our own pastures and see has offices in Solo, Belgium; Astra, tacks upon the right or privilege of voting whether or not something should be done France and in numerous other coun for said national officers. here. tries. The combine sold $216,621,000 I shall not read the other sections. I · I trust that I have given the Senator worth of oleomargarine, edible oils, and offer .the amendment as an amendment a sufficient respite so that he can carry fats in the countries in which it op to the pending bill itself, and not to the on. I thank him for the privilege of in-· erated. The combine sold canned vege 'Vliley-Gillette substitute. terjecting these remarks at this time into tables, tea; and soups, baby foods, dried Mr. MAYBANK. Mr. President, does his very illuminating address. I say fruits, meat and fish pastes. . the Senator have any objection to the again, I congratulate the Senator. He The combine also sold animal feeding amendment in full being read at the has brought to the attention of the stuffs. - desk? American people the fact that the Dem It also sold chemicals, glycerin, bone Mr. LANGER. I have no objection ocrats have , put at the head ·of their products, candles, coal, fertilizers, ice, whatever to the amendment being read organization one of the greatest eco tallow, greases, residues from oil refining, by the clerk. nomic royalists in America, and that starch derivatives, and receivea revenue The PRESIDING OFFICER