9582 CONGRESSIONAL RECORD-HOUSE. AUGUST 27,

Jacob J. Kesel, The following-named second lieutenants to be first lieutenants James Carbary, in the !\fa.rine Corps, for temporary se1'vice : 1\lurl Corbett, Clifton B. Oates and \Villiam H. Scl1midt, jr:, George T. Hall. Ray Rindfleisch, The following-named officers of the l\farine Corps Reserve to \Villiam P. Grow, be second lieutenants in the l\larine Corps, for temporary Eugene \Vest, service: Amor L. Sims, \Vllliam EngUsh, Robert C. Pitts, George W. Hopke, Joseph B. Carhart, Frederick Israel, George L. Brown, Carl J. Norsh·and, Howard L. Vose, , Cecil J. Widdifield, Emmet Trainor, Robert C. Babcock, Earl T. 1\lartineau, Dave \V. McClain, Kenneth \V. Harding, Frnnk Neider. ,Joseph F. 1\Iaher, l\lorris C. Richardson, Peter 1\lorgan Goerge Belmont, Henry L. Nabbe!eld, George B. Batten, Hugh P. Kidder, John ~r. Foster, William A. Zook, \Villiam Zoltowski, George Bower, Rus ell l\1. FrederiC'l~, Charles W. Brooks, Edward E. Lindgren, Ben L. Taylor, Bayard Vasey, \Villirun F. Dummer, Jes e L. Crandall, IJoyd E. Battles, Vincent A.. Brady, Jay Van Housen, Edward F. Dunk, Palmer Ketner, jr., Harry L. Smith, Henry P. Cottingham, Hobert L. Young, Arthur C. Cooper, Charle S. Thompson, Charles H. Ray, Terrence J. Callan, .John Groff, Paul J. Oguen, Henry P. Glendinning, 3Iaurice E. Barnett, jr., \Villis H. Prather, \Villiam W. Rogers, Prentice S. Geer, George F. Stockes, In-ing G. Beckwith~ William J. Whaling, and William n. Bockus, Curtis T. Beecher. George \V. \Valker, Richard 'R. Day, Marshall E. Simmons, HOUSE OF REPRESENTATIVES~ George Draine, William A. Bradley, TUESDAY, August B7, 1918. George R. Rowan, Leonard E. Rea, Tile House m~t at 12 o'clock noon. Harry G. Lane, The Chaplain, lleY. Henry N. Couden, D. D., offereu the fol­ James E. Stunners, lowing prayer : Clell G. Johnson, Our Father in Hea-ven, impart unto us, we pray Thee, gmcc Lucas I. Bruns, sufficient unto the needs of the day; wisdom unto these HeJwe­ Richard H. Schubert, sentatiYes of a great people to gu~de them in all their legislatiYe Herbert V. Hansen, acts; patriotism unto the American people, so pure, so ueep, so Egbert J. \Vood, broad, so strong, that we, in conjunction with our allies, may 1\lelvin E. Fuller, gain the ,yar for humanity; in His name. Amen. George E. Gardner, The Journal of the pro·ceedings of yesterday was renu anLl ap­ Holton Y. Ditto, proyed. Claude B. Taugher, MOTIO~ TO DISCHAUGE A COll"lliTTEE. \Villiam B. Kinkead, lli. DOOLITTLE. l\Ir. Spe..'lker, a parliamentary inquiry. Bruce C. Luber , The SPEAKER. The gentleman 'viii state it. Thomas R. Wert, l\Ir. DOOLITTLE. There has been pending in the Commiltee Charles F. Dalton, on A.gricnlture for several months a bill introduced by my col­ Samuel K. Eaves, league, 1\lr. AYnES, of Kansas, a re olution fixing the prl(•e gen­ Charles l\1. Adam , erally on articles enumerateu in the bilL No action ha. !Jcen Earl F. Lucas, taken in the committee. Repeated attempts have been maue Axel G. John on, by members of the committee, including myself, to get action Bert 0. Herreid, upon it. The gentleman from Kansas [1.\It·. AYREs ·! has filetl a \Villiam K. lUacNulty, motion to discharge the Committee ou Agriculture from fur­ Edwin J. Davenport, ther con. ideration of the resolution No. 253. Quer.r: When Hamlet C. Sharp, would it be in order to ask for reco~nition on hi motion to second lieutenant time except by unanimous cousont? in the l\Iarine Corps, for temporary service. The SPEAKER _,_To . The Clerk informs me that thc!re are Second Lieut. Josephus Daniels, jr., Marine Corps lle en-e, 33 motions on the list. to be a second lieutenant in the Marine Corps, for temporary l\lr. DOOLIT'.rLH The only way it coul

elephant, but the Chair doubts -very much the correctne~s of that JESSIE T. LO\ELL. decision. 1\Ir. PARK. l\Ir. Speaker, I present n privileged report (H. PA.ms. Rept. No. 761) from the Committee on Account:;, wilich I end The Chair wishes to make a further statement. Two or three to tile desk and ask to haye re-ad. times lately there has been a sort of commotion about pairs. The Clerk read as follows: The Chair has stated half a dozen times that the Ohair has House resolution 423. nothing on earth to do with pairs and neither has the House Resolved, That the Clerk of. the House of Representatin~s be, aml he except as stated in the rules. The other morning the gentleman is hereby, authorized and directed to pay, out of the contingent fund from Texas [l\1r. GA.BNER] asked unanimous consent that the of the House, to .Jessie T. Lovell, clerk to .James II. Da~idson, a Repre­ sentative from the State of Wisconsin at the time of his death, August 6, Speaker inform the pair clerks that they must not pass up any 1918, the sum of $166.66, being an amount equal to· one month's salary pairs except those signed by the Members. That is precisely of a clerk of a Representati\e in Congress. what the rule provides now. It is one of those things that Tho SPEAKER The question is on agreeing to the resolu­ the Chair does not have always in mind unless attention is tion. called to it. The rule provides: Mr. GILLETTE. 1\Ir. Speaker, I will ask t11o gentlcm:m from Pairs shall be announced by the Clerk after· the completion of the Georgia if this is the usual practice? second roll call from a written list furnished him and signed by the l\1em1Jer making the statement to the Clerk, which list shall be pub­ Mr. PARK. It is. lishecl in the RECORD as a part of the proceedings, immediately follow­ The resolution was agreed to. ing the names of those not ~oting, provided pairs shall be announced but once during the same legislative day. ORDER OF BUSlKESS. And then in Rule XV it provides- Tile SPEAKER. The gentleman from Missouri [1\Ir. HAMLIN] and thereafter the Speaker will not entertain a request to record a is recognized for 30 minutes. vote or announce a pair unless the Member's name has been noted Mr. WALSH. Mr. Speaker, the gentleman from Missouri under clause 3 of this rn1e. [Mr. HAMLI.l~], I believe, is first in order in remarks that are to The Chair lmows, and everybody else knows, that as a matter be made to-day. Mr. lLua.IN is a gentleman who has had a of practice a l\Iember will go to the pair clerk and say, "Pair long and distinguished career here in the House, and I know me with Representative Jones, Smith, or Brown," or whoever his remarks will be of very great interest to the membership. the Member may be. The difficulty about the pair business I think we ought to have a larger attendance, and I therefore comes where the pairs do not indicate which way the Member make the point of order that there is no quorum present. . would vote if he was here. The Chair does not see how a man The SPEAKER. The gentleman from Massachusetts makes can tell what is going to come up in the three or four weeks the point of order that there is no quorum present. EYidently that he may be ab ent when making a pair for that length of there is not. time. He can not go off and expect the pair clerk to knqw how Mr. FOSTER. hlr. Speaker, I move a call of the llou e. he would \Ote. In the opinion of tho Ohair the whole thing is The motion was agreed to. a nui ance. The SPEAKER. The Door)reeper will close the doors, the 1\fr. WALSH. l\1r. Speaker, will the Chair allow an interrup­ Sergeant at Arms will notify the absentees, and the Clerk tion? will call the roll. The SPEAKER. Certainly. The Clerk called the roll, and the following Members failed 1\Ir. 'VALSH. The Chair would not intei·pret that rule to re­ to answer to their names : quire a Member himself to sign a request for each individual Anthony Farr Kreider Scully pair? If he knows he is going to be absent for a definite length Aswell Fess La Follette Seu~ of time he leaves general authority to be paired on all questions. Austin Flynn LaGuardin. Shackleford Bacharach Foss LeYer Sherley The SPEAKER. The Chair read the rule, and it is plain as Barkley Francis Linthicum Sherwood day. In old times, when everything was political, Democrats Black Frear Little Shouse and Republicans, two Members could make a pair, and the clerk Booher Freeman Lobeck ::Hegel Brand Fuller, Mass. Lundeen Sims would know that the Republican -voted with the Republicans Britten Gallivan Lunn Slayden and the Democrat with the Democrats, but lately you can not Browne G-andy McCormick Slemp tell "tother from which." [Laughter.] And many times they Browning· Garland 1\IcLaughlln, Pa. Smith, C. B. Butler Garrett, Tenn. Maher Smith, T. F. are nol: Yery far apart. Byrnes, S. C. Glass Mann Snell ORDER OF BliSI "'ESS. Candler, Miss. Glynn. Mays Snyder Carew Goodwin, Ark. Meeker Stafford Mr. SIMS. · 1\fr. Speaker, I wish to ask what amount of time Carter, Mass. Gould Miller, Minn. Stephens, ·:Miss. Church Graham, Pa. Miller, Wash. -Sterling, Pa. is to be taken up by speeches to-day ffi· which unanimous consent Clark, Fla. Gray, Ala. Montague Ste-venson has been given. Coady Gray, N . .J. Moores, Ind. Sullivan The SPEAKER. Two hours and ten minutes. Connally, Tex. Green, Iowa l\fott · Sumners Connelly, Kans. Greene, Mass. Mudd Swift Mr. SLl\fS. It would not be in order for me to move to go Cooper, Wis. Gregg Neely Switzer into Committee of the Whole until that time has been con- Copley Griest Nelson Tague sumed? ' Costello Griffin Nicholls, S. C. Talbott Cox Hamm Nichols, Mich. Taylor, Colo. The SPEAKER. No. Crago Hamilton, N. Y. Nolan Templeton Mr. SIMS. I am very busy in the hearings on the war emer­ Cramton Haskell Oliver, Ala. Thompson gency power bill. I hope there will be no requests for further Crosser llastings Oliver, N.Y. Timberlake Curry-~..Cal. Heaton O'Shaunessy Tinkham speeches to-day by unanimous consent .and let us continue the Dale, N.Y. Heintz Padgett Yan Dyke consideration of the- water-power bilL Dallinger Hensley Parker, N.Y. Vare 1\lr. WALSH. Does the gentle_man intend · to sit here and Darrow Hicks Peters Venable Da-vis llood Powers Vinson listen to the speeches? Delaney Howard Ragsdale Walton 1\Ir. Sil\.fS. I have just stated to the gentleman that I am Dent: .-n Hull, Iowa Randall Ward Dewalt Husted Rankin Watkins \ery busy in the committee hearing on the emergency power Dies Hutchinson Riordan Watson, Pa. bill. Dlll .Tacoway Robbins Watson, Va. 1\lr. W .ALSH. Oh, I thought the gentleman meant that he Dillon .Johnson, S. Dak. Roberts Welling Dominick Jones Rogers Whaley was going to a<:ljourn his hearings. Donovan .Juul Rowe Wilson, IU. l\lr. Sll\1S. Oh, no. Therefore, l\Ir. Speaker, I shall return Dooling Kahn Rowland Wilson, Tex. about 2 o'clock to mo\e that the House go into the Committee Doremus Kearns Russell Wingo Drukker Keatin"' Sabath Wise of the Whole House on the state of the Union for the further Eagan Kelley,"'Micll. Sanders, La. Wood, Ind. consideration of the water-power bill, and will do so so· soon Edmonds Kennedy, H. I. Saunders, Y

with the accompanying papers referred to the Committee on the distrllst and lack of confidence in the lawmaking body of their District of Columbia: country, and in doing that believe that they can effectively To the Senate and House of Represe-ntatives: cripple the prosecution of the war. This is not only unjustifie

THE CHARACTER A r~ D PATRIOTISM OF THE MEMBERSHIP OF THE upon the battle field 3,000,000 as bra\e boys as ever went to HOUSE. battle. [Applause.] When we declared war we had no ships­ for years 'Ye had depended upon foreign ships to do our over­ The SPEAKER. The gentleman from Missouri [Mr. HAM­ seas carrying-but since that time we have builded shipyarus LIN] is recognized for 30 minutes. and extended others and have been able to launch already more 1\Ir. HAMLIN. Mr. Speaker and colleagues, as a result of ships :fiyin:g the Stars and Sh·ipes than we had launched in any the recent primary in my State I will not be a Member of the 10 years of our previous history. Within that time we have House after 1\.!arch 4 next. Therefore no sinister or selfish transported and have on the plains of France 1,500,000 of the purpose can be attributed to me in what I shall say on this best fighters that ever 'vent to battle, as evidenced by the fact occasion. Neither can it be called in any sense a "swan song," that the ruthless Hun started back toward Berlin as soon as a for I undertake to say that no man has quit the service in this small contingent of our soldiers appeared in the front-line House with less bitterness in his soul or with a less feeling of h·enches. And yet these yellow pro-German publications have chagrin than I will. the audacity to tell the people that Congress has done nothing. For the last 16 years I ha\e been in one continuous political The truth is not one pbund of powder could have been maue battle. For eight consecuti\e terms I have been the nominee available, not one gun made, not one shell manufactured, not of my pa1·ty and have been elected to this House sev{m times, one boy put in uniform, not one soldier h·ansported beyond the anu each time I have llad to fight both for the nomination and seas, not one wheel turned if Congress had not first enacted election. The people of my district have been good to me. the laws providing for the same and had not made available They have kept me here, under the adverse circumstances men­ the money for which to carry on this work. And yet in the face tioned, longer than any man who ever represented the district, of these facts these infamous, slanderous sheets say Congress is and therefore it is with a feeling of relief rather than grief unpatriotic and neglectful of their country's interest. that I retire to pri\ate life. I undertake ta say that no country since history was first The only regret I ha\e is the severing of the delightful written ever prepared an army so well and in so short a time ties of friendship which I ha\e been able to form with l\Iem­ and never transported across 3,000 miles of sen, infested witli bers of the House-representative men f1·om every part of these the deauly submru·ine and treacherous mine, 1,500,000 men with­ United States. In this, however, I will be the only loser, for out practically the loss of a single one, or so well provided for in my successor you will find a big-hearted, whole-souled, lik­ its soldiers and their dependents as has this war Congress. And able fellow, whom to know will be to love, and you will there­ yet these libelous journals would hav·e the country believe that fore too soon forget that I ha\e e\er been here. Congress is in open rebellion against the executive department This, however, is not the purpose of my addressing you at and will not support it in this time of war. Let me give you a this time. Now that the situation is changed and that I can sample of some of this infamous misrepresentation. I read an not be accused of selfish reasons, I want to combat and de­ extract from one of these yellow journals publislled in my nounce as best I may the libelous criticisms of Congress gratui­ district headed : tously made by a few yellow papers and other publications CONGRESS IN DEBELLIO.'. throughout the country directed against the whole member­ .As a rule, it is better for the country if Congress is in ·mention. ship of Congress. Tbc President has often shown a disposition to keep Congress away There are a few papers printeu in the large cities of the from Washington. Nevertheless, there is certain necessary work for country but which find an echo here and there in the papers of Congress to do. Secretary McAdoo wants re>enue legislation of an important character acted on at once. It is necessary for the con­ some of the smaller towns, that ru·e not, in fact, patriotic and duct of the war, yet Congress is almost in rebellion rather than do its that have not courage enough to show their real colors, but plain duty. • • • Congress :ohould be a leader in patriotic work that seek to cripple and hinder the prosecution of this war instead o.:: trying to avoid a little effort in the summer months. by bringing into di repute and uistrust by the vilest misrep­ And so forth. resentations the legislative branch of the Government. This statement is made in the face of the fact that the The columns of these publications are filled with hypocritical records will show that Congress has promptly and gladly J?rotestations of loyalty to our Government in these hours of and almost unanimously enacted every piece of legislation sh·e. s aml trouble, but they are also filled with an indictment asked by the executive department in the prosecution of this of the whole member hip of the lawmaking body by character­ war. It is only fair to say that political lines ha\e been oblit­ izin~ them as unintelligent, unscrupulou , unpatriotic, and, in erated in Congress; it is impos ible in the consi

I also undertake to say that the history of civilization does our country is hanging in the balance, the man who wonlillinois [1\Ir. MAnnEN] is recognized for 20 minutes. penalize them by compelling them to pay $58 instead of $8 per 1\fr. MADDEN. . 1\Ir. Speaker and gentlemen of the House, the $1,000 per year insurance by reason of their situation. Conse­ Congress of the United States has from· time to time enacted quently, Congress provided by law for the organization in the laws creating commissions for the regUlation of certain branches Treasury Department of an insurance bureau, enabling these of the Government and the activities of the business industries boys to provide for the future by taking insurance from $1,000 of the country, and among these commissions is one known to $10,000 at $8 per $1,000 per year, the amount required in as the Federal Trade Commission, created in 1914. The ordinary peace times, and that the Government would carry the object of the creation of that commission, as I understood it extra risk of $50 per $1,000 occasioned by the war. No other and as I think the American people understood it, was to so country in the history of the world has ever done this and yet regulate the conduct of the business of the country that there these pro-German publications say that Congress has done would be no monopoly in any line of trade and that combina­ nothing. tions jn the restraint of trade might be discovered and prose­ Congress has made available not only millions, but billions of cuted and such combinations dissolved. In a recent investigation dollars in the prosecution of this war. In order to do So, it of the packing indusb·y of th~ United States the Federal Trade has been necessary to call upon the people to generously loan Commission made serious charges against five of the great pack­ to Uncle Sam all the money that they can possibly spare, for ing institutions, Armour & Co., Swift & Co., Morris & Co.; which he gives his bond, behind everyone of which is pledged Wilson & Co., and others. They charged them with all kinds all the resources and the manhood of the richest and greatest of crimes and misdemeanors. They made everY, kind of in­ democracy on earth. In addition to that it is necessary for vestigation that it was possible for them to make under the taxes to be laid upon the people, heavier, perhaps, than in the extensive powers granted to this commission by the law. They history of the country before, but fully justified by conditions, exploited the commis~ion and its members for political reasons for everyone realizes that the very existence of our Government more than they exploited the iniquities of the institutions whose is in the balance, and the man who is not willing to make sacri• crimes, or purported crimes, they pretended to investigate. fices for his country does not deserve to have a country. Any They made every kind of a charge, and when they failed to man who is not willing to defend the Stars and Stripes with prove the charge they withdrew or ignored them. They under­ every dollar that he possesses and every drop of his blood, if took to break into the safe ·of the people whose business they, necessary, ought to leave the country and not longer disgrace were investigating. They did that without warrant of ·law. it with the claim of citizenship. The courts held that they had no right to do the things which I have a suspicion that in this very question of taxes may be they undertook to do. This commission has proved itself not !ound the motive for these misrepresentations and indictment only to be a menace to the people of the United States but to be of the patriotism of Congress. F9r years and years some of -unworthy of confidence. They have not proved one charge these publications, at least, have been receiving a bonus from made against the institutions that I have indicated. They not the Governmf'nt. Their effusions have been carried through only have not proved the charges, but in making their reports the mails of the United States for years at a net loss of about they have ignored their charges. If the charges they made were 7 to 8 cents per pound, amounting to millions of dollars each b·ue they should have been prosecuted. Have they done so~ year, which the taxpayers of the country have had to con­ Not at all. What is it that they have done? They have recom­ tribute. Some time ago Congress concluded that in these times mended to the President of the United States that the subsidiary of trouble, when everybody ought to do his duty, to increase in activities of the packing indusb·ies of the United States shall a small way the postage on this second-class mail matter. Im­ be taken over by the Government. They want the refrigerating mediately there was set in motion a propaganda denouncing plants taken over; they want the retail meat markets in the Congress, and every Member has been bombarded with letters various sections of the United States taken over and run by the and telegrams, many of them from good citizens, who were Government. They claim that the railroad companies are in induced to send them under a misapprehension of the facts, combination in restraint of trade with the packers. They have protesting against this increase of second-class postage. Many not proved it. They ignore the charge in their recommendations. of these same publications which are now denouncing Congress The recommendations have taken no account whatever of the as unpatriotic and as slackers are not patriotic enough to pay charges made. They have exploited themselves for the politl- . even a small modicum of the expense that the Government is cal advancement of the individual members of the commission. put to in distributing their literature over the.country. In my They have degenerated into a Bolsheviki organization. They are opinion this is the secret, very largely, of their attack. no longer representative of the idea that ·was conveyed in the WhnteYer pnrpo e the-·e publications hnd in attempting to in­ enactment of the law. They no longer speak for the conserva­ dict the whole of Conp;ress, it was unjustified. When the life of tive wisdom of tb.~·American people.

LYI- G07 9586 CONGRESSIONAL . RECORD-ROUSE. AUGUST 27,

l\It·. PLATT. Will the gentleman yield? that is· more essential to the succe ·sful conduct of the war than ~fr. MADDEN. The commission ought to be abolished, m· its any other similar institution in the country. They are engnge(} per onnel sboultl be changed. I yieltl to the gentleman. in u line of business in which every man, woman, and child in 2\fr·. PLATT. I want to ask the gentleman whether one of the America is interested. chief duties was not the fru·nishing of candidates for the United 1\'Ir. CAI\IPBELL of Kan as. Will the gentleman yield? ~Hates Senate? · llir. 1\IADDEN. Not ju t at the momen,t. And I maintain ~ lr. l\IADDEX They lilltl that as one of the objects of the that the Federal Trade Commis ion ought not to so conPennsylvania. 'So tllC fault i not with the prove their truth, they ought not · to back away from then1. gentleman from Illinois. The ~mbject was introduced by the They ought to pi·osecute those again t whom they prove gentleman from New York, but I trn t llie gentleman will not charges. They have mane char~;es that are not true and have· take it out of the REcoRD, because it may prove to be 'laluable backetJ a way from them, and they haTe not pro ecuted. And reading matter in the fnrt~1er consideration of thi theme, es­ there is ·not a scintilla of truth in any char,.,.e they llav" made pecially if the gentleman will permit me to add to he Federal against the e great packing industries. [Applau e.] Trau~ Oommi ion list the name of David J. Lewis, of 1\laryland, THE lXVESTHllTIOX OF THE PACKERS BY THE FEDERAL TRADE·COll.lllSSlO.·. who was appointed to the commi. non by -the President after This investigation began aoou:t August 1, 1917, and a corps of a.c­ he hau made a fight for Senator and lost. countants spent several months in going through our cost-keeping Mr. 1\IADDEN. Of course 1 have not the right to take out records and financial accounts. On the whole, the investigation prom­ the RECORD any statement made by a 'l'hich I ised to be a fair one, and tbe Federal Trade Commis=-ion specifically of gentleman promised that we should be given a fair hearing before any re ults permit him to make in response. to nn ·inquiry. were published. .Aside from the writing of a letter, asking four ve-ry l\lr. BLANTON. 1\lr. Speaker-- general questions, about August 1, 1917, we have been giyen :no .oppor­ tunity whatever to present our side of the case. 1\It·. .1\IADDR.~~ 1\lr. Speaker, l re!u e to yield. Nmv, I The biased and unfair attitude of ibe trade commi slon became want to sav once for all that the Federal Trade Oommi ion evident from the appointment of Francis J. Heney as special attorney. in the inve tigation of the subject matter to which I · have In carrying out tlis part 'Of the investigation the u ual proeedure was departed from and e."t J)arte hearin,gs were beJel in various parts of the alluded has i,:mored completely the fact that the packing indus­ country. No attorneys or npr.esentatlves of the packers were pre. ent tric · of the United States hav been ~m1er the control of th~ at the ·e be:liing , and the packers' Bide of the case was never pre­ Government of the United State since 1917; lliat the railroads sentea in J>Ublic-. One feature of 1.he Ileney heal"ings was the :introduction of ror­ of t11a United States, against whom they cl1arge the ])ackers re pondencc gleanNl from the files of the packe-.rs. Ag('nts of the tom­ with b~iug in coalition, are also tmder the conhol of the Gov­ mission were permitted to go through the most confl nited ~tates. I 'n h to cn1l the attention of execuU"'es Qf our cOJ:ppany. Letters and fragmentR of ~etters were the Fecry rapidly, notwithstanding could be presented by an unscrupulous lawyer in such a way· as to that dunng the penod cf advance great supplies cf hides were witllhPld indicate unfair methods and questiOnable motives. Whereas. the agents from the puu!ic." of the trade commission would seize on one scrap of correspondence .A s a rna tter of fact, the prices of bides ditl not advanc2 during 1917 · that would serve their purposes, they would pass by n. hundred bits of on the otlwr hanu, the genpral tendency was downwanl as shown by corrc. pondence that would show the keen rivalry and competition the following table of 10 grades of packer hides : ' among the packers and their law-abiding spirit. The only refusal of permission to examine files during this investiga­ tion was that made by Mr. Henry Veeder, attorney for Swift & Co. lt is thought by a good many people that Swift & Co. refused access to its vaults, but this is not so. Mr. Veeder is an independent at­ torney, and has other clients besides Swift & Co. He merely stood on his constitutional rights as a matter of principle in refusing to allow the trade commission agents to go through his private files. He alRo offered to let them have whatever they were entitled to. The Circuit Court of Appeals and the Supreme Court of the United States upheld Mr. VePder in his contention. It is perfectly obvious that political considerations have affected the illil attitude of the Ft'deral Trade Commission. When l\Ir:. Davies was chairman of the commission he took part in the public hearings that 11~1-ttJ:_t~!~i-tf-ittJ~I!!lll!lAlthou_gh stocks of hides were slightly larger during 1917 than during Mr. neney conducted and resigned in the midst of these hearings to 1916, thiS was due to a much larger supply of hides on account of campaign for the senatorship from Wisconsin, using the material from the largest killings of cattle in the history of the country and to the the packer hParings as campaign material. Mr. Heney was an avowed fact that demand did not keep pace with supply. Swift &'Co. sold 20 candidate for governor of Callfornia. Mr. Harris resigned from the per cent more hides during 1!)17 than dm·ing l!HO, and many sales Trade Commission to further his candidacy for senatorship from were made at a loss. Georgia. It is rumored that Mr. Victor Murdock wants to become The Federal Trade Commission was designed originally to serve a Senator from Kansas. It might also be noted thaCM:r. Basil Manley, use.fuJ and nonpolitical purpose; it has already bt'en used as a stepping­ Washington correspondent of the Newspaper Enterprise Association, stan~ for political aspirants, and it is degenerating into a vehicle for in which Mr. Colver, chairman of the Trade Commission, is supposed the Issuance of sensational and misleading statements about American to have an interest, was made a special examiner of the Trade Commis­ ousiness. sion. This newspaper association, together with the group of papers There can be no objection to a fair statement of war profits on tbe owned by Mr. Colver in the Northwest, represents about the yellowest part of the Government, as a foundation for excess-profit taxation, but journalism to be found in the United States. there can be no excuse for seizin~ such an opportunity to discredit honest American business concern ~ . especially those that have done THE ll.EPORT O:S Pll.OFITEERING. their utmost, and successfully, to meet war demands. Coming now to the report on profiteering issued by the Trade Com­ .- mission on June 29, it is generally recognized by the best papers and SwiFT & Co., by bankers and business men that this report is entir ely unfair and Union Stocl• Yards, Chicago. misleading, and that it offers an extremely dangerous basis for Con­ We wish to call your attention to tbe fact that Swift & Co. has pro­ grpss to proceed on with respect to excess-profit taxation. tested to the Federal Trade Commission that its report on war profits The most obvious attempt of the Trade Commission to juggle figures for the years 1!:'15, 1916, and 1917, issued June 29, contains unfair and fs found in the comparison between the three-year aggregate war profit misleading statements about the. packing industry. of four large packers and an average one-year profit for the prewar In this protest, copy of which is inclo~ed, we call attention to certain period. The Trade Commission says that the aggregate profit for the unfounded :charges and to unfair statistical comparisons. It is a mat­ three war years was $140,000,000 and that the average profit for the ter of national concern that a department of the Government, estab- . three years before the war was $19,000,000, thus claiming an excess of 11!!hed l.argely to prevent unfair business methods, should itself issue $121,000,000. This comparison of a three-year profit with a one-year m1sleadmg statements and attempt to throw discredit on an honestly profit is enough to condemn the whole report as misleading and un­ conducted industry that ha'> met all emergency war demands promptly scientific. Furthermore, a careful scrutiny of the figures shows that and completely. . the profits enumerated for the three years 1915, 1916, and 1917 as Swift & Co. has nothing to conceal and fears nothing from unbiased quoted by the Trade Commission do not total .$140,000,000, showing investigation of its finances or impartial appraisal of its conduct. that there is an absolute inaccuracy in the figures. The unusual economic con.ditions of the past three years have neces­ It is also absolutely unfair to speak of $140,000,000 as the aggregate sarily rPsulted in larger than normal profits in the packing industry profit for three years without mentioning the fact that this profit was as in other industries; but this profit can hardly be considered ex~ earned on total sales of over four and one-half billion dollars. In ~essive, be.cau~e it bas been just as essential as has been the largely other words, the profit was only about three cents on each dollar of mcreased mcome of the farmer and wage earner. sales, and was therefore so small as to have practically no effect on . Our increased P!"Ofits ~ave been used. to help finan_ce large inventories prices. With this fact in mind, the accusation that the packers have at exceptionally h1gb pnces and to bulld at mcreasmg costs extensions ·• preyed upon the people unconscionably" falls to the ground. It is and improvements, which are made necessary largely by unprecedented also misleading and unfair for the Trade Commission to give the im­ war demands. pression that this $140,000.000 profit was a clear profit that was After paying 10 per cent dividends to more than 20,000 stockholders pocketed by the owners 'of the businesses. As a matter of fact, much out of the 1917 earnings, Swift & Co. found .that, even after putting more than half was returned to the respective businesses of the ·pack­ the balance of its profits back lnto the business, it has bad to issue ers to increase facilities and to finance heavy stocks of goods at ex­ additional stock in order to raise more money to finance operations and trcm<>Jy high prices. For example, Swift & Co.'s profit during 1917 to maintain efficiency; it bas also had to increase its borrowings from ~as $34,000,000; only $10,000,000 of this sum was paid to stockholders the banks by over $75,000,000 as compat·ed with prewar times. Whereas m the form of 10 per cent dividends; the remaining $24,000,000 was Swift & Co.'s inventories were about $50,000,000 before the war, they returned to the business. now run in excess of $150.000.000. Before the war Swift & Co. had to keep about $50,000,000 tied up We arc, of course, not protestiug against excess-profit taxation, nor continuously in stocks of goods in process, in storage, and on the wav against fair investigation of war J?rofits. but it would be easy to cripple to market; to-day these inventories run over $150,000,000. Even the packing industry by allowing 1t an inadequate· income. A net profit after putting profits back into the business Swift & Co. has had . to of $2,000,000 to-day goes no further in furnishing u proper return for issue capital stock to raise additional funds to help finance operations. investors, in financing heavy inventories, and in allowing for extensions Is it right to accuse an industry of profiteering when it reinvests and improvements than a $1.000,000 profit did four years ago. the major part of its earnings to improve facilities, to mantain its We wish to call your attention to the fact that the profits mentioned efficiency, and to finance operations'! American business has been by the Trade Commission were eamed prior to November 1, 1!)17 developed largely by reinvestment of earnings, and this is generally Since that time the profits on the meat departments of our business conceded to be a praiseworthy method. '.rhere · can be even less have been limited by the Food Administration to D per cent of the cap­ question about this practice in an industry like the packing business, ital employed, or to about 2 cents on each dollar of sales. Other de~ where the profits on sales are so small that if they were eliminated partments are in competition with manufacturers whose profits are not entirely there would be no noticeable effect on prices. The profit restricted. Swift & Co. Is living up to all Government regulations. amounts to only a fraction of a cent per pound of product sold. The Tt~ade Commission emphasizes ·the fact that the aggregate profit Another Indication of the unfairness of the Trade Commission is of four large packers for the three war yPars was $140.000.000, a figure the way in which it featured the fact that Morris & Co. earned a that couJd have been derived by anyone from the published statements profit of 203.7 per cent on its capital stock. It is true that the of the companies concerned. The commission neglected to mention that Trade Commission says that this was equal to a rate of 18.6 per cent this p.-ofit was earned on total sales of over $4,500,000,000 and that it on tbe net worth of the company in 1917 ; but to even mention . the amounted to only about 3 cents on each dollar of sales, thus· forming a fact that the profit was 263 per cent on the small nominal capitali­ negligible factor in prices. · zation of $3,000,000 ls evidence of the commission's desire to present Respectfully, yours, sensational and misleading information. The extent to which the press dispatches throughout the country have featured this 203 per CHJCAGO, July 1, 1918. cent, without any explanation, is ample proof that the commission Mr. LEO~IDAS L. BRACKE::-<, was unjust in presenting the figure the way it did. Secretary Federal Trade Com,mission, Washington, D C.: In connection with the press dispatches it might also be mentioned Swift & Co. protests against certain un'\'\' arran ted statements in the that the stories sent broadcast for the newspapers were considerably report issued by the Federal Trade Commission ·on war profits, in that worse than tbe report itself. The method in which the press dis- they give the public a false impression regarding the profits and the patches were prppared might bPar looking into. It is also worth conduct of the packing business. . while to note that the story was given out on a Saturday noon, at a Swift & Co. can justify its profits as not only reasonable but neces­ time whPn business men are not likely to .be on hand to prepare proper sary for efficient condu~t of the business, to finance large inventorie3 statPments in reply to sensational and unsupported charges. at high prices, and to expand facilities at increasing costs. The one very serious feature of the report is that on page 7 the This report states that the five large packers have a monopoly of packers are accused of having monopolistic control of the meat 1n,lus- the meat industry, and manipulate the market without regard to law. try and that they bave manipulatl:'d the market without regard to ·This is a serious charge, unsupported by facts. Swift & Co. is in com­ law. Absolutely no proof is given of these statements, and the issu- petition with all othet.· packers, has no control over prices, and the ance of such sensational charges could have been only for the object policy of the company is to obey the law. of exciting public opinion and playing upon the prejudices that are Packers' profits are unjustly exaggerated by the statement that four known to e-xist. Swift & Co. has no form of agreement with other large packers made a profit of $140,000.000 during the three war years, packers to control prices of live stock . or meats. ~hese prices result as against an average annual profit of $19,000,000 for the three years from open and adive competition. Swift & Co. also does. its utmost before the war. This compares a three-year profit with a one-year to obey the law. It even has to lean backward to a

This profit amounts to only a fraction of n cent per pound of product. 1917, commonly known as the search-warrant act. Although there W:l!"l In view of these facts the packers can not be justly accused of having at that time pending in the Uniteu States Cir·cuit 'ourt of .Aopeals t "preyed upon the public unconscionably." The Trade Commission's the Sennth Circuit a proceecling involving- a search of all 1he papers In report, as a matter of fairness, should have explained this and that it my law office in the city of Chicago, Mr. 'Heney u!>ell ihis iHegal ~eal'l'h covered transactions prior to establishment of control by the Food of my office on a >oid warrant as the example which demonstrated the Administration in November, 1917. Since that time our profit has necessity for :m amendment to the law. been· limited to 9 per cent on capital employed In the meat business, The story in the next day's papers recited some of the more sPnsa­ equal to about 2 cents on each dollar of sales. tional statements made by Mr. Heney in his lette1·, and this impellecl me, The imprec;sion has gone broadcast that license control has been on February 28, to send to the President of the ' nate, to the ~peaker flouted by !".be packers. Swift & Co. has at all times endeavored to live of the House, and to tbe chairman of the Judiciary Committee of each up to alL regulations of the Food Administration, both as regards the House the following telegram : handling and marketing of food products and at~ufss ~~ I§~~: "l\lr. Heney's statement to Congress tluough the Fed ral Trade Com­ mission, as reported in the public press to-day, that I :un the custodian President Sw-ift d: Go. of many papers which have been used as instrumentalities in the com­ mission of felenies is false and on a par with the conduct of his investi­ IIISTORY OF TilE INVESTIGATION Oil' FILES IN OFll'ICE Oii' ALBERT II • .L~D gation of the packers, which bas been a trave ·ty upon justice an!l an HEKRY VEEDEU AFTER THE DISPOSITION Oil' THE VAULT CASE. outrage upo.t;t decency. Mr. Heney bas shown no r espect or rcgnnl for After the decision of the United- States Supreme Court, refusing to the.la'YS he.Is. sworn t~ upon 1\Ir. Veeder and requested an examination of the papers and for amendments to t1le law which will preTent Amel'icau citizens huvin .. documents in his files to which the commission might be entitled. free access to the .courts of the land to protect the security of their Col. Chantland stated that he would not copy and publish letters which persons, houses, papers, and effects. were private in their natu1·e or contained mere gossip and that he I have afforded to the Federal t-rade examiners and to Mr. lleney fuli would not take original documents from Mr. Veeder's office. It was opportunity to examine all;d copy every book, document, or paper in mv 1\lr. Heney's insistence upon doing these very things that caused the files to which they are entitled under the law. Their reply was a sear<·!l res!stance to his investigation, and as 1\Ir. Veeder particularly desired warra~t so general and sweeping in its character as to permit a seai't•b once for all to lay at i'est the sensational charges that his files con­ ~nd s~zure of every paper in my office. I have been a practicing lawyer tained papers and documents which would show that the packers were m Chicago for more than 25 years and have numerous clients, many of in combination in restraint of trade and had committed felonies, he them individuals and corporations in no wise related to or connected gave the Federal Trade examiners free access to all his files. with the paeking .industry, a.nd the search warrant which I am resistin~ Four or five examin~rs were six days making the examination of 1\Ir. in the courts permits a search of all of the confidential and priviiE>gc•l Veeder's files, and ftt its conclusion they stated that there were not communications _which have passed between those clients anu my:elf. more files they desired to examine. · They asked permission to copy a as well as my purely personal and private papers. I would be fal:·e to few letters, which Mr. Veedet· refused, on the ground that the letters my clients and to myself if I did not resist such a flagrant. unreasonn!Jle were his persoual property and otherwise not subject to the commis­ se:J!ch and ~eizure, which partakes most strong-ly of the outrageon<; sion's inquiry. The examiners, however, said that they were through writs. of asSistance which In large measure inspired the formation o.f :wc1 satisfied with their examination. this Independent Government. Members of Congt·es are entitled to Twelve days later CoL Chantland n.gain called upon Mr. Veeder and know how the power they place in the hands of bureaucrats is u ed, ami submitted four written demands, addressed to Swift & Co., Louis F. to. that end I shall write to you within a few days a plain, truthful Swift, president, and Henry Veeder, for examination and the right to statement of how the paper search which Congress authori.zed in th<' copy certain specified letters and memoranda, charging that such espionage act, on the representation that it was nece sary to search out right had been refused in the previous examination, which was true papers used in aid of a foreign enell!y, has ~een used by Mr. Heney in · only as to the right to copy. These demands contained statements that Chicago in his campaign of backstairs gossip and innuenm­ by the packers. iners of the Federal Tracle Commission appeared in my law offic<', in Th~ fact that since the completion of the examination of the packers' the city of .Ghicago, and made knOWJ?. their wish to inspect, examine, anti and Mr. Veeder's files the commission's statements have contained only copy certam books and documents ID my custody and belonging to mv vague and indefinite charges by-inference and innuendo instead of direct client Swift & Co. Permission was readily granted, anu the exaruin<'r', charges of violations of law would seem to be conclusive proof that began their work. It was not long, however, before it developetl tb:J t the charges made by Mr. Heney originally and from time to time were the ~xaminers des~r':d to search every file in my office, personal, p rh·utP, not justified by the facts. confidential, or privtleged, and many of them relating in no way to any legitimate inquiry of the Federal Trade Commission. STATEME:ST OF' HEXRY VEEDER rN REGARD TO RECOMMENDATIONS Oll' For the past 25 years I have been a practicing attorney in C!J ie::~;::­ FRAKCIS J. HEXEY, SPECIAL ATTORNEY FOR THE FEDERAL TRADE COM­ and I have many clients, both corporations and individuals. I conl•l not conceive it to be compatible with my du1:l to these clients to allow liHSSION, FOR ADDITIONAL LEGISLATION PERTAINING TO SEARCH W~­ any third person to examine and pry into their affairs merely to gratify RANTS. suspicion and curiosity. Such a course would violate my duty as an FOREWORD. attorney charged with ihe protection of his clients' privileg-e. and, ac­ On February 27, 1918, the Federal Trade Commission transmitted to cordingly, I notified the chief examiner, a Mr. 1\lclsaac, that while he wa•; Congress the recommendation of Francis J. Heney, its special attorney,. at liberty to examine any of the corporate papers of Swift & Co. In rnv for an amendment to the search-warrant act of June 15, 1917, which pos ession, I could not permit him to make an indiscriminate search of. in effect would enable a special agent, with the aid of one United States all the papers in my office on the pretext that he was looking for papE>r,; district judge, to set aside all constitutional guaranties against un­ which, under the Federal T1·ade Commission act, he was entitletl io reasonable search and seizure, and which would deprive the citizen of examine. Wishing, however, to be obliging antl accommodating, I in­ any right of appeal, no matter how flagrantly unlawful was the invasion formed Mr. Mcisaac that I would even allow him to make .-ucb an of his rights. This recommendation has been published as Document inspection of the other papers in the office as woulu Fobow him that tht' No. 961 of the House of Representatives. papers I refused to allow him to examine were uf the cbaratte•· I Inasmuch as the unlawful search and ~eizure of my law office lu claimed them to be a.nd were not properly subject to hiR examination. Chicago was made the pretext for this remarkable recommendation, I For a few thotl, wrote to the President of the Senate, the peaker of the House, the whic.b r carried out in good faith, but be became disf'atisfictl with thi;l chairmen of the Senate and House Judiciary Committees, and the arrangement because it did not permU him to search in his owo wa.v chairman of the Hou e Committee on Interstate and Foreign Commerce, protesting against the enactment of any such uu-American legislation. all my personal, confidential, private, or privileged papPrs without any My letter and the opinion of the United States Q.ircuit court of appl'als regard to propriety, decency, or color of legal rig-ht. When I rt>fUl'W•l quashing the void warrant upon which my office was raided and searchecl to allow him to do this be brolu• off the examination. !" al<'U my Yn.ult and my papers seized are printed herewith. (without any authority of law), and anoounrefl that he woultl awalt the instructions o~ the attorney for the Federal Tra

Finally, on ·February 4, 19i8 after the vault had been sealed for mained in the custody of the United States marshal. At this point, I several days, I grew tired of this1 farce and notified Mr. Mcisaac that may state that under this void warrant my office for weeks has been I propo~ed to have free access to my own vault, and in his presence and now is policed night and day by three shifts of two men, one a on that day I opened the vault, breaking the seals he had placed thereon. Federal trade examiner, the other a deputy United States marshal. That same day about noon, Mr. Mcisaac returned to my office in com­ These men sit before the open door of my vault, which door the Gov· pany with Mr. Heney, and these two gentlemen served me with a ernment representatives have refused to allow to be closed although I written statement, dictated In my office, in which Messrs. Mcisaac have ofl'ered the United States attorney the privilege of putting his own · and Heney as representatives of the Federal •.rrade Commission d(:­ combination upon the door. This has forced me to employ men to watch manded access for the purpose of examination and the right to copy the other- Government watchers, for with my present experience of the any documentary evidence of Swift & Co. in my possession, "particu­ utter disregard of the law of the land and of the rights of the citizen by larly those certain files which are contained 1n wrappers under the some agents of the Government, I can not feel it safe to leave my general index ' Swift & Co.' and also certain files relating to Morris & papers exposed to further prying, although they are protected by an Co., Cudahy & Co., Wilson & Co., and Armour & Co., and other corpora­ order of the court. For the next 30 days, under the rules of the circuit tions in the meat packing and affiliated businesses contained under the court of appeals, the Government has the right to file a petition for a general index entitled ' General File.' " rehearing, etc., and so, during that time I presume I must be put to the In addition to this written demand, Messrs. Mcisaac and Heney same annoyance and expense, and all without redress or satisfaction. orally demanded the right to sea1·ch through all of the letters and files The district judge declined to quash the search warrant or to return in my office for the purpose of ascertaining what documents, if any1 the papers already taken, whereupon I sued out a writ of error to the they as agents of the Federal Trade Commission might be entitlea circuit court of appeals, with the result stated~ . under the law to have access to for the purpose of examination ami copy. The writ of error to the circuit court of appeals operated.r.. of course, In answer to these written and oral demands, I wrote to Messrs: as a supersedeas, and this was the text or pretext upon whicn the letter Mcisaac and Heney on the same day (February 4) informing them of Mr. Heney, now before Congress, was written. Be argued that the that, under the law, they had no right to institute and. carry on a action of the circuit judge in allowing the writ of error as a matter general search of the files and letters in my office to see if perchance of course, which writ operated as a supersedeas, disclosed a defect in there might be among such files some documents which they would the law which called for additional legislation of an amendatory have a lawful right tc examine and copy. I also informed them that nature. · none of the files referred to in their written demand was the property I invite your very careful attention to the legislation Mr. Heney rec­ of Swift & Co. or any of the other corporations named in the demand, ommends. When you have considered it, you wm not wonder that the but, on the contrary, that those files were my own personal ancl_private Federal Trade Commission. tactfully avoided indorsing Mr. Heney's file~ and that muuy of the papers in such files wt.re commurucations views when he says : made to me as attorney by my clients, or communications from me to " Congress should immediately amend or supplement the act of June t.hem in my professio::1al capacity, aud therefore privileged. Further, 15, 1917, by declaring that no wrlt of error or of certiorari shall lie. I informed these gentlemen that if thEy would indicate either verbally in such a case, and that t.he decision of the judge who issues the search or in writing any particular paper in my. possession which they desired warrant shall be conclusive upon the question of the existence of prob. to examine anu <-OPY I would at once afford them the opportunity of able cause, and that the summary proceedings already provided by the so doing if the document was one to which they wt·re entitled. statute for the determination of this question, and of the question as .to Copies of the· eommunications between Messrs. Mcisaac and Heney whether or not the property seized under the writ was used as the and myself on February 4 are attached hereto, marked, respectively, means for the commission of felony and is t)le identical property de­ Exhibits A and B. scribed i.n the writ, Hhal! llkewise be eonclusive for the purpose only of The following day I received the reply to my letter to Mr. Heney. enabling the court which has jurisdiction of the felony alleged to have It was in the form of a general search warrant and was delivered by been committed to retain such property in the custody of the law until seven armed deputy marshals, Federal trade examiners and attorneys, the purpose for its seizure has been served.'' including Mr. Heney, who invaded my office, brushed me and my assis t­ ants aside, and proceeded to search my letter files and laid violent hands This recommendation is made in connection with the seizure of my upon such of my private papl'rs as suited their fancy. papers. Let us see what would have been the result if such a gro­ These high-handed proceedings were carried on under color of a void tesque statute were already upo.n lhe books at the time of that seizure. search warrant issuing out of the United States district court, and The recommendation is in part that the decision of t.he judge who based upon a rl'markable affidavit and deposition by the Examiner ·issued the warrant shall be conclusive upon the question of existence Mcisaac. of probable cause. In my case the warrant wa13 issued upon an affidavit In this affidavit not a single statement of fact is verified by Mcisaac's and a depositiOn which are described by the three circuit judges who oath. All he swore to was that he had good reason to believe and sat in the case and quashed the warrant in the following words: - did verily believe so and so. He did not say that so and so are true. "Applying these principles to Mcisaac's affidavit, we observe that not He did not say why he believes. He gave no facts or circumstances to a slnfle· statement of fact IS verified by his oath. All he swears to is which the judge who issued the warrant could apply the legal standard that he has good reason to believe and does verily believe ' so and so. and decide that there was J?robable cause for the affiant's belief. There He does not swear that so and so are true. He does not say why he was nothing in the affidavit but Mcisaac's application of his own un­ believes. He gives no facts or circumstances to which the judge could disclosed notion of the law to an undisclosed state of facts. This de­ apply the legal standard and decide that there was probable cause for scription of the affidavit upon which my office was raided and my private the affiant's belief. There is nothing but the affiant's application of his papers seized is not mine, but is the description of the affidavit given own undisclosed notion of the law to an undisclosed state of facts. by the circuit court' of appeals. The court remarks in this connection, And under our system of government the accuser is not permitted to "And under our system of Government the accuser is not permitted to be also the judge. · be also the judge.'' The deposition made by Mcisaac was not, so "Assuming that the ' other documents,' which are listed under ref­ the court said, "any better than the affidavit." erence letters and figures, are described with the particularity re­ WhUe Messrs. Heney and Mcisaac, and their assistants, the other quired by the statute, we observe that the proceeding mentioned examiners, and the deputy marshals were pawing through my prlvate ' books of account, minute books, letter-press "Copy books, ledgers, jour­ papers, I read the search warrant and found that it was therein charged nals, cash books, day books, memorandum bo~ks, bank books, check in blanket terms that I was the custodian, or had in my office several books, and receipt books ' are only generically described .. hundred thousand different papers, none of which was described, but "We observe, too, that Mcisaac states his belief that 'said prop­ each and every one of which Mcisaac swore had been used as the means erty was used as a means of committing certain felonies,' without of committing a felony. He had to swear that each and every paper stating the basis of his belief that the various items were so used. had been used us the means of committing a felony for, as the circuit If the facts were ·disclosed, they might or they might not afford prob­ court of appeals says in its opinion, the statute intends that " papers able cause for belleving that Veeder's In Memoriam File, his lists of and documents which afl'ord evidence that a felony has been committed law books, his copies of the smoke and the wide-tire ordinances of but which were not the means of committing it are immune from Chicago, his office keys, etc., were thP means used in committing the seizure.'' The papers mentioned but not described in the warrant packers' assumed crime of controlling the price of beef. included my check books, books of account, receipt books, etc., and every "Further we notice that neither time nor place is laid for the un­ letter, opinion, and paper in my office accumulated during 25 years of named acts that are supposed to constitute felonies. We take it as practice, through which Heney et aL were privileged to search and unquestionable that the statute contemplates the issuance of search. to despoil me of at their pleasure. warrants only when felonies have been committed that are presently My course at this moment was not exactly clear. My remedy was not prosecutable within the United States. We assume that no judge apparent. True, Congress had said that, if in the process of securing a would issue a search warrant directing the officer to break into a sMrch warrant, any person swore falsely he should be liable to prosecu­ museum and seize and carry away the dagger Brutus used in assassi­ tion for perjury, but this affidavit and deposition were so cunningly nating Cresar. The district attorney suggests that we must take judi­ drawn that there were no facts stated under oath, and so there could cial notice of the fact that some of the criminal statutes which are be no prosecution for perjuryhalthough the affidavit a.nd deposition were believed to have been violated were enacted within the past three crammed with conclusions w ich were absolutely false. Also the law years. True; but there is nothing in the record to show that Mcisaac provided that I might controvert the grounds upon which the warrant did not believe that such statutes could be used retroactively to punish was issued, but here again I was met with the condition that no acts· done generations ago. grounds were stated, hence none could be controverted. "Turning to Mcisaac's deposition, we note his statement of fact After consultation with my attorney, it was decided to apply to the that there a'l"e in Veeder's ottice many papers and documents relating district judge .who had issued the warrant and to call the lack of legal to Swift & Co., and that he has seen some and had a glance at others. grounds for issuing the warrant to his attention. Accordingly late in But he utterly fails to state what he saw. He gives a mixed legal the afternoon of February 5 this was done and the district judge, on and fact opinion that the undisclosed things he saw establish that my application, caused the United States attorney to come into court, many papers and documents were used in the commission of various when a stay was ordered until the matter could be argued on the follow­ felonies, including conspiracy, false entries, and hoarding food. ing day. Neither with respect to the authorization of a search warrant nor the Meanwhile, and as I believe after they were notified of my applica­ particularity with which instruments of crime must be described is tion in the district court, the Government agents hurriedly gathered to­ the deposition. aTiy better than the affidavit." gether some 2,000 of my personal private papers along with a So i1 the derision of the district judge upon the question of prob­ number of newspaper clippings and some other documents, quickly able cause had been final in this case, I would have been despoiled of dumped them into a suit case, brought with them apparently for that my constitutional rights and have lost my private papers, all under an purpose, disregarded my request for a receipt specifically describing the absolntl'ly void warrant, and the decision would have been irrevocable. papers (although the statute provides that such a receipt shall be given Turning to the operation of the proposed amendment upon a sup­ before any papers may be taken), and carried my papers to the mar­ posititious case, imagine ali agent of the Comptroller of the Currency shal's office, where they still remain. The fo1lowing day, during the asserting in a similar affidavit and depositi.on that the money in the course of the argument in court, the various United States attorneys, largest national banks in Chlca~o and New York was used as the speciar attorneys, etc., arose and stated that each or some of them had means for the commission of various felonies such as improper specu­ examined my papers before the stay order forbidding them to do so had lation by bank officers in violation of the laws of the United States, been entered. or in attempted bribery of a bank examiner. Some judge, upon an Subsequently the questions lnvolved were argued before the district affidavit and deposition ·in which not one fact is averred under oath, judge and briefs were filed, the stay order meanwhile preventing the issues a warrant for the seizure of all the money in the banks. and Government agents from further inspecting or using the papers already upon a hearing he holds that probable cause has been shown and sus­ sei:J;ed, or making further sea.rch or seizure. Meantime my vault re- tains the warrant. All of the assets of the bank are carted away to 9590 CONGRESSIONAL RECORD-HOUS]1J. AUGUSTI 27,

be held until the purpose of the seizure is accomplished, vii§>, the trials Company, and other corporations rn the meat packing and affiliated of the accusetl officers if they should ever thereafter be charged with businesses contained under the general index • General File.' " the crimes. Permit me to inform you that I have no files indexed under the title If such an amendment were adopted and should stand the constitu­ " Swift and Company " and " General File." I have, however, certain tional test, it would put it within the power of some subordinate files which are indexed under the titles " Swift Letter File " and " Gen­ Government official and one district judge to disrupt and paralyze the eral Letter File," and it is to these I assume you refer in your writ­ · business operations of the United States, w:tille the entire judiciary, ten demand. Since the receipt of your demand, I have made a cursory including the Supreme Court of the United States, could only stand examination of the files indexed under the last-named titles. The supinely by and impotently watch d.espotism oust liberty and star­ number of subject matters discussed in the documents contained in the chamber practice upset the traditions of our country. files in question number approximately 1,000,. while the documents Surely such a state of affair~. while it may not be "an absurdity so embraced therein probably exceed in number 12,000. None of these profound as to startle the brain of an idiot," is certainly sufficiently files is the property of Swift and Company or any of the other absurd to aston:1d any sane man. corporations named in your written demand. They are my personal The search-warrant law is, in my opinion, proper and sufficient as it files and communications made to me by my clients or by me to them stands. It goes as far as the Constitution, which sets the outer mark of in my professional capacity and are, therefore, privileged. You have the invasion of the citizen's premises and effects at a reasonable search already recognized the fact that I have in my possession files and and seizure. No good citizen will complain of a law which provides that documents which are not the property of any of the corporations men­ property used as the means of committing a felony or pr.operty or tioned in your demand, but which belong to ·me personally. You have papers which have been used in aid of a foreign government and in also recognized the fact that I have in my possession documents which .violation of the laws of the United States shall be subject to search are privileged under the law and which I may not be compelled to and seizure under the restriction imposed by the search-warrant act, but produce. all fair-minded men will condemn any effort to override the law of Il you will indicate any particular document, paper, or letter which Congress and the Constitution by Government officials who are zealous you may desire to examine and copy, I will institute immediate search in the discharge of their duties, perhaps too zealous to regard the rights for such document, letlter, or P.aper, and if it appears that tbe docu­ of a private citizen or to observe the method of performing their duties ment is one which you are entitled to examine and copy, I will at ·once .which has been laid down by the Constitution and by Congress. afford you an opportunity to do so. · My case here in Chicago is an instance of the latter sort. Congt·ess has given the Fedet·al Trade Commission broad powers of investigation. IIE:\'RY VEEDEll. It has provided in the Trade Commission act ample means of compelling [Copy of opinion of circuit court of appeals, seventh circuit.] the attendance of recalcitrant witnesses and the production of any papers to which the commission or its agents are entitled. Instead of In the United States circuit court of appeals for the seventh circuit. following these orderly processes of the law laid down to be followed No. 2591. October term, 1917,~. January session, 1918. Henry Veeller, in Federal Trade Commission investigations, a sensational raid was plaintiff in error, 11. United l:ltates of America, defenllant in error. made without any authority of law and in utter disregard of a citizen's Error to the district court of the United States for the northern dis­ t·ights. trict of illinois, eastern division. It is respectfully urged that the Congress, instead of amending the Before Baker, Kohlsaat, and Evans, circuit judges. search-warrant act in the particulars demanded by the agents of th~ Baker, circuit judge, delivered the opinion of the court : Fed era 1 Trade Commission, shall seek some means of impressing upon This writ of error challenges the sufficiency of the affidavit and tlep­ the minds of departmental subordinates the salient fact that "one's osition on which a search warrant was issued under Title XI of the person and property must be entitled, in an orderly democracy, to pro­ act of .Tune 15, 1917. tection against both mob hysteria and the oppression of agents." By the fourth amendment to the Constitution the people declared tho ·very re pectfully, yours, limit beyond which Congress may not go i.n authorizing search warrants, HE~UY VEEDER. namely: Inclosures : " The right of the people to be secure in their persons, houses, papers, 1. Demand on Veeder by Heney and Mcisaac. and effects against unreasonable searches and seizures shall not be 2. Veeder's reply. violated, and no warrants shall issue but upon probable cause, supported 3. Copy of opinion of circuit court of appeals, seventh district. by oath or affirmation, and particularly describing the place to bo searched and the persons or things to be seized.'' This limitation was clearly observed in the act in question. DE!\IA~D ON VEEDER BY HENEY AND M'ISAAC. Section 2 defines the property and papers that may be seized as follows: On behalf of the Federal Trade Commission, Mr. Hugh Mcisaac and "(1) When the property was stolen or embezzled in violation of a Mt'. Francis J. Heney now and here demand access to, for the purpose law of the United States. of examination, and the right to copy any documentary evidence of "(2) When the property was used as the means of committing a Swift & Co. now in the files of you, Henry Veeder, at and in your pos­ felony, in which case it may be taken on a warrant from any house or session at the Fort Dearborn Bank Building in the city of Chicago, other place in which it is concealed, or from the possession of the per­ Ill., or which is in your possession or under your control, and particu­ son by whom it was used in the commission of the offense, or from any larly those certain files which are contained in wrappers under the gen­ person in whose possession it may be. eral indPx "Swift & Co.," and also certain files relating to Morris & "(3) When the property or any paper is possessed, controlled, or used Co., Cudahy & Co., Wilson & Co., and Armour & Co. and other cor­ in violation of section 22 of this title." porations in the meat-packing and affiliated businesses contained under Section 22, so referred to, reads thus : the general index entitled " General file." "Whoever, in aid of any foreign government, shall knowingly and This demand is made in connection with an investigation now being willfully have possession of or control over any property or papers de­ conducted by the Federal Trade Commission pursuant to and under the signPd or intended for use or which is used as the means of violating authority of that certain letter of the President of the United States, any penal statute, or any of the rights or obligations of the United dated February 7, 1917, addressed to Hon. W. J. Harris, chairman of States under any treaty or the law of nations, shall be fined not more the Federal Trade Commission, in words as follows : than $1,000 or imprisoned not more than two [ears, or both." "Pursuant to the authority conferred upon me by the act creating Sections 3 and 5 prescribe the character o application that must be the Federal Trade Cofnmission, therefore I direct the commission within made for the search warrant: · the scope of its powers to investigate and report the facts relating to " SEc. 3. A search warrant can not be issued but upon probable cause, the production, ownership, manufacture, storage, and distribution of supported by affidavit, naming or describing the person and particularly foodstuffs and products or by-products arising from or in connection describing the property and the place to be searched.'' with their preparation and manufacture; to ascertain the facts bearing "SEc. 5. The affidavits or depositions must set forth the facts tending on alleged violations of the antitrust acts, and particularly upon- the to establish the grounds of the application or probable cause for believing question whethet• there are manipulations, controls, trusts, combina­ that they exist." tions, conspiracies, or restraints of trade out of harmony with the law Mcisaac, an examiner in the service of the Federal Trade Commission, or the public interests. made an affidavit "that he has good reason to believe, and does verily " I am aware that the commission has additional authority in this believe, that in and upon certain premises within said district and divi­ field through the power conferred upon it to prevent certain persons, sion, to wit, in suite 1200 in the building at 76 West Monroe Street. in • pa1·tnerships, or corporations from using unfair methods of competition the city of Chicago, known as the Fort Dearborn Bank Building, said or commerce. suite being the offices occupied by one Henry Veeder, there bas been and " I presume that you may see fit to exercise that authority upon your now is located and concealed certain property, to wit, books of account, own initiative, without direction from me, and also pursuant to the minute books, letter-press copy books, ledgers, journals, cash books, day provisions of sections 9 and 10 of the Federal Trade Commission act." books, memorandum books, bank books, check books, receipt books, and other documents, which other documents are more particularly enumer­ VEEDER'S REPLY. ated, described, and indexed by words, letters, and figures as follows, FEBRUARY 4, 1918. to wit: " (then follows a list of references to letter files and document Mr. FRAXCIS J. ll.E~EY, files, comprising about 2,000 items) "which said property has been used Mr. HuGH Mcis.v..c, as a means of committing certain felonies; that is to say. the felony on Chicago. . the part of Swift & Co., a corporation organized under the laws of the DEAR Sms : Referring to written demand which you dictated in my State of illinois, of storing, acquiring. and holding for the purpose of office about noon to-day, you are hereby informed that you or any other limiting the supply thereof to the public, and affecting ~he market price agent of the Federal Trade Commission, may have access at all reason­ thereof in commerce, among the several States, of certain articles suit­ able times, for the purpose of examination, and the right to copy any able for hu.ma.n food, to wit, meats, canned vegetables, canned fruit, documentary e>idence belonging to any of the corporations mentioned canned fish, poultry, cheese, butter, eggs, and oleomargarine; the felonv in your said demand which may be in my possession or ·within my <'n the part of said corporation of willfully making false entries ana control. statements of fact in certain reports pertaining to the ownership and You also >erbally requested permission to Eearch through all the control of subsidiary corporations by said corporation, which the I•'cd• files in my office to ascertain and determine what documents, if any, eral Trade Commission required it to make under subdivision (B) of you, as agent of the Federal Trade Commission, are entitled, under 0 6 the law. to ba>e access to for the purpose of examination and copying. ~~~~ten a F~ae~T ~~~d!P~~~~~s~~~~e~.b~~t!~· tt;~~w;~~~~~ ~~e;~~~~ In reply to such >erbal demand, I desire to inform you that it is for other purposes' ; the felony on the part of said corporation of will­ my contention that under the law you have no right to institute and fully making false entries in divers accounts, records, and memoranda carry on a general search of the files in my office for the purpose of kept by said corporation of all facts and transactions appertaini.ng to ascertaining; whether or not there may be among such files some docu­ the business of said corporation, it bei.ng a corporation subject to saitl ments which you might desire to examine and copy. If, however, you act of Congress : the felony on the part of said corporation of willfully will indicate, eithPr verb::tlly or in writing, any particular document or neglecting and failing to make or causing to be made full, true. and documents which you desii·e to examine and copy and if the required correct entries in said accounts, records. and memoranda of all facts document is in my possession and is one which under the law you are and transactions appertaining to the business of said corporation; and entitled to examine and copy, you will at once be accorded access to the felony of engaging in a conspiracy with Armour & Co., Morris & Co., the same. Wilson & Co. (Inc.). Cudahy & Co., and with divers other corporations In your written demand of .this day, you request the opportunity to and divers individuals and partnerF~hips to defraud the United States examine and copy- through and by means of collusive bidding ut:on contracts to be let to " certain files which are contained in wrappers under the general index the lowest bidder to furnish to the Unite!l States large quantities of ' Swift and Company' and also certain files relating to Morris and Com­ meats, hides, leathet·, canned goods, and otcer commodities for the use pany, Cudahy and Co~pany, Wilson and Company, and Armour and of the military and naval forres of the United States." f r lg18. ·CONGRESSIONAL RECORD-HOUSE. 9591 .

AS illusfrat:ive of the wide scope of the list included in the affidavit tion of his own undisclosed notion of the law to an undisclosed state. of and covered by the search warrant the following items are noted: facts. And under our system of government the accuser is not per­ Anthony, D. M., for memorial papers (see "In memoriam file")_ A- 37 mitted to be also the judge. Assuming that the "other documents," which are listed under refer­ ence letters and figures, are described with the particularity required by the statute, we observe that the precedingly mentioned "boolis of ac­ i~~!~~;~c!~¥;~=~~======~======Cases,- reference to pending and disposed-of cases ______A-!=~~i58 count, minute books, letterpress copy books, ledgers1 jomnals, cash Chicago Daily Law Bulletin ______A- 98 books, day books, memorandum books, bank books, cneck books, and receipt books " are only generically described. Chica\o Law Institute------A-114 We obaerve, too, that Mcisaac states his belief that " said proi}erty was used as a means of committing certain felonies," without stating the t~~Purchase b~~~~======of, South Eastern Reporter, North Western ======~======Reporter, != 1gg basis of his belief that the various items were so used. If the facts South Western Reporter______A-190 were disclosed, they might or they might not afl'ord probable cause for Smoke violation, ChicagO------A- 52 believing that Veeder's In Memoriam File, his lists of law books, his Wide-tire ordinance Chicago ______;_ A- 34 copies of the smoke and the wide-tire ordinances of Chicago, his office Adamson law----·------~-- 644 keys, etc., were the means used in committing the packers' assumed Estate of Samuel W. Allerton______401 crime of controllin~ the price of beef. Cook County Employees' Benevolent Association______590 Further, we notice that neither time nor place is laid for the un­ Deep waterway, Illinois------1------42 named acts that are supposed to constitute felonies. We take it as Estate of Theodore Newcomber______613 unquestionable that the statute contemplates the issuance of search Inheritance-tax laws of vaL·ious .States______658 warrants only when felonies have been committed that are presently prosecutable within the United States. We assume that no judge would K~nwood Evangelical Chmch ------367 Lake Forest University------146 issue a search warrant directing the officer to break into a museum and Office keys------1------'------400 seize and carry away the dagger Brutus used in assassinating Caesar. United States Snpreme CourL------275 The district attorney suggests that we must take judicial notice of tile West Point AcademY------638 fact that some of the criminal statutes which are believed to have been West Skokie drainage district______146 violated were enacted within the past three years. True; but there is nothing in the record to show that Mcisaac did not believe that such Mcisaac's deposition is as follows : statutes could be used retroactively to punish acts done generations " Q. State, if you know, whether there are certain papers and docu- ago. ments there in the office of Mr. Veeder relating to Swift & Co. . Turning to Mcisaac's deposition, we note his statement o! fact that "A. Yes, sil·; there are. there are in Veeder's office many papers and documents relating to " Q . .Just state, if you will, what those papers and documents are. Swift & Co., and that he has ·seen some and had a glance at others. "A. There are a large number of papers. Bot he uttro:ly fails to state what he saw. He gives a mixed legal " Q. Also state the occasion of your going and seeing them there. and fact opinion that the undisclosed things he saw establish that "A. I made a partial examination of the papers of Henry Veeder, many papers and documents were used in the commission of various and he has a large quantity of files among the papers showing that felonies, including conspiracy, false entries, and hoarding food. they have been used in the commission of various felonies, one of them Neither with respect to the authorizat:on of a search warrant nor the being in connection with the alteration of the books of Swift & Co. and particularity with which instruments of crime must be described is other companies-some of them concerning violations of law that the depostion any better than the affidavit- would make them guilty at this time of hoarding not only beef but of We thoroughly agree with the learned district judge that the sbieid storing food products with the ultimate purpose of enhancing the of the Constitution does not protect property that has been used in the prices thereof. commission of a felony, and that such outlaw property is subject " Q. What food? to seiZlli"e by search warrant under this statute. But we find that the "A. Canned goods, canned fish, poultry, cheese, butter, eggs, all kinds Constitution and this statute forbid a search warrant unless the issu­ of canned ve~etables, and other foods. There are also papers there ing magistrate shall first properly draw the necessary legal conclu­ which show the false entry of various false entries made in books, sion from facts duly presented to him under the oath of the accuser. account books, and papers required under the Federal Trade Com­ And in the record now before us we find no such presentation of facts. mission act. Needless to say, the present judgment is not a bar to fur·ther pro- " Q. Books of whom? ceedings. "A. Books of Swift & Co. in the possession of Henry Veeder. Reversed, with direction to quash the search warrant. "Q. What else? - A true copy. "A There are other records which have been used in the furthera.nce Test: EDWA.nD M. HOLLOWAY, of a· conspiracy between Swift & Co., Armour & Co., Uorris & Co., Clerk of the United States Circuit Oourl Cudahy & Co. and Wilson & Co. for the purpose of defTauding the of AJJpcals (or the Seventh Oi1·cuit. United States 'Government in bidding upon contracts for the supply o! [SEAL.) By FREDERICK G. CA:\IPBELL, hides, foods, leather, etc., for the Government. Deputy Olet·k. " Q. What else did you see there? ".Judge LA ·ors. You say you have seen these papers? REPLY OF SWIFT & Co. TO QUESTIO~S SUBMITTED .JULY 23, 1917, BY "A. I have seen some and have had a glance at others, which I was Tll.E FEDERAL TRADE COliMISSIO~. not permitted to inspect in detail, anu apparently there are a great SWIFT & Co., number of files there which relate to all these matters." UNlO!Il STOCK YAJms, A brief statement of the applicable principles of law will suffice, for Chicago, August £5, 1911. they are so well settled, so obvious from a reading of the con!'titutional Ron . .TOSEPII E. DAVIES, and statutory provisions in question, so founded in the mstlnctlve Fedtn·al Trade Commission, Washington, D. 0. sense of natmal justice, that no elaboration of the ground therefor is DEAR SIR: In reply to your letter of .July 23, in which you ask us needed. questions about the live stock and meat situation, we have prepared One's person and property must be entitled, in an order!y democracy, the attached statement- to protection a~ainst both mob hysteria and the oppressiOn of agents We have dealt with the subject at some length in our desire to cover whom the people have chosen to represent them in the administration it fully and . trust that the commission will find the information of ()f laws which are required by the Constitution to operate upon all per- value. sons alike. · Yours, respectfully, One's home and place of business are not to be invaded forcibly and SwrFT & Co., searched by the curious and suspicious. Not even by a disinterested L. F. SwiFT, officer of the law, unless he is armed with a search warrant. No search warrant shall be issued unless the judge bas first been President. fumished with facts under oath, not suspicions, beliefs, or surmises, Question 1. "As you are aware, there is widespread complaint among but facts which, when the law is properly applied to them, tend to consumers as to the prices of meats and other animal food products­ establish i.he necessary legal conclusion or facts which, when the law The commission would like your views as to the cause of present high is properly applied to them, tend to establish probable cause for believ­ prices, to what extent they are justifieq, and if in your judgment there ing that the legal conclusion is right. The inviolability of the accused's is not complete justification for them, what factor or factors in the home is to be determined by the facts, not by rumor, suspicion. or production and distribution of meat animals and their products can be guesswork. If the facts afl'ord the legal basis for the search warrant, justly criticized? " the accused must take the consequences_ But equally there must be Our reply to this question is as follows : consequences for the accuser to face_ It the sworn accusation is based PRICES OF ALL COMMODITIES HAVE RISEN. on fiction, the accuser must take th~ chance of punishment for perjury. Hence the necessity of a sworn statement of facts, because one can not The recent increase in meat prices has been part of an upward move­ be convicted of perjury for having a belief, though the belief be utterly ment of prices in general. As compared with other commodities, it unfounded in fact and law. does not appear that meat prices have risen abnormally;. nor, in fact, The finding of the le~al conclusion or of probable cause from the as much as many other important food products. Preliminary figures exhibited facts is a judicial function, and it can not be delegated by the obtained from the United States Bureau of Labor Statistics show the judge to the accuser. following percentage increases in wholesale prices for .Tune, 1917, over No search warrant should be broader than the justifying basis of the prices for .July, 1916, for meats and various other products: facts. For example, if a murde1· has been committed by means of a lntJreaBes in ·wholesale prices, June, 1911, ove1· July, 1916. shot from a gun and by no other means, the search warrant should not Per cent increase. direct the officer to enter the accused's home and seize the family reg­ Cattle, good to choice steers______25. 6 ister of births and deaths. And as the serving officer has no discretion Beef, fresh, native steers ______:______15. 0 in executing the search warrant in its entirety, the householder is en­ titled to have the search warrant quashed. It is not every kind of property that may be seized under a search warrant. Limited by Mcisaac's accusation, the statute applies only to property that "was used as the means of committing a felony." By exclusion, therefore, papers and documents which afl'ord evidence that a felony has been committed, but which were not the means of com­ mitting it, are imumne from seizure. Applying the e principles to Mcisaac's affidavit, we observe that not a single statement of fact is verified by his oath. All he swears to is that "he has good reason to believe. and docs verily believe" so and so. He does not swear that so and so are true. He does not say why he believes. He gives no facts or circumstances to which the judge could apply the legal tandard and decide that there was probable cause for the affiant's belief. There is nothing but the affiant's applica- 9592 CONGRESSIONAL R.ECORD-HOUSE. I. 1 • \I I AUGUST 27· ' keted and slaughtered in 1916 was the largest in the history of the The same thing is true with regard to retail prices, as shown by the country : and the significant thing is, to guote from the annual report following figures, also from the United States Bureau of Labor Statistics of the Secretary of Agriculture for 1916, "this heavier slaughtering (Monthly Review of the United States Bureau of Labor Statistics, July, has been accompanied by an increase in the remaining stock of animals." 1917, p. 131), which indicate the percentage increases in prices for May It is, of course, only natural that· as the western rnnges have been 15, 1917, as compared with the average prices for the whole year 1916: broken up, as the cost of live-stock raising bas increased, and as the area available for live-stock production has not increased in propor­ Itwreases in retail vr·iccs, May 15, 1911, over· ave1'a,ge tot· 1916. tion to ·the growth of population, the production of live stock per Per cent increase. capita should have shown a tendency to fall off during the past 20 or Sil'loin steak------..,---- 18 30 years. The estimates of the United States Department of Agricul­ Round stPak------21 ture and the census figures, on which have been based so many state­ llib roast------2 1 ments to prove that per capita production of live stock bas fallen Chuck roast ------­ 2 7 off seriously, are of at least questionable accuracy. · The changing of the Pork chops ------35 census date from .June 1 to April 15 in 1910 further complicated 'the nacon______45 situation, and rendered comparisons for years before and after that !Ialll______32 date of doubtful validity, because the new date of April 15, to which Lamu------59 recent figures apply, excludes a large proporti{)n of the calf, lamb, and Hens----~------24 pig crops that was previously included. Eggs, strictly fresh------'------6 Data concerning live-stock and meat production are estimates at Butter------18 best, but we believe that the figures of meat production shown in the Cheese------~------31 accompanying table come as near the facts as it is possible to get. Bread------30 In constructing this table we have used the exact number of animals Flour------98 slaughtered in the United States inspected houses, and have expanded Corn IDeal------58 these into total number of pounds of meat produced by usin"' the same Potatoes_~------127 method as that used in report 109 of the United States Department Onions ______------~------76 of Agriculture, "The Meat Situation in the United States, part 1," page Beans, navy------74 263. The percentages and weights used ·in constructing it are shown :::lugar------25 in an explanatory note at the end of the table: '!'he average increase in retail prices for May 15, 1917, over the year 1916 for all foodstuffs reported by the Bureau of Labor Statistics was The f)t'Odttction of meat, 1909-1911. 33 per cent; the average increase for fresh beef cuts, pork chops, bacon, and han:~ was only 28.6 per cent. 1909. These figures prove that the prices of dressed meats!. especially beef, have not risen as much as the prices of other foods, anu that the prices of such staple products as cotton, wool, coal, and pig iron have risen Number IDressed weight Other edible Total. much more than foods in general. The preceding statement of wholesale of head. of carcass. portions. prices also shows that the prices of dressed meats have not increased I 1----- as much as the prices of live animals-a po~nt which will be discussed below. It would appear reasonable to ask not only why have IDeat Pounds. Pounds. Pounds. prices risen as DlUch as they have but why have they not risen as much Cattle ...... 13,650,245 7,412,083,035 1,337, 724,010 as the prices of other commodities? This question we shall attempt to Calves...... 6, 524,786 685, 102,530 63,290,424 answer. 29,473,104 REASONS FOR HIGH PRICES. fa~~~:::::::::::::::::: M;~~;~ s.~:~~;~~ 1, 332,192,625 'The fundamental reasons for the recent abnormal increase in the ············1 16,907,690, 767 2, 762, 680, 163 19, 670,370, 93:> general price level are to be found, first, in an enlarged money supply ; second, m an unprecedented demand due to foreign buying and domestic war-time prosperity; and, third, in an actual shortage of many im­ 1910. portant corulllodities. The first two of these reasons-the large money supply and the un­ precedented demand-account for the increase in meat prices, but an Cattle...... 13, 815, 000 7, 501,545, ()()() 1,353,870, 000 unusually large supply in the case of meat bas operated to keep prices 700, 875, 000 64,747,500- from goin~ so high as they otherwise would, or so high as the prices or 661, 002, ()()() 32,244,000 other agricultural products have gone. l~;:::::::::::::::::: !!:Psi:~ 6, 800, 332, ()()() 1, 103,950, ()()() THE UNUSUAL DEMAND FOil. MEAT PRODUCTS. 1------1------r------1------15,663,754,000 2, 554,811,500 18, 218,565,500 The unprecedented demand for meat products has been due, as stated above, to prosperity at home and to foreign buying. As for the exces­ sive domestic demand this is caused by general industrial prosperity, high wages, and steady employment. The purchasing power of the 1911. American public was never so great as it is now. Many people who ordinarily use meat sparingly have · been earning so much more money Cattle ...... ~...... 13, 496,000 7,328,328, 000 1, 322,608,000 in industries boomed by the war that they are buying meat more plenti­ Calves...... 6, 511,000 683,655,000 63,156,700 fully now than ever before, in spite of the higher prices, thereby more Sheep 18, 216,000 746, 856,000 36, 432,000 than offsetting the reduced consumption among salaried people who Hogs.:::::::::::::::::: 57,905,000 8,917,370,000 1,447,625,000 ha>e Lot benefited from war conditions. Furthermore, the facts that l------l------l------l------mora people are at work than ever before and that there have been no 17,676, 209,000 12,869,821,700 20,540, 03J, 703 periods of unemployment during the past two years have also contrib· uted to the tremendous demand. In our opinion the unprecedented demand is the principal reason for the increase in meat prices. This domestic

1916 Cattle ...... 12,338,000 6, 699, 534, ()()() 1, 209, 124,000 ...... Calves ...... 5,667,000 595, 035, 000 54,969,900 ...... 18,715,000 767,315,000 37,430,000 ...... Pound!. Pounds. fo';s~::: ::::::::::::::: 59,652,000 9, 186, 408, 000 1, 491,300,000 ...... Fresh beef ...... · ...... 176, 700, 000 152, 300, 000 Canned beef...... 34,600,000 47,300,000 ...... 17, 248, 292, 000 2, 792,823, SOO 20, 041,ll5, 900 Pickled and other cured beef...... 33, 600,000 49, 300,000 Bacon ...... _. _...... 483, 400, 000 555,900, 000 Hams and shoulders...... 232, 700, 000 222,000, 000 Lard...... 332,400,000 389,900,000 1914. 1------:------Total...... 1, 293,400,000 j 1, 416,700, ()()() Cattle...... 11,944,000 6, 4.85;592, 000 1,170, 512,000 Calves...... 5, 060,000 531,300,000 49,082,000 · For the aggregate beef and pork products enumerated in thls table the exports fo1· the 10 months ending April 30, 1917, were about 10 per ~o~f~~~::::::::::::::: ~;~~;::J s.~~~;~~;~ 1,3~g;~~;~ cent greater than for the corresponding period in 1915-16. This is !------1·------1------l------enough of an increase to account partly for the advance in domestic 16, 290, 710, 000 2, 639, 016, 000 18,929,726,000 prices. The great foreign demand for cured pork partly accounts for the fact that prices of pork products have increased more than the prices of 1915. beef. One reason for the great foreign demand for our meats bas been the -shortage of ocean curriers, which has forced England and France Cattle ...... 12, 645,000 6, 866, 235,000 1 1, 230, 210, 000 to buv in the "Cnited States what they would otherwise have bought in Calves...... 5, 424, 000 569,520,000 52, 612, 800 more · distant countries. Sheep ...... 15,865,000 650,465,000 31,730,000 THE >IIE.A.T SGPPLY. Hogs ... _...... • ... 65,071,000 10,020,934,000 ;r1, 626, n5,000 1 The renson that meat and live-stock prices ban' not aovanced as -.-.-••-.- ••-.-.- •• 1 much as the pt·ices of other com modi ties is thn t the supply of meat -. --t8-,-~-~-.-~M--,-ooo--~· ~_ -2,-9-ro-,-3-27-,-~--·l--21-,-o-57-,-48-1-.--~ animnls has ap[H'Pciably increase(]. '!'be quantity of live stock mar- 1918." COKGRESSIOXAL R-ECORD-· HO SE. 9593

Tlre p1·oauc!io1~ of meat, 1909-1917-Continued. COXCLCSIOXS WITII REGARD TO PRICES. 1916. From the foregoing discussion of prices in answer to question 1 the following facts ha\e been established: . Numb<'r Dr('ssed weight Other edible 1. The increase In meat prices has been part of a general move­ of head. of carcass. portions. Total. ment toward higher price levels due to economic causes that are not peculiar to the packing industry. 2. Meat prices have not advanced us much as the prices of food­ Pounds. Pounda. Poun4s. stuffs in general, nor as much as the prices of other important articles Cattle ...... 14,G87,000 7, 975,041, ()()() 1, 439, 32ti, ()()() of commerce. Calves...... 7,058,000 741,090,000 ()8, 462, 600 3. Meat prices ha\e not admnced as much as the prices of li\e 635, 500, ()()() 31,000,000 stock. :::: : : :::::::: 4. A record quantity of li•e stock marketed accounts for the fact ~ho~e~ ~ ~:: i~; Wo; ~ 11,560,780, ()()() 1,876, 750,000 that meat prices h.a\e not adyanced as much as the prices of other 1------1------r------~------commodities. 20, 912, 411, 000 3, 415, 538, 600 24,327, 949,600 5. These greater marketings of live stock have not been accom­ panied by a diminution of the number of animals on farms, as is EXPL-I.NATORY KOTE.-Tho basis of this table is the number of bead slaughtered popularly believed, but rather by a definite increase of the live-stock in inspected houses. From this is estimated the total number slaughtered by apply­ supply. In other words, live-stock production has not been discouraged. ·ng the p4:'rcentage of total slaughtered in inspected houses in 1909, as shown below. 6. There is nothing about recent price tendencies which indicates The number of pounds is found by multiplying the number of head by a•erage or suggests that there have been any unnatural or artificial causes at dre::;sed weights of earoaseos, also shown below. "Other edible portions" include work with regard to meat prices. such things as hearts, livers, edible fats, etc., the number of pounds of which per 7. The only way to promptly reduce prices appreciably under present head is also shown in following statement: ,conditions would be to induce or to compel consumers (at home and abroad) to use less meat; but this would react on the farmer by re­ Per cent of Other a~~~f;n.the price of lh·e animals, and this in turn would curtail pro- total in A•orage edible por- inspected weight tions per houses. dressed. animal. Question 2. Since question 2 asks how the present agencies in pro­ duction and distribution fall to perform their economic functions in sernng the ultimate consumer this question will be answered under Pouncl.!. Paunds. question 4, which asks for economic weaknesses in the present system Cattle ...... 56.39 543 98 and the remedies therefor. Calves ...... 35.46 105 9.7 Question 3. " In your opinion is the present vast system of conduct­ ~beep ...... 76.95 41 2 ing the meat business from the raising of tbe animals on the range og ...... 58.86 154 25 and farm through all the steps to the table of the consumers the result of the operation of healthy, natural laws or is it in part the result of efforts, either conscious or unconscious, to interfere with Using the figures of total meat production in this table and the the operation of such laws?" · census figures of population, the per capita production of meats for Our reply to this question is as follows : each year from 1909 to 191G was as follows : We believe the present system of marketing live stock from the ranch Pounds. or farm to the consumer's table is the result of" healthy, natural laws," and that it has not been the result of efforts " to interfere with the 1909------217.2 operation of such laws." We further believe this fact is susceptible 1910------197.7 of conclusive proof to the im\)artial student. The reasons that we 19121911------~------______208.2219.1 ad,ance for th1s belief, which Will be enlarged on below, are as follows : L Each middleman or manufacturer now engaged in the marketing 1913------206.5 of live animals and meats performs necessary and useful functions. 1914------191.9 2. The development of large packing companies is the natural result 1910------210.0 of the economies of large-scale production and distribution. 191G------238.7 3. The packers buy animals and sell meats in open competitive It will be seen from these figures that the per capita production of markets. . neats has ·not only held its own since 1909 but that in 1916 it was much larger than in any year shown. And the most significant fact 1. SERVICES PERFORMED BY THE YARIO'CS MIDDLEMEN. of all is that, although the per capita production of meats was so The channels of trade through which live stock generally passes large in 1916, tile actual number of live animals on farms on January from producer to consumer are as follows: At country points growers 1, 1917, also showed an appreciable increase. either ship direct or sell to a "shipper" or "cattle buyer," or in some These facts concernlng meat production not only prove our state­ cases ship through a cooperative association. When a grower raises nent that increased production acrounts for the fact that price of t>nougb live stock to shi{> in car lots there is little or no need of a meats ha•e not ad\anced as much as prices of commodities in gener·1 : middleman at country pomts. On the other hand, when farmers raise but they appear to disprove the general belief that there is a serious animals on such a small scale as to have only a few head to ma1·ket shortage of live stock and the c.harge that production has been discour­ :1t one time it becomes practically necessary for some agency to gather aged I.Jy low prices. the offerings of individual farmers for car-lot shipments. In some cases The fact that the prices of dressed meats have not advanced as this service is performed by the farmers cooperatively through their rapidly as the prices of live animals deserves further emphasis. The own shipping associations. following actual figures t.:'l.ken from the records of Swift & Co. for On leaving country points live stock is shipped to commission mer1 corresponding weeks of 1916 and 1917 show the facts for beef and live chants in the large central markets. These commission merchants cattle>. The selc>ction of any other weeks during the last few months look after the interests of shippers and attend to the handling and feed­ would yield similar results_ ing of stock in the yards. They are expert judges of live-stock values, know the needs and peculiarities of the various buyers, and obtain the highest possible price for their consignments. Week ended July 1. I Week ended July 8. Although " dealers " and " shippers " handle part of the receipts in all large stockyards and have an important and beneficial influence on prices, the next important s~ep is the packing house, which not only performs the necessary functions of slaughtering and dressing but 1916 1917 mcrease_f'er cent 11916 11917 Imcrease.?cr cent ordinarily markets through an extensive selling organization to retailers all over the country. The retailer is the final step in the marketing process, and his services are just as necessary as those of the various other agencies described above. In fact, there seems to be sufficient Ll•o cattle ...... 1 S8.24 ~ ~ $8.08 $10.00 ~ Dressed beet . _...... _. . . 12. 90 14. 72 14.1 12. 87 14.80 15.0 economic justification for tho general organization of the marketing process. 1 1 1 From this table it will be seen that whereas the prices paid for live 2. RE.ASOXS FOR THE DEVELOPME:\'T OF L.ARGE PACKIXG HOuSES. cattle increased 21.3 and 23.7 per cent, respectively, for the two weeks This brings us to the organization of the packing business itself and under review the prices recei\ed for dressed beef increased only 14.1 the fact that there has been a development of large companies. This and Hi per cent, respectively. In other words, the prices received for has happened, as in other industries, thou~h to no greater extent than li•e stock by growers have increased faster than the prices we ha\e in many, because of fundamental econonuc advantages which accom­ receind for meats. The fact that Swift & Co.'s gross margin on beef pany large-scale production. These advantages are as follows: Minute to cover expen es and profits has been a smaller percentage of selling division of labor and specialization in the manufacturing department of price in 1917 than in 191G has been made possible by the high prices the business; utilization of by-products; efficient marketing organiza­ pre•ailing for hides and other by-products. tion and methods ; as a result of these three advantages, a surprisingly As bearing on this same significant fact, the accompanying diagram low cost of production and distribution; and, finally, the production o:C 1 bas been prepared based on figures from Swift & Co.'s books showing the highest possible quality of meats and the standardization of grades. the relation between the price- paid for liYe cattle, the price of dres.sed Division of labor and specialization : The packing industry offers beef, tlle value of by-products, and the net profit per hundred pounds one of the best examples of economies resulting from minute subdivision of dressed beef weekly for the year ending June 30, 1917. Since cattle of the manufacturing process among specialized workmen. Because bought at any one time are sold as dressed meat a week or so later business is done on such a large scale it is possible to let each employee the sale price of dressed beef as shown in the diagram is for one week specialize on some single process, thereby bringing about the highest later than the price paid for cattle. This makes the comparison possible degree of accuracy, skill, and speed. approximately accurate. Utilization of by-products: The packing industry Is the classic ex­ . Several importan.t facts arc revealed by this diagram. First, it ample of economies effected through the utilization of by-products and w1ll be seen -that rn general the prices of beef and cattle fluctuate this point does not need to be enlarged on. ' together ; second, the actual margin between sale price of beef and cost Efficient marketing organization and methods: One of the most im­ of Itve cattle widens out somewhat as prices rise, due to the fact that portant features of the present organization of the packing business is heef yield is only a little over 50 per cent of the live weight, so that the fact that meats are distributed direct to retailers in the larger the price of beef has to increase or decrease faster than the price cities and towns of the country through the branch houses of the of cattle. As the actual spread widens, however, it becomes a smaller packers. Branch-house distribution is supplemented by the "car proportion of -the selling price. routes," which reach towns that are not large enough to support Finally, and most significant, the diagram shows that the net profit branch houses. This extensive marketing organization results in the remains within narrow limits, whatever the prices of beef and live most scientific and skillful handling of the perishable products sold .stock, and that for many weeks during . the recent era of high pt·ices and makes them available to all parts of the country. Since different actual lo ·se~ have be<>n suffered by the beef branch of Swift & Co.'s eities demand ditl'et·ent qualities of meat, this organization makes pos­ business. 'There could be no better evidence of an absence of control sible the shipment of just the quality demanded; since the quantity over pri.ces of beef and cattle. demanded by different sections fluctuates from week to week meats can -· J: \ I I 9594 CONGRESSIONAL RECORD-HOUSE. Au~us'r 27,

be sent to markets where demand is the greatest and kept away from Proflt on sheep. Per h<'a 1J. those- markets where demand is slack. Only a country-wide organiza­ 1912 tion can do this with the greatest efficiency. Furthermore, a well­ 1913 ------$0.156 organized export department takes care of the foreign business. 1914 ------r------~----- .12S The efficiency of marketing is also enhanced by the fact that each of 1915 ------.115 the large companies has a number of packing houses distributed 1916 ------.157 throughout the producing sections, enabling the most efficient and Ho;-;r~flt;~.-~~-~~~~ld;~;-~;~~--;r~flt;-lt-;h~;;d--b-e--~~ed ·t!~~ economical assembling of the dlil'erent qualities of animals !rom various hog packing difi'ers from cattle and sheep slaughtering in important parts of the country and _the shipment of meats from the nearest plant respects. There are larger elements of uncertainty in the hog in­ 1n each case. The efficiency due to size applies not only to the market­ dustry ; whereas the dre sed meat of cattle and sheep is sold almost i~g ::u~eats, but to the manufacturing and marketing o:! by-products immediately. after . slaughter, the. greater portion of the hog goes through. variOus proces es of curmg and p-reparation, which means Low cost of slaughtering and marketing: As a result of these ad­ that such products made from hogs bought to-day will not be sold for vantages of large-scale production, the expenses of slaughtering dress­ several months. The- probable future value of these hog products is ing, and marketing have been reduced to a minimum, and the' packer therefore much more speculative than the products of cattle heep . takes. out an astonishingly imall margin between producer and con­ and lambs, which are sold before the market has had time to chan<'~ t~ sumer. One of the most sttiking facts that illustrate this point is any great extent, and the value of the live hog is therefore infiuenced that the price pald to the stockman by the packer for cattle is about largely- by the trader's estimate of future conditions. It should also 90 per cent of the price actually realized by him in the sale of beef be noted that hog values depend more on world conditions and in­ and by-products. fiuences, whereas values of cattle and sheep depend more on domestic In a recent bulletin on the Meat Situation in the United States, supply and demand. issued by the United States Department o! Agriculture, figures are pre­ sented showing the marketing costs on nine lots o! cattle from country For the five years ending September 30, 1916, Swift & Co.s average shipping points through the retailer to the consumer. Interpreting b!!np~fii t_~,~~~s was 58.5 cents per head. The profits by years have these figures, . the bulletin says (Report No. 113, p. 71) : "The dis­ 0 tribution of returns indicated by the data is approximately two-thirds Profit on hogs. Per h<'nn. to three-quarters to the stockman, 3 . to 4 per cent shipping and stock­ f~~~ ------$0.50~ yards' expense, 5 to 6 per cent packing and wholesale distribution, and 15 to 20 per cent retailing." These percentages are based on final 1914 ======~======:::::::::::: :gg~ retail prices. It must be borne in mind that the facker has to pay his ~~ig ------.186 expenses of buying, maintenance- and operation o slaughtering plants, ------. 074 transportation, and selling through branch houses out of this 5 or 6 No interest on borrowed money has been deducted in obtaining these per cent as well as make his net profit. results: and such interest charge is greater for hogs than for cattle These figures prove conclusively that the packer performs his services and sheep. The speculative nature of the results is indicated by the at low cost, and that he receives a surprisingly small part of the total wide fiuctuation in profits from year to year from a minimum of 18.6 spread between the price of live cattle and the price paid for meat by cents a head in 1915 to a maximum of 97.4 cents in 1916. The figures consumers ; the inspection of the Swift & Co. accounts by the auditors do not include profi~ on refined lard. Eyen if they were to be in­ o:! the J.l'ederal Trade Commission will reveal these facts even more eon­ cluded-and the refinmg of lard is an entirely separate business-the­ vincingly. net profit per hog would be raised to only 66.5 cents instead of 58.G Improvement and standardization of meat quality : Possibly the cents as shown above. greatest advantage of all is the improvement and standardization of . It will be found _by the accountants "of the Federal Trade Commis­ the quality of meat sold. as well as the condition in which it is de­ siOn, who are working on our books at the time this is written, and livered to retailers. In the first place, the scientific methods used by who can \e~ the figures shown above, that the profits for the nine the packers yield the very highest quality and condition of meats from months endmg June 30, 1917, have been runninoo larger than durln"" the animals available for slaughter-, and this is one of the greatest recent years. But even during this period the net profit on all cattle contributions of the large-scale packing industry. Furthermore-, the sheep, and hogs slaughtered has been less than 1 cent a potm~ qualities and grades are standardized, a.nd the large packers are able dressed weight. It is impossible to o-btain final figures for 1917 to supply a deiln!te standard of quality month in and month out to especially on hogs, until later in the year. Our stocks of cured meats any individual dealer who has a definite and established trade. The reach their maximum in July and aetual profits can not be computed qualities of meat demanded by dlil'erent sections o! the country, and until they have been sold late in the fall even by different cities in the same section, vary; and the packer, with The principal Teason for higher profits during recent months is that his large supply and assortment, can adjust his shipments to suit these v:Uues have been advancing so rapidly and steadily that between the varlous demands. In other words, the large packer makes possible time of slaughter of animals and the time of ale of the resulting the production of the highest possible quality of meats, their avail­ meats the enhancement of values has been much greater than we coulu ability in perfect condition, the standardization o! qrades, and, in gen­ anticipate. When the tide turns and values begin to recede the effect eral, the most efficient utilization of the meat supply. on our profits will be just the opposite, i. e., they will be reduced or turned into losse . For this reason we do not con 1der such additional PROFITS. profits as available for distribution among shareholder but expect to From the gross margin, as explained above, the packer must not only r-onserve them in the nature o! a reserve to take care of possible losses pay his expenses but he must also obtain his net profit. Swift & Co.'s in the future. average net profit over a series of years has been less than 3 cents In connection with the profit figures shown above. some one may say per dollar of sale . · that though the profit per head is small the proftt in the aggregate Profits on cattle and sheep: For the five years ending With Septem­ IS large. It is, of course, only because of the immense volume that ber 30, 1916, Swift & Co. in all of its plants too-ether made a profit of the packer c_an afford to do business on the slender margin that ordi­ $1.22 per head of cattle before paying interest on borrowed money. narily prevruls and still earn a fair return on capital invested. It is The net profit by years was as follows: safe to say thu.t the pronts on capital inve t ed euned by the large Profit on cattle, Per head. packers are no more than reasonable. If some earn more than others this is the r eward of greater efficiency. It is also a significant fact that the earnings of the pac_!rers, even during recent months, have $O: been Slllll;ll as compared with the profits reaped in other lines of bu:rl.- - 1915f~~===:======--======1914------~------______1.1711.643+n ness durmg war tim<'s. ' If those who are so suspicious of the big packers could only visualize 1916------1.651 the position the packers occupy-the fact that after having de~eloped This profit amounts to about one-eighth of a cent a pound live the best buying methods po sible, the most efficient manufacturing weight. or one-quarter of a cent a pound dressed weight, including re­ methods, and the most effective sales organization they are ahle to turns from all the by-products. realize over long periods only a fraction of a cent net profit per nound It has been commonly said that the prices prevailing for fat cattle and that it r equires a continuous and aggressive policy of main"'t.ained in the year 1915 were unprofitable to the producer. It has also been and Improved efficiency to save this slender margin of profit after all intimated that the general business situation justified much higher expenses are paid, then those who are fair-minded could not help but beef and cattle prices and that, as a matter of fact, the packers ha:d, change their views-they would come to the realization that the big by r eason of low cattle prices, made exorbitant profits on cattle in packing industry is something for the countr:y to be proud of and that 1915. Our profits on cattle during 1915 were $1.64 per head, approxi­ its operations are a benefit to both tock raisers and meat dealers in mately one-eighth of a cent per pound live weight, or one-quarter of a that under no other system could the margin between cattle pri'!es cent per pound dres ed weight of beef. ln.cluding all of the by-products. and meat prices be as small as it is~ Our profits during that year were seldom as high as one-half cent per pound of beef. This was also true in 1916. S. THJ!1 PACKER BUYS A!\TM.ALS Ar-"D SELLS MEATS L"'i OPl!l!'i COMPETITIVE In arriving nt the profit for the fi-ve years we have taken into ac­ MARKETS. count the actual amount of money which the retail dealer paid us for It has already been shown in reply to question 1 that the prices of the sale of the dressed beef ; and the sale of livers, hearts, tails, etc. ; beef and live cattle fluctuate together and that the net profit to the the sale of casings. oleo oil and stearine. tallow, blood and tankage, packer, although tt varies from week to week, averages less than a bones, hoofs, horns, and, in fact, all of the by-products produced. We half a cent a pound and bear no relation to the prices of dre sed have taken into account the actual sale o! the hides, the major portion beef and live cattle. This in ltsel:! constitutes a proof that prices are of which is sold to tanneries in which. we are not interested. The not manipulated so as to yield extortionate profits to the packers ; hides which we have sold to our own tanneries have been charged to but there are numerous other features of the live-stock and meat trades them at the full market price current on the day o.t sale. which would render it extremely difficult, if not absolute.ly impos ible,. From these sales we have deducted the actual cost of the live cattle for any set of operators to control prices even if they should attempt and actual expenses and freight incurred. All expenses deducted rep. to do so. Some of these features are discussed below. resent actual money out of pocket, except depreciation, which has The demand for fresh meat, which is perishable, fiuctuates greatly. averaged less than 2~ per cent on buildings and 8 per cent on ma­ Live stock is worth to. the packer only as much as it can be solo for chinery. after it bas been converted into dressed meat and by-prooucts. Even if Swift & Co. should waive aiT beef profit and give it to stock Although Chicago live-stock prices are looked on as ba ic, it is Iittlo raisers. they, the tock raisers, would receive less than $1.50 a head realized how much they, in turn, depend on the prices of dressed meatg more than they now realize; if it should be given to consumers in the in large consuming centers, such as New York, Boston, and Philadel­ form of lower meat prices, it would reduce the cost to the average indi­ phia; and the demand in these large consn.ming centers fluctuates from vidual less than 2.5 cents per year for all the beef that he eats. As a day to day, with consequent rapid variations ln. price, ove:r which the matter of fact, if the packer should give up his net profit on slaughter­ packer has no control. ing and meat packing, the etrect on both live-stock prices and retail Approximately 90 per cent at the fresh bee.f marketed is simply meat prices would be inappreciable; it would be practically nil. If refrigerated, rather than frozen, and is therefore extremely perishable. ther;e facts could be generally realized, they would dispel the popular It must be sold within about two weeks from th time of slaughter. illusion that the packers manipulate prices so as to make extortionate This complicates the packer's problem of meat dispo al, because rather profits. · tban let meat spoil he must sell it for any price that he can get. On sheep and lambs, Swift & Co.'s average profit for the five years When the· packer buys live animals he has no way of foreseeing exactly ending Septt:-mber 30. 1.916, was only 14.9 cents per head, ).ncluding what the demand for meat is going to be a weelc or two later; ho thl! sale of all by-products. The profit by years was as follows:- ·-·· -~ knows only what meat is worth at the time the animals are !}ought. 1918. OONGRESSION AL REOOR.D-HOUSE. I' I . and this is the only basis he has to go by. He may anticipate a larger 3. The packers' gross margin to cover expenses and profits is aston­ e stock at the large markets vtuies from day to day 4. '.fhe ~rofits of Swift & Co. over a period of rears have a>eraged and from week to week, and can not be controlled by the packers. less than u cents on every dollar of sales. On either a " per-head " or Most manufacturers can order such quantities of raw materials as they invested-capital basis they appear to be reasonably moderate. desire, and have them deli;-cred at convenient dates. Not so in the G. 1'h.e larger profits of 191G-17 h.a>e been caused principally by a packing industry. Li>e stock comes to market in a constant but un­ steady mcrease In values of goods m process of manufacturing and ::;teady stream. The packers have to absorb this supply of raw mate­ marketing, and corresponding losses on a future declining market must rials, even if the market for dressed meat is poor. When the demand be pro>ided for. · for meats is slack and prices are declining, and the packer has all the 6. Fresh meats are perishable and have to be sold within a short stuff be can carry, competition among buyers is listless, an MARKETING OF LIIE ANIMALS. trol his purchase of li>e stock and output of meats, as in the case of 1. Une>en marketing of li>e stock.-The quantity of li\e stock mar­ the ordinary manufacturer, who sets a price for his product and regu­ keted fluctuates greatly from day to day and from week to week. In lates the purchase of material, and the output of goods in accordance the first place, shipments are concentrated too heavily into two days of with the quantity that can be sold at the price set, the situation would the week, as shown by the accompanying Diagram II, which gives tho he different. But no! · 1'here nre too many uncontrollable factors: average receipts of cattle at Chicago for each day of the wtlek for the The demand for meat and by-products; the supply of live animals two months, November and December, 1916. More serious than this coming on the market;. the perishability of the product, which makes it concentration within the week are the recurrent gluts and scarcities of nec('ssary to sell meat before it deteriorates, regardless of price. All live stock in the principal markets, as indicated by Diagram III, which these things, together with the fact that if prices were artificially gives the receipts of cattle and bogs at se>en large markets for each boo ted consumption would bP. curtailed, point to the absurdity of the week of 1916. This uneven marketing is due partly to insufficient chnt·ge that the packers control prices. knowledge on the part of shippers concerning market conditions and . Dealers. and shippers in live-stock markets offer effecti>e competi­ prospects. 'rhere is no way of forecasting exactly what conditions will tion : Besides the packers there is another set of buyers in every li>e­ be when a load of live stock reaches the market, but improvement in stock market, who have an important influence on prices. 'Ihese are this respect can be made through the means of more authentic and the dealers and shippers. Just as soon as the price in any single comprehensive market reports than have heretofore been issued. The market sags below what a dealer believes it ought to be, or will be Office of Markets of the United States Department of Agriculture has the next day, he immediately steps in and buys. Or, if be sees that recently extended its Market News Service to include the prices and the price has gone low enough to yield a possible profit by shipping to mo\emcnts of live stock and market conditions and prices of dressed some other market, he buys and takes a chance. that the other market meat, and this will undoubtedly be beneficial in bringmg about a more will stay up long enough for him to get his stock there. In other even marketing and in lessening the severity of price fluctuations. It words, there are those in every market who stand ready to buy when­ might even be possible for the Federal Trade Commission and the Office e>er the price falls below what they belie>e conditions justify; they of :Markets of the United States Department of Agriculture, in coopera­ have a stendy effect on the market; their operations help to keep the tion with live-stock exchanges, commission men, and shippers, to in­ \ario.us markets of the country " in line " with each other. augurate a system which would have the effect of controlling live-stock rnce fluctuations are not so sc>erc as is generally thought nnd shipments, so as to make the receipts at the principal markets more frequent fluctuations indicate free competition :. Over short periods the uniform and more in accord with market requirements. fluctu~tions in the price of live ;:;tock are not severe, as compared with 2. Extensi>e speculation in cattle feeding.-The buying up of cattle the pr1ces of most other commodities. An increase in the price of steers for the purpose of feeding them for market is, of course, a legitimate as from $12.50 to $12.60 represents a change of less than 1 per cent· well as a specialized business. It is, however, an exceedingly speculative an increase from $12.50 to $13 represents a change of only 4 per cent: one, and one that should not be entered into lightly without an expert rackers do not like price fluctuations any better than do live-stock knowledge of feeding, as well as an intimacy with market conditions. producers, and do not benefit by them. In fact, the packers have two It appears that ofttimes too many men without the proper qualifica­ sets of fluctuating prices to contend with-those of live stock and those tions go into this business and suffer losses. It would be much better of dressed meats. As pointed out before, one of the packers' principal in many such cases if the farmer who raised the animal in the first roblems is to know market conditions so thoroughly that he can buy place had done his own feeding. The promiscuous speculation in feed­ Ei.ve stock and sell meats a week or two later in such a way as to ers also results in an unnecessary amount of transporti_ng of animals averag~ his quarter-of-a-cent n;.>t profit, notwithstanding the fluctuations from place to place. in prices of both factors. 3. Inefficient production of live stock on farms.-Although there bas Furthermore, frequent price fluctuations represent a high degree of been a >ast improvement in live-stock production, there are still many competition rather than the revers~. A study of the markets for other farmers who raise poor breeds of animals, which do not yield the great­ commodities proves this statement. Where competition is continuous est possible amount of weight for the quantity of feeds consumed. and severe, a.s in an organized wheat market, the price oscillates con­ There are also many losses from disease, which could be avoided by a tinuously, but only an eighth of a cent at a time. In the potato market better knowledge of live-stock raising. The United States Department which ~s less h~ghly organized and where competition is not so severe: of Agriculture estimates that the annual loss from disease and ex­ the prJCe remams constant for days at a time, and jumps or falls posure runs from something over 3 per cent in the case of cattle to perhaps 5 cents a bu;:;hel. Steel rails remained for years at $28 a ton! over G per cent in the case of bogs, and that the aggregate loss of As a general rule, the less severe the competition the less frequent the cattle, hogs, and sheep from these causes is over $200,000.000 a year. fluctuations in price. The remedy for this situation is to be found only through the gradual Price fluctuations arc caused primarily by changes in the demand for education of farmers, and this is the province of the Federal Depart­ meat on the one hand and the changes in the' supply of live stock on ment of A~riculture and the State agricultural colleges. the other. The marketings of li>e stock are uneven, both within a 4. Practices of commission men and dealers in the large live-stock single week and over long periods. Only by blinging about a steady markets.-The functions of these middlemen are necessary and im­ demand for meat products and a better regulation of meat supply and of portant, but it is acknowledged that occasionally commission men fill li\e-stock marketings can the se>erity of live-stock price fluctuations be ou-tside orders from their own consignments, and that sometimes deal­ reduced. ers fill such orders from stock that they own themselves. The live­ The prices of cattle, hogs, and sheep do not move together, nor do the stock exchanges have taken · cognizance of these practices and are try­ prices of different grades of the same kind of animal. It frequently ing to eliminate them. bappens that the price of steers may be advancing, while the price of 5. Inefficiency of local stock buyers and shippers.-In sections of the bogs remains constant or even falls. The market for fancy steers may country where live stock is not raised on a large enough scale to per­ be dull, whereas the market for lower grades is active. This is another mit individual farmers to ship in carloads, local stock buyers go about definite indication that prices arc the result of competition, and that from farm to farm and buy up the small offerings of individual farm­ they are determined by conditions of supply and demand. ers, and combine them for carload shipments. There are often four or The packing business could not be transacted successfully at arbi­ five such buyers at a single country point, resulting in duplication of trary or fixed prices. Our business of buying and selling has to be done effort and in relatively large overhead expense for each shipper. "a.t the market," because, as pointed out above, we neither control the One remedy for this situation is the development of cooperative ~mpply of our raw material nor the demand for our finished product. shipping associatioqs by the farmers themselves, in sections of the To set an arbitrary price on live stock would result either in encourag­ country where stock is raised on a small scale. Such associations have ing too large a supply or in keeping live stock olr the market. To set been developing very rapidly in t.l;le Northwest, especially in Minnesota. an arbitrary price for meats would mean either that there would not be They save unnecessary expense of driving around from farm to farm, enough sold to use up the supply or else that there wouldn't be enough and avoid the duplication of effort which results when there are a to go around. Fresh meats are perishable, and we have to sell them number of independent buye!·s at a single shipping point. for what we can get before they spoil. No set of men could set arbi­ WEAKKESSES COX~"ECTED WITH THE PACKING INDUSTRY. trary prices all along the line and conduct the business successfully. Market prices govern, and we ha>c to follow them. 1. Fluctuating supply of live stock.-The uneven marketing of live stock, discussE-d above. is a weakness of the present system, not only SUMMAllY OF TIErLY TO QUESTIO:'\' 3. from the standpoint of the stockman but it is a serious disadvantage to In our repl.r to question 3 we believe we have established the fol­ the packer. Smce the offerings of live stock at the central markets lo\\ing facts : ba Ye to be absorbed within a short time after their arrival, this means 1. The organization of the whole marketing process for live stock that the packers have to buy uneven quantities of their raw material •nd meats appears to have ample economic justification. from day to day-a condition that almost no other kind of manufac­ 2. The development of large houses in the packing industry, as in turer has to face. This means that animals have to be slaughtet·ed, many other lines of business, has come about because of greater effi­ and meat marketed, in uneven quantities, and not. in accordance with ciency of large-scale production and marketing. the demand for meats. 9596 CONqRESSION AL REOO:ftD-HOUSE. AUGUST , , }" , ~L 27,

2. Uneven marketing of meats.-Aithough the qUB.lltities of live stock and conditions which may be considered weakne es of the present marketed from week to week fluctuate more than do the quantities or· organization a!l~ methods of the packing industry, and Swl(.t & CQ. dressed meat marketed, yet the distributing organizations of the pack­ expresses its willingne s to coopetilte to the fullest extent with the Fed.! ers have not reached such perfection but that there is often an over- eral Trade Commission, or under its control and direction, to· makt) . supply or undersupply, of meats in large consuming markets. When ~uch changes as may seem reasonable and desirable. there is au oversupply, the price has to be cut in order to move the In discussing the weaknesses of the system we have said nothing perishable goods before they spoil: when there is an undersupply, com­ abo11t the retail butcher. The cost of retailing, on account of the petition of purchasers forces the price up. The net result of these elaborate and expensive service that consumers demand, is larger gluts and scarcities l~ a constantly fluctuating price, which could be. than the packer's expenses for slaughtering, transporting, and han­ largely: avoided if the packers could foresee mor-e accurately the dling through branch houses, as shown in Report No 113 United quantities needed in individual markets. Acting individually, the large States Department of Agriculture, quoted above. We are not prepared packers are probably doing as well in tllis respect as could be expected, to express an opinion on the reasonableness or unreasonableness of masmuch as they have well-organized selling branches with expert the retailer's expense and gross margins, and we presume that the managers at their heads. Federal Trade Commission will satisfy it elf on this point. 3. Loss by condemnation.-A third matter that may be considered a In presenting these answers to your questions we have attempted to weakness, but one for which the packers are not responsible, is the stick to facts. The intimate figures concerning our costs and profits ar~ fact that the packers have to stand the burden of loss resulting from possible of verification by your accountants who are working on o~ the condemnatic:m of diseased animals after they are slaughtered. This bookg, We believe that the packing industry is established on sound loss by becoming an expense to the packers, is reflected back to all economic principles, that It has attained an exceptionally high degrea producers through prices pald1 and not to the particular producers who of efficiency, and that the facts of the mse prove that there is no ship diseased animals. who, therefore, are not penalized. This situa­ ground for the suspicion prevalent in the public mind. tion tends more to encourage than to discourage the marketing of Chicago, August 25, 1917. diseased animals, and is one·reason why the efto:rts to eradicate disease have not been more effective than they have. SWIFT & Co., UNION STocn:: YABns, STOCKYARDS. ,...,~ Ohicago, August £2, 1913. In addition to the weaknesses alluded to above, It is often claimed H on. .1.1L44TIN B. MADD»N, that the financial interest in some of the stockyards by packers is, House of Representatives, Washington, D. 0. unfortunate. As a matter of fact, the- principal reason why packers DEAR SIR: I wrote you on July 3 regarding the Trade Commission's have become interested In yards at all has been to develop them to the report on profiteering. Since that time another document has been highest point of efficiency. When a live-stock market is young and Issued by the Trade Commission dealing particularly with the meat­ undeveloped, the opportunity to make profits is hardly sufficient to packing industry. This report has received wide circulation. It is induce private capital to enter the business; it has, therefore, devolved an entirely one-sided statement of the ease. on the packing companies to develop the yards in some cases, so as to The subject is of vital importance, not only to the packing industry establish a market which will attract shipments, and to provide facili­ but to the Nation at large and to the nations assoc,iated with us in the ties for the proper handling of animals, and this. the packers have done. war, wbo are depending upon the· live-stock producers and packers of Since the primary desire of the packers in connection with stock­ the United States to keep up a continuous supply of wholesome meat yards is efficient service, Swift & Co. would be perfectly willing to products for the civilian and fighting populations. relinquish such financial interests as it has in stockyards, provided it We consider it ou:r duty, therefore, to put before you, as a Member can be assured that the present high standard of efficiency in operation of the present Congress, the inclosed statement of Swift & Co. I know be continued. . that in a matter ot the importance of tllis one you will want to be Furthermore, if the Federal Trade Commission should discove.t: any fully informed, and I earnestly urge that you give careful thought to features of stockyards management and operation which are unsatis­ what is said in the inclosed statement. ' factory, Swift & Co. will be glad to cooperate to the fullest extent in There is no monopoly In the packing business. Swift & Co. is in their improvement. active competition with all other packers and ls employing its every MARKET PAPERS. resource to further our suceessful prosecution of the war. Another feature that has frequently been attacked is the financial Such an organization, composed of over 22,000 shareholders, with control by packers or some of the live-stock market papers.. We over 48,000 .employees, is, I am sure you will agree, entitled to the admit that in principle it is not the best plan for a market-reporting earnest consideration which we bespeak of you. paper to be financially controlled by any fii'm dealing in the commodi­ Yours, respectfully, ties which are quoted in such a paper. But here again the onlY · L. F. SWIFT, President. reason why Swift & Co. has ever interested itself in such a. paper has been to develop an efficiently managed and mel'ito:rious paper-one STATE~IE~'"T OF Smn & Co., IssuED ArrausT 19, 1918, oN SuMMAnY tilat will be a credit to and an advertisement of the market which it OJ;! THE REPORT OF THE F!:DEB.AL TRADE COMlUSSION ON THE MEAT repre ~ ents. As in the case of the stockyards, Swift & Co. would be PACKING INDUSTRY W JULY 3, 19-18. glad to relinquish its interests in market papers, provided it can be ABSTRACT Oil' STATEMENT OF SWIFT & CO. assured that such papers will be efficiently edited and managed. There are various other complaints made against the packers which · Swift & Co. proclaims that it is in active competition with all we shall be glad to answer at any time if the Federal Trade Commis­ other packers and can prove that the Federal Trade Commlssian has falled to establish its statement that the packers are in combination sion cares to go into them. in restraint of trade. Swift & Co. is glad that it has developed an organization which GJL'rnRAL CONCLUSIO ·s. has been able to take care <>f war business and it does not believe that In answering your questions we have shown that the prices of meats. tbJ,s is a time for the Federal Trade Commission to suggest drastic have not risen as much as the prices of commodities in general. nor as Government experiments or to throw dis.cr:edit on an essential indus­ much as the prices of live animals. What increase of price there has try. been has been due to natural ca\ises and not to any causes inherent 'l'he Trade Commission's investigation was a one-sided affair; the in the packing industry alone. packers were given no chance to present their side of tile case; the The reason why live stock and meat prices have not advanced as report is so constructed that it imparts a glamour of importance and. much as the prices of other commodities is that there has been an significance to matters that are trivial; the whole report is biased increased supply of live stock. This is an extremely signlflcant fact, and presents· many matters tn a. false lignt. especially when it is realized that the record marketings of live stock The. commission presents only such facts as tt could use by adroit in 1916 have been accompanied by an increase in the number of live construction and inference to appear to substantiate the thesis it set animals on farms. This is a clear proof that live-stock production ts out to prove. It omits scores of salient facts which prove that the profitable. There are numerous other evidences of this !act: Experi­ packers are in competition with each other; that the profits are so ment stations report handsome profits from their feeding activities~ small as to have practically no effect on prices; that the packers the steady increase in land values in stock-raising sections furnishes have perfQrmed an indispensable service to the country during peace another proof, because land values depend on the profit-producing and war times. powers of the l.a.nd; the testimony of innumerable stockmen also poln~ The commission tailed to mention that the packers are now operat­ to the same conclusion. It the trade commission requires any further ing under Government supervision and that their profits have been evidence on this point, we can furnish the names of a large number of limited by the Food Administration since November 1, 1917. growers who have achieved very satisfactory results. In attacking packer ownership of stockyards, the commission does In fact, all who are really conversant with the industry know that not ex:plam that the principal reason why packers have become in­ stockmen and feeders have been making unusually la.rge profits during terested in stockyards has been to provide proper and efficient !aclll­ the past few months, and that the accusation that the packers hold ties for the care and sale of live stock. Such ownership gives no con­ down the prices ot animals to such an extent a.s to discourage live­ trol over prices. Swift & Co. would be willing to relinquish its stock production falls to the ground. interest in stockyards lt the continuance of efficient operation can be It has also J:>een shown that the whole organization of the marketing assured. Stockyards are now under the control of the United States process for live stock and meats is fundamentally sound, and that all Department of Agriculture. agencies perform necessary functions. The .development of large con:­ Swift & Co. owns refrigerator cars because the railroads re~ cern has come about through greater effiCiency and economy which fused to furnish them. Swift & Co. is willing to leave it to result from division of labor in production, utilization of by-products, the judgment of tbe Railroad Administration, hich now has general large-scale and effective marketing methods, and the ability to produce supervision over our cars, as to whether service can be improved the best and most uniform quality ot meats from the raw materials by the Government's taking them over. available. Allalysis of all the reasons advanced by the commission for its Tbe puckers make astonishingly small gross margins between farmer belief that the packers are in combination with each other shows that a.nd consumer, and their net profits are not only infinitesimal per pound not one ot them is valid. The commission bases its c;ase primarily on of meat sold but they yield a return on capital invested which is only the fact that the proportions of live-stock receipts bought by the normal and reasonable. The increased profits of the past few months di1rerent packers remain fa..lrly constant from year to year, and that, have been due primarily to the steady increase in values of stock in therefore. the:r~ must be an arbitrary division of receipts. process of slaughtering, dressing, curing, and marketing, and will be The fact is that the packers are in such active competition with each counterbalanced by reduced profits, if not actual losses, when the other that not one of. them is willing to lose ground to the others market begin to recede. Furthermore, the increased profits of the in volume of business handled.. Accordingly, they watch each other packers have been as nothing compared with the profits earned in other so closely that no single packer is able to increase his purchases inordi­ industries under war conditions. nately. It has also been pointed out that the packers purchase animals and The Trade Commission's own figures, however, show tha1; Swift & sell meat in open competitive markets. There are conditions a.ft'eetlng Co. has been able to increase its proportion in four years to such the demand for meats lD principal consuming markets, and efrectlng the an extent that it slaughtered about 90,000 more cattle in 1917 than fluctuating supply of live stock from week to week, which are the real i.f it had not increased its proportion since .1913. factors deterruming prices, and over which the packers could exercise . Division of shipments of dressed meats to eastern markets, another no control, even if they should try to do so collectively. matter referred to in the report, was abandoned in 1902. Finally, it has been pointed out that there are certain definite weak­ 'l.'here is nothing illegitimate or suggestive of cons~lracy in restraint nes es in the y tern of marketing live stock, such as the uneven mar­ of trade in the fact that the packers have mainta.rned tt joint fund keting of live animals, the tmeconomic practice ot country shippers, for mutual protection from unfair attacks a~ainst their oleomargarine and certain practice of commi sion men and dealers; all of which are business. Associative action among competitors for such purposes is possible of inlprovement. We have also pointed out certain practices found in many trades. ------~~~~~~~------~------.------

1918. CONGRESSIONAL R.ECORD-HOUSE. 9597

The snl{gestion that the Government operate branch houses of the factors in the cereal markets.•' Tbe implicntion is that Swift & f'o. has , 1 0 0 intere ts in the grain trade. :Mr. Patten happens to Iw n ~tockholdet· E~~eWtt~~ ~h~li~r~~~ke~~~~t~f~;ct~~~~ist~~~s'\b e ai~a~or; ib~t~ii~ of Swift & Co. for inYestment purposes, just as he is a stockholdt'l" in branch-bouse organization and large-scale packing units, or the extent other cot·porations. ne has nothing to do with the management o.r to which the efficiency of brunch-house operations depends on skill, Swift & Co .. and Swift & Co. ha no interest in thP gra.in tr!ldl:'. expet·icnee, and personal initiati>e. To attack branch-house organiza­ On page SO (nnd referred to on ~age 9) there i rept·oducPd part of tion as giving the large packer an advantage over the small packer a letter written by a committee of ' confidential cmploye.' s ·• of Swift & is merely to attack bigness in itself with its resulting efficiency and Co. before the Trade Commis ion inyestigation began, in which it is indispensable service. said: "We belie>e that as it stands to-day nothing could stop cri.mi- , 'l'he Federal Trade Commission, e>en by purposely omitting all facts nal prosecutions." '.rhe inference is that representartn's of the packers favorable to the packers, has fa.iled to prove that the packers are in believed themselves guilty and subject to pro ecution. The fact is that combination. They are in actiye competition with each other :wd all this committee meant was that the attitude among eet·tain stock han~ no control o>er prices. raisers and among radical Con~ressmeri in Washlngton was uch as to indicate. that they would probably attempt to bt·ing about crirainal STATEMEXT OF SWIFT &: CO. prosecution. Swift & Co. rejoices that through its long experience in the packing On page 41 the Trade Commis ion giles the three following principal industry it has been able to develop such large and efficient packin~ causes of violent tluctuattons in the price of live stock: fit·st, collusive units and nation-wide and even international distributing organlzationl:l m~nlpula_ti_on by _the I?ackers; second, disagrements among the packers ; as to have been able to serve our armies abroad and the armies and third, ra1smg prices m a particular market to keep out a competitor. civilian populations of the allies during this period of war emergency. Lack or evidence to substantiate these reasons will be shown in this . Because of our extensive facilities, v.e have been able to accept orders analysis; the matter is mentioned here to indicate the absolute failure for millions of pounds of meat from the Food Administration and of the commission to consider the fundamental economic principles begin shipment of such orders within a few hours after they have been underlying the formation of market prices, such as fluctuating receipts received. · of live stock and the varying demand for meat. At this time governmental as well as Industrial energies should be In connection with this question of price fluctuations the commission centered on those things which fucilitate our war activities. If the quotes on the same page from an official of the American National Live­ recent report of the Federal Trade Commission on the packing industry stock Association to the etr~::ct that price fluctuations are seriou because shoul!l result in drastic Governnumt experiments in the handling of that "fully three-quarters of the cattle are bought on the days of heavy industry, the results might be serious from a war-time standpoint. We receipts, reducing the average cost far below the average daily prices." do not believe that the report will result in any such drastic measures; Previous to recent regulations by the Food Administration. the bulk even so, it tends to throw discredit on an essential industry; it arouses of receipts arrived at market on Mondays and Wednesdays; this quota­ suspicions in the mlnds of the public; and it possibly lessens confidence tion infers that the prices on those days are lower than the prices on among live-stock producers, some of whom may for this reason slacken other days. The Monthly Crop Report of the United States Department their efforts to continually increase meat production. of Agriculture for J'anuary 31, 1916, says: "An examination of the The report of the Federal Trade Commission states that the five la1·gc market quotations for the bulk of sales of beef cattle by days of wPek packers are in combination in restruint of trade. Swift & Co. is in Indicates that quotations rule highest on the days of largest receipts; open and active competition with all other packers. Although a depart­ that is, on Mondays and Wednesdays, and lowest on days of smallest nfent of the Go;ernment naturally carries a great deal of authority ln receipts." A study of daily hog prices for 1917, as published in the uch a matter, and although the report of the Trude Commission may Drovers' Journal Yearbook, shows that average prices for all Mondays l'Ound plausible to a great many readers, especlally those who have never and Wednesdays throughout the year were slightly higher than the aver­ studied the packing business, we belleTe that we can prove to any age ·prices for the other days. This indicates that the Trade Commis­ unprejudiced person that the facts and insinuations in the Trade Com­ sion must have a very imperfect graE=p of live-stock prices. misf.;ion s report do not substantiate the charge that there is monopoly 'l'he part playei by Mr. Heney: The Trade Commission upholds ancl in 1be packing industry. praises the work of Francis J'. Heney, who was employed as a special It shouJU be understood in the first place that the whole investigation attorney during the course of the investigation. Mr. Heney"s sensa­ of the Trade Commi~sion has been a on•sided affair. Probably no big tional methods, his unfair use of testimony drawn from prejudiced wit­ Anwrican industry has ever been subjected to such scrutiny without nesses, his device of holding hearings to make public his insinuations having been given an opportunity to present its side of the case or to without giving the packers an opportl,mi.ty to present their side of the ex.plain data and correspondence gleaned from the private files of its case, and his frequent announcement of serious charges that were not £>xerutives. At the beginning of the investigation during the summer of substantiated by fa:ct are too well known to need comment here. ·we 1917 the Trade Commission promised a fair hearing to the packers submit that when the attorney of the Trade Commission publicly charges before any report was published. Aside from five general questions that the packers with collusion on Government contracts whereas the only were submitted in writing to Swift & Co. and answered. over a year basis for such a charge was that they were called into conference by, ago, this company has had no opportunity to be heard. It has been an and in company with. officials of the Food Administration-conferences ex parte investigation from start to finish. expressly sanctioned by the President of the United States-there is no The Federal Trade Commission's report is adroitly constructed. It rea on to expect fair and impartial results from that portion of the succeeds in imparting a glamour of importance and significance to inYestigation ill which Mr. Heney took part. trivial matter ; it describes occurrences which are perfectly reason­ EXTENT OF PACKERS' Di'TER.ESTS. able, legitimate, and ethical in themselves in such a way as to suggest ulterior motives and purposeful wrongdoing; it quotes letters and frag­ The foregoing incidents, which might be multiplied indefinitely, are ments of letters in such a way as to give a totally wrong impres!:'ion unimportant in themselves but they indicate the general spirit of the concerning the relatlons between the large packers ; and it has failed report. To proceed with the line of argument used, the commission to use hundreds of letters which might have been taken from our file8 tries to show the extent of the interests of the fi\Te large packers by say­ bowing keen competition and rivalry amon~ the packl:'rs, where it took ing that they account for about "70 per cent of the live stock slaugh­ one that by sinister construction seems to mdicate collusive action. tered by all packers and slangbterers engaged in interstate commerce ; " Important facts omitted: The investigation of the packing industry that they have PJtensive foreign interests; and that they have reached was supposed to have been a complete and dispassionate one. Unfor­ out into other fields which have no relation to the packing busines . tunately, however, on account of its one-sided character, it neglects to Proportion of total meat business: The commission claims that the mention many fundamental and significant facts that one would expect packers juggle figures by saying that the five largest account for only to find in such a report. 33~ per cent of the total meat production of the country, because in such The Trade Commission never mentions, for example, that the packin~ an estimate they include all animals slaughtered on farms. Mr. Hoover, industry has been operating under license and has had its profit limitea in a recent public statement, said that the lar~e packers accounted for by the Food Ad mini tration since November 1, 1917. It says nothing less than 40 per cent o! the total meat supply of the country. The about the important part that we have played in the development of the commission overlooks the fact that the large packers sell meat in small live-stock indllStry and in the supplying of all parts of the country with country towns all over the United States, and that they come in direct a continuous supply of fresh and wholesome meats. It says nothing competition with home-killed llve stock; also1 that home-killed meats about the low unit costs of preparing and shipping meat to market due constitute n potential competition that affects live-stock and meat values to la1·ge-scale production and elimination of waste. It says nothing of in the most distant cities. the minuteness of our profits per pound of product handled, a circum­ Be that as it may, and assuming that the five large packers account stance which destroys the popular notion that packers' profits account for approximately 70 per cent of the total"interstate slaughter, this is for high prices of meats. nothing al:lrming when it is considered that this business is done by five In attempting to prove that the fi\e large packers are working to­ companies in competition with each other-a situation that will be gether, the Trade Commission neglects to mention numerous evidences established in the course of this analysis. There are many industries that active competition exists. It says nothing of the rivalries evi­ in the country where a single corporation accounts for as large or a dent from corre pondence gleaned from the packers' files ; it says noth­ larger proportion of the total output as do the five large packers together. ing of the relation between live-stock p1ices and dressed-meat prices 'l'he (act that the lar~e packers have heavy foreign mterests will, of and how their concunent fluctuations offer as good an illustration of cour e. be readily admitted, but this. is of little consequence in an the law of supply and demand as can be found in any trade ; it says argument to prove that monopoly exists. The statement that the nothing of the fact that packers• profits fluctuate from week to week packers have rached out into other fields, however, is worthy of con­ and that during tfie yeat· ended ;Tune 30, 1917, Swift & Co. lost money sideration, because the commission implies that there has been no on its beef operations during 13 out of 52 weeks. justification for so doing, and that the only object has been to get con­ The report fails to say that competition is evident from tlJe fact that trol of the food supply of the Nation. retail buyers shop around from the branch house of one packer to the Butter, eggs, and other products: Swift & Co. has gone into no fi eld branch bouse of another, finding differences in prices for gualities de­ that is not closely related to the packing industry, either in tbe utiliza­ siL·ed; it says nothing about the competition of shippers anci speculators tion of by-products or in the utilization of its vast selling organization, in the. pt·incipal live-stock markets; it says nothing about the competi­ which was developed primarily to take care of its meat business. The tion between markets which automatically keeps prices in line in dif­ handling of such commodities as butter, eggs, cheese, poultry, and ferent sections of the country and makes impossible any manipulation canned goods has been prompted by the neeill! of its customers and by of Ih-e-stock prices; it does not explain that fresh meat is a perishable the desire to usc most economically its system of branch houses. The commodity that bas to be sold within a few days for whatever it will greater the volume of merchandise we can put through our elaborate bring; it never even considers war-time problems and the important distributing organization the lower the unit marketing costs and the part that the packing industry is playing; in short, the commission smaller the " spread " between farm prices and consumer prices not avoids the presentation of all facts and circumstances that definitely only on butter. eggs, etc., but on meats as well. The reason that we contr·overt the thesis tbat it tries to establish. have developed such a large volume in these products is that we repre­ The spirit of the report : From a scientific point of view It is unfor­ sent a more economical and efficient method of marketing than is af­ tunate that such an important Government document should so defi­ forded by other marketing agencies. Furthermore, onr system results nitely reflect the temper of its authors and should contain such glaring in direct shipment in ear lots from country collectin~ points to city instances of prejudice. Before analyzing the main body of the report distributing stations; it avoids rehandling and reshipping, and the the following enumemtion of some of the most conspicuous examples of goods go through in better condition ; they are more uniform in quality ; misleading pr<'Sentation of facts will serve to illustrate the spirit in · and there is less loss from waste. which the report was prepared : - Hides and leather: 'l'he commission says that the large packers hold On page 14 it says that "Armour is the only one of the big: packers n. d.ominant position with reference to hides and leather and· that they who appears to be in t~rested in the grain trade, althou"'h James A. tan a large part of the leather produced in the United States. The large Patten, a large stockholder of Swift & Co., is also one of the Important packers naturally supply the same proportion of hides as of animal& .A.UGUST 27, that they klll, or less than 40 per cent of the total domestic supply. charges to prove com;piracv, the elaborately constructed case of the 'rwo or three of the largest packers have their own tanneries in order . Trade Commis ion falls to the ground. These points will be consitlered to insure a steady outlet for a part of their hides rather than be obliged in turn. to depend on the vagaries of the hide market. They tan less than 25 (1) That the management of the large packers is largely in the hands per cent, however, of the leather produced in the United States. of the families that established them-a fact which is a source of pricle The Trade Commission gives a wrong impression when it says that to those families-proves nothing in itself. That the ownership lies in the large packers have an advantage over independent packers and the hands of relatively few people proves nothing except that it would be butchers because their hides are arbitrarily given a higher grading as easier for them to get together than i! the ownership "\\ere more widely " packer hides," whereas the others are known as " country hides." dispersed. This distincti(ln results merely from the fact that tanners value packer (2) The joint ownership of properties is greatly exaggarated by the llid ~s more highly than country hides, due to the fact that packer hides Federal Trade Commission. There are cases where a part or the whole are removc•d from the animals and cured more sldllfully and uniformly, , of ~l!e ca_Qital stock of certain stockyards, cattle-loan banks, anti other and hence are of better quality ; for this reason only are the packers faCibties 1s owned by two or more packers. In other words, fi.nancial responsible for the higher value of their hides. The packers are also .resources of large packers have in some cases been combinetl to establish accused of hoarding hides during 1917, whereas the truth is tbat they facilities that othewise did not exist or that existed in imperfect form. sold more hides than ever before and got rid of them as rapidly as the Swift & Co. submits that in so far as it owns stock in corporations in market would absorb them at constantly falling prices. which other packers also own stock, this does not represent evitlencc of IXSTRUMENTS OF CONTROL. combination among the packers to restrain trade or to influence prices. If there is anything in this that is incompatible with the public interest. Tl1e Trade Commission argues that the large packers achieve control we shall be glad to make any adjustments advised by any competent and of the industry through ownership of stockyards, refrigerator cars, and impartial h·ibunal that may be designated by the Government. cold-storage plants, through theu branch-house distributive organiza­ (3) The fact that the packers once had ·'beef pools" is not germane. tions, and by means of interests in banks and real estate. _ - The "beef pools "-that is, the arrangements whereby the quantity of Ownership of stockyards : The functions of stockyards are generally beef that t:ould be shipped by each packer to various large eastern misunderstood. They are marl!et places, sup~lied with pens for the ani­ mals and with watering and feeding facilities. Live stock arrives at markets-were discontinued in 1902. Although public opinion would the yards consigned to commission men, who sell to the buyers of the probably not countenance such arrangements at present, they were un­ packers and to shippers, dealers, and speculators. Every packing center doubtedly of benefit to the public at large,_in that they helpt>d to avoid must h!lve proper and efficiently operated yards in order to care for the recurrent gluts and scarcities in eastern markets, and tended to steady a·nlmals. The principal reason that the packers have become interested prices. · • in the yards bas been to provide such proper facilities. Investment in (4) Evidence that Mr. G. F. Sulzberger had interviews with the stockyards, except in the very largest markets, is not attractive enough other packers along about 1913-14 is introduced to convey the Idea to invite outside capital. Packer ownership has resulted in the develop­ that there still was some control of meat shipments at that time. There ment of efficient market places that would not otherwise have existed. was no control, or "pool," or agreed division of meat shipments. If Packer ownership of stockyards gives no control over prices of live there bad been any cooperative arrangement for mutual protection, in­ stock and no control over the commission men in the yards. Yardage stead of keen competition, J_>ossibly Mr. Sulzberger would not have been and feed charges are reasonable, and they are uniform to all patrons. so dissatisfied with the busmess his company was doing as to have sold Swift & Cv . . is proud of what it has dgne to help the live-stock industry out shortly afterwards to New York bankers. as well as itself by developing efficient stockyards. Only recently Gov­ Furthermore, the importance of all references to " beef pools," so ernment regulation of yards has been established under the Bureau of far as they have _a bearing on the present situation, is torn down by Markets, United States Department of Agriculture. Furthermore, S'wift the Federal Trade Commission's own admission on page 26 that " there & Co. would be perfectly willing to relinquish its interest in stockyards is apparently no 'dressed-meat pool' at the present time such as existed if the public demands it, especially if the continuance of their efficient in the nineties, for the reason that it would be as useless as a fifth operation can be guaranteed. wheel on a wagon." _ Refrigerator cars: It is true that only a large concern, with a nation­ (5) Having to abandon the "beef pool" idea as proof of conf;piracy, wide organization, can think of operating refrigerator cars in large the Trade Commission is forced to rest its case primarily on the fact numbers. Th~ only reason that Swift & Co. ever embarked in this that the percentages of live-stock receipts bought by the various packers enterprise was that the railroads refused to furnish the cars. Swift & remain practically constant. '!'his circumstance, together with memo­ Co. has a fleet of nearly 7,000 such cars, and they form an integral part randa and correspondence referring to these percentages, is accepted of the service rendered the public." We distribute these cars in accord­ as conclusive evidence that the packers are in a definite conspiracy to :mce with our needs in vanous parts of the country, and, in order to divide live-stock receipts in definite proportions, and that this enables facilitate their movement, we have them closely followed up to see that them to control prices of live stock and prices of meats. none l?et sir the United Sl:utes import '£he C'ommlssion's case rests on the accuracy of these charges, and the duty on fresh meat had be~n removed Swif_t & Co. ( thron1/1 the Swift E'xtent to which they prove that the packers are actually in combination Deef Co. of London) made a contract with the Lamport & IIolt :';team­ with each other. If it can be_ shown that there is, nothing in these ship Co. (a British company) prov~ding for a certain nmom't of ~puce to

-· 1918. CONGRESSIONAL RECORD-HOUSE. 9599

be used by Swift & Co. In shipments from South America to the llECOMl\IENDATIO~S OF THE CO:YMISSIO~. United States. Such a contract was made necessary by the fact that there had been practically no refrigerated !.'hipping space In the South Live-stock cars.-The first recommendation of the commission is America-New York trade and that Lamport & Holt was the only line that the Government acquire, through the Railroad Administration, aU to equip itself with the necessary refrigerated vessels to give regular live-stock cars owned by the packers. It intimates that the ownership service. This contract was :nade independently by Swift & Co., and of stock cars gives the packers n certain power of control and a manip­ does not represent in any way an agreed division of shipments with ulation of the means of transportation. During 1917 less than 1 per the other packers. Shipments to the United States have been limited cent of the receipts of live stock in Chicago arrived in stock cars owned only by amount of steamship space offered, and Swift & Co. has con­ by the five large packers. It is true that SWift & Co. owns stock cars tinut:'usly been in the market for all space obtainable. which are used in hauling animals from the Middle West to plants on Our London repres~ntatives have always been under instructions the Atlantic coast: through territory where the railroads do not operate not to enter into agreements with other packers involving division of stock trains as regularly as in the West. These cars arc now under the shipments to the United States. To-day there are no shipments of supervision of the Railroad Administration, and Swift & Co. is perfectly refrigerated meat from South America to the United States, because willing to relinquish its ownership if the Railroad Administration be­ of insufficiency of refrigerated vessels and shipments to England are lieves that service can thereby be lm.proved. They form an extremely controlled by the British Government. insignificant factor in the operations of Swift & Co. (7) Correspondence presented by the Trade Commission indicates Stockyards.-Tbe second recommendation is that the Government that one of the packers had attempted . to influence the price of cheese acquire the principal stockyards of the country through the Railroad on one of the • cheese boards " in Wisconsin. In quoting this cor­ Administration. As already explained on page 13, Swift & Co. bas respondence an attempt is made to implicate S""i.ft & Co. by stating become interested in stockyards for the purpose of improving marketing in parentt.esis (without explanation that the parenthetical 1·emark facilities. Ownership of yards· gives no control over the prices of live was added by the commission itself) that Swi.ft & Co. buys four-fifths stock or the methods of trading. Although all stockyards have re~ntly of the sales of a certaih concern mentioned in the correspondence. been brought under the control of the United States Department of Swift & Co. has no finanCial interest in the concern named ; it buys Agriculture here again Swift & Co. would be willing to part with its ovN· 90 per cent of its Wisconsin cheese purchases from wholesale ownership tf a continuance of the present standard of etficient opera­ dealers In whom it has no financial interest and the remainder direct tion can be guaranteed. from cheese factories. It buys none on the cheese boards in that Refrigerator cars.-The third recommendation is that the Govern­ State. It · has never tried to affecl: the quotations on the cheese ment acquire all privately owned refrigerator cars through the Railroad boards and has never been in conspiracy with other packers or dealers Administration. The reasons why Swift & Co. owns refrigerator cars to do so. were explained on page 14. It is also pointed out in that place that (8) There nmains only the statement that the packers have main­ our cars are under the supervision of the Railroad Administration and tained joint funds t~ defray expenses undertaken in common as proof that we would be perfectly willing to relinquish ownership lf it can be of conspirac:f. .it :s true that the five paekers have maintained a shown that service durin~ war times can thereby be improved. joint fund 1·eferred to by the Tra.ile Commission as " the oleo pool," Branch houses and storage plants.-We believe that the fourth sug­ but the expenses incurred under this arrangement have been to atl'ord gestion of the commission that the Government acquire branch houses adequate protP.ctivn against unfair attacks made against the oleomar­ and cold-storage plants belonging to the packers is an impracticable garine busines.s 'l.Dd the use of this product. It is a very common oc­ one, in that it would destroy individual lnitintive, result in poorer currence for co!Ilpetlng manufacturers in various trades to adopt handling of meats, and prove more costly. Bt·anch houses are an essen­ associative action for protective purposes ; we see nothing reprehen­ tial part of a system of whi('h large ~entralized packing plants are the sible in this arrangement, especially as it bas nothing to do with basis. The operation of a branch house requires skill and initiative on · prices or divis.ion of -business. the part of an experienced manager, and the efficiency of the organiza­ There are other cases in which the attorney of Swift & Co. has pro­ tion would sutrer if they were made into public markets with the man­ rated the expenses of the large packers in legal cases where two or ager responsible only to the Governme11.t. more packers were involved; attorneys of the other packers have often · In one sense the branch-house system gives the large packer an ad­ acted in a simllar capacity. We submit that there is nothing in an vantage over the small packer who can not afford such an organization, arrangement of this sort that can possibly prove that the packers have but to attack the packers on this score is to attack mere bigness--big­ acted in restraint of trade. ness that has made possible the development of this efficient form of Conclusions on monopoly.-The foregoing discussion shows that the marketing which bas been of inestimable value to the public at large. points made by the Trade Commission to uphold their contention that a monopoly exists have no basis in fact, and that they would not only CONCLUSION. be useless in proceeding against the packers in the courts but that It has been shown that the Federal Trade Commission, in spite of they do not even represent any infractions of accepted standards of clever use of the complete and intimate data to which it had access, commercial ethics. There may have been instances years ago when bas not been able to prove that the large packers are in a conspiracy to the packers acted together in such a way as to indirectly curtail 1-estrain trade and to manipulate prices. Not only has the commission competition and to atrect prices. There may also have been instances failed to establish a case against the packers, but Swift & Co. pro­ in the past where individual packers indulged in practices which have claims to the world that it is in active and honest competition with all during recent years come to be considered "unfair competition." other packers. Years ago they probably received reductions from established railroad The packing industry consists of a great number of competing units­ rates. just as ship;ers of all commodities did ; so far as local price some large and some small. A few are big enough to achieve the discriminations are concerned, however, Swift & Co. has been verr economies and render the broad and efficient service resulting from careful 1o rednce prices only when forced to do so to meet competi­ nation-wide organization. Scores of smaller packers otrer etl'ective tion and not to destroy competitors. competition in their more localized, yet prosperous, efforts. .· The packers are also accused of abusing their power by acquiring Competition, bigness, an open field for small producers-what other stocl;: in and operating ·' bogus independents." Swift & Co. owns industry approaches more nearly the American ideal of business stock in a l?rcat many corporations that are not operated under the organization? name of Sw1ft & Co .. although the policy of the company bas been to gradually bring its interests under that name. Swift & Co. is inter­ ested in such corporations nQt for the purpose of carrying out de­ APPE1\'1>IX. structive competitive policies, but has acquired them to extend its own facilities and improve its service. Here, again, Swift & Co. would be [New York Times, New York, N. Y., Aug. 10, 1018.] glad to make any reasonable adjustments requested by any independ­ IIowever the matter is looked at. there is a scandal in the charges ent and impartial tribunal that might be designated. against the meat packers by the Federal Trade Commission. If the If the Trade Commission has definite evidence that the packers are charges are true, no honest man would object to punishment to fit the guilty of unfair trade practices, the Trade Commission has ample crime when proved. If the charges are false, the scandal is in the power to eliminate these practices. It is Swift & Co.'s policy to live publication of such an attack on one of the greatest agencies for winning up to both tlie letter and the spirit of the law, and we know that we the war, an.d appropriate punishment for the Trade Commission's .bear­ are conducting our business honestly and in active competition with ing false witness would be in order. Caution is necessary in taking all other packers. We also believe that an unprejudiced study of the the charges as fact.~. for on the same day that the charges are made Trade Commission's report and the foregoing analysis of its evidence disproof is published regarding another scandal which was tak~n as will prove conclusively that there is no ground for the charge that truth too easily. • • • the packers are conspiring together in restraint of trade. •• • • • • • • Rl!ISUL'l'S OF ALLEGED COMBINATION. The Trade Commission's report is not necessarily malicious, even it Packers• profitd.-The Federal Trade Commission says that the pack­ untrue. It bears current date. but really is a survival of the time when ers have exJorted excessive profits from the people of the United each city slaughtered for itself. There a.re New Yorkers who remember States, especially during w:1r times, but does not explain bow small when there were slaughterhouses on almost any block, and when it these profits are as compared with sales, and that they amount to only was a custom of school children to cluster around them to see the a fraction of a cent per pound on meats. A fair interpretation of sights, while the blood filled the gutters The commission's report packers' profits proves conclusively that they are an lnfinitestmal relates to that juvenile stage of the industry, which It would like to factor in prices. and that thP common impression that high meat restore, for th ·~ bc>nefit of the neighborhood butchers who have suffered prices are due to packers' profits is utterly without ieundation. It for the superior efficiency of central supply. • • • would seem that :)!)e of the vital and fundamental questions an inves­ tigation of the packing industry ought to reveal would be: What are ' {Boston Transcript, Boston, Mass., Aug. !>, 1918.] the etl'ects of packers' profits on prices? The probe of the packing industry of the country by the Federal Although the report states that the 1917 profit of the five large Trade Commission hns 1·esulted in a report to the President which packers amounted to 21.6 per cent of their net worth, the commission consists of senS'ltional charges and revolutionary recommendations. failed to explain that it was very fortunate, not only for the packers • • • • • • but for the country, that their earnings otl'ered some assistance in • • • Now is not the time to• discuss, much less initiate economic financing the larger operations and heavy high-priced stocks of goods, revolution predicated upon conditions that certain doctrinaires believe cau ·ed largely by the war. Swift & Co.'s inventories of goods in proc­ will confront us when the war has been won. It may be that the new ess and on the way to market averaged about $50,000,000 before the world into which we shall then enter will require all the Government war ; t(l-{}ay they amount to about $150,000,000. acquisitions which the commission now urges upon the President to We do not consider that our book profits of the past few months have make, but there are those, and their number is by no means small, who been permanently earned ~use they have been tied up so largely in prefer before taking the leap to supplement w1th expert opinion the these inventol'ies. which are bound to decrease in value at some time. quack judgments of the political "hand-me-downs" who at present Only reasonable dividends have been paid, and even with the remainder constitute the controlling force in the Federal Trade Commi sion. of our profit reinvested iu our business, we have had to issue additional stock to raise more funds to financP operations. The difficulties of war­ [San Francisco -chronicle, San Francisco, Cal., Aug. 10, 1918.] time financing of a busi.ness that has to be run largely on borrowed • • 0 . • • • • money might wPll have bePn explained by the commission in its report. All these charges involve questions of fact to be proved or disproYc>tl Profits havP bePn only largP. enough to maintain efficiency, and any before a tribunal which hears evidence on both sides. • • • drastic reduction of the orofit now allowed by the Food Administration On the other hand, the Trade Commission is a.n accusing body which would undoubtedly r P!

[Baltimore News, Baltimore, Md., Aug. !>, 1918.] A..nthony Farr Kitchin Russell ...... Aswell Fess Kreider Sa bath It is not necessary to be a sympathizer with Swift & Co., Armour & Bacharach Fielus La Follette Sanders, La. Co., et al., to find in the Federal Trade Commission's report on thE>ir Barkley Flood LaGuardia Schall business some remarkable statements and recommendations. • • . • Bell Flynn Lazaro Scott, Mich. These practices, if actually indulged In and if the terms by which Blackmon ., · Fordney Lever Scott, Pa. they are described have the accepted meaning, are covered by the anti· Booher Foss Linthicum Scully trust statutes. • • • The commission uses language that the courts Brand .-. t Francis Lobeck Sells have been unable to substantiate. Is that an advisable, even it It were Britten Frear Longworth Shackleford a warrantable, thing to do at a time when the Government should be Browne Fuller, Mass Lundeen Sherley trying to keep public sentiment on an even keel? Browning Gallivan Lunn Shouse / • • • • • • • Brumbaugh Gandy McCormick Siegel [Newark News, Newark, N. J., Aug. 9, 1918.] Burnett Garland McCulloch Sinnott Butler Glass McLaughlin, Pa. Sisson • • • And the last move--the recommendation of the F ederal Byrnes, S. C. Goodwin, 'Ark. Maher Sloan Trade Commission that the Government monopolize all departments of Candler, Miss. Graham.. Pa. Mann Smith, C. B. the industry except· the actual packing-looks like a gesture of despair. Cantrlll Gray, A1a. Mays Smith, T. F. • • • • • • • Caraway Gray, N. J. Meeker Snell This is war time, and the first need is to guarantee that the meat Carew Greene, Mass, Mandell Snyder products handled by the five great major groups of packers be kept Carlin Gregg Montague Stalford moving steadily to supply the Nation's · fighters and civilians and the Carter, Mass. Griest Mort Sterling, Pa. Nation's allfes. It is not contended that there bas been any lack of Chandler, N. Y. Griffin Mudd Stevenson efficiency in the performance of this huge task, which has beE.'n carried Clark, Fla. Hamill Neely Sullivan on by the packers-recently under Government direction. • • • Connelly, Kans. Hamilton, N.Y. Nelson Sumners .J [St, Louis Times, St. Louis, Mo., Aug. 9, 1918.] Cooper, Wis. Harrison, Miss. Nicholls, S. C. Swift Copley Haskell Nichols, Mich. Switzer • • • • • • • Costello .. , , Hastings Oliver, Ala. Tagu~ The packing-house matter, however, appears to be entirely dilferent. Crago Hayes Oliver, N.Y. Talbott There doesn't seem to be any question of military necessity involved. Cramton f • Heaton Olney Templeton Whatever military necessity has existed has been met by the packers Crisp '··· r Heintz O'Sbaunessy Thompson with success amounting to a triumph. It would have been quite impoc;­ Crosser Hensley Overmyer Tinkham sible for Secretary Bal,er to move a million men to France and feed Curry, CaL -,~ Hicks Overstreet Van Dyke them, to say nothing of the millions of English and French, without Dale{ N. Y. ·- Hood Padgett Vare the well nigh perfect system developed tb1·ougb many years by American Dall nger ' · ~'f Howard Park Venable packers. Darrow 'JI W' Hull, Iowa Parker, N.J. Vinson • • • • • • • Davis ;'_~: ~ - Husted Peters Walker [New York Tribune, New York, N. Y., .Aug. 10, 1918.] Delaney - ·r· Hutchinson Polk Walton Dent Jacoway Pou Ward • • • Yet this letter is not forwarded to the Department of Dickinson Job..nson, S.Dak. Powers Watkins Justice for action or sent to Congress with any recommendations. Is it Dies ...... Jones Ragsdale Welling that the President believes that these sensational charges are untrue Dillon Juul Rainey, H. T. Whaley and unsubstantiated? Are the packers to be indicted before the public Williams upon groundless nccusations? Are we to have a repetition of the ail'­ B~:o~~k ~ ~ ~!~ns ~~=l Wilson, Ill. craft " scandal " and the Hog Island " scandal "? Dooling ;: ~ Keati..ng Riordan · Wilson, Tex. The public has no way of judging as to the truth of these matters. It Drukker .., ~ Kelley, Mich. Robbins Wise seems as if it might expect from the Government its careful judgment Eagan _, Kennedy, R. I. Roberts Wood, Ind. upon the charges, instead of having them flung about to inflame all the Edmonds Key, Ohio Rogers Wright discontented and trouble making elements of the country. Emerson Kiess, Pa. Rowe • • • • • • • Estopinal Kincheloe Rowland [Rocky Mountain News, Denver, Colo., Aug. 9, 1918.] Fairchild, G. W. King Rucker The SPEAKER pro tempore. On this roll call 233 l\Iembers • 0 • • • • • • • • Mr. Heney was employed by the commission to conduct the haYe answered. A. quorum is present. The Doorkeeper '\\ill " investigation" of the packin:: industry brought by the commission, and it has not escaped public memory the manner in which he staged the open the doors, and-- hearing, following in the main the scenario of a moving-picture produc­ 1\lr. FERRIS. Mr. Speaker, I ask unanimous consent to pro- tion-breaking into safes, rushing into court at all hours, seizing papers, ceed for one minute. · and other spectacular stunts, with Mr. Heney always catching the spotlight. l\1r. CAMPBELL of Kansas. Mr. Speaker, I move that fur­ When the prellmlnary report was published regarding the profits of ther proceedings under the call be dispensed with. the packing companies it was evident that the chief aim was to make Mr. FERRIS. I move that further proceedings under the political capit.

l\Ir. FERRIS. I understand it is about 20 pages long. Shortly after the close of the recent senatorial campaign in Mr. GILLETT. I object. Wisconsin, which resulted so disastrously to the administra­ · Mr. FERRIS. I think it ought to be printed. tion's candidate, Mr. Davies, a:nd in which the Democratic Vice The SPEAKER pro tempore. The gentleman from Massa­ President brought his - great office - into -public contempt by chusetts objects. The Chair recognizes the gentleman from brazenly and brutally insulting the patriotism of every Repub­ Illinois [Mr. RoDENBERG]. · lican in that great Republican State, President Wilson ad­ dressed a joint session of the House and Senate. In the course WINNI:NG THE WAR. of that address which, for beauty of diction and redundancy of Mr. RODENBERG. Mr. Speaker and gentlemen of the House, rhetoric, was more or less of a literary masterpiece, the Presi­ the one vital, overshadowing issue before the American people dent, in urging immediate action on a new revenue bill, told us, · to-day is that of ·winning the war and winning if now. The among other things, that "politics is adjourned." When he consideration of all problems not directly or indirectly related gave utterance to that eXpression I happened to be looking-to­ to the one great, all-absorbing issue must and should be sus­ ward this part of the Hall in which the members of the Cabinet pended for the time being. [Applause.] The heart and soul of were seated and I thought I detected the suspicion of a smile every loyal American is to-day imbued with but a single on the benign and beatific countenance of our amiable, non­ thought and purpose, and that is the speedy and conclusive partisan Postmaster General, the Hon. Albert Sidney Burleson. triumph of democracy over autocracy, of republicanism over [Laughter and applause.] And, if I mistake not, I also saw militarism. [Applause.] the heir apparent, the Hon. William Gibbs 1\fcAdoo, whose ·when, on that fateful day in April, 1917, the Congress of the thoughts are always foreign to every consideration of · prac­ United States, which, under the Constitution alone has the tical politics, nod his head in silent approval of the presidential power to declare war, passed the resolution declaring that a statement. state of war existed between the Government of _the United But the President did not smile or give any outward mani­ States and the Imperial Government of _Germany, then and festation that he was not entirely serious, although the mind there and at that very moment all argument as to whether or of every Senator and Representative wflo heard him instinc­ not we should have entered the war was forever closed, and tively reverted to the intensely partisan· letter which he -ad­ every American worthy of the name adopted as his motto the dressed a few weeks before to the Democratic candidate for motto of the immortal Decatur: " Our country! In her inter­ Senator in Wisconsin and _in which he sought by implicatiou to course with foreign nations may she always be in the right; but discredit the loyalty of one of the bravest, one of the truest, our country, right or wrong!" Then and there and at that and one of the most patriotic Americans who ever occupied a very moment -it became the patriotic duty of every citizen, seat in this Chamber, the Hon. IRVINE L. LENBOOT. [Applause.] without regard to creed, color, or nationality, to give whole­ Politics is adjourned! Indeed I How very, "Very interesting. hearted and undivided support to his Government in the prose­ Why, my friends, since 12 o'clock noon on the 4th day of March, cution of the war. No matter how great the cost, no platter 1913, politics in this country has not been adjourned for a how terrible the sacrifice, no matter how stupendous the task, single, solitary minute. It has not even been held in abeyance. our o~-e and only concern at this time should be the welfare and It permeates the very atmosphere. It surrounds us on all sides. the protection of the gallant young heroes who, on the bloody It · c~mtrols every official act and e\ery official appointment. It fields of France, are fighting for the honor and integrity of the is found in every branch of the public service. It lurks in the American .flag, the symbol of liberty, justice, and humanity corners of every Government b\tilding. It makes daily trips to wherever it is unfurled to the breeze. [Applause.] This is the the golf links and accompanies the President to the vaudeville platform on which I stand and on which I -shall continue to on Monday, to the drama on Tuesday, to the comic opera on stand so long as my country is at war. - It is the platform 011 Wednesday, and to the movies on Thursday. Like Banquo's which every true American stands to-day. ghost, it will not down, but is ever present morning, noon, and In a Republic like ours, the Gove·rnment must of necessity night. be administered by and through political parties; but, thank Was politics adjourned when the President wrote a letter God, the patriotism of America is not confined to any single antagonistic to the candida.cy of the very able and distinguished political party. [Applause.] No one political organization in Representative from Texas, Mr. SLAYDEN, who has faithfully this land of the free has a monopoly on loyalty. 'ro' the ever­ sen·ed his constituency with conspicuous ability for the past lasting glory of our citizenship, be it said, that in this great 22 years-a letter designed to promote the political aspirations conflict in which our country is now eng-aged those of us who of his opponent who, by. a remarkable coincidence, happens to are politically opposed to the present administration have re­ be the brother-in-law of the present nonpartisan Postmaster spo:q.ded loyally and cheerfully to every demand made upon us General? [Applause.] · by the N~tion's _ necessities. In this great crisis Republicans ;was politics adjourned when the President sent a telegram to in and out of Congress have been guid~d by the highest stand­ Alabama· intended to compass the qefeat of our br~lliant young ards of genuine Americanism and have uilgrudgingly supported colleague, Mr. HUDDLESTON, and which was answered by an in­ every measure which tliose in authority have recommended as dignant constituency_in tones so clear, so full, and so convinc· necessary for the success of American · arms and American ing that "he who runs may read"? 'Valor. This is as it should be for this, after all, is the only true Was politics adjourned when the President interfered in the test of national patriotism. The loyalty of no man is to be de­ senatorial primaries in Mississippi_and requested the repudia­ termined by his eag'erness to plunge his country into war, but tion of the fiery and eloquent Senator from that State, Mr. rather by the manner and spirit in which he supports the Gov­ V ABDAMAN, and bi his interference no doubt materially reduced ernment when his country is at war. [Applause.] Nor is his the majority that was obtained by the gentleman who enjoys loyalty to be determined by subservient acquiescence in every the respect and confidence of every Member of this House, Mr ~ whim and caprice of an-administration which, unfortunately, lliruuSON ? _ has J?.ever yet overlooked a single partisan advantage. In help­ ing to make the world safe for democracy ·u is in no sense n Was politics adjourned when the stamp of presidential ap­ reflection upon the loyalty of the citizen if, at the same time, he proval was placed on the senatorial ;tspi.ra tions of his former declines to help make this country safe for the Democratic appointee, Mr. Harris, in Georgia, in preference to -the fearless Party. [Applause.] Constructive criticism has always been. and independent_Senator from that State, Mr. HARDWICK, and the handmaid of real efficiency and is welcomed by every hon­ our own interesting, versatile, and popular colleague, Mr• . est man. Incompetency alone shrinks and cowers before pub­ HOWARD? licity and takes refuge behind a camouflage of spurious patri­ Was politics adjourned when only a few days ago the iri· otism when the searchlight of truth is turned upon it. [Ap­ descent and -irrepressible Democratic .Senator from Illinois was plause.] If the time should ever come when dereliction of duty sent posthaste, whiskers, spats, rainbo'\Y vest, and all, to France on the part of those high in authority and charged with -solemn on a most mysterious mission, which, of cQurse, is to be capi­ responsibilities, involving the very lif~ ru:id death of our sons talized later on in his campaign for reelection to the Senate of and brothers, can not be fearlessly and frankly criticized with­ the United States? out subjecting the critic to the charge of disloyalty, then, in­ And right here I wish to digress for a moment. I hold in deed, may we despair of the future of the Republic. The Amer­ my hand a copy of the Congressional Directory containing the ican people, however, are intensely jealous of their inalienable autobiographies of . the Members of the Sixty-fifth Congres·s. constitutional right of free speech, and they have sufficient in: On page 21 I read as follows : , telligence to differentiate between criticism of a partisan ad­ JAMES HAMILTON LEWIS, Democrat, of Chicago, was born in Vir· ginia ;_is 48-years of age ; r eared and s chooled in Georgia; attended the minish·ation nnd criticism of the Government itself. And it is University of Virginia; went to the State of Washington and began the to some of the grossly partisan acts of a partisan administra­ practice of law. • • • Was presented by the Northwestern Paclfic tion that I shnll address myself for a few minutes to-day. Coast States as candidate for the Vice Presidency in the Democratic

LVI-GOS 9602 CONGRESSIONAL RECORD-HOUSE. AUGUST 27, convention of 1900 · joint author with Prof. A. H. Putney of Laws and Decisions upon :fmections ; also Lewis and Putney on Constitutions, many other instances of presidential interference, past and Statutes, and their Construction. · - present; but at this point, without any comment of my own From this biography, writteri by the Senator himself, and but simply to illustrate the difference in the theory of a p:t tri: which must therefore be accepted as in every way authentic, otic writer and tl1e practice of a domineering Executive, I wish it would appear that he was presented as a candidate for Vice to call attention to the following excerpt from a work entitled President in the Democratic convention of 1900, or 18 years "Constitutional Government of the United State ," publi hed ago. Inasmuch as the Senator is only 48 years of age, it is in 1908 and reprinted in 1911 and 1913, and of which Woodrow apparent that he was a candidate for Vice President at the age Wilson, then president of Princeton University and now Presi­ of 30. The Constitution of the United States in fixing the dent of the United States, is tlie author. On page 71 I read qualifications of the President and Vice President provides ns follows: that these officials must have attained the age of 35. [Laugh­ There are illegitimate means by which the President may influence ter.] It would seem to me that a joint author of a work on the action of Congress. He may bargain with Members not only with regard to appointment~ but also with regard to legislative mea ure . constitutions and their construction should have held his He may use his local patronage to assist MemberR to get or retain vice presidential aspirations in check at least until he had their seats. He may interpo e his powedul in.flut!nce, in one covert way or another, in contests for places in the Senate. He may also reached the constitutional age of eligibility. [Laughter and overbear Congress by arbitrary acts which l~nore the laws or virtually applause.) ove-rride them. He may even substitute h1s own orders for acts of I have here also the complete Biographical Congressional Congress which he wants but can not get. Such things are not only deeply immoral, they are destructive of the fundamental understand­ Directory published in 1913, at a time when the Senate was ings of constitutional gov('rnment, and, therefore, of constitutional not yet electrified and illuminated by the eifervescing effulgence government itself. They are sure, moreover, in a country of free of the senior Senato:r7 from Illinois. On page 807 I read as public opinion, to b...-ing thefr own punishment, to destroy both the follows: fame Jllld the power of the man who dares to practice them. LmWis J'AMES HA.Ml.LTON, a Rep.resentatlve from Washington; born Oh, consistency, thou art a jewel, but thy name is not Wood­ in Dan:;!ne, Va., May 18, 1868; mo-ved with his parents to Augusta, row Wilson ! [Applause.] Ga.1 ln .1886 i attended Houghton Col1ege and the University of Vir­ Would to God that politics was in reality adjourned in this gima; studiea law, was admitted to the bar in 1882-- hour of the Nation's peril! 'Vould to God that presidential And so forth. practice and performance could be made to square with presi­ While this biography adds two years to the Senator's age, dential promise and profession ! I, for one, do not b'elieve that it will be noted that his precocity was so remarkable that, this is the time for politics. It is not the time for party con­ though the year of his birth is given as 1868, he moved with tentions and party divisions. Uncompromising and orthodox his parents to Georgia in 1866, or two years before he was as I have always been in my allegiance to the Republican oorn [laughter], probably to show them the way. [Laughter.] Party, I can truthfully say that since the day war was declared It will also be noted that his precocity increased with the I have not knowingly or consciously cast a partisan vote, and years, for, according to this biography, he was admitted to I do not intend to do so while my country is at war. I believe the practice of law in 1882, or at the age of 14 years. It seems that unity of action and harmony of purpo e on the part of the to me that in these days of lurking submarine dangers and electorate are absolutely essential to American success, and it floating mines and long-distance guns it is unfair to the people that unity and harmony can only be secured and maintained by of my State and to the country itself to subject one so young, foregoing a heated and bitte1· political contest in the various so unsuspecting, and so precocious, and who has contributed congressional districts of the country, then I am unqualifiedly so much to the gayety of nations, to the hazards of· an over­ and unreservedly in favor of t11e elimination of the political seas voyage. [Lattghter.] I am indeed surprised at the campaign. let the results be what they may. In this hour of thoughtlessness of the President. stress and strife and sorrow and suffering I am more deeply Mr. THOMAS. Will the gentleman yield? nnd more vitally concerned about my country's welfare than I 1\Ir. RODENBERG. I can not yield. Was politics adjourned am about my own political fortunes. when President Wilson selected the multimillionaire, Henry Ah, my friends, those of us who draw our inspiration of Ford, as his candidate for Senator in Michigan and notified patriotism from the life and teachings of the Godlike Lincoln all Democratic aspirants to "keep oft the grass " ? True, are more than willing to ha \"e the " acid test " applied to us. the great jitney builder, prior to the declaration of war, was The record is made, and that record speaks for itself. It gives " in no way a supporter ·of the administration," to use an to the Republic:;ans in Congress a much cleaner bill of patriot­ expression that Is rapidly becoming stereotyped, but when ism in upholding the President on every important war_ meas­ "politics is adjourned '' many strange and remarkable things ure than is held by the members of his own political party. are apt to happen. It must not be forgotten, however, that it That record proves conclusively that it is to the Republican was Henry Ford who conceived the fantastic project of sending Party, which was conceived in a spirit of liberty and dedicated a shipload of impractical visionaries across the seas to take to the proposition of universal equality, that the Commander in the boys out of the trenches before Christmas. It was Henry · Chief of the Army and Navy is compelled to turn whenever a great Ford who said that no man ts patriotic and that the word emergency confronts the country. It is the one and only political "patriotism" ls the last resort of a scoundrel. It was Henry party that has always rung true and that has never faile

heartbeat was in sympathy with the downtrodden and the op- INTERNATIONAL LEAGUE TO SECURE PEACE • . pressed, was denounced as a tyrant, a despot, a despoiler of the The SPEAKER pro tempore. The Chair recognizes the liberties of his fellow man. I recall the unfounded, reckless, gentleman from New York [l\1r. LoNDON] for 20 minutes·. and sensational charges of official graft and corruptio~ hurled 1\fr. LONDON. 1\lr. Speaker, I ask unanimous consent to at e\ery member of the Cabinet, the outrageous and un-Am.erican revise and extend my remarks. · appeal to passion and ta prejudice. No opportunity was over­ The SPEAKER pro tempore. The gentleman from New York looked by the Democratic leaders of that day to gain a partisan asks unanimous consent to extend and revise his remarks. Is advantage out of a war also waged for humanity, and which re­ there objection? [After a pause.] The Chair hears none. sulted in the liberation of the unhappy people of Cuba from the 1\lr. LONDON. Mr. Speaker, I intend to address my remarks brutal yoke of Spanish oppression. to the subject of an international league to secure peace. I de­ Will any Democrat to-duy deny that in the campaign for the livered an address on this very subject on the 11th day of Presidency in 1916, more than two years after the beginning January of this year. Last December I introduced a resolution of the European war, the Demacratic Party adopted as its asking that Congress should initiate the organization of an slogan, "He kept us out of ''ar "? · Will anyone deny that it international league to secure pe·ace. Nothing has been dons was on that paramount issue that the Democratic Party appealed by the Committee on Foreign Affairs with the resolution. It to the country for the reelection of 'Voadrow Wilson? Do you sleeps a quiet sleep. The Committee on Foreign Affairs seems remember the alliterative little "stickers" that were spread to be working, or rat11er not working. under the impression that broadcast over the country and one of which was preserYed and the Committee on Foreign Affairs of the House is a nominnl handed to me by a friend whose politics I shall not mention? committee, without any functions, without any real duties, and It reads as follows: " Wilson's wisdom wins without war." that whateyer the parliaments of other countries may do the Have you forgotten the lurid posters that were to be seen on Committee on Foreign Affairs of the House of Representatives every billboard in every doubtful State, and especially in those has nothing whatever to do with the subject of forei;n relations. States in which women haYe the right of suffrage, depicting the I expect, however, to reintroduce my resolution in a new form, awful horrors of war? I well remember the picture. It was a gruesome, heartr.ending scene, a scene of carnage and death­ nsking that Cop.gress should at least appoint a joint commission ruined homes and wasted fields, frenzied men, with dripping to make a study and inquiry into the problems connected with kniyes in clenched hands, faces distorted by passion and lust of the subject of an international league to secm·e peace. I pro­ blood; others lying on the ground, writhing in mortal agony, ceed upon the theory that the allied countries are not going to with great gaping wounds from which gushed forth the blood of rest until Germany is defeated. [Applause.] I take it for life, and over in the lower right-hand corner an anxious mother, granted that Germany is now defeated, because her entire for­ .with twa little children tugging at her skirts, pointing to the pic­ eign commerce has been destroyed, because she has been iso­ ture of Woodrow Wilson and exclaiming," He protected me and lated from the rest of the world, a.nd because she has arraigned mine." Have you forgotten the impassioned appeal of th.e Presi­ against herself something like eight-tenths of the human race. dent himself, made at Shadow Lawn on the very eve of the elec­ But the mere military !lefeat of Germany would be a negative tion and in which he solemnly warned the American people that result. The allies are united to-day in a common hatred. Can if his opponent, Mr. Hughes, were elected our country would they be united in a common loYe? Twenty-two or twenty-three become involved in the great conflict that was destroying the nations find themselyes to-day in a combination to defeat one very flower of the world's civilization 1 Have you forgotten military power. these things? Some of you would no doubt like to forget them, This combination is not the result of any arrangement made and they should be forgotten in the interest of our country and prior to ·the war. Had there been an alliance of 23 nations, our country's cau e. I refer to ·them only to remind you that representing four-fifths of the population of the world and of the if, in view of what you said and did in 1916, you should attempt physical and material forces of the world in 1914, when Austria in the year 1918 to make political capital out of the war and to starteq the war by attacking Serbia, there would have been no appropriate the American flag as the personal property of the war. Every reasonable man will be willing to concede that. Democratic Party you will make the discovery that you have Every one of the nations that is fighting Germany, with th~ ex­ wholly underestimated the discriminating intelligence of the ception of England., France, and Russia, entered the contest for American voter. [Applause on the Republican side.] its own reasons and at its own convenience. To what ex.tent is The contest for supremacy in the Sixty-sixth Congress must there unity of policy among the allied nations? To what extent be waged on higher and broader lines. It is not now a question is there unity' of purpose among the allied nations? To what us to what may have been your views two years ago nor what exten.t is each of the nations now opposed to Germany willing may have been your individual opinion as to a proper govern­ to subordinate its own national aspirations and its own selfish mental policy prior to the declaration of war. The fearful fact desires to the welfare of humanity as a whole? To wh~t extent remains and confronts us that our country is now at war with a do the· respective national ambitions of the ames conflict, and, foreign power, and that war must and will be fought to a victori­ if so, can the conflict be removed? Shall the world, after Ger­ ous conclusion. [Applause.] We must banish forever all thought many has been defeated, or shall the allies, after the central of " peace without victory" and neYer again entertain the miser­ powers have been defeated, get to fighting among themselves as able delusion that the American people are "to proud to fight." to the rearrangement of the world? Shall they continue com­ The bugle has sounded. The call to arms has gone forth. The peting with one another for foreign markets or for the acquisi­ young men of America, animated by the spirit that comes to tion of colonies or for trade concessions. or for spheres of influ­ them from the inspiring memories of Lexington and Bunker ence 9r for the control of maritime routes or railroads or for out­ Hill, of Monterey and Chapultepec, of Gettysburg and Mission­ lets to the sea? Shall tariff walls continue to divide them? ary Ridge, of Santiago and Manila Bay, are marching forth to What shall be done with the so-called semicivilized races? Shall the strains of martial music, ready and willing to do or to die. there be rivalry for the privilege of exploiting the less-de•eloped [Applause.] The mothers of America, God bless them, brave countries, or shall they be placed under the common protection of heart and- smiling through their_tears, are ldssing their soldier of the civilized nations? And what is to be done with defeated sons good-bye, perhaps forever. With an abiding faith in the Germany? Shall a new map be carYed out by the sword, or justice of our cause, with full co~dence in our country's glori­ shall certain fundamental principles justly applied to a con­ ous mission, no sacrifice can be too great, no burden too heavy crete situation determine the basis of an enduring peace among no hardship too severe, when borne by us to help the boys wh~ the allies and between the allies and the central powers when are fighting "over there" that an enduring peace may be the the latter concede their defeat? Can the world disarm after heritage of the children of the world. [Applause.] the war, or shall armaments increase and militarism become a From the depths of every loyal heart, and with all the fervor permanent institution throughout the world? These arc some that exalts and glorifies every patriotic soul, there is echoed of the problems connected with the organization of a league to to-day throughout the Nation, united in thought and purpose and secure peace. · consecrated to the sacred cause of civilization, this one. sentiment: I do not belie\e in the slogan, "l\Iy country, right or wrong." "Here's to the blue of the wind-swept North It is a dangerous theClry. When they meet on the fields of France. May the spirit of Grant be with them all There is a nobler slogan, "1\Iy country must be right." _And As the sons of the North advance! if I understand the spiritual aims of this wai.·, and if I properly Here's to the gray of the sun-kissed South understand the message that President Wilson is trying to con­ When they meet on the fields of France. vey to the liberal and democratic elements of the world, it is May the spirit of Lee be with them all that America is in this war as an agent of humanity and as u As the sons of the South advance! servant of hum_anity, and not to promote any selfish purposes ot Here's to the blue and the gray as one, When they meet on the fields of France. its own. "The world is to be made a safe place to live in." 1\lay the Spirit of God be over them all "It is to be made safe for democracy." Are these slogans mere As the sons of the Flag advance !'' catchwords, mere .beautiful phrases to ensnare the unwary, . or [Loud applause.] have they n meamng! If they do haYe a meaning, why should 9604 CONGRESSIONAL RECORD-HOUSE. AUGUST 27,.· ------~------\ .. 1 not the Congress of the United States Immediately take up the have examined the record of votes of 347 Members. I suppose question of organizing a permanent league to secure peace to that is the ldnd of information that Bernstorff was furni~hing the world after the war is concluded? Why not lay the foun­ his Government with. · dation for it now? Why not at least inquire into the subject? Mr. RAKER 1\fr. Speaker, will· the gentleman yield? We need men who will take·up this problem. How can we talk Mr. LONDON. Yes. about democracy in international relations when the very Mem­ Mr. RAKER. Is it not a further fact that 1n the record ot bers of Congress who have declared war refuse to consider any the National Security League the men who are unfortunately1 suggestion to study the international situation? How can we absent-and I will use.that word advisedly-and not in attendoj talk of democracy in international relations when everything is ance at the sessions of the House are put down as voting right.: left to one man? How can we lead the fate of the world to one and they are given 100 per cent, whether they voted or not? intellect? · · l\Ir. LONDON. It ls not a calamity to be denounced by the I ask that Congress take up the study o·f this problem. I ask National Security League. [Lnughter.] Every self~respecting that Congress put itself in communication with the parlia­ Representative should rejoice at being repudiated by that ct·owd. mentary representatives of the allied countries, that they meet It is not a misfortune to anybody. in international conference. Only then will we give life to the But I have digressed from my subject. We should draw a: princiJ?le that there should be democracy in international rela- distinction between executive work and the work of shaping tions. . broad and deep policies. Let us be honest about it. You know Mr. DENISON. Will the gentleman yield? the facts respecting our entry into the war. Our entry into the Mr. LONDON. I will. war was not the result of a definite and mature policy covering lli. DENISON. Is it the idea of the gentleman from New a period of years. ·we drifted into it. We were not ready for York that this movement ought to be started and carried on war at the time. Very likely if our Atlantic coast had beeli among the allied nations or the Tepresentatives of the allied supplying the allied powers with munitionS of war and the nations? Pacific coast bad been supplying the central powers with muni­ 1\Ir. LONDON. Well, this movement has been really started. tions we would not have been at war, because the business world The labor elements of Great Britain-and they are the most was neither pro~German nor pro~English. Iri fact, the business important social and political element in Great Britain-have world was ready to supply hell itself with fire and brimstone 1f continuously demanded the organization of a leagt;e for a dura­ hell were an accessible customer. [Laughter.] ble peace. The independent socialists of Germany insist that Our right to freedom of the seas having been brutally disre­ the peace which is to come is to make the recurrence. of war garded, we entered the struggle. impossible by the creation of a supernational authority. So does I say we have drifted into this war. Having drifted into this the French socialist" movement. Last Augu t, as the gentleman war, shall we drift on? Should we not rather give shape and p2r­ will remember, there came to this CongTess from the French manence to our policies? And then, gentlemen, do not make this Chamber of Deputies the chairman of the committee on foreign mistake: Somehow people assume that there is great wisdom affairs of that body, inviting the Congress of the 'United States on top. It is a mistake. There is very little of it. I am not to join an interallied conference of the allied parliaments. On referring to the President in this particular instance, because I , the 4th of August of last year, and before the visit of our Freneh regard him more highly than any living man in American poli­ guests, I introduced a resolution to that effect. Only a few days tical life. I have no higher regard for any living man, and I ago I read of Lord Cecil suggesting that if an international regard hopefully the tact that the radical and liberal elements of league is to be formed it must be formed on a basis of a super­ · Europe respect him and respect his views and take seriously national patriotism. We here are backward. The Federal the things he advocates as slogans for the termination of the council of the· Swiss confederation has organized a committee war. I am glad to see that. But you must not assume that over to study this very problem. there on top. the various cabinets that rule the world to-day,_ 1\!r. DENISON. Will the gentleman yield? are pure reservoirs of wisdom. Mr. LONDON. Yes. A few days ago I read that Lloyd-G_eorge had said in Parlin· Mr. DENISON. I was going to ask the gentleman from New ment that before the war England had promised France to York if he did not think, if the plan should be formulated and supply her with eight divisions against Germany in case France to any extent matured by representatives of the allied nations were attacked. When I read that I thought what a bunch of while the conflict is still in progress, that that very fact would incompetents they were in expecting that eight divisions would prevent or would tend to prevent the central powers from par­ be much of a force against Germany. Just think of it! Ei~ht ticipating in it or joining in it? · divisions, which, according to the English rule, means in the Mr. LONDON. I would organize such a conference of the aggregate 104,000 effectives, in order to help France (ight Ger­ allied parliamepts now. many! 'Vhat an ignorance it displayed of the power of Ger­ l\Ir. REAVIS. '.rhe gentleman made reference to the chair­ .many ! What a failure to appreciate the fact that Germany man of the co.rnffiittee on foreign relations of the Chamber of occupied a compact and contiguous territory of a homogeneous Deputies in France. Within the last three or four weeks some population, with all her railroads constructed with strategic 12 or 14 Members of this House were given a luncheon by Mon­ .purposes in view, enabling her to transport hundreds of thou- sieur Bouill()n, of the Chamber of Deputies, and in. a~ address sand of men from one front to the other in less than 24 hours.­ at that luncheon be made the statement that with the position How little they knew the country which was permeated with the United States now occupies in the minds of European na­ military ideals. What a failure to understand conditions! · tions, if there were affirmative action on the part of the Congress What a failUI'e to understand the enemy they had to contend of the United States it would give an impetus to"that movement with! And this was not the only blunder made by the :lllies. that would mean its manifest success. There are very few of the old statesmen to whom we can intrust Mr. LONDON. Exactly. Every thinkilig man throughout the the conclusion of this war on a basis which will guarantee to world believes so. We auffer too much from the theory that the world a lasting and durable peace. .All the genuinely demo­ in times of war all the affairs of the country should be cratic elements in the allied countries would welcome with joy handled and all of the thinh'ing of the country should be done our effort to prepare the groundwork for a permanent union of by one man. the nations. Now, while I am a Socialist, I do believe that, so far as the I take the position thn t · a Member of Congress is an im­ exe<;utlve part of the Govern~nt is 'concerned, so .far as the portant man, in spite of the fn.ct that he has to go to his con­ duty of canying ovt the laws is concerned, the more concentra­ stituents and ask eve1·y individual to vote for him-a disgust­ tion the better. But to concentrate all the thinklng in one man ing proceeding. [Laughter.] He is the man who has the means the Yery death of democracy, and for that matter the power to decl!l.re war, to send millions of his fellow countrymE:'n very death of all civilized life. I would like to see Members of into carnage and to death. He should have the courage to take our Congress begin to cooperate with the members of the par­ a hand in shaping the foreign policies of his country. [AP· liamentary bodies of other countries. Every government has an plause.] official press. We do not know what the truth is. We do not A UNITED OOUNTBY. know what the facts are. Our newspapers unfortunately are not a reservoir of truth, and it all depends on who owns the pen The SPEAKER. Tbe time of the gentleman from New York of the editor who scribbles and who advises Congress what to has expired. The gentleman from Illinois [1\Ir. MAsoN] is rec­ do. And their impudence has no bounds. Some of them ·sup­ ognized for 15 minutes. port the "National Obscurity League." [Laughter.] It has Mr. MASON. l\fr. Speaker, my socialistic friend [Mr. LoN­ probably a larger percentage of profiteers than any other organ­ DON] has given us some food !or reflection, and his amendment ization in the world, and this "National ObscuTity League" to the doctrine that the country must be right meets with favor­ has the arrogance to declare that only 47 out of 435 l\Ie¥ibers able considei·ation; but who is to decide? Are we to set our of the American Congress are 100 per cent loyal. It seems ~~ judgment up against the wish of the Government after the Gov- 1918. CONGRESSIONAL RECORD-HOUSE. 9605 /

ernment has decided upon a course of action? I agree to the standing the existence of war abroad, he was " opposed to any doctrine, "My country, right or wrong." I agree that the coun­ military plans for this Nation calling for vast expenditures o:f try mu t be right, and I agree that when the country decides a rponey.'' question, as it has upon this question of war, no individual has . People of the sixth district of Indiana resented this military the right to set his own personal judgment against the judgment interference and elected a Re:Publican, our colleague. 1\lr. ELLto'FT, of his Government. who has industriously given his'whole strength for legislation in l\Ir. Speaker, when 1 asked permission yesterday to proceed the interest of the successful carrying on of the war. I may be for 15 minutes here upon the theory that a "united country permitted to say, in passing, he was elected by a larger majority added tq the military strength of the nation " I did not know than his predecessor bad in the fall election. that there was on the way ames age from Gen. Pershing which The next election was in Wisconsin, where a United States seemed to gi\e me a text for the theme which I had already Senator was to be electeu. It is fresh in the minds of the people. selected. A dispatch from Gen. Pe1·shing, pl'inted this morning, I call attention to it for th.e purpose of respectfully protesting sars: and also to warn that great body that believe in the economic It is the consciousness that the soldier has behind him an undivided and political principles of the Republican Party, that an effort is Nation which enables him, whatever his. rank, to face his task with being made to driYe them, either by false patriotism or fear, out .courage. · of their party into the pa1·ty of the President of the United It is for that undivided Nation that I plead to-day. States. There is no more reason to cha.nge our party to please 1\lr. Speaker, our first great duty is to win the war, and I the President than there is to join some particular chw:ch be­ speak to-day in protest against those gentlemen who seek to cause he belongs to it. It will be remembered tllat ~lr. LENROOT, make political profit out of our unhappy condition. The profiteer one of our distinguished lenders, was nominated by the llepub­ is a man \Vho makes unreasonable profits in dealing with his licans of Wisconsin, and ;J.Otwithstandlng the fact that he had Government. The man who takes from his' Government in voted for the deClaration of war as recommended by the Presi­ stress of war an unreasonable profit is a profiteer and an unde­ dent and had voted for every proposition asked for by the Execu­ sirable citizen, and under our ethics the man who seeks to make tive, yet the President of the United States once more unsheathed political profit out of the blood of our sons is in the same class. his sword and with th...'lt brilliant literary art with which he is I purpose to show in the brief time I have to-day that the Demo­ gifted he attempted to brand LENROOT with that peculiar "acid cratic leaders have, since the very day of the inceptio!\ of this test" of disloyalty. It is no wonder that the bright and shining war, "capitalized" the war for the purpose of political gain. Democratic lights of \Visconsin, getting the inspiration of the In other words, in the stress of war, while :fighting for success, President's letter against LENROOT and seeking to capitalize and they have sought to make two by-products-<>ne, the permanent make use of this by-product of the war, saw, or thought they sa'.v, establishment of the Democratic Party in the United States;· a chance to get the soldier vote of Wisconsin. Many of these and, second, the absolute destruction of the party of Abraham boys were in Camp Grunt, Ill., being taught obedience to their Lincoln. superior officers, and this is the ad\ertisem~mt that appeared in "''hen war was declared -every man who voteu against the the Democratic paper. at Rockford, whe:l'e Camp Gl.'ant is located: declaration of war surrendered his person..'ll opinions and stood Tuesday, April 2. To the Wisconsin soldiers at Camp Grant: You arc read~· to make every sacrifice for the success of our arms. We entitled to vote for United States Senator from Wisconsin to succeed Senator Paul 0. Hosting. President Wilson, your Commander in Chief, han wiped out the middle aisle that separated the Republicans desires all loyal Americans to vote for Joseph E. Davies for United and Democrats and vied with each other to see who could render States Senator. Davies's election means joy at Washington and gloom at the best service in our };}reparation. Inside of 30 days after Berlin. Dayies's defeat means gloom at Washington and joy at Berlin. the declaration of war, Mr. Sulloway, a Republican of New I call this ad,·ertisement an infamous thing. It not only shows Hampshire, died and there was no occasion to seek to elect a a desperate attempt of the Democratic leaders· to use the war Democrat in his place. The party in power had a working forces for political profit, but it i humiliating and disgu ting to majority in the House, and everyone of us was satisfied with every American citizen who believes in the separation of the mili­ the distinguished and patriotic services of the Speaker of the tary from the civtl.PO>ver of the Government. It states that the Honse. Notwithstanding that fact the REcoRD shows that the election of a Republican was in the interest of Germany and Democratic leader in the Senate went to New Hampshire and would bring joy to Berlin, whereas the man who. really brings declared that a vote for a Republican was a vote for the Kaiser. aid to the Kaiser is tlie man who falsely states to the world that This unkind statement "\Yas made at n time when there could be the llepublican Party, the party of Lincoln, is friendly to our no occasion for it except to humiliate Republicans and increase enemy in time of war. Of course Wisconsin resented it, and I the Democratic majority in the House of Representatives. Of had hoped that the President of the United States and the leaders course the people in New Ramp hire resented it and returned of that party found this by-product of war was not such a valu­ a Republican in place of 1\lr. Sulloway. I did not believe that able asset as they imagined and would desist in such use of it that conduct met the approval of the President of the United as Democratic aid. It seems that they have not profited by States until subsequent conduct of the Commander in Chief of their experience--New Hampshire, Indiana, or Wisconsin-and the .A.rmy and Navy is conclusive that he intended that his once again, while the airplane inspector in Chica-go was robb-ing party should profit in the by-products of war; for, inside of 60 the Government and using in the most wicked way his appointing dars thereafter, a Republican who had been elected in Indiana power to assist favorites to escape the draft, our Commander in answered the last roll call, and that State was to furnish a Ohief hears with alarm that my distinguished friend, Senator man in his place. The same condition existed as existed in New LEWIS, of Illinois, is about to retire to private life, and once Hampshire. There· was no need, for war purposes, to increase again be tw·ns his eyes a way from the airplane and Hog Island, the Democratic majol'ity of the Honse, yet the Commander in and once again his face from the western front, and takes his Chief of the Army and Navy became so anxious to have a Demo­ pen in hand. to implore the Democratic leader from illinois not crat to succeed the Republican who died that he wrote a per­ to dream of resting under his " vine and fig tree," but to go forth so:nal letter that was sent to every voter in the d1strict aml with his spear and shield of the Democratic Party in order that displayed in large headlines in the newspapers, asking for the the " real issue " may be made plain in the State of Illinois. defeat of the Republican whose loyalty had never been ques­ The Democratic committee of our State caught the voice of tioned and the election of a Democrat. That letter is dated their leader and immediately called a meeting of the State com­ .Tune 19, 1917, when we were trying to organize an army and mittee and issued the most thrilling sc·reed of patriotism that it build airplanes to defend our boys. I will not quote the letter has ever been my pleasure to read. It is long and wide, trans­ . in full; it can be found in the CONGRESSIONAL RECO:RD Of June parent and not deep. When analyzed it is this: First, the Presi­ 29.1917. The President put away his sword long enough to write dent wants LEWIS for Senator from Illinois ; second, anyone who in his letter for the Hon. Finly H. Gray, "It 'Yould afford me opposes the President's wish in Illinois politics is a traitor; the greatest satisfaction to see him· ·returned to the House of third~ a vote against LEwis is a vote against the President; Representatives." Can you imagine a more deliberate attempt therefol~e, with logic as clear as mud, a vote against Senator· to utilize, capitalize, snd profiteer politically out of the by-prod­ LEWIS is a vote for the Kaiser. This is what the Republicans of ucts of the war? I have never criticized any military act of our illinois haYe to contend with, and I resent the statement maue Commander in Chief and certainly will not during this war, by the State committee as an insult to eYery intelligent elector in but I respectfully protef>t against the great power he has now the State, and in my humble opinion it will be resented by men being used for political purposes. of all parties at the polls in November. .An examin..'ltion of the speech of our colleague, 1\Ir. WooD of I have not time or space to cnll attention to the President's Indiana, shows that l\Ir. Gray opposed, when he was in the ·suggestion that they nominate a man already named by the Sixty-fourth Congress, the enlargement of the Army and Na\y, Democrats for Senator from Michigan. I hav~ the highest that lle voted against the volunteer-army plan recommended regpect for :Mr. Ford. I am not one of those who sneer at his by the President, and the speeches of l\Ir. Gray quoted in the honest effort to !Jring about pence. I respect llim ancl hono1· Co~onESSIONAL RECORD of June 29. 1917, show that, notwith- him for it. He is not seeking the Senatorship, apparently, and 9606 CONGRESSIONAL RECORD-HOUSE. AUGUST 27, the presidential interference in his behalf is uncalled for, to say If a Republican calls- attention to Hog Island it is an unpar­ the least, and is part and parcel of that political " generosity '' donable offense. If one-half of the money we have appropri­ displayed in Minnesota, where the Democrats declined to run ated had been honestly used to build airplanes, such as were anyone against my old friend and colleague, Senator NELSON, being built in Italy, France, and Great Britain, the Hindenburg which the Republicans have generously answered that in return. line would have been moved ere this to the River Rhine. In we will not run anyone in Georgia, Mississippi, Alabama, or modern warfare airplanes are the eyes of the Army. When a adjoining territory. · Republican mentions this fact it becomes treason or sedition. The whole plan of the Democratic Party is to put the stain of But when a Democrat has the courage to mention it, it is called disloyalty upon every Republican likely to be nominated, and " consh·uctive criticism." certain organizations, leagues, and societies that were formed 1\Ir. Speaker, I briefly call attention to the disposition of the originally in the high thought. of the good of this Government party in power to its political illusions at the expense of the are being commercialized and used in the interests of candi­ Government. It will be remembered in our first revenue bill dates before primaries in both parties. It is being aided by we put an increase of 10 per cent on import duties. The bril­ many good people who ha\e been misinformed as·to the attitud~ liant and distinguished leader ot the Democratic Party in this of the Republican Members and Senators; it is being aided by House, whom it is an honor to know, saw that it was impinging some who imagine they have an absolute monopoly on patriotism somewhat upon Democratic principles, but patriotically put his and loyalty; it is being aided by some who, lacking physical and country above ·his party and adopted that policy. Word carne · moral com·age, will employ scandal mongers to assassinate from higher up that it might protect some American industries, character ; and I belie\e it will become the duty of the Congress and notwithstanding the fact that the bill was a revenue bill of the United States in the interests of the success of this war and we needed the t·evenue, yet that provision which would to investigate the German propaganda they are now putting have produced us $3,000,000, approximately, or $600,000,000 un­ out to tl1e effect that thousands of our Americans are disloyal. der a Republican tariff bill, was stricken out, and the millions Yet, Mr. Speaker, in the language of Tou WILLIAMS,, our Illinois of dollars worth of silks and other luxuries came in under the colleague from Egypt, "It is no new sensation for a Republican low tariff, and we have leyied upon the little children who to be loyal." No Republican ever fired on the American flag. patronize the moving pictures. A tariff for revenue has been Our Democratic brethren, in the dark days of sixty-four, de­ one of the principles always claimed by our Democratic brethren, clared in a convention that the war for the preservation of the and in this hour of stress when revenue is so much needed thP, Union was a failure and demanded an immediate cessation of party in power continues to operate under the low. tariff as in hostilities. If any party was to do that now they would get times of peace, rather thaa add anything that would look like punishment that they justly deserve. In the Spanish War, when giving a substantial protective tariff. Every one of our allies we did not know the attitude of all of the nations of the world has a larger per capita import tax than we have. England has toward us when we declared war against Spain, my distin· $10.25 per capita; we have $1.68-bringing approximately $168,- guished friend, the Senator from illinois, had the honor of being 000,000. The Payne-Aldrich schedule would bring $600,000,000, a Member of this body as a Representative from the State of and the English schedule would bring $1,127,000,000, or nearlY. \Vashington, and voted against a bond issue of only six hundred a billion more than we get now. millions, and not only did he vote against it," but when, under the Has the soft pedal been put on the campaign song of n direction of President McKinley, the revenue bill was pending, "Tariff for revenue," for fear the incide13.tal protection might which the Senator voted against, he took the floor in opposition become the real thing? In times of war prepare for peace. to the measure. His voice to-day is constantly " Stand by the I ask you frankly, is that politics or patriotism? Again, was President," and we agree with him when it refers to matters it politics or pah·iotism that refused to accept the offered volun­ of winning the war. But then, when President McKinley teered services of the four divisions of over 100,000 men above wanted money to win the war, the Senator said: the age of 27 who were ready to go to France on a moments I have listened too often, Mr. SJ?eaker, to the constant cry of "pa­ notice? Gentlemen have not forgotten the record. The con­ triot! m " as the reason for legislatrng measure after measure here, and scription .act was passed by this body leaving out those four only the other day we heard from our honorable friends on the other side divisions .• The Senate heard from the people, and Clemenceau,. that patriotism hould always drive us into the line of action which shall execute the desire of the other side, irrespective of any virtue or the great Frenchman, begged that Roosevelt be sent. Roose­ vice of the measure. velt did not ask to command a division, and when the conscrip­ On this side of the House there arises, now and then, as did my tion act came·back to this House the four divisions were in, and friend from New York, the distinguished and honorable gentleman, .Amos Cummings, who advised this' assembly that he "put his country the roll call was had and it became a part of the law. It was above party," anu under that cry certain gentlemen on the floor, under passed by the House and Senate~ and the President signed the his leadership, calling themselves Democrats, found It agreeable to sup­ port the measure mortgaging the generation and their children yet bill. It was openly stated here on the floor of the House that unborn, irrespective of the fundamental justice of it. (CONGRESSIO::-JAL the President would nullify that act by refusing the volunteers, RECORD, legislative day, May 3, 1898.) · notwithstanding section 6, which "authorized" him to accept Mr. Speaker and gentlemen, consider if $600,000,000 at the the volunteers in the same legislative language as the other beginning of the 'var was a mortgage upon our children for g(m­ section which "authorized" him to raise an army by conscrip­ erations yet unborn, irrespective of the "fundamental justice of tion. Is it any wonder that when we are told that he kept us it," what should we say as to the billions and billions of dollars out of war that we answer that the only man he kept out of we voted for in this war and not a single Senator or Representa­ war was Theodore Roosevelt? [Laughter.] tive, either Republican or Democratic, bas lifted his voice Under the Constitution of the United States the Congress is against or cast a single vote against the bonds or appropriations authorized to make rules for the government of our Army and asked for by the President of the United States? It seems what Navy; yet no one of us at either end of the Capitol dare raise is a virtue in a Democrat becomes a vice in a Republican. In the inquiry, In what cantonment we ru•e now using the militarY. the vote against the declaration of war we were about evenly knowledge and skill of Leonard Wood? divided, as I now r·ecall it. Mr. Speaker, I have said that I would never make anything Our distinguished Speaker, as I remember, made a very elo­ like a political speech during this war, but I see the party in­ quent speecl1 against conscription. trusted in the last election with the government of this country :Mr. CAMPBELL of Kansas. For volunteers, not against neglecting the business of the Government in order to place the conscription. stain of sedition upon the Republica~ . Party. I am bound by a sense Mr. l\IASON. For volunteers, yes; and it was the best speech of duty which I can not resist to resent it. One gentleman run­ on that side, unless mine on the same side might have been. ning for Congress on the Democratic ticket makes this statement: The Republican Party is and has· been spreading the propaganda of [Laughter.] They have not prosecuted him or persecuted him. the German Kaiser. The Republican leaders have their hands stained He was immediately thereafter offered a Democratic Senator­ with the blood of their countrymen and are spreading propaganda of the ship, and has been renominated, as he ought to be, and will be Kaiser. reelected. Our distinguished Democratic leader [Mr. KITCHIN], If this sort of rot is what we Republicans have to contend with who \oted against war and made one of the most splendid the sooner we know it the better. Who helps the-Kaiser? Who speeches I ever heard-no one has ever heard of his being gives encouragement to our enemies while our boys are fighting persecuted for that rote; and I say again, is it fair in this cam­ " ove1.· there " and all of our women, Democrati<; and Republican paign to make what is a virtue on that side of the Chamber a alike, are knitting and praying for the success of our arms? vice on this side? Who is sowing the seeds of discord and trying to make political li:veryone who voted against war has voted for every man profit out of the blood of our sons? The men who are saying and every dollar asked for. We have tried to show the '"orld to the world "that great body of citizens organized in the and our enemies a united country, and any man who seeks to Republican Party are in sympathy with those vampires who seek make political capital or dig up a thing that happened before to dominate the world." the declaration of war for the purpose of disturbing the forces The SPEAKER. Tl1e time of the gentleman has expired. of this country is doing it for some selfish purpose and injuring l\!r. MASON. I will ask for five minutes more of the In· the cause for which we are fighting. dulgence of the House. 1918. OONGRESSION AL RECORD-H·OUSE. 9607

The SPEAKER. .The gentleman asks unanimous consent that Republicans. Let us go into the :fleeld .and on the hustings, ay his time be extended tl\e minutes. Is :there -objection 1 to the world that though we differ on great economic questions, There was no -objection. questions of military policy, we are one on winning the war. Let 1\:lr. MASON. In this ·last eonseription .act which we 1:mssed us make every political meeting a patriotic meeting. Let us see we differed -o-n 'one point as i:o the age ·of the conscripts, .but the who can sell the most liberty bonds. Let us see who can do House did not diVide on party Unes, and when the bill came far most for the noble Red Cross, the Young 1\Ien's Christian Asso­ :final .passage "there waa not three ;votes ·againSt it. And 'Yet eiatio~ the Knights of Columbus, and the Sru:vation Army. Let statements like that -simply .say 'to om· enemy, "Fight -on and us quit calling every American with a f.oreign name a traitor. A hold the lines until ltile Republican Party ·comes into power; ·united country .streDoothens our .uuutru:y arm. 'The morale of the then you can treat with them, for they ·will betray their conn­ German Army is gone because the ·G-erman people have lost try!' That is not the message Pershing asks for. No Republi- . faith 1n their cause. Our boys are fighting; my G-od, h{)w ean has •ever ·:r-oted ·against any 'bill ·on its final .pa£sage for' -rais­ bravely :they lightl The blood of age rushes like the blaod of ing men and money to prosecute this wax. FGur men :have youth through my ENCE OF mELAND . .('Ommittee, and :ptibllsheil to'the world, could be printed 1n Ger- 1\Ir. GALLAGHER. Mr. Speaker, I ask urranimous consent to many, it wouHI give more comf01~t :and .add m-ore to the mnrnle 'O'f address the House for about five minutes. the broken German .Army than the winning of "B. German vlctoTy. The SPEAKER. ·The gentleman from Illinois asks unanime rnp ·to date uanstJ:ucted '0n1Y ane experimentalunaclline 'Which •is · of ladies, who were here in Washington 'a ~"art time a·go repre- equip..Peil with :L'I.berty .moto:rs. Nearly a year has elapsed since we :might 'ru.L have 'begun work tJ.POD. these mru:ihlnes An.d by this :time h~IVe been 1D ·senting the Motbexs'' 1\Iission, a 'body of some 75;000 women, qoanttty -production. many -of whom wer-e :born in Ireland, and the balance of Irlsh The report of 'the inspection departmen~ wllich 'has 'been. pub- extraction. My purpose is to call the attention of the President lished, shows not ,onJy the wanton and woeful r{)bbing "Df the :md Congress to the petition, which contains the signatures .of Go•ernment of tne United States, thereb;y aiding the .enemy,, but over 600.000 men of -the Irish rnce in the United States, who 1t was nsed us a cloak under -which tb.e friends of those :appointed love liberty nnd believe ·in making this world a decent place to by thls :administration muld cr.eep :by the score to escape •military Uve in. sen ice. I did not write this report, :and I have no desire ·to use · The petition and the drafting of same is the result of the It in a ,political campaign, hut I give you notice :now that ·the .action of a convention of American citizens of Irlsb brood, held wickedness which deprives ·our boys on the battle tro.nt fif ·the : in the 'Ci'ty of New York, -.Q'n the 18th and 19th of May last, ask­ protect1on which the American people have paid .for ·can .not be ing "'' That you take snch action as rn your best judgment will co:v.ered up by the false, wicked smtement that the Republicans seou.re for Ireland the same rights accorded to all the othet· are spreading .German propaganda. :small nations." The delegates to this convention were from See what our soldier ·boys "Ure rltiing. The world's histro:y has every .section of the United States, who now have many thou­ never recorded greater military skill a:nd :bra.ver_y than ts being ·sands of near relatives serving this Republic in tile Army and written day by 'day on the w.estern front. If we had spent one- ' Navy figlrtlng for Uberty and the rights of 'Small nations. half of_the money that ha.s been ·squandered 'Or stolen to :build , I Will take up your time !or a minute longer to read.the heading the airplanes already approved :by ltaly, France, and Great · .of the petition, ·which is .quit-e sha-r.t .: Britain, w.e WOuld ha-ve 10,000 in ·the .Sky abov_e Our boys ·on the :P.ETITION TO THE PRESIDENT AND CONGRESS FOR T~ lXDEPE~"DE..."\($ OF wes.tern front and driving the · ~nemy bae.k to .the River .Rhine : II!ELAliD. before the close of this crunpaign. .There is no place hot enough We. ~s Amer-1ean d of her · A: . d :xt n.~ .~.. liberty by for.ce and helil in subjeet10n by England .by military powei· eyes o f th. e Amen~an . rmy , ·an ne to .w:u::: ..man ~h_o TOuS OUl"' : alone. .As .Ameriea ·ha:s .entered ·tb~ war ror tile preserTation of demnc-- G-ov-crnment nt thl:S trme ls ·the man who seeks :pohtieal power ;racy a11d the freedom of sma:ll nationalities, this Government is in either foT :himself or .his party :by appealing to the -prejudi<'e and bonm: :bound ±<:? :o:pply this principle impartially in ali cases ·of peo.ple& ~ d lit f . 'f 'tiz ·mJ.. -n bl. p held lD subjection, whether they be under the jurisdiction of Germany, ere u yo -our e11 ow ·Cl ens. .L.Ue ntepu ICa:n arty imsmade like BE>Jgi.um o.r of England, .1ike Ireland. .As .America can no.t be ·a no attack upon the loyalty of the Democr.a.ts ln tills House. W-e party to any s~eme of wo:rld-peace whlch withholds from any nation know you ru::e loyal. You will be :tried 1n the :districts .of this · the God-giveD :right -of :freedom, -the .only ftnaJ settlement ~ust be the . . comple-te indepeudenee -of Ireland. eountry where two men are rnn.nrng .feT Cangress :not 1IPon the America !has the xlgbt., l}y her entry into the war to .demand it from question of ym1r loyalty ·but upon the :question ·Of -your :efficiency England. not m t.he peace -conference :at tll.e clo~e .Or the wa.r but :nuw. and the honesty of the man appointed to discharge governmental We therefo-re respectfully urge .u~n the PreSident and the Congress . ~ _ the ne-cessity .and _good rpoliey uf .gJVmg a great ·exumple -to the world by duties, and the sooner you ·abandon the dectrine of a monapoly on tnsisting tbat England 1>hall grant Irelanrl complffl:e .national inde- patriotism, the sooner you quit ·calliqg everybody a traitar who penCience. We. ·Parnestly hope that, ;like Cu:bn, Ir.eJ.and wm be mado does not vote the Democratic ticket, the sooner :you realize that free by the netL

The SPEi\.KER. The gentleman asks unanimous consent to were also conscripted, by their own vote. In Australia conscription was c;Jefeated on referendum to the people. Ireland alone was denied extend his remarks. Is there objection? the r1ght to say wl:-.at should or should not be done with her own men. There was no objection. When the smoke of battle has lifted and men will be able to think The letter is as follow·s : clearly again and dispassionately and without prejudice, we wonder CliiCA.GO, ILL., July 9, 1918. how will this act of England appear; we wonder what impression will Hon. WOODROW WILSON, be made on the American mind by this picture of England voting to President of the United States of America, conscription against its will, the r emnant of Irish manhood which re- · Washington, D. 0. mains in the island. - YouR ExcELLENCY: A convention of American citizens of Irish blood In the House of Commons, June 25, Mr. Lloyd-George admitted that was held in New York City on the 18th and 19th of May for the purpose England ls governing Ireland without the consent of its people. Not­ of drafting a petition to your honored self and to the members of the withstanding this, Lord French, the miUtary governor of Ireland, said Congress, asking that you take such action as in your best judgment on the same . day that he would enforce conscription "unflinchingly will secure to Ireland the same rights accorded to all the other small and in · the face of whatever opposition, whether criticism or actual nations. force, may be attempted." The delegates to this convention were men and women representing Up to the passing of the conscription act in Ireland the Irish people large bodies of citizens in every section of the United States who have in America were seemingly a part in the drama, but not of it. We many thousands of near relatives serving this Republic in the Army and watched with pride the brave struggle our people were making against Navy. . . the power and force of a mighty nation. We could not well under­ Among the women delegates were many mothers of sons now among stand how statesmen on each side of the Atlantic were willing to America's fighting forces in France, and many more who have sons in accord independence to the Poles and the Bohemians and to all other the training camps here ready and eager to join the forces abroad for oppressed races and deny the same right to the Irish. The passing of the purpose of defending with their lives American ideals. the conscription act, however, brought the trouble into our very midst. .A number of these mothers were born. ln Ireland, and the balance Should the British Government persist in enforcing it against the are of Irish extraction. Naturally they are interested in the fate of wishes of the overwhelming majority of the Irish people, a crime may unhappy Irelancl and the recent events over there have rendered them be enacted which will cry to heaven for vengeance. very uneasy. They say that their boys, too, are uneasy, not knowing Whether by accident or otherwise, a portion of the American press what may be happening to their k1n in the cradle land of the race. bas lent itself to a campaign which is tending to place not only the Many of these mothers feel that if they could get an interview with Irish in Ireland, but the Irish in America, Ln a false light before the you, Mr. President, and in that interview present Ireland's case in the American public-in fact, the position of the Irish in America, because name of their boys for your consideration that you would take up the of this press propaganda, is daily growing more and more intolerable. cause of the Irish people in Ireland and see that they also are included These papers take no account of the fact that to give in man power among the peoples for whom you so nobly advocate the right- of self­ proportionatel-y according to population to that which Ireland has determination. These mothers have cheerfully given their boys. for already given, America will have to place 5,500,000 of her sons under 1he sacred cause of American freedom as well as the cause of the op­ arms and transport them to the battle front in France. pressed races of the earth and they are positive that even though lou England could settle the Irish difficulty with one stroke of the pen, have never .mentioned Ireiand in your public declarations on behal of if she wished to settle it according to the American standard. To these oppressed races nevertheless they can depend on ynturies, and it would seem but fair and just to give the majority writer to organize what they were pleased to term a "Mothers' Mission their turn now. to the President and the Congress of the United States," who would On the 22d day of May tbe English prime minister announced that be proceed to Washington and lay their troubles at the feet of you, the had proof that the Irish in Ireland were plotting for another re· Chief Executive. . I was not chosen as organizer of this mission hecause belllon. Immediately about 100 Irish men and .women were arrested I had sons with our fighting forces in France. Almighty God did not and deported to Elngland and thrown into prison for the ostensible Hess me with sons. I have, however, three nephews wearing Uncle purpose of preventing this rebellion. Now, Mr. President, the people Sam's khaki, two of them now in France. I have eight other nephews in Ireland know and have declared that no such rebellion was ever who will be called later on; I have several young cousins in the ranks, intended, and no proof has been gi-v€n to the contrary. What they do and I have a son-in-law whom I love as much as if he were my own declare, and what the world knows, is that the people were taking flesh and blood who expects to join his country's colors sometime the radical steps to resist conscription by every means in their power, and present month. . one of. the chief reasons for the arrests was to remove those whose I was chosen because of the fact that I am the national president leadership and support were to be relied on most in meeting the of the ladies auxiliary to the Ancient Order of Hibernians, an organiza­ criminal menace to the liberties of the Irish people. There has been tion composed of 75,000 American women of Irish blood, thousands of no attempt to bring those arrested to trial and to give them a chance whom are the mothers of sons already enrolled in America's Army of to defend themselves. '.rhe British Government gives lame excuses for democracy. Many of these sons are to-day in France and constitute its failure in this respect, but continues to make vague charges, which a large part of that Army. are poisoning the minds of Americans against Ireland. If fresh proo} I have written to your secretary, Mr. ',I'umulty, asking that he arrange of conspiracy existed last month, the then Lord Lieutenant of Irelana,· for this interview. I am informed by him that, owing to the great Lord Wimborne, and his sta!I, would have been cognizant of it, but· demands upon your time it will be impossible for you to arrange a date he has definitely and publicly stated that they had none. In view of to receive the Mothers' Mission just now. Mr. -Tumulty kindly suggests this and the statements of the Irish people themselves, those of us in that I place in the form of a memorandum the matters which we wish America who decided to take the word of our kinsmen rather than that to lay before you ; he promises to bring same to your attention at the of the British prime minister are amply justified. earliest possible moment, and in this communication I am complying Justice demands that a man be held innocent untll he is proven with Mr. Tumulty's suggestion. guilty before a jury of his peers, but this brand of justice seems to be We have no desire, Mr. President, to add to your already heavy missing in the characters of many of our foreign correspondents and vurden of care nor do we wish to embarrass you in any way, but things in a considerable section of the American press. In their minds no are transpiring every day which are t ending to make matters so grave proof of the accusations against the Irish people is necessary. H Mr. for us that we feel we can not keep silent any longer. Speaking from Lloyd-George makes them, that is sufficient, and so the poison that is my own knowledge and for the Irish in America as I have come in con­ endangering the peace of many of our communities is being persistently tact with them, I have this to say: My official duties have taken me into distilled thrO'Ilgh the columns of our daily papers. · 30 States of the Union since Good Friday, 1917. I have addressed In seeking justice and fair play for our kin ln Ireland we feel that gatherings of my people in many towns in these States ; I have met we deserve recognition at the hands of our fellow American citizens. with them afterwards in groups and singly and have listened to their contribution to American gr-eatness. We only ask an examination of conversations, and can truthfully state, Mr. President.. that they are what we are aoing to-day. We think it will be found that, acco rding to _ backing America to win, win against the whole world if necessary, our numbers, we are contributing as much man power, and perhap:; and they are giving very substantial testimony of this, both in man more, than are any of the other races which go to mal{e up America's power and worldly means. . population. The boys we have given have come from good, clean stock; When Gen. Washington raised the flag of a new Republic on this they have been reared in simple, wholesome surroundings, and b::tve continent 142 years ago, Irishmen and the sons of Irishmen rallied to There is no need of going back to past history for proof of the Iri h his standard In amazingly large numbers; in every crisis that threat­ been trained according to our good, old-faRhioned ideah;, which means ened the life .of ihe Republic from that time to the present Irishmen they have known the proper discipline in ihe homes. Hence, I venture have no cause to hang their heads in shame because of the part they to say that they are not giving their commanding officers much trouble played. In the days of stress and trial for the young Republic the either in the camps or in the trenches. The daily casualty lists a!'e Irish in Ireland nobly played the part of a friend in need ; they gave plentifully interspersed with the names of these boys who have already ample proof of this friendship many a time since when danger threat­ sanctified the cause of American freedom with their lives. I know ened America; in fact, the -destinies of the two countries have alwa:ys personally of several homes where sadness reigns to-day because a brave been enshrineu as one in the hearts of Irishmen in America and m b(}y will never return, but there is no repining in these homes ; rather, Ireland, and in the hearts of grateful Americans as well. you will find that .America has become all the more dear to them because For 30 years the Irish members of the British ·House of Commons of the brave young life given for its cause. We are not seeking to have been beggtng and pleading for even a small measure of home minimize the sacrifices which those not of our own blood are making, rule, but all to no purpose. You are no doubt familiar with the gallant but we feel a just resentment because of these prejudices which ha v-2 action of the young Irish Democrats who raised the flag of a Republic arisen against us, as we know that we are not deserving them in the in Ireland Easter week, in the year 1916. They bad grown tired of least. promises that were never kept. The young men who sacrificed every­ We have no one to go to with our troubles, Mr. Presinent, but you, thing for liberty as being the one thing above · all others that would Mission humbly solicit your friendly interest in our present perplexilies. bring happiness and contentment to their unhappy land, paid the our beloved Commander in Chief, hence the members of the Mothers' penalty which many lovers of freedom have had to pay, but the cause The mothers ask this friendly interest from you in the name of the boyl'! of the Irish Republic is alive to-day. safely enshrined in the hearts they have willingly clven to you to help you vindicate the principl(\9 of tht great majority of the Irish in Ireland. All this led to the firm of democracy-principles of which they b."''low you are the greatest stand taken that Ireland' would give no more men to the English .Army living exponent. · until England conceded to Ireland the right she is apparently willing And, Mr. President, the Motbers' Mission have commissioned me to to concede to Poland and the other small natiom1. ask you, in their name and in the name of their boys, to be Ireland's .After the terrible series of ti·agedies following Easter week, 1916. frien. d at the peace conference. With Irish optimism we are :dot looking' England made a show of trying to settle the Irish question by means of at the present carnage but to the ltorizon where we see the dawn of n a hand-picked convention. This convention remained in session nearly glorious peace with victory and honor. Emblazoned In letters of go!d one year and adjourned without accepted results. A few days later, we see ln that glorious dawn ''America's Army victorious!" like a thunderbolt out of a clear sky, came the news that England had You have given every evidence of splendid statesmanship; hy your voted to conscript the Irishmen in Ireland. lofty ideals, so in k-eeping with America's noble his tory, you have in­ True, .Americans were conscripted, but it was by vote of their duly duced many of the Eluropean countries who nre engage(] in this struj!~le elected representatives wb() had the vested right to make whatever on our side to assume a less vindictive and mercenary attthHle. Yo11 laws they deemed necessary for the safety of the Nation. Canadians have endeavored to keep our beloved country on the very highest pin- 1Hl8. CONGRESSIONAL RECORD-HOUSE. 9609 nacle of nobility of soul by your oft-repeated assertions that America news-print consumption is not familiar with either the cause of wants no material gain in this contest, that we desire only to help make the world a better place in which to live. Naturally you will be the the shortage of news print or the management of a country weekly biggest factor in this peace conference, and may Almighty God preserve newspaper. For the shortage there is a ready remedy, while the you in health and wisdom for that happy day. dropping of subscribers is as hopelessly impracticable as it is In conclusion, Mr. President, just about the time this document reaches your s£>cretary, Mr. Tumulty, a committee from the Mothers' unjust, while it would put out of business half of the country Mission will present to the Congress petitions signed by over one-half weeklies and hamper and hinder the rest. million American citizens, claiming that "As America can not be a Our first suggestion is to stop right here in Washington the party to any scheme of world peace which withholds from any nation the God-given right of freedom, the only final settlement must be the reckless waste by the newly created departments, where ex­ complete ind£>pendence of Ireland." We are satisfied that nothing less travagance in the use of paper paid for by the Government is a will satisfy the aspirations of the Irish people; that without complete common scandal. Instea

-~ 9610 OONGRESSION AL RECORD-ROUSE. Auous-_r 27,

The SPE.A.KEit. The gentleman ;from North Carolina -asks 1\Ir. SIMS. Mr. :speaker; I mo-ve that we dispense wlth unanimOUS -ronsent to extend his TeiDarks in the lRECORD in the rfurtbe:r pr.oceedings under the eall. manner inrlicated. Is them objection! The motion was ·agreed to. 1\fr. WALSH. Mr. Speaker, reserving the right to object, wno The ·doo-rs were QPeD.ed. is the author of the letter? The SPEAKER. The gentleman from Virginia asks una.I!-1- .1\:Ir. 'VEBB. Col. Kennon, n.t Camp Greene. I think it is a mous consent that t he House stand in rece s for 15 minutes, proce s which should be put into oper-ation at every camp. ln -order that we may ~·ecei-ve the mi ion from Uruguay. Is ir. W A..LSH. How long a letter is it1 there objection? 1\Ir. WEBB. It is just a page and a half. There was no objeetion. The SPEAKER. Is ther..e objection? The Chn.ir nppointed the following committee to conduct the There was no objection. distinguished gue ts to the 1loor of the House: l\1r.. FLOOD, Mr. HARRISON 1\li THE WATER-POWER 13ILL. :STEDMAN, 1\Ir. of ~issippi, Mr. PoRTER, and 1\Ir. MILLER of Minnesota. Mr. SIMS. Mr. Speaker, I move that the House :~;esolve it elf Accordingly, 11.t '3 '()'clock and 45 minutes p. m., the Hause into tile Committee of tbe Whole House 'On the .state of the Union stood in l'eces . foT t11e further considers.tion of the water-_power Nil. At 3 o'cl{)Ck and 4G minut-es fue mission, nccompanied by Ml SION FROM URUGUAY. Mr. Jordan Herbert Stabler, 'Chief of the Latin-American Divi­ sion, State Department, :and l\1r. .Hugo D'Pena, charge d'affaires, JUr. FLOOD. 1\Ir. Speaker, before the Chair puts the motion, Uruguay Legation, and escorted by the committee appointed, en­ the mi'3 ion from the Republic of Uruguay is her-e, -comprising tered the Hall of the Honse. Dr. Baltasar Brum, minister for foreign affairs of Uruguay; The distinguished visitors were escorted to the Speaker's Dr. Cesar Miranda, vice president of the House of Representa­ rostrum amidst long applause and cheers. tives ; Dr. Xavier Mendivil, senator; Dr. Asdrubal Delgado, The SPEAKER. Gentlemen of the House of 'Representatives, financial 'delegate of the executive power; Dr. Justo J"OS{l Men­ it has been the policy of the United States from the beginnin_g dosa, secr:etary to the minister of foreign affairs ; And Lieut. to cultivate the ·friendliest relations possible with our _sister Cano a, aid-de-camp. to the minister. These distinguished gen­ Republics to the south ·of us. All together on ·this continent are tlemen are at pre ent in the gallery of the Hou e, and I :ask 21 republics. The Republic of Uruguay has sent a mi sion unanimous consent that the House stand in recess for 15 minutes here, headed by its minister of f'Oreign affairs, Dr. Brum, whom so that they may be invited to the floor. I now intJ:oduce to you. [Applause.] The SPEAKER. The gentleman from Vll'ginia asks unani­ mou consent that the Honse stand in recess for :15 minutes. Dr. BRU:\L Senor Presidente, Seiio~es Legislado-res: En Mr. WALSH. 1\lr. Speaker, before that request is put, I make nombre m.lo yen el de mis compaiieros, agradezco intensamente the point of order that there is no quorum present, and I do that este homen.aje ·que tributais a mi patria y a su Gobierno, El because I think ttwe should llave a full representation of the Uruguay ha alcanzado un notable 'Clesarrollo en su organization Hou e here to we1come these distinguished guests. institucional y ha tenido en vista siempre el ejemplo del ·Con­ The SPEAKER. The gentleman from 1\lassaehusetts makes greso Americano, dictando leyes dem:ocrftticas y jnstas por .esto the point of order that there is no quorum -p:r.esent. Evidently nos llena de gratitud esta demostraci6n de simpatla que .nos there is not. . hace la mas prestigiosa asamblea republicana en la sode de sus l\fr. FLOOD. 1\lr. Speaker~~ I .mo¥e ·a eall of the House. deliberaeiones .que ~s mirada por el mundo como el templo de The motion '\Vas agreed to. la democracia de donde surgen las leyes mas sabias para ·or­ Tile SPEAKER. The Doorkeeper will close the door , the ganizar la soctedad y para garantir los derechos de los bombres. Sergeant ut Arms will notify ;ab.sentees, nnd the Clerk will can Si en cualquier momento esta Teee_pcion nos habr!a ·honrado -y the t•oll. conmovido es lo cierto que ahora la impre ion es .mas honda "'l"'he Olerk ca.Ued the roll, and the following Members failed to porque uquerla se produce en el instante mi-smo en ·que vuestro an wer to their names : patriotismo, vuestra inteligencla y vuestro tiempo esta.n con­ Anthony E topinal Kiess, Pa. Scott, Pa . sagrados a la obra magnifica ed to go into t11 ommittce 1918. CONGRESSIONAL R.ECOR.D-HDUSE. 9611

of the ':Vhole House on the state of the Union for the further of War, the Secretary of the Interior, and tbe Secretary of Agricul­ ture. Two members of the commission shall constitute a quorum for consideration of the water-power bill. the transaction of business, and the commission shall have an oflkial Mr. SIMS. Mr. Speaker, it is now 4 o'clock, and I do not ~~\~~~~a~hgp t~: ~~~:r;~ :oticed. The President shall designate think it would be possible to keep a quorum here and to com­ 0 mence a large bill like this after 4 o'clock on a hot, oppressive Mr. RAKER. 1\lr. Chairman-- day. I do not think it a wise thing to do, and therefore I move The CHAIRMAN. The gentleman from Pennsflvaliia [~r. that the House do now adjourn. DEWALT] asked for recognition. Mr. DEWALT. Mr. Speaker, before that is done I desire to Mr. DEWALT. Mr. Chairman, I ask unanimous co11sent present a request for unanimous consent at this time. I ask now that I may be permitted to proceed for 30 minutes out of permission to addres~ the House to-morrow morning after the order. reading of the Journal and the disposition of the usual business The CHAIRMAN. The gentleman from Pennsylvania asks on the Speaker's table for 30 minutes on the question of whether unanimous consent to proceed for 30 minutes. Is there objec­ politics is adjourned. tion? [After a pause.] The Chair hears none. The gentle­ The SPEAKER. The gentleman from Pennsylvania asks man from Pennsylvania is recognized for 30 minutes. . unanimous consent that to-morrow after the reading of the l\lr. DEWALT. l\lr. Chairman and gentlemen of the com­ Journal and the cleaning up, of business on the Speaker's table mittee, I recognize at once my inability to cope in any way that he be permitted to address the House for 30 minutes on the either with the eloquence or, perhaps, with the great temerity question of whether politics is adjourned. that the gentleman from lllinois [1\fr. RoDENBERG] exhibited in Mr. RAKER. Alr. Speaker, reserving the right to object, could his address to the House only a short time ago. I recognize, not the gentleman m'ake his address this afternoon? The water­ too, tha·t there is in this House, and has been ever since I have power bill ought to have consideration by the House and not been here, a certain rule of precedence which gives to older be held up- by the revenue bill. Let the gentleman make his Members and those who are more. accustomed to the ways and request for permission to address the House this afternoon. procedure in the House an undoubted right to express their The SPEAKER. Does the gentleman withdraw his motion to views on almost any question witl1out interference, and that adjourn? young l\Iembers are usually relegated to the rear and are sup­ Mr. SIMS. I will witl1draw the request and take up the bill posed to keep silence, even upon very important questions. But, if there is going to be time used to-morrow, but let the gentle­ .in my judgment, the time has come now when a Democrat man submit his request. from the greatest Republican State in the Union, with the The SPEAKER The gentleman has submitted his request. exception of one, should voice his sentiments in protest against Mr. SIMS. But it has not been acted on. the utterances made by the gentleman from Illinois. [Ap- The SPEAKER. The Chair knows it has not been; it has not plause.] · , been put. His conduct upon this occasion, as compared with his pnst Mr. SIMS. If it is granted, then I will move to go into the record, reminds me of a little distich that I heard many years Committee of the Whole House on the state of the Union on ago, a corruption of the stanza in an old hymn, which runs the bill to-day, something like this: Mr. CAl\fPBELL of Kansas. I hope nobody will object to the Whilst tbe light holds out to burn, request of the gentleman from Pennsylrania. The vilest sinner may return. The SPEAKER. Is there objection? Whilst there's grace enough to save u~, Mr. .ANDERSON. Mr. Speaker, reserving the right to object, Still there's hope for Charley Davis. we have been trying to get this water-power bill up for con­ When I look at the record that the gentleman from Illinois sideration for some days, and while I do not want to prevent any has made for himself upon the different war measures as pre­ gentleman from making a reply to the speech of Mr. HoDE~BERG, sented in this Congress and in the last Congress. I am somewhat or any other speech, I am not willing that the water-power bill astonished that he should, in the openi11g of his remarks to tllis to-morrow shall be displaced by a speech or preceded by a speech, august body, have said that since the declaration of war he and I shall object to a speech being made to-morrow. had always supported the admini ~ tration and had been for Mr. RAKER. Mr. Speaker, could not we obviate tllis matter every measure which was called up by the administration in if the gentleman from Tennessee ask that when the House ad-. the prosecution of the war.' Usually people judge oth~rs not journs to-day that we meet at 11 o'clock to-morrow? The gen­ so much by the sound of their voice or by the utterances that tleman from Pennsylvania could take 30 minutes, and possibly they make as by their acts, and, if this judgment is to he taken, · we will be able to start on the bill before 12 o'clock. then I would refer to this assembly what the record of the gen­ The SPEAKER The Chair will make one remark. His ob­ tleman from Illinois [l\Ir: RoDENBERG] shows. servation of this 11 o'clock business is that invariably, nearly, I have in my hand a tabulated statement, a record of Yotes, somebody raises the point of no quorum and we waste 30 min­ and the first that I find upon that record is a bill to provi'de utes on a roll call. Why not resolve the House into the Com­ revenue to defray the war expenses, and fot· other .purposes. An mittee of the Whole Hou e now and let the gentleman make amendment was offered that a tax of 3 per cent should not be col­ his speech? lected on automobile manufacturers until they shall have e:u·ned Mr. SIMS. That is the motion I was going to make--that a profit of 8 per cent upon· actual capital invested. -Mr. RoPEl'\­ the House resolre itself into. the Committee of the Whole House BERG voted "yea," as did 147 llepublican.c;;· and 26 Democrats; on the state of the Union for the further consideration of the and on the passage of the bill 1\Ir. RonEiXBERG Yoted "nay," as water-power bill. did 76 Republicans and no Democrats. It therefore appears The SPEAKER. The gentleman from Tennessee moves that from that record as established that l\lr. lloDE::\"'"BERG, of IEinois, the House resolve itself into the Committee of the Whole House voted agaim;t the revenue measure for the prosecution of the on the state of the Union· for the further consideration of the war. water-power b-ill. . I also find upon that record " a resolution ueclaring that a The question was taken; and the Speaker announced that state of war exists between the Imperial German Government the ayes appeared to have it. and the Government and the people of the United States and On a division (demanded .by Mr. WALsH) there were--ayes making a provision to prosecute the same." When the roll call 71, noes 2. was ordered there were yeas 373, and there were nays 50. ~.\..nd I WATER-POWER LEGISLATION. find to my utter surprise and somewhat, possibly, to the sur­ Accordingly the House resolved itself into the Committee of prise of tllis House, that this gentleman "·ho \vns condemning the Whole House on the state of the Union for the further con­ the President of the United States for taking care of the interests sideration of the bill S. 1419, with 1\fr. WEBB in the chair. of the Nation in its time of peril was one of the 50 who voted The CHAIRMAN. The House is in Committee of the \Vhole against the declaration of war, although he is now proclniming House on the state of the Union for the further consideration his patriotism as beyond all question. · of the bill S. 1419, which the Clerk will report by title. Perhaps it might be informing at this time to refer to the The Clerk read as follows : fact, and I do _it in no invidious way, but refer to it merely as An act (S. 1411l) to amcnu nn act entitled "An act to regulate tbe a fact which seems to be established beyonc~ the peradventure construction '.>f dams across navigable wat;ers," approved June 21, of a poubt, that the people of the district from which this 190G, as amenued by the act approved June 23, 1910, and to provide speaker comes repudiated such action, and if the truth be en­ for the improTement and development of waterways for the uses . of interstate and foreign commerce. tirely known, or if public prints are to be believeu, they not on1y repudiat~d that action but they actually besmirched him . The CH.AIRl\IA...~. The Clerk will read the bill under the by holding him up to public ridicule and hanging him in effigy. five-minute rule. I find also a bill " to punish acts of interference with The Clerk read as follows: foreign relations, the neutralitr, an

discussion, I have never for a moment questioned the loyalty Mr. DE'VALT. I yield to the gentleman from Ohio. of Mr. LEN:ROOT, now Senator of the United States from that Mr. COOPER of Ohio. A few moments ago the gentleman great State [applause], n.nd I grant you, for the sake of the stated that the President had a right to indorse certain candi­ argument, that I believe oftentimes the Executive interference dates for the House and the Senate. in matters of this kind is harmful instead of beneficial. [Ap­ Mr. DEWALT. No ; I did not _state that. plause.] But I take the broad ground., also, that where there is Mr. COOPER of Ohio. I would like to call the gentleman's undoubted disloy;alty exhibited by the actions of any man, attention to a letter which the President sent to ex-Senator whether his name be DEWALT or V ARDAM.AN or LENROOT, -it be­ Chilton, of West Virginia, in which he said that he. disliked to in­ comes the bounden duty of the protector of the Constitution of dorse the candidacy of any individual on the ground that what he the United l!t:ates, to wit, the President of the United States­ might say would be resented, and rightly so, by the constituents it becomes the duty of the Commander in Ohief of the Army in that district. and Navy to see that some record of that be made by ·him in Mr. DEWALT. I saw that letter; that is what I am calling saying that he believes that an individual has not acted loyally. the attention of the House to. The gentleman asked me a few 1\lr. C.Al\fPBELL of Kansas. Mr. Chairman, will the gentle­ moments ago who was to be the final arbiter on the question, man yield? and I repeat again what I have said, that irrespective and re­ 1\fr. DEWALT. Certainly. gardless of my opinion or the behests or suggestion of the execu­ Mr. CAMPBELL of Kansas. In view of the President's " acid tive favor, if the people of the district are convinced, in their test " in Wisconsin, can the gentleman tell us why the Presi­ own mind, that the individual has been loyal and true they, dent is now supporting Mr. Ford for Senator from Michigan? will reelect him, provided all other facts show that he is fit for Mr. DEWALT.· I believe that the answer to that is this: the position. Whatever may be said against 1\Ir. Ford's past record in refer­ Mr. COOPER of Ohio. If the President would write a letter ence ·to his pacifist tendencies, I believe the record seems to like that to ex-Senator Chilton, why should he write a letter show that Mr. Ford is a promoter of what he believes at this -in favor of Senator LEWIS and Mr. Davis and other men he has time to be loyal sentiments, and which are in reality loyal indorsed for sentatorial and congressional position? sentiments. Mr. DEWALT. When a gentleman propounds a conund1·um 1\lr. OAMPBELL of Kansas. He wlll not let his son fight. of that kind, let him answer it. There are individual dis­ Mr. DEWALT. Now, my dear sir, you are bringing the per­ tinctions and differences sometimes made, but there are also sonal equation into the fight. What the reasons are, or what the moving causes in the mind of every one which operate at the local board's reasons are, for the excusing of Mr. Ford's son time he makes the move. I declare affirmatively now that this from this particular service, and giving him a deferred status, general charge, this blanket accusation, if you please, that the you and I can only judge by inference, and I never yet have President of the United States by attempting, as it is called, convicted a man upon hearsay testimony, and you never did to interfere with elections, has only suggested to the people at either, and never pleaded for it in a court of justice. large what his views are in regard to the patriotism or non- Mr. KNUTSON. Mr. Speaker, will the gentleman yield? patriotism of individuals running for office. · · Mr. DEWALT. Certainly. · Now, I find that my friend from Illinois referred specifically, Mr. KNUTSON. Would the gentleman uphold the President's to his Senator, the Bon. J. HAM LEWIS. Of ·course, argument interference in branding tbe gentleman from Texas [Mr. SLAY­ is one thing and ridicule is another. It may be a matter of DEN] as undesirable timber for membership in this House? misfortune, or perhaps good fortune, that the Senator from Mr. DEWALT. I know nothing of the record of the gentle­ Illinois is adorned with pink whiskers, as some people say. man from Texas [:Mr. SLAYDEN], except what I have noticed It may be his good or ill fortune that the biogra};}hy, as estab­ here in the House. I do not know what his record is as to voting lished by the book which the gentleman read, makes him on different questions, but I say now, frankly and openly, that younger than he actually is, and makes him very precocious, if my record discloses that by votes I have refused to recognize but that does not meet the proposition at all. The proposition the necessities of this war, and that I have failed to support is just this : Is the Preseident held up to ridicule by the fact the administration in the measures asked for and demanded by that he sent Senator LEWIS to Europe, and -is be there upon lt, then I am deserving of defeat, and deserving of condemna­ a special mission? There is no proof of thnt. I am glad gen­ tion, whether· my name be SLAYDEN or whether it be DEWALT. tlemen enjoy' what is being said about Senator LEWIS. Whether Xhat is the broad proposition. he is sent on a private or special mission is not the business Mr. GREENE of Vermont. Will the gentleman yield? of this House at this time, because the f(\l'eign relations of this Air. DE\VALT. Certainly. country are purely an executive function 'an

1.\fr. DOUGHTON. I am not U:llking about that. exception of 1, are Republicans, and I lay down the a.ffirmati>o Mr. COOPER of Ohio. In answer to my friend on my left, it proposition now that e-very one of those men, whether he be is true that the President offered no opposition to Senator Democrat, Independent, or Republican, is just as loyal as I am, NELSON, and Republicans are not advocating any opposition to and I propose to be loyal and affirm that I am. I do not think JOHN SHARP WILLIAMS, of Mississippi. there is any distinction. I think that same thing could be sald Mr. DEWALT. And the1~e they show their good sense. generally throughout the membership of the House. What, [Laughter.] then, was the purpose of this argumentation here this morn­ Mr. SIMS. \Viii the gentleman yield? ing? Was it to enlighten this House, 01; was it following the 1\lr. DEWALT. Yes. example set, if you please, at the other end of the Capitol, fol­ 1\fr. SIMS. What the gentleman from Illinois read in the lowing the example of Senator LoDGE, in proclaiming that now biography of Senator LEwrs-that he moved to Georgia two there must be a peace with victory, and that there must be cer­ years before he was born-was a typographical error and really tain established ru1es and edicts made before this war could be beneath being referred to by the gentleman from illinois. concluded. In reference to that, permit me to say that the Mr. DEWALT. It was really too small a matter for consid­ President of the United States is blamed for keeping us out of eration by as big a man as is the gentleman from Illinois. · war, and for saying that he proposed to be elected upon a plat­ Mr. Chairman, I ask unanimous consent to proceed for 10 form " He kept us out of war." The gentleman from Illinois minutes more. [Mr. RoDENBERG] showed to us a little tag with the words upon The CHAIRMAN. Is there objection? it " Wilson's wisdom wins without war." I wish to God he haery Mr. DEWALT. No; I can not yield further. Republican and e>ery Democrat here in all patriotic sentiments Mr. GILLETT. The gentleman permitted the gentleman that look ·to the prosecution of this war, and I believe inher­ from Illinois to make a statement-- ently that this is the wrong time and particularly the wrong Mr. KNUTSON. In fairness the gentleman ought to hear the place to cast aspersions and attempt to belittle or besmirch other side: The Senator voted against the bond issue in 1898. or besmudge the official acts or the character of the President Mr. DEWALT. I heard, too, from the gentleman from Illi­ of the United Stares [applaus~], particularly when I find nois [Mr. RoDENBERG] a rather astounding statement, that when that in doing so the gentleman holds up to ridicule the Chief these great war measures, in which the. administration called Executive of the Nation by saying that he goes to the drama, for the support of its policy, were under consideration the that he goes to the movies, and goes to the theater, and with President was obliged, if you please, to look to the Republican him there he carries politics. It seems to me that it does not side of the aisle for support. I beg gentlemen upon that side lie in the mouth of a Representative from a great State like of the aisle to refer to the record as it stands, so that they may Illinois to come to this assemblage and say that the President ascertain how many of them as loyal men Yoted against the of the United States in pursuit, if you please, of recreation ancl tabling of the McLemore resolution. relief from his ardent duties, should be belittled and ridiculed Mr. CANNON. Mr. Chairman, will the gentleman yield? simply because he takes his wife and members of his official Mr. DEWALT. Always to the Nestor of. the House. family to the theater, and therefore is accused of using politics Mr. CANNON. And I hope the gentleman may have his time in that direction. [Applause.] extended. I voted against the laying of the McLemore resolu­ I might add that the belo>ed martyr, Abraham Lincoln, to tion on the table-a year before war was declared between this whom the gentleman from Illinois referred, was foully mur­ country and Germany. dered in a theater wltil t seeking recreation and alleviation Mr. CAMPBELL of Kansas. Thirteen months. from the great burdens he then so nobly bore in the defense Mr. DEWALT. Very well; but at the same time, although I of the Nation. - have the greatest affection and respect for the gentleman from Mr. RAKER. Mr. Chairman, I mo>e to strike out the last Illinois [Mr. CANNON], I believe, too, that possibly he has seen word. Mr. Chairman, I ask that I may rc>ise and extend my the light of day and repents the action he took at that time in remarks in the RECORD. the light of subsequent events. We are all mistaken, of course, The CHAIRMAN. Is there objection to the request of the at times, and although I can affirm as a positive assertion that gentleman from California? the distinguished gentleman from illinois has perhaps been less Mr. 'VALSH. 1\:Ir. Chairman, reserving the right to object, mistaken than any other man in the House, yet he is not above I want to ask the gentleman if the remarks he is about to make and beyond llie fact that sometimes people do make mistakes. · upon· this-- What is the fact in regard to this matter? In all these great Mr. RAKER. I am going to de>ote my time and attention propositions in regard to the war there was, if you speak exclusi>ely to the water-power bill. frankly, no division upon partisan lines. Republicans joined Mr. WALSH. And that hi remarks relate- in support of the administration, and I ·am quite glad and 1\fr. RAKER. To the water-power bill. willing and frank enough to say so. The Democrats also joined The CHAIRMAN. Is there objection? [After a pause.] in those mea ures, and it becomes, in my judgment, not only The Chair hears none. partisanship but bitter partisanship for a Member of the House, with a record uch as I ha>c established for the gentleman from THE 1\X:CESSITY FOR WATER-POWER DEVELOP~T. Illinois [l\Ir. RoDENBERG] by that which I ha>e shown, now to Mr. RAKER. 1\lr. Chail·man, the requirements of war have make this in>idious distinction about either side of the House: sllown the tremendous nece ... sity for the utilization of the falling There are but 7 Democrats who are members of the delega­ waters of not only the United States but of the whole world tion from Pennsyl"ranin. The rest of the 36 members, with the for Ute production of electric energy. 1918. CONGRESSIONAL RECORD-HOUSE. 9615

As was recently truly said : The Geological Survey report for the year 1913 shows that The development of our water powers would make the United States our consumption of coal for all purposes was about 570,048,125 impregnable in t ime of war, commercially dominant in time of peace. short tons, of which the railroads alone used about 20 per cent Impregnable in time of war through furmshing the energy required for production of explosives and munitions, for operation of railroads, and In addition to this, the petroleum used in 1913 was equivalent in a thousand ways in the conduct of hostilities, thus releasing our to 24,000,000 tons of coal. Every water horsepower now going man power for the Army and Navy; commercially dominant in time to waste which could be economically substituted for fuel of peace through furnishing energy for industrial activities, electrical nnd electrocheml c.a l processes, for transportation, for agriculture, and power would represent approximately 5' tons of coal per year for the innumerable things into which the use of power enters in the based on an average of 12 hours per day. To indicate what are daily life of our citizens. the possibilities of conservation along this line we need merely The safety, the wclfat·e, the prosperity, and the progress of the Na­ tion demand the prompt enactment of water-power laws in which pro­ to reflect upon the fact that the ultimate development o:t tection of the public intere t shall be coordinated with fairness toward 61,678,000 horsepower on the foregoing coal-consumption basis capital. Power, electric energy, terrible in its war uses, but a. God­ is equivalent to the· annual use of nearly 340,000,000 tons of given blessing when used to promote the comfort of mankind. coal-60 per cent of the total amount used in the United As our man power decreases-a considerable actual decrease States-which at $2 per ton represents an annual value of is inevitable, and, relatively to the siz·e of our task, a very $680,000,000. It all the water at· these power sites were used great decrease is already upon us-the shortage in man· power constantly the foregoing coal-consumption figures would be must be made up by the use of automatic machinery and vari­ doubled. Of course, this represents the maximum attainable ous power-consuming appliances. There is scarcely any char­ development, which in all probability will not be approached acteristic of these extended new enterprises so striking as the for a long period, but it also represents the end which may extent to which they use and depend upon electrical energy. finally be achieved. It is certain, however~ that unless a start . This increasingly great use of electric power is not something is made by the enactment . of fair and practical legislation which will end with the war, so we should not allow any linger­ efforts to accomplish this much-to-be-desired result, even in ing apprehensions of future idle equipment to damp our ener­ small part, will fail. Every undeveloped water power for gies in meeting the emergency demands which are upon us. In which a market now exists represents a willful waste of an Great Britain plans far more comprehensive than anything even exhaustible natural resource. talked of here are being laid years ahead for increasing, inter­ It is estimated that over 10,000,000 horsepower could be pro connecting, and centralizing the supply of electrical energy, for duced from dams installed in connection with the improvement making it the -very lifeblood of a greater industrial England. of our inland waterways, and that were locks installed in the This country must keep its place in the industrial world after power dams over 4,000 miles of the upper reaches of these the war-must increase it if our promised 25,000,000-ton mer­ streams would be opened to navigation. The cost of these river chant marine is to be given cargoes. If we grant this we are improvements would be upward of $800,000,000, and, if accom permanently face to face with this problem of power supply in plished by private capital for purpose of power production, all of its new-found importance. 'Ve must make our present would not cost the Government a dollar except for the bare emergency an opportunity, must keep mobilized our war-time locks and removal of minor obstacles in those portions of the spirit of comprehensive organization and efficiency. This is the streams not connected with power development. If these river time to formulate comprehensive plans for our future power improvements were in one stream, it would be equivalent to supply. creating a navigable waterway across the continent from New I quote from an article Pecently published by a well-known York to San Francisco. But in reality it ineans the extension engineer upon the " Coal supply of the United States" : of navigation for an aggregate of 4,000 miles in 35 rivers, trav The coal reserves of the United States are widely regarded as so ersing 20 States in such widely different sections of the coun enormous that no present thought need be given to their possible ex­ try as Connecticut, Massachusetts, Pennsylvania, Maryland haustion. Enormous they unquestionably are, but at the rate at which coal consumption is increasing their life will become n matter of concern Virginia, West Virginia, North Carolina, South Carolina, Ala within another generation. Coal consumption during the last three bama, Georgia, Tennessee, Florida, Arkansas, Ohio, Kentucky year has been increasing at a rate of over 10 per cent per annum. For Missouri, Wisconsin, Minnesota, Washington, and Idaho. the past 20 years the increase amounts to 6.! per cent annually. The necessary production for 1918, as estimated by the Fuel Administration, While it will take a long period of time to improve aU the is 710,000,000 tons, an increase over 1917 of 14.4 per cent. A conserva­ inland waterways which could be made navigable in connec tive estimate of our present normal rate of increase is 7 per cent. On tion with development of water powers, yet every 100 miles this basis, and with a rate of recovery from the mines as high as 67 per cent, the life of our known coal reserves would be as follows: helps, and the construction of river power dams will be begun Years. in many different sections of the country as soon as Congress Eastern district, which includes the most accessible and best quality passes laws permitting safe investment of capital in water of our fuel------~6 Ea tern, centra1 and southern districts------(14 power developments. - • Entire United Stntes1 and Alaska, over two-thirds of this being low­ The inland waterways of the warring countries of Europe are grade coals and lignites------83 being used to their utmost limit, and hundreds of miles of new (These figures are based upon estimates of the United States Geologi­ canals have been built since the war began. A new waterway cal Survey. They include coal in veins as shallow as 14 inches (35.5 em.), 182 miles long, connecting the Oder and the Vistula Rivers, has all coal up to 30 per cent ash, and all known deposits within 6,000 feet (1,828 m.) of the surface. Obviously, on a corresponding basis the recently been opened to traffic, and 5~ton boats can go direct life of the coal reserves minable and usable under present standards from Berlin to Warsaw and to the seaport of Danzig. would be much shorter. The reserves of fuel oil aud natural gas are relatively so insigntilcant that they would have no appreciable erfect on Germany has thousands of miles of canals and rivers which these figures.) · have been made navigable, and are being ·used for carrying The figures are even more impressive when we consider that the heavy freight, leaving the railroads free to be used for the United States has about 52 per cent of the coal reserves of the entire world and North America about 69 per cent. Outside of North America rapid transportation of troops and food supplies. It is said the only really l:u-ge deposits are in China, and are not readily acces­ that were it not for her freight-carrying inland waterways the sible. The next largest are in Germany. . This means that in the war would be over and Germany beaten, because the rapid future we must more and more be called upon to export coal. Curtailment in our rate of increase in fuel use means either checking movement of her troops from one front to another would of our industrial development or increasing economy in the consumption have been seriously impeded had the railToads been occupied of our fuel resources. Power supply is going to be the backbone of our with heavy freight. :future industrial development, and it is going to make increasingly great demands upon our fuel reserves. At the same tilDe, power use of The greatest and most beneficial ·result of the utilization of coal is the use which is most wasteful of its chemical an<1 thermal our now-wasting water powers will be in their u'se in con value. Accordingly, every feasible fuel economy :l,n power generation is nection with the increase of food production through manufac called for. ture of electro-fertilizers. The following estimate of tl).e United States Geological Sur­ Seven million tons of fertilizer, valued at $170,000,000, were vey shows the available water horsepower in the different sec­ sold in the United States .during 1913, and for its manufacture tions of the United States if developed to the practicable maxi­ over $40,000,000 of nitrogenous and other material was im mum without storage: ported, most of which could have been made in this country North Atlantic States------4, 910, 000 with the aid of electricity. The average amount of fertilizers South Atlantic States------5,107, 000 used in the United States is 28 pounds per acre of cultivated North Central States------~------4,270,000 lands, against 200 pounds per acre in Europe, with the following South Central States------3,342,000 Western States ------44, 049, 000 results: Total a>ailable potential horsepower ______61, 678, 000 Compar ison of at;erage yield per acre, in bushels, of crops in the United States and Europe. It is also estimated that with practicable maximum storage the total available water horsepower that could be produced in Wheat. Oats. Barley. Rye. Potatoe3 the United States would be 200,000,000. The present actual water-power development in the United States is about 6,000,- Europe ...... 32 4J 38 30 153 000 horsepower, or 10 per eent of the amount available without United States .•...... •...•...... 15 29 25 16 96 storao-e and 3 per cent of the amount available with storage. 9616 CONGRESSIONAL RECORD-HOUSE. AUGUST 27,

In 20 years some of the European countries have, through for money, and if to the risks and burdens of a naturally the use of fertilizer, increased the average of all crops to hazardous business, sucl1 as the operation of a water-power plant, · clouble the yield per acre in America. Before the war, Germany, is added harsh and restrictive government requirements ·and with 70 per cent of the population of the United States and regulations, it will be impossible to secure capital for the pioneer cultivating but one-fourth the area, produced 95 per cent of the work of power development. food products which she consumed. American capital and investment i · expected to supplant The crops harvested annually in the United States abstract German capital in Italy and in many of the South American over 1,000,000 tons of nitrogen from the soil, and as the world·s countries whi_ch have heretofore turned to Germany for the supply of combined nitrogen is _increased only slowly and in means of developing and financing natural resource . American small degrees by nature, the soil of farmed lands is entirely capital in volume will be needed to finance the harnessing · of dependent upon fertilizer for replenishment of the stock of ni­ Italy's water powers and electrification of her industries. Italy trogen which it gives up in its yield of crops. has no coal and the war has brought home to her realization of The present method of manufacture produces a finished prod­ the necessity of m-ailing herself of her water resources for the net containing but 12 per cent of active fertilizer, and 88 per generating of motive power. Italian capital is not sufficient to cent of utterly useless material, on which freight and haulage cope with the immensity of the problem, and she will undoubtedlY. must be paid by the. farmers; whereas, the electro-fertilizer turn to the United States for financial aid. product contains 60 per cent of fertilizing material. I am credibly informed that large banking hou es in New The use of fertilizer has a most intimate relation to the cost York have already received urgent appeals for money to be of living, which has increased in this country at a much more used in development of foreign water powers, with the as urance rapid rate than it has abroad. of practically unlimited franchises and in some cases govern­ The population .of the world doubles in 65 years, and with ment bonuses. increase in numbers there is an -increased per capita consump­ 'Ve must not make the Federal laws governing development of tion of food. the water powers of the United States so restricti've as to turn The extraordinary increase in the cost of living in the United American capital too much toward development of foreign water States has been principally in the cost of food products, while powers. Legislation should encourage business, not hamper it. other items than foods have increased at only the general rate The development of our water powers is of vital necessity for prevailing throughout the world. From 1900 to 1910 the cost promoting the safety, the comfort, the welfare, and the pros­ of foods in the United States increased 35 per cent, and abroad perity of every citizen of the United States. only 15 per cent. While our population increased 21 per cent 1\-fr. Chairman, these remarks I have just made arc in regai·d during those 10 years, crop production increased only 10 per to the general development of water-power legislation. We are cent, and our exportation of wheat and fiour decreased from 31 now down to the real meat of this bill. General debate has per cent to 13 per cent of the amount produced. The rapid in­ concluded and it will be now up to the Congress and this com· crease in food cost in this country can only be checked by in­ mittee in the first instance to report any amendment that may creased crop production, just as food prices are held down in be offered -or some that may be added if thought necessary to Europe through increase in yields per acre obtained without make this bill actually workable. I believe in a general way additional labor through the use of fertilizer. The countries the bill is wor.k;able. The bill contains necessary legislation _of highest agricultural development are the largest consumers that will develop the water powers of this country some 60,· of fertilizers. If our use of fertilizer in 1913 had been equal 000,000 horsepower. 1\-fuch time and much attention has been to one-half of that of Europe per acre cultivated, 24,000,000 tons given· to this subject in the House in the last six years. :Much would have been required of the value of $600,000,000, and in time has been given it in the Senate. It has been my fortune the production of which 12,000,000 water horsepower must have to have been on the Committee on Public Lands for the last been utilized, and the resultant increase of crop value would six years, having supervision of water-power legislation as re­ have exceeded $2,000,000,000. lating to the public lands, which bill has passed the House It is estimated that the1·e are at least 10,000,000 acres of arid twice and is again reported this year, and under the arrange­ lands located in the Far Western States, lying above the reach ment in appointing the Special ·water-Power Committee in the of gravity water, that can only be reclaimed through water selection of five members from the Committee on Public raised by pumps operated by the cheap hydroelectric power now Lands, Committee on Interstate and Foreign Commerce, and latent and wasting in the various streams'from which the water the Committee on Agriculture I am again placed as one of. the would be pumped. Thus the land, and at a lower level the water members of tl1at committee, and I have heard all the testimo1;1y to irrigate it, and the power to raise the water to the land are not·only that in the Public Lands Committee of the House, but often all as~embled at one point. Given water, these lands will have read that which has been given before the committee in produce every fruit, vegetable, and grain that is native to the the Senate for the last six years and have heard the testimony temperate zone, and are capable of supporting a population of as given before the special 'Vater-Power Committee, which in 2,000,000 people. With our water powers under development, it all amounts to many thousand page . The last volume i over is safe to say that hundreds of thousands of water horsepower a thousand pages. will be utilized within the next 10 years in connection with the l\1r. WALSH. Will the gentleman yielu just for a question? reclamation of arid lands, and that in addition to what the Mr. RAKER. ~ yield for a question. Government service will accomplish, hundreds of millions of Mr. WALSH. The reason I wanted to ask the gentleman a - dollars of private capital will be u::;ed for establishment of question is because of the great and serious attention that he reclamation projects in connection with pumping plants. Lands has given to this subject; and I know· that he is familiar with are being irrigated in 27 States and as far East as New Jersey the problem that present themselves in his part of the country. and Florida, and two Western States have now nearly 5,000,000 Now, I would like to ask him if he can tell me quickly anll acres of land under irrigation. briefly, within the· time he has remaining, which plan he favor~ The internal development of a cotmtry must precede its ex­ on the recapture proposition? ternal commerce, and the development of our water powers is Mr. RAKER I am going to dO' that before I get through. :vitally necessary to the industrial progress of the Nation, and The CHAIRMAN. The time of the gentleman fr.om California will be of enormous importance after the war to the maintenance has expired. and growth of its foreign trade. In every one of the 20 years Mr. RAKER. I ask unanimous consent that I may have 10 preceding the war of 1914 the foreign commerce of Germany minutes at this time. I took no time under general debate, nnd exceeded that of the United States. For the single year 1912 it was understood we should.have liberal debate under the five­ it was $853,000,000 greater, and for the whole 20 years was minute rule. I would like to make a few general remarks now $7,700,000,000 greater. There is nothing in that record for the and take as little time as possible when we come to tho general United States to be proud of, for we have an area 17 times as provisions of the bill. great. We have 30 per cent more population; three times the The CHAIRMAN. The gentleman from California n ks unani­ accumulated wealth, and our natural resources are 20 times mous consent to proceed for 10 minutes more. Is there obje.:!­ greater than those of Germany. tion? [After a pause.] The Chair hear · none. Looking forward to probable financial conditions after the :Mr. SINNOTT. Will the gentlemnn yield? close of t11e war. Property of all kinds will have depredated Mr. RAKER. . I will. greatly in physical condition and will have to be repaired. Mr. SI:r-.TNOTT. The gentleman spoke of the estimate of Stocks of merchandise will have become depleted and will have 60,000,000 horsepower. That is without storage. The storn,'-:e, to be replenished. Projects of all kinds, interrupted by the war, I understand, is something like 200,000,000. will have to be cowpleted. The commercial and industrial Mr. RAKER. This is without storage; yes. This i~ only progress of the Nation, which will have practically been at :i about 60,000,000 and about 200,000,000 with storage. Of <.: u1·se, . · standstill during the :war perigd, will be resumed ami go for­ there is a difference between the engineers as to the exact ward with a mighty _rush. This will mean an abnormal demand amount, but that is near enough, approximately-. . ~ . 1918. CONG-RESSIOX AL. R.ECOI~D-HOUSE. 9617

I was present at the time the conference was held with the water-power lea ·es for 50 years. It ought not to be permitted. President by these three committees, and I ha\e given the sub­ I kno"\Y it was not called to the attention of the committee. ject some consideration. Like others, we differ. But there are It was in connection with former legislation in the Com­ some of these things that are to my mind, as I view it, familiar. mittee on Public Lands, in regard to the leasing of coal and :While I might differ with others, I am going to gi'\"e the House, gas and phosphates, and to the House in this bilL But the as I see it, some of the benefit of that study and consideration. question in the Committee on Water Power was overlooked. I want to say, generally, that I believe this water-power legis­ I oYerlooked it, although I had an amendment that I had pre­ lation as now presented, with the exception that I am going to pared in connection with the former legislation that I wanted name, is workable, that it will protect the Government in the to call to the attention of the committee. But this Congress rights that it now holds; that it will give the investor fair and ought not to permit a corporation composed of aliens to receive decent treatment and a fair return for the money invested and these permits or licenses. It says " any corporation or associa­ a sufficient opportunity to develop these powers. And it will tion." That would permit a foreign corpoi·ation. But the give the consuming public a fair opportunity to receive elec­ language later restricts it, where it says, " It shall be a do­ trical energy at a reasonable rate and not overburden it with mestic corporation in any State or Territory." It should be fictitious charges and watered stock; and other conditions that provided that at least a majority of the organization or stock­ are so burdensome at the present time. The question of the holders should lJe citizens of the United States. length of time, guarded as it is, I believe is all right. Under The CHAIRl\IAl~. The time of the gentleman from Califor­ the present system where we ha"Ve a revocable permit, no man nia has expired. can develop, no institution can develop, no association, no mu­ Mr. RAKER. Mr. Chairman, I ask for five minutes more. I nicipality, can develop; and. there should be a fixed period, with want to submit one more question. Then I shllll not t~e any rules and regulations for control, to the end that the investor further time to-n!ght. may know, that the public may know, and the consuming public The CHAIRMAN. Is there objection to the gentleman's re- be treated fairly and properly. · quest? These general matters have been provided for in the bill There was no objection. by the creation of a commission, and turning over the authority 1\fr. SINNOTT. Mr. Chairman, will the gentleman yield? to the Government where there is no State commission, and Mr. RAKER. Yes. to a State commission where there is a commission authorized Mr. SINNOTT. I wish to call the gentleman's attention to and organized for the purpose of adjusting these rates and the definition of a corporation in section 3. A. corporation must fixing the question of the bond issues and capital issues, and be a corporation organized under the laws of a State. so forth. The commission is the proper thing. It brings unity Mr. RAKER. That might include a foreign corporation. of action from the three departments, where the Interior De­ Then, there is another suggestion, and that is that the majority partment and the Department of Agriculture and the War De­ of the stockholders might be foreigners. · They should not be partment can combine their judgment. And you will get better allowed to obtain a lease or license for 50 years. The bill results than if you leave it to one. And so while one man may should be amended in that particular. At the proper time I will be familiar with the particular subject in hand, the others, offer the amendment. by studying the conditions, may be able to secure better results. Now, there is another thing which is fun

amount of the depredation of the ra.ill'oad property which might be shown by an inventory, such as our BuFeau of Valuation is now making. REPORTS OF COUMITTEES ON PUBLIC BILLS AND The difference between the cost of all the property new and lts present RESOLUTIONS. condition is doubtle s greater than is shown in the reserve for accrued tleprecill tion. Under clause 2 of Rule XIII~ Now, this is what I want to call your attention to~ 1\Ir. HAMILTON of Michigan, from the Committee on Inter­ It should be stated that the form of the balance sheet was changed state and Foreign Commerce, to which was referred the bill after 1914. (H. R. 12631) granting the consent of Congress to the county Continuing : of Winnebago, in the State of Illinois, and the town of Rockford, l am ending herewith a copy of the t ext of' the Statistics of Ball­ in said county and State, to construct a bridge across Rock ways in the United States for the year 1916. On pages 94 and 95 the River at or near Camp Grant, reported the same without amend­ investment in road and equipment i · shown on the asset side and the ment, accompanied by a report (No. 7G2), which said bill and reserve for accrued depreciation is shown under unadjusted credits on the liability side, and the latter of these items must be subtracted from rep()rt were referred to the House Calendar. the former in orde r to get a figw·e corresponding to the net road and equipment charge in the 19-14 statistics. I am also sendin"' a copy of the preliminary tatistlcs of common PUBLIC BILLS, RESOLUTIONS, AND 1\IEMORIALS. -carrier for the calendar year 1916, bich will show these fii{Ure. for individual large roads- The corresponding publication for 1917 is in Under clause 3 of Rule XXIL bills, resolutions, and memorials the hands of the printer. were introduced and severally referred as follows: r am also sending cople of the classifications of operating revenues, By l\Ir. PARK: A bill (H. R. 12819) amending an act to pro­ operating expenses, income, and general balance sheet accounts which al'e now in eJl'e:ct. vide for the operation of transportation systems while under Federal control, and for the just compensation of their owners, It is only a question of form, and after investigating it the and for other purpo-ses, by extending to lines not under Federal 'Interstate Commerce Commission has changed this form, page conb.·ol the rights, privileges, and immunities extended to · those after page of it, by adding to it and subtracting from it. That under Federaf control; to the Committee on Interstate and For­ is, as to the net investment on a railroad property. Now, after eign Commerce. a man has used a water power for 50 years and received a proper return on it for costs and charges, for upkeep and maintenance, instead of saying, "We will pay you the actual PRIVATE BILLS AND RESOLUTIONS. cost of it at the time we take it over," if you s-ay that it must Under clause 1 of Rule XXII, private bills and resolutions be according to this bard and fast form, it is confusing and were introduced and severally referred as follows : misleading. The Interstate Commerce Commission, as I &'ly, By Mr. OL..A.RK of Pennsylvania: A bill (H. R. 12820) grant­ have been compelled to change this form since it was printed ing a pension to William H. Sigendall; to the Committee on in 1914. Why should we make it a hard and fast rule Q:f Invalid Pensions. net investment? If "We enact thi:s into law, we make it hard and By Mr. COPLEY : A bill (H. R. 12821) granting a pension to fast and can not change it. If the Interstate Commerce Com­ Sarah A. Vaughn; to the Committee on Invalid Pensions. mi sion after their investigation find that they should make By Mr. GARD: A bill (H. R. 12822) granting a pension to till furthe changes, 've will have adopted a hard and fast Elizabeth Daub; to the Committee on Invalid Pensions.. rule which we can not change after the 50-year license has been By Mr. OSBORNE : A bill (H, R. 12823) granting a pension granted. Why not adopt the sensible rule of " paying the fair to Frederick M. l\filler ; to the Committee on Invalid Pension . -value not to exceed actual cost of the property," and so forth, By 1\.fr. STEENERSON: A bill (H. R. 12824) granting an in­ to the licensee for his property at the time you take it over crease of pension to Jonathan Harding; to the Committee on and make it a pa rt of the contract that can not be changed. Invalid Pensions. Everyone then knows just what will happen ·upon recapture By .JI..Ir. TAGUE: A bill (H. R. 12825) granting a pen ion to of the prope1·ty. The bill should be changed in this respect Daniel O'Connell; to the Committee on Pensions. back to its original form. Also, a bill (H. R. 12826) granting a pension to John J. Mr. SDlS. l\Ir. Chairman, it is late and very few of the Coughlin; to the Committee on Pensions. Member aTe present. I want to say that we have the Temain­ ing four days of this week for the con ideration of this bill ; but further, there are a number of l\1embers who- took no part PETITIONS, ETC. at all in the general debate whom I a sured that when it came Under clause 1 of Rule XXII, petitions an.d papers were laid to the five-minute debate, and to the contested portion of the on the Clerk's desk and referred as follows : bill, there would be reasonable liberality in allowing debate By the SPEAKER (by request): Memorial of the Loyal upon the conte ted matter. I want to do that. I want to keep Order of Moose of Coeur d'Alene, Idaho, favorinO' House bill that prominent throughout. Therefore I shall object to any 5407, to admit osteopaths to the medical service of the Army; further requests for unanimous consent to make speeches on to the Committee on Military Affairs. any subject, no matter what it is, except this water-power bill, Also (by request), resolution of the National Committee on anll the debate on the bill must be confined to the subject matter Prisons and Prison Labor, favoring House bill 9683; to the under discussion. Committee on Labor. Therefore, Mr. Chairman, after giving this notice, which I Also (by request), petition of James P. Fulton, of Stanley, think is fair and proper, I move that the committee do now riSe. N. Y., favoring a bill to increase pensions to maimed soldiers; The motion was agreed to. to the Committee on Pensions. Accordingly the committee rose; and the Speaker having Also (by request), petition of W. H. l\1orse, of Warrenton, Mo., resumed the chair, 1\lr. WEBB, Chairman of the Committee of urging the passage of the retired officers' bill; to the Coilllllittee the Whole House on the state of the Union, reported that that on Invalid Pensions. committee had bad under consideration the bill ( S. 1419) to Also (by request), petition of the Night and Day Bank of St. amend an act entitled "An act to regulate the construction of Louis, Mo., against the Norris amendment to the emergency dams acio s navigable waters," appr Yed J"une 21, 1906, as Agricultural appropriation bill ; to the Committee on Agricul­ amended by the act approved June 23, 1910, and to provide for ture. the improvement and development of waterways for the uses of Also (by request), resolution adopted by the Central Confer­ interstate and foreign commerce, and had come to no resolution ence of American Rabbi anent the Balfour declaration; t o the thereon. Committee on Foreign Affairs. l\lr. FERRIS. Mr. Speaker, I ask unanimous consent that the Also (by request), resolution of the Carnegie Endowment for proceedings had during the recess in honor of the Uruguay dele­ International Peace, concerning its attitude toward the war; gation to--day, including a translation of the speech of Dr. to the Committee on Foreign Affairs. Drum, be printed in the RECORD. Also (by request), re olution of the United Mine Work r~ , of The SPEAKER. The gentleman asks that the proceedings the Fairmont, W. Va., field, relative to the Mooney trial; t the durin" the recess in honor of the Uruguay commission, including Committee on the Judiciary. a translation of the remarks, be printed in the CoNGRESSIONAL Also (by request), petition of undry business firms through­ llECoBn. I there objection? out thelJnited State , of the St. Louis Typographical Union, There was no obje tion. of the l\Ianufacturer and Dealers' League of the City and State ADJO""GBNllENT. of New York, and of the Union Label Trades Department of tile American Federation of Labor, against prohibition a appli ll to l\Ir. SI:MS. Mr. Speaker, I mo\e that the House do now wines and beer; also, petitions of sundry citizens and re olu· adjourn. t ions by the Five Years Meeting of. the Friend.s in America. T he motion was a~reed to ; accordin ~ly (at 5 o'clock and 4 and by the annual camp meeting held in Pasadena, Cal., urging minute~ p. m.} the Hou. ·e adjourned until ·1Vednesdny, August immediate passage of war prohibition legislation; to the Com­ 28, HH8, at 12 o'clock noon. mittee on the J udiciary. CONGRESSION.A.L RECORD-SENATE. 9619 1918. , - . ... ~ .

Also (by request), petition of sundry citizens of the United ~mCRAFT PRODUCTION. States, favoring independence for Ireland; to the Committee on 1\Ir. THOMAS. 1\Ir. President, my attention has been called Foreign Affairs. to the fact that the Associated and other press dispatches have By Mr. BESHLIN: Petition of the United Evangelical misstated the recent report of the Senate Committee on 1\lilitary Church, of Greenville, Pa., urging the adoption of war-time Affairs upon the subject of aviation in a >ery important particu­ prohibition; to the Committee on the Judiciary. lar. I refer to the first appropriation of $<340,000,000 for n>ia­ By Mr. CARY: Memorial of the Union Label Trades Depart­ tion purposes, a. substantial part of TI"hich the committe2 re­ ment of the American Federation of Labor, protesting against ported to have been practically \vasted. further legislation de igned to prohibit the manufacture or sale The statement which has go_ue the rounds of the press is that of beer; to the Committee on the Judiciary. according to the report the entire sum has been wn ted. That Also, resolution of the 'Visconsin State Council of Defense, does injustice, and Yery serious injustice, to the authorities urging that a labor census be taken; to the Committee on Labor. having the disposal of this fund, scarcely one-half of which up By 1\Ir. DALE of New York: Memorial of the Brooklyn Central to this time has been actually expended. Labor Union, against Senator THOMAs's labor-conscription The neeessity of calling attention to this is due to the facts, amendment to the selective-draft law; to the Committee on and because wide publicity has been given to the erroneous Military Affairs. - statement, which if uncontradicted will be accepted as true, By 1\Ir. ELSTON: Petition of the North Congregational when the facts are otherwise. Church of Berkeley, Cal., for the immediate passage of war­ time prohibition; to the Committee on the Judiciary. l.Ir. BR~TDEGEE. Will the Senator from Colorado be killll By 1\Ir. OSBORNE: P.etition of 68 citizens of Los Angeles enough to inform me whether he can state that half of the • County, Cal., favoring a bill to provide for the substitution of appropriation of $640,000,000 is still subject to the disposal of the oath required of enlisted men for the oath required of offi­ the proper officials? · cers; to the Committee on Military Affairs. 1\fr. THOMAS. Commitments have been made for it through Also, petition of Jacob B. 1\Iujdorff, Soldiers' Home, Los contracts and orders in process of performance. Angeles, Cal., for bill covering Indian wars; to the Committee 1\lr. BRANDEGEE. That is what I wanted to find out. on Pensions. DE..-\.TH OF SENATOR JAMES. By Mr. SNYDER: Petitions of the Albany Street Baptist Church, Utica, for immediate passage of war-time prohibition; 1\Ir:BECKH.AM. 1\lr. President, it is my sad duty to announce also, petition of residents of Watertown, N. Y., against further to the Senate the death of my distinguished colleague, Hon. legislation in the matter of war-time prohibition; to the Com­ OLLIE l\1. JAMES, which occurred at the Johns Hopkins Hospital mittee on the Judiciary. in Baltimore this morning about 6.30, and while it has not By Mr. STEENERSON: Petition of Charles Kittleson-, of been unex:p•3cted for som~ time it comes as a great shock to all Minneapolis, Minn., in favor of Senate bill 130 and urging early of us and to all who knew him. I am sure, 1\Ir. President, that and favorable action thereon; to the Committee on Military in my State there is universal and profound sorrow, and I feel Affairs. equally sure that here in this body among the 1\fembers who have By 1\Ir. STINESS: Memorial of the War Council of the Provi­ associated with him for neai·ly six years there is also the deepest dence (ll. I.) Chamber of Commerce recommending exercise of sorrow. We shall miss his genial, generous character, and greater care in guarding against duplication of Government among all of the losses which our body has sustained in the literature in the mails; to the Committee on Printing. present Congress none, I am sure, will be felt more than that By 1\Ir. TAGUE: Resolutions of the New England Hotel Asso­ of Senator JAMES. ciation against prohibition; to the Committee on the Judiciary. It is unfortunate, 1\Ir. President, it seems to us, that we can By 1\Ir. TEMPLE: Petition of sundry citizens of Pennsylvania not understand the Divine purpose when a young man of his for the passage of House bill 10266, a bill to provide for the age, in the very prime of his manhood, and at a time when his substitution of the oath required of enlisted men for the oath re­ splendid abilities and services were most useful to his State quired of officers, in order to relieve those who object on con­ and to the Nation, ·should be taken away. scientious grounds to the oath prescribed by law for officers; But it is not now the time to pay full and proper tribute to his to the Committee on Military Affairs. character and life. Upon another occasion later on those of u::; By Mr. VARE : Memorial of the Union Labor Trades Depart­ who knew him so well, who loved and admired him, will have ment of the American Federation of Labor against prohibition; the opportunity of doing so. _ to the Committee on the Judiciary. I send to the desk, Mr. President, resolutions which I ask may be read and adopted. The P~ESIDENT pro tempore. The Secretary will read the SENATE. resolutions. The resolutions (S. Res. 294) were read, considered by unani­ WEDJ\TESDAY, Attgust ~8, 1918. mous consent, and unanimously agreed to, as follows : The Chaplain, Rev. Forrest J. Prettyman, D. D., offered the Resolved, That the Senate has -heard with profound sorrow of the following prayer : death of the Hon. OLLIE M. JAMES, late a Senator from the State of Almighty God, in the pursuit of the ideals upon which we Kentucky. · Resolved, That a committee of 15 Senators be appointed by the Pr~i­ have founded a Government and in following the lines of life dent pro tempore to take order for superintending the funeral of Mr. laid down for us by our fathers we have been called to make a JAMES, to be held in the city of Marion, Ky. Resolved, That the Secretary communicate these resolutions to the · complete surrender of ourselves, of our interests, of our powers IIouse of Representatives. in furtherance of our great spiritual democracy. We pray that Thy blessing may be upon us as we enter more and more into Under the second resolution the President pro tempore ap­ a world conflict. As we lay our fortunes, as we send our boys, pointed M:r. BECKHAM, Mr. SIMMONS, Mr. WILLIAMS, Mr. SMITH as we give our lives to the interests of humanity do Thou, 0 of Arizona, Mr. Po::u:ERE~, 1\lr. PITTMAN, 1\lr. UNDERWOOD, 1\lr. God of us all, smile upon us, gi·ve us success, and bring us to KENDRICK, Mr. PENROSE, Mr. BoRAH, Mr. 'VEEKS, l\1r. KE~Yo:N, speedy victory. 1\fr. FALL, l\Ir. CURTIS, and l\Ir. HAnniNG as the committee on the Again and again \Ye are called upon to mourn the loss of one part of the Senate. of our leaders and master spirits. To-day the news reaches us 1\Ir. PITTMAN. Mr. President, this was the day which hau of the death of the senior Senator from Kentucky. This great been agreed to by the Senate for holding memorial exercises man so lately stood among us in strength and glory of :roung in respect to the memory of the late Senator from Nevada, manhood, endowed with splendid qualities of leadership, strong FRANCIS G. NEWLANDS. I, as does every Member of the Senate, in his friendships, loyal to the country, and de>oted to the concur in the sentimentl'i ex).)ressed by the Senator from Kentucky highest ideals of our national life. In Thy pro>idence his relative to our beloved friend, and, of course, in the circum­ spirit has been called back to God who gave it. stances· it is fit and proper that this body shall adjourn in We thank Thee for all the service he rendered to our Go>ern­ accordance with custom, and I have been informed by the Sena­ ment and for the devotion which he manifested in the well­ tor from Kentucky that he is about to make such a motion. being of humanity. Let Thy mercy be with those who consti­ I know that the action proposed by the Senator from Kentucky tute the inner circle of his family and friends, and enable us will meet with the entire approval of the family of the late Sena­ to perpetuate in our live all that was best in his. tor and that this custom of the Senate is thoroughly understood. For Christ's Rake. Amen. But before action is taken upon that motion out of respect On request of 1\fr. THOMAS, and by unanimorts consent, the to the late Senator JAMES, I giYe notice that on l\Ionday morn­ reading of the Journal of the proceedings of the legislati-ve day ing, immediately after the Senate convenes, the memorial exer­ of Thursday, August 22, 1918, was dispensed with, and the cises in respect to the memory of the late Senator FRANCIS Journal was approved. GRIFFITH NEWL.A.NDS mll be held by lmanimous consent.