![Congressional Recor]}L-Senate. 10065](http://data.docslib.org/img/b006a2cb04347e1891189adce8860420-1.webp)
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1922. CONGRESSIONAL RECOR]}L-SENATE. 10065
wit: Tularosa, Elk, Silver Springs, White Trail, Cherokee. North to become the common property of the tribe, and the use, i.f any, of Carrizo, South Carrizo, Rinconado, and Nogal, and such other informal such water power to be for the common benefit of the Indian residents. selections as have heretofore been made and are now being occupied or The Secretary of the Interior is further authorized and directed to cultivated by Indians for agricultural purposes, all of which said lands provide, at the earliest possible moment, proper houses for the Indian shall be allotted in severalty to the Mescalero Apache and other residents, and particularly for the 1\fescalero Apache Indians; the costs Indians now upon said reserve ; and such lands as are now being used of such acquisition of property and of the construction of such houses by the United States Government for school, agency, and other pur and necessary buildings for individual Indians to be paid out of any poses shall be likewise surveyed and are permanently reserved, and funds now or hereafter available for such purposes. such tracts as have heretofore been set aside for the benefit of any S1:c. 10. That nothing in this act contained shall be interpreted to church shall be permanently reserved fo1· such purpose. Such severalty lin_iit or interfere with the use of the Elephant Butte Dam and Reser allotments may descend to the legal heirs of the allottee, but neither vou· and the lands appurtenant thereto for irrigation purposes nor to the allottee nor such heirs shall have the power to dispose of such limit additions to said dam and enlargement of said reservo.ir 'ror irri allotment by deed or otherwise until these restrictions may be re gation purposes, nor to diminish, limit, or interfere with the use and moved by the Congress of the United States, except that in the dis development of electi·ical power incident to the discharge of water cretion of the Secretary of the Interior such allotment may in the from said reservoir by or for the benefit of the Rio Grande il'l'igation interest of the allottee be leased to any other Indian among those, project and the settlers and landowners entitled to the benefit thereof, or the descendants of those, now residing upon such reserve. but the use of said dam, reservoir, and lands appurtenant thereto for SEC. 3. That nothing in this act contained shall be held to abrogate park purposes shall always be subservient to its use for irrigation pur the provisions of the mining laws of the United States, including the poses and the incidental development and use of hydroelectric power mineral lease law approved the 2tit h· day of February, 1920, but the thereupon, under such rules and regulations as the United States Recla same shall remain in effect in the territory herein set apart : Provided, mation Service, under the authority of the Secretary, shall from time to That the surface land area of any lease or permit shall be no more than time adopt and prescribe: P1'ovided further, That the privilege of is sufficient for strictly mining purposes : And pro1:ided further, That fishing in the Elephant Butte Reservoir shall be open and free to the the proceeds of any lease of nonmetalliferous minerals shall be placed persons complying with the game laws of the State of New Mexico. in the Treasury of the United States, one-third of such proceeds to be The amendment was agreed to. available from time to time for the use of the Indians residing upon such r eserve, one-third to t he credit of the reclamation fund, and the The bill was reported to the Senate as amended, and the remaining one-third shall be paid over to the State of New Mexico for amendment was concurr<:!d in. the road fund of .such State. Any coal deposits which may be found The bill was ordered to be engrossed for a third reading, was upon the present l\1esca1ero Indian Reservation may be leased or worked for the benefit of the Indians upon such reserve and their read the third time, and passed. descendants, and the output the1·eof disposed of under such rules The title was amended so as to read: "A bill defining the and regulations as the Secretary may prescribe. The Secretary of the right.s of the Mescalero Apache Indians in the Mescalero Indian Interior IDRY se11 and permit the removal of only the excess matured or down timber as he may deem necessary or advisable, the proceeds Reservation, providing for an allotment of certain lands therein of such sale to be deposited in the Treasury to the credit of the in severalty to the l\Ie.scalero Apache Indians, and creating and MPscalero Indians. The Secreta1·y shall cause to be provided for the defining the All-Year National Park, and for other purposes." us1:: of said Indians one or more sawmills, easily transportable, which shall be used under the direction of the agent or superintendent by the NOMINATIONS REPORTED. Indians for cutting and preparing lumber for houses, corrals, fences, road building, and other necessary purposes for the benefit -of said The PRESIDING OFFICER (l\lr. WADSWORTH). The pres Indians upon such reserve. ent occupant of the chair asks unanimous consent, as m open SEC. 4. That the unallotted and unreserved lands upon said reserve executive session, to report from the Committee on Military shall be and remain the property of the Indians now residing upon said reservation for their common use and benefit, for gra.zing, and Affairs certain nominations, to go to the calendar. Is there oth<>r purposes, through tribal herds or lease of such areas, and for objection? The Chair hears none. their common use and benefit in securing supplies of lumber therefrom, Mr. UNDERWOOD. I assume from this that we will not as stated in section 3, until otherwise directed by the Congress of the United States. have an executive session this evening. SEC. 5. That the Indians resident upon said reserve and their de l\ir. McCUl\IBER No; we will not. scendants shall, under· 1he rules and regulations to be prescribed by Mr. UNDERWOOD. Very well. the Secretary, have free grazing for their own stock within said r eserve, and the surplus grazing lands, if any therein, may be leased RECESS. under such rules and regulations, and the proceeds of such lease or leases shall be deposited in the Treasury to the credit of said Mr. McCUMBER. I move that the Senate take a recess until Indians. to-morrow morning at 11 o'clock. Nothing in this act contained shall be interpreted to restrict or cur The motion was agreed to; and (at 5 o'clock and 50 minutes tail the right of the Indians lawfully resident upon said reserve to hunt game therein or to fish therein under rules and regulations to be p. m.) the Senate took a recess until to-morrow, Saturday, July adopted by the Secretary of the Interior, which rules and regulations 8, 1922, at 11 o'clock a. m. shall prohibit the bunting of game upon such reserve by any other •han an Indian resident thereupon. All rights to the use of waters for irrigation and domestic purposes, whether obtained by user, prior appropriation, adjudication, or otherwise, now vested in or belonging SENATE. to the Indians resident with.in the boundaries of said park are hereby confirmed. SATURDAY, SEC. 6. That u.Q.der the directions of the Secretary the Bureau of July 8, 1922. Indian Affairs shall have complete jurisdiction over Indian matters and all properties and proceeds of the reserve for the benefit of the (1.,egislative day of Thursday, April 20, 1922.) Indians lawfully resident therein, except as specifically excepted herein, and such jurisdiction shall extend to the Indians at all times, whether The Senate met at 11 o'clock a. m., on the expiration of the upon portions of the reserve set aside for park purposes or otherwise. recess. SEC. 7. That within the boundaries of said Mescalero Apache In dian Reserve the National rark Service shall have jurisdiction over DISTRIBUTION OF SPEECHES BY FEDERAL RESERVE BANKS. roads and trails now constructed or to be hereafter constructed, as The VICE PRESIDENT. The Chair lays before the Senate a well as over the parcels of land referred to in section 1: Provided, communication from the governor of the Federal Reserve Board, That transit over same shall be perpetually free to the Indians, and that no such trails or roads now constructed shall be closed and no transmitting, pursuant to Senate Resolution 308, letters from new roads or trails opened except by agreement between officials· of the governors of the Federal reserve banks of Philadelphia, the park and of the Indian Service, and said pa1·k service shall have Richmond, and St. Louis relative to the circulation of copies of jurisdiction over tourists and visitors within the limits of said resPrve and the limits of said park, and shall formulate rules for the adminis the speech of Senator Gr.Ass. Without objection, the communi tration and control of such areas within said reserve as are specifically cation, with the accompanying letters, will be printed and lie on designated and set aside for park purposes and over roads and trails. the table. SEC. 8. That in the employment of labor within the boundaries of said reserve, including the portion set apart for park purposes, prefer Mr. HEFLIN subsequently said: ence shall be given to Indians lawfully resident within said reserve, - Mr. President, in response to a resolution passed by the Sen and a like preference shall be given for all guide work and for the use of Indian horses, whether such guide work and horseback riding shall ate a few days ago calling upon the Federal reserve banks to be by rules and regulations provided to be carried on under conces give certain information about the circulation of the speech of sion or otherwise. Senator GLAss, we have reports from the Federal reserve banks SEC. 9. That in event the use of any parcels of land hereinbefore of Richmond, St. Louis, and Philadelphia transmitted to the provided to be set aside for park purposes, or the jurisdiction over any roads or trails now or hereafter to be constructed shall be sur Senate by the governor of the Federal Reserve Board. I ask r endered, the Commissioner of the General Land Office shall be im unanimous consent that the order made this morning to print mediately notified thereof, and the title to such lands and the right the reports be rescinded and that they lie upon the table of the to use thereof and jur·isdiction over such roads shall immediately re v ~ rt to the Indians resident upon the reserve, and such title or rjght to Vice President until the other reports are received, so that we the use thereof shall not reinvest in the park service or any othe1· can dispose of all of them together. service, or be divested from the Indian residents, except by act of the The PRESIDING OFFICEU (Mr. ROBINSON in the chair). Conl{ress of the United States. That the Secretary of the Interior, in consideration of the transfer Witbout objection, the request will be granted. The reports will of the use of said parcels of land and roads to the park service, ls lie on the table for the present. hereby authorized to negotiate for, and secure the title to, privately owned lands situated upon said reserve within the Tularosa Canyon PETITIONS. together with any water rights or water-power rights appurtenant t~ Mr. SHORTRIDGE presented petitions of sundry granges of said lands, through proper deeds of conveyance, which properti~ shall immediately become the property of the Indian residents; and those the Patrons of Husbandry in the State of California, with a portions or lots thereof susceptible of allotment in severalty shall be membership of 900, favoring the election by farmer stockholders so allotted to Indian residents ; the remaining portions ot such property of six directors to officer each of the 12 Federal land banks, XLII-635 _10066 OONGRESSION AL RECORD-SENATE. JULY 8,
tbe Federal 'Government appointing three directors to represent l\Ir. l\IcCUMBER. Will the Senator from Louisiana :yield tb the Government and the country's interest, which were .referred me to make a unanimous-consent request? to the Committee on Banking and Ourrency. Ir. RANSDELL. With 'Pleasure. - Mr. IUcCUMBER. I ask unanimous consent that when the REPORTS OF COM.M.ITTEE8. Senate closes its business on this calendar day it recess until l\Ir. BUilSUl\I, frem the -Committee on . Pensions, to which Momlay at 11 o'clock a. m. were referred the following bilLs, reported them each with The VICE PRESIDENT. Is there objection? The Chair amendments and submitted reports thereon : hears none, and it is so ordered. A bill (H. R. 11427) granting pensions and increase of pen 1\Ir. l\lcCUMBER. I thank the Senator. sions to ·ce-rtain soldiers and sailors of the Civil War and cer l\lr. RANSDELL. l\Ir. President, the action of the Finance tain widows and dependent children of soldiers and sailors of Committee in recommending a horizontal reduction of 00 per said war (Rept. No. 809); and cent in the existing tariff on riee practically" amounts to the ·A bill (H. R. 11533) .granting pensions and increase of pen proscription instead of protection of that great industry. This sions to certain soldiers and sailors of the Civil War and cer hostile attitude toward a defenseless industry, which more than tain widows and dependent children of -soldiers and sailors of any other in the long agricultural schedule should call for the said war (Rept. No~ 810). aid of a protective tariff, is all the more 11mafilng because of l\Ir. NEW, from the Committee on Claims, to which were re the liberal treatment which the committee has i·ecommended for ferred the following bills, reported them each with a.n amend an the other cereals. ment and submitted reports thereon: Not only must our rice farmers compete with the lowest and A bill ( S. 1491) for the relief of George T. Larkin (Rept. No. most unequal form of foreign competition met by any American 811); ana producer, but I think I can successfully demonstrate to the A bill (S. 1515) for the relief of Henry C. Wilke {Rept. No. Senate the necessity of this particular crop if we are to suc 812). ceed in our eff.orts to build up ouT merchant marine ~and foste't BILLS INTBODUCED. oUl' expanding foreign trade. I also intend to show that since Bills were introduced, read the first time, and, by unanimous the present tariff law went into effect the :rice industry has consent, the second time, and refened as follows : been adversely affected by congressional enactments which, By l\Ir. SWANSON: though not intentionally aimed at it, as in the present case, have A bill (S. 3797) granting a pension to Anna R. Little; to the nerertheless seriously affected it, and I believe that when these Committee on Pensions. :facts are demonstrated the Senate in a spirit of justiee will A bill (S. 3798) for the relief of F. J. Andrews; to the Com agree to a Testoration of the rates carried in the bill as it mittee on Claims. pa.ss~the House. A bill ( S. 3799) for the relief of Louis A. Hogue ; and Let me preface these remarks, Mr. President, 'by briefly re A bill ( S. 3800) for "the relief of C. Pateras & Sons and C. citing the important position which this crop occupies in world Lemos, owners of the Greek teamship 0011.-sta-nUnos Pateras; wide ec.on.omy and its place in our own history. Not enly is its to the Committee ·on the Judiciary. use the most ancient but it remains to this day the most im 'By Mr. MOSES : portant of all the cereals used for human food. It occUJ)ies A bill (S. 3801) granting a pension to Eliza A. Stratton (with an honored place in records that are found at the very dawn of accompanying pal!ers) ; to the Committee on Pensions. history, tile Chinese tracing its introduction back beyond the year 2822 before the Christian era. All of the early classic STANDARDS FOR HAMPERS AND BASKETS. writers of the western world who dealt with economic sub l\1r. CAPPER submitted an amenclment intended to be pro jects testify to its importance, and it continues to £>ccupy a posed by him to the bill (H. R. 710-2) to fix: standards for highly important place in the agricultu.ral life of the nations hampers, round staYe baskets, .and splint baskets · for fruits grouped about the .Mediterranean Sea. and vegetables, and for other purposes, which "\Vas referred to I shall not consume the time of the Senate to discus the the Committee on Manufactures and order~cl to be printed. detailed history of the crop in those foreign countries ; to -show how during the lapse of ages its culture has lapsed at times, - THE TARIFF, when for ,a period popular taste swung toward those grains The Senate, as in Committee of the Whole, resumed the con which have .always been identified. with the North, 'like wheat sideration of the bill (H. R. 745{)) to provide revenues, to regu and corn. The notable fact about it is that mankind has late commerce with foreign countries, to encourage the indus always returned with increased ardor to the c_ultivation -Of the tries of the United States, and for other purposes. crop that was invested with divine attributes when the rac~ l\.fr. POINDEXTER. Mr. President, I submit certain pro wa.s in its infancy, -and it suffices to say that not only in Asia posed amendments to the pending ·tariff bill and ask that they but in Italy, in Spain~ and elsewhere greater efforts are being be printed and lie on the table for future presentation. madce to-Oay to stimulate the production of rice tha-n at any The VICE PRESIDENT. The amendments will be printed time in recorded history. · and lie on the table. _ · In our own country the rice industry has been one 'Of the Mr. McCUMBER. Mr. .President, I ask the Senate to return most spectacular factors i:n our marvelous agricultural de to paragraph 728, the ·rice paragraph. I desire to .state in v-elopmen t. This especially applies to the past 25 years, or from respect to this paragraph, -as 1 stated some time ago, my belief the time -0f the Spanish-American War. since when there has that while the committee itself has not yet definitely Teported been a complete change I).Ot only in the fields ,of pToduetion but the disagreement, in my own conviction we ought to disagree in the methoCls of cultivating the cr·op. · to the committee amendment. Rice is credited with having been introduced. into this coun l\1r. RANSDELL. Mr. President, I a~ delighted to hear that try in 1694, when a British rvessel bound from Madagascar to statement from the chairman of the committee. Ordinarily I Liverpool put into Charleston, 'S. C .• for repairs. It is related would not say anything in the light of that statement, but I that the captain gave to the governor~ Landgrave Thomas have prepared .some remarks which I would like to put in the .Smith, some of the rough rice from his cook's stores, suggest RECORD, and I promise not to take a g.reat deal of the time of the ing it as a possible additional article of food. It was planted Senate. I think, however, it would add a little to the literature tn the governor's garden, now .known as Longitude Lane, in of the subject. The .question is one of great importance. the city of Charleston, and the product carefully preserved and Mr. McCU:MBER. I made the General Washington, dated Paris, December 4, 1788, begin per cent of it was grown. Very little of it was consumed by ning: "I bave seen with infinite pleasure our new Constitu the American people outside of the localities in which it was tion accepted by 11 States," he concludes as follows: produced and almost the entire output was marketed in Eu The consumption of rice is growing fast in this country, and that rope and the West Indies. While the statistics for the pe1iod <>f Carolina gaining ground on every other kind. I am of the opinion antedating the Civil War are somewhat meager, yet they are the whole of the Carolina rice can be consumed here. Its trans portation employs 2,500 sailors, almost all of them English at present, sufficiently complete to give an accurate idea of the size of the rice being deposited at Cowes and brought from thence here. the crop. I do not wish to make any extended citations from the works From the best available data the production of rice in the of either Mr. Jefferson or his distinguished political rival, Mr. _United States grew from about 200,000 bushels at the end of Hamilton, who divided with him the honor of serving in Presi 1720 to 3,335,000 bushels at the end of the last century, when dent Washington's first Cabinet and with founding a rival the modern industry may be sa.id to have become thoroughly school of political thought. However, I expect to show by brief established. The present yield averages about 50,000,000 citations how deeply concerned the founder of the Democratic bushels a year. Party was in establishtng this great agricultural industry in During the period from 1862 to 1864, inclusive, no record was America, and how rice as one of the grain crops was recom kept but tbe output was small. Civil War ravaged the section mended for special consideration in the preparation of our where the great bulk of the crop had grown. The elaborate tariff laws by Alexander Hamilton. That being so, the situa embankments and irrigation systems which had been con tion should receive favorable consideration from every fol structed in the river bottoms of Georgia and the Carolinas at lower of that distinguished statesman. such an enormous expenditure of treasure and years of labor Let me show you the extent to which Mr. Jefferson went were destroyed. They were never fully restored, and their to advance the quality of our early American rice. He destruction marked the transfer of the crop from the South searched the three continents of Europe, Asia, and Africa for Atlantic to the Gulf States, where it was revived upon the improved seed, and the drawbacks to the cultivation of the sugar plantations that flourished near the mouth of the-1\Iissis crop which he mentions are of interest to us at this time, sippi River. because under modern conditions they have entirely disap The production of sugar in Louisiana was also undergoing a peared. radical change at that time, which marked the advent of. large Regarding his efforts with African rice he wrote William central factories. Prior to this development practically every Drayton from France, "I have forwarded to you two couffres plantation, large or small, maintained its own expensive i:µanu• of rough rice which I had brought from Egypt." But his facturing plant. More than a thousand existed in the southern principal hopes lay with seed secured from another quarter part of the State, and their collective output was not as large of the dark continent. Of this variety he wrote: as the modern establishments which are not one-tenth so nu merous. It was a very expensive system, and, as the planters In 1790 I got a cask of heavy upland rice from the river Denbigh, in Africa, about latitude 9° 30' north, which I sent to Charleston in were looking for a crop that did not require so much operating hopes it might supersede the culture of the wet rice, which renders capital, they eagerly turned their plantations from the cultiva South Carolina and Georgia so pestilential through the summer. ·uon of sugar to rice. He reverted to this shipment in later years when he wrote: While rice had been introduced into Louisiana in 1817 it had The upland rice which I procured fresh from Africa and sent them only been grown in extremely limited quantities along the (the South) has been preserved and spread in the upper parts of banks of the river below the city of New Orleans, and little of Georgia and, I believe, in Kentucky. it was used outside of New Orleans prior to the Civil War. In the hope of improying the American strain with Asiatic With the destruction of the Carolina industry, however, and seed, he wrote : the discovery that rice could be profitably grown upon the sugar I first became informed of the existence of a rice which would plantations at only a fraction of the cost, and with compara grow in uplands without any more water than the common rains tively little preparation of the soil, its cultivation steadily ex~ by reading a book of M. de Poivre, who had been governor of the Isle of France, who mentions it as growing there and all along the tended in the river section of Louisiana. During the quarter coast of Africa successfully, and as having been introduced from of a century that followed this movement more than 80,000 Cochin China. I was at that time (1784-1789) in France, and there acres were gradually adapted to it on either bank of the l\Iissis happening to be there a prince of Cochin China, on his travels, and sippi as far north as Baton Rouge. then returning home, I obtained his promise to send me some. It was during this period that the cultivation of "upland The steps that he took to secure the Italian varieties in rice,'' which had been the cherished dream of Thomas Jefferson volved personal danger that len dnstry is to be preserved from the deadening competitive con- Doctor King says that it is difficult to convey, by word or map, ditions of the Fur East, then our plea must be granted. an adequate conception of the magnitude of tbe systems of I will print, with the consent of the Senate, the statement as canalization which contribute primarily to rice culture. A a part of the appendix to my remarks. conservative estimate would place the miles of canals in China The VICE PRESIDENT. Without objection, it is so ordered. at fully 200,000, and there are probably more miles of canal in (See Appendix A.) China, Korea, and Japan than there are miles of railroad in the Mr. RANSDELL. As against those costs, compiled under United States. China alone has as many acres in rice each official and disinterested auspices, the Ameriean grower is year as the United States has in wheat, and her annual product called upon to compete with rice produced by the cheapest is more than double and probably threefold our annual wheat labor and under the lowest Hving condition of any article that crop, and yet the whole of the rice area produces at least one enters into international commerce. and sometimes two other crops each year. Since the enactment of the last general taTiff act a great deal These brief excerpts from the monumental work which Doctor of information has been obtained about conditions in the Far King gave to the world under the title "Farmers of Forty East surrounding the production of the rice crop. Among the Centuries" will give an idea, not only .of the natural advan authoritntive contributions on the subject are th~ works of tages these people possess by reason of climatic conditions Dr. F. H. King, late professor of agricultural physics at the but likewise. of the wonderful artificial improvements they have University of Wisconsin, and late Cillef of the Division of Soil wrought through the centuries in the form of canals and dikes Management of the United States Department of .Agriculture. to enable them to produce tbis crop. When we come to con- Doctor King was a friend of the oriental people and made sider the factor of labor costs our disadvantage is even mote several visits to the Far East in pursuit of his studies. His pronounced. In some of the advanced Chinese Provinces farm statements in Farmers of 'Forty Centuries are valuable, be- labor is paid at the rate of $21.50 gold per annum, with beard. cau e he was unprejudiced and sought to avoid exaggeration. This is less than the monthly wage paid in the American rice I want to emphasize this statement, because approrimately 99 .. country. But there are vast numbers of oriental farm laborers per cent of the world's rice is produced under the conditions de- who receive less than $10 per year, with board arrd lodging and scribed in Doctor King's book. a few cheap articles of clothing. It is utterly impossible to l\:lr. President, at this point I wish to ask permission to print attempt to build up an American industry that has to compete in the RECORD, without reading, as a part of the appendix to my with such conditions unless we make some attempt to equalize remarks some brief excerpts from Doctor King's extremely in- these differences at the customhouse. teresting and instructive book entitled " Farmers of Forty Cen- If I have been able to give the Senate a fair idea of how the turies." He visited Japan and China,, made a most intense and :American rice industry was developed from an unpromising careful study of conditions oi agrieulture in those two countries start until within the la.st decade it assumed a place among and has embodied his observations in a book, whicll I think every our more important crops, and if I have succeeded in making person in the United States interested in agricult~e could read ·clear the impossible competition we are called upon to meet with very great profit. He especially discu ses the rice situa- from the Orient, I will proceed to show the wonderful pos ibili tion; tells how rice is cultivated in those countries; about the ties that this cereal holds if the American Congress, in its wis wages pa.id to Japanese and Chinese for cultivn.ting rice; and dem, will permit us to continue the woi:k of development which shows such an entirely different state of affairs from that which has been so ably begun. obtains in this country, especially bow much cheaper they can As I have ah:eady pointed out~ the prairies of southwest rai e i:ice than we possibly can, arnl how entirely different oon- Louisiana became recognized as ideal rice lands some 30 years ditions are there, that a few extracts would be very instructive, ago, and the history of the modern industry dates from that and I a Bushels. W~: ~~ 17~1799_~---~----~------1,412,323 Exportation ------483, 385, 259 1810-18191800-109 ______------=------1,11~,668 l,29;),062 1 lmPortation ------179, 92-1, 961 ]820-1829 ______1,592,304 i 1830-1839 ______'1,978,417 - Surplus exportation ovei· · importation _____ 903, 463, :298 1840-1849 ______2,215,714: 1919: 1850-1859 ______,:______2, 273, 833 Importation ______3ti3, 7.26, 263 1860-1869______703,106 Ji}xportatiou --- 193,128,000 1870-1879lSS0-1889 ______~------~----- 1,557,4842,719,765 .importation O"re1· exportation____ 170, ~63 1890-1900______3,335.158 Surplus 1598, Aorooge, production, and valu.e of ·rice in the United States, 1918: 1904-1920. Import:;iti0B. ------456, 058, GOS Exportation ------1.96, 3B3, 268 [From Yearbook of U. S. Department of Agriculture.] Surplus importation oTer exportation ______259,-695, 340 Average 1917: Avel'aoll'0 farm Importation ------216, 048., 858 Year. Acreage. yield ·Produc- price Farm value per tion. per Dec. L · Exportatien ------181, 37~ , 310 acre. bushel Dec. 1. Surp1us importation over exportation______34, "676, 548 1916: Acres. Bushels. Bushels. Cents. Importati4)n ------264, 324, 005 1904 ....•.....' 662, 000 31. ·9 21, 096, ooo 65. s $13, 892, ooa Exportatien ------121, 967, 465 1905 .•...•..•.1 482, 000 28. 2 13, 607, 000 95. 2 12, 95-6, 000 Surplus im~rtation ov-er exportation_ __ _. ___ 14!!, 356, 340 1906. • . . . . . • • • 575, 000 31.1 17, 855, 000 90. 3 16, 121, 000 1907. . • . . . • • • . 627' 000 29. 9 18, 738, 000 85. 8 16, 081, 000 1915: 1908... ••• • • . . 655, 000 33. 4 21, 890, 000 81. 2 17, '771~ 000 Importation ______277, 191. 472 1909...... • • • 120, ·ooo 33. 8 I 24, 368, 000 ' . . • . . . . . • •••...... 1909...... 610,000 35 . .8 21, 839, 000 79. 6 17, 383, 000 ExpQrtatl lVor id crops of wheat and rice. Surplus importation over exportation ______183, 908, 05'! [Source: International !Institute of .A"'1"icultuttc.] .Area. Production . Aver- 1921 1920 ag~, 1921-22 1915- 1919. 'Surplus importation oTer exportation ______178, 711, 434 1,000 1,000 1,000 1.,000 1,000 1,1)00 1· 1910: a<:re.s. acres. acre,s. cwts. cwts. cwts-.. Importafion ------225, 400, 545 Wheat ••... • . 192, 158189, 438187, 8151,1 657., 8171, 606, 0441, 571, 583 Exportation------26 799 188 Rice ..•••• ·{JlD2, 600100, 785 99, 937 } 1415,9191l},218,687 1 .~.371,755 . • , ...... -. ·: .. T. ···.. 874, 024 752, 276 • 846, 762 Surplus importation o-ver exportation______WS, 601, 351 1 Rough rice, pounds. 2 Cleaned rice. 1909 : Importati.o.11 ______222, DOO. 4"2!? The approximate average yield of the world crop of wheat is 2,650,.000,000 hundredweight (or 4,423,300,000 bushels). EA-pol'tation ------~O. 511. 429 The appr-0ximate average yield of the world crop of rice is Surplus importation c()V.e.r .exportation______20:!, 388, 993 (rough) 4,400,000,000 bun\lredwei~t (cleaned= 2,716,000.;000 hundredweight, or 4,452.,000,000 bushels). 1908: Total exports an4 iniports of rice by 'fi,soo.Z years froni 1895 to Importation ------212, 783. 392 1921, incwsive. Exportation------~. 444, 413 Tbe tutals of imports and exports for each rear have b en Surplus importatfon over exportation ______184, 338, 977 ad{f ed by fiscal years, and show the following results: 1921 : Pounds. 1907 : Exportation ------44-0, 855, 298 Importation ------209, 603, 180 Importation------~---~------96, 804. 612 1 Exportation------~------30, 174, 371 Surplus exportation over irnportatio~------344, 050, 686 Surplus im,portation ·over exportation ______179, 42...,, 809 10072 CONGRESSIONAL RECORD-SENATE. ,J"CLY 8 1006 : Pounds. Importation ------166, 549, 957 Paddy, Brown Milled . .or ! Broken Exportation ----..:. ------38, 142, 103 Bills. or rough rice (hulls cleaned rice, fiotu rice. remo,·ed). rice. etc. Surplus importn.tion over exportation ______128, 407, 854 1905: McKinley bill ...... ioflcent ll cent . 2 cents .. ! oflcent. Exportation ------113, 2-82, 760 Wilson-Gorman bill ...... do ..... -h of 1 cerit l! cents .. Do. Importation------106, 483, 515 Tariff act, Oct. 1, 1890 . ... do ..... lt cents .. 2 cents ... l f cent . Ta.riff a.ct, Mar. 3, 1883. It cents .. l~ cents .. 21 cents .. 20 per Surplus exportation over importation______6, 799, 245 cent ad 1904: Ya Io - 1·em. ln:iportation~------154,221,772 Exportation------· 29,121,763 APPENDIX B . . Surplu importation over exportation ______125, 100, 009 FARMERS OF 40 CB:STl'Rlli:S, OR PER~A:SEN1' .AGRICUI/.rURE IN CHl. A, 1903: KOREA, AND JAP..l.~. (By F. H. King, D. Sc., formerly profe or of agricultural physic in Importation ------169, 656, 284 the University of Wisconsin and Chief of DiYision of Soil laoage Exportation------19, 751, 448 ment, United State Department of .Agriculture. 1911.) Surplus importation over exportation______149, 904, 836 Page 2: We were instructed, surprised, and amazed at the conditions and practices which confronted us whicheYer way we 1902: turned; instructed in the war and extent to which these na tions for centuries have been and are con ·er-ring and utilizing Importation------157, 658, 894 their natural resources, surpri ed at the magnitude of the· Exportation------29, 591, 274 returns they are getting from their fields, and amazed at the Surplu importation ove1· exportation ______128, 067, 620 amount of efficient human labor cheerfully gi"ren for a dail.r wage of 5 cents and their food, or for 15 cent ~, United 'tutes 1901: currency, without food. Importation ______117,119,710 The three main islands of Japan in 1907 had a populatio11 of Exportation------25, 527, 846 46,977,003, maintained on 20,000 square miles of cultiYated field. This is at the rate of more than three people to each acre and of Surplus importation over exportation______91, 671, 864 2,349 to each square mile; and yet the total agricultural importf:: into Japan in 1007 exceeded the agricultural export by le.. 1900: than $1 per capita. Importation------116,679,891 Page 3: In the Shantung Province w-e talked with a farruel' Exportation------41, 066, 517 ha-ving 12 in his family and who kept one donkey, one cow, both exclusively laboring animal. , and two pig ~ on 2.5 acres of cul Surplus importation over exportation______75, 613, 374 tivated land, where he grew wheat, millet, sweet potatoe.s, and beans. Here is a density of populatio11 equal to 3.072 people, 2:5G 1899.: donkeys, 256 cattle, and 512 wine per ·quare mile. In another Importation ______.:______204, 177, 293 instance, where the holding wa._ 1! acre ,1 the farmer had 10 in EA-portation ------15, 334, 589 his family and was maintaining one donkey and one pig, giving to this farm land a maintenance capacity of 3, 40 people, 3 Surplus importation over exportation ______188, 842, 704 donkeys, and 384 pigs to the square mile, or 240 people, 24 don keys, and 24 pigs to one of our 40-acre farms which our farmer.., 1898: regard too small for a single family. Importation------190,285,315 Pages 5, 6, and 1: l\lany factors and conditions conspire to Exportation------6, 200, 987 give to the farm. and farmers ef the Far East their high maintenance efficiency, and some of these may be succinctly Surplus importation over exportation ______184, 084, 328 stated. The portions of China, Korea, and Japan where dense populations have deyeloped and are being maintained occupy 1897: exceptionally favorable geographic po ition , so far a these Importation ------197, 816, 134 influence agricultural production. Canton, in the south of Exportation------·3, 905, 734 China, has the latitude of Haba.na, Cuba, while Mukden, in Manchuria, and northern Hon hu, in Japan, are only a far Surplus importation over exportation______193, 910, 400 north as New York City, Chicago, and northern California. 1896: The United States lie mainly between 50° and 30° of latitude. Importation ______146,724,607 while the e three countries lie between 40° and 20°, some 700 Exportation ______15,031,554 miles farther south. Thi difference of position, giving them longer seasons, has made it possible for them to devise systems Surplus importation over exportation __ .:._ ____ 131, 693, 053 of agriculturn whereby they grow two, three, and even four crops on the same piece of ground each year. In southern 1895: China, in Formosa, and in parts of Japan two crops of rice Importation ------219, 564, 320 are grown ; in the Cekiang Pro-rince there may be a crop of Exportation ------1, i573, 336 rape, of wheat or barley, or of wind or bean or clover, which is followed in mid ummer by another of cotton or of rice. In Surplus importation over exportation ______217, ~90, 984 the Shantung Pro,ince wheat or barley in the winter and How the pending legislation compares with previous tariff spring may be followed in summer by large or small millet, duties on rice in modern times: sweet potatoes, soy bean" or peanut . A.t Tient in, 39° north, in the latitude of Cincinnati, Indianapoli " and Springfield, Ill., we talked with a farmer who followed hi crop of wheat on Paddy, Brown Milled, or Broken hi small holding with one of onions an.d the onions with cab Bills. or rough rice (hulls cleaned rice, flour, bage, realizing from the three crops at the rate of $163 gold - rice. removed). rice. etc. per acre; and with another who planted Iri h potatoes at the earliest opportunity in the spring, marketing them when small, and following these with radishes, the radishes with cabbage, H. R. 7456 (pending 1 cent .... It cents .. 2 cents ... !of lcent. realizing from the three· crops at the rate of $203 per acre. bill). Nearly 500,000,000 people are being maintained chiefly upon Emergency ...... : .. i of 1 cent If cents .. 2-f cents .. lof 1 cent. the products of an area smaller than the improved farm land · Senate ·amendment .... i of 1 cent i of 1 cent 1 cent ... Do. of the United States. Complete a square on the line drawn Underwood bill ...... do ...... do ...... do ..... Do. from Chicago southward to the Gulf and we tward aero Payne-Aldrich bill .... i of 1 cent If cents .. 2 cents ... Do. Kansas, and there will be inclo ed an area greater tllan the 1922. CONGRESSIONAL RECORD-SENATE. 10073 cultivated :fields of China, ·Korea, and Japan, and from which strong and happy? They certainly were strong. They are firn times our present population are fed. steadily increasing their millions, and as one stood and watched The rainfall in these countries is not only Ilrger than that them at theil' work their faces were often wreathed in smiles even in our Atlantic and Gulf States, bt..~ it falls more exclusively and wore what seemed a look of satisfaction and contentment. during the summer season-, when its efficiency in crop produc tion may be highest. South China has a rainfall of some 80 CHAPTER III. inches, with little of it during the winter, while in our Southern EXTREME YALUll OF CHINESI!I MOl\EY. States the rainfall is nearer 60 inches, with less than one-half Pages 76 and 77 : Perhaps nothing better measures the in of it between June and September. Along a line drawn from tensity of the maintenance struggle here and better indicates Lake Superior through central Texas the yearly precipitation the minute economies practiced than the value of their smallest is about 30 inches, but only 16 inches of this falls during the currency unit, the cash, used in their daily retail transactions. months May to September while in the Shantung Province, On our Pacific coast, where less thought is given to little econo China, with an annual rainfall of little more than 24 inches, mies than perhaps anywhere el e in the world, the nickel is 17 of these fall during the months designated, and most of this the smallest coin in general use, 20 to the dollar. For the in July and August. When it is stated that under the best rest of the United States, and in most English-speaking coun tillage and with no loss of water through percolation, most of tries, 100 cents, or half pennies. measure an . equal value. In our agricultural crop require 300 to 600 tons of water for each Russia 170 kopecks, in Mexico 200 centavos, in France 250 two ton of dry substance brought to maturity, it can be readily centime pieces, and in Ausuia-Hungary 250 two-heller coins understood that the i·ight amount of available moisture, coming equal the United States dollar; while in Germany 400 pfennigs at the proper time, must be one of the prime factors of a high and in India 400 pie are required for an equal value. Again 500 maintenance capacity for any soil, and hence that in the Far penni in Finland and of stotinki in Bulgaria, of centesimi in EaRt. with their intensive methods, it is possible to make their Italy, and of half cents in Holland equal our dollar; but in soils yield large returns. Chi~a the small daily fiJlRncial transactions are measured Page 7: Xotwithstanding the large and favorable rainfall agamst a much rnaller unit, their cash, 1,500 to 2,000 of which of these countries, each of the nations has selected the one are required to equal the United States dollar, their purchasing cro11 which permit ~ it to utilize not only practically the entire power fluctuating daily with the price of silver. amount of rain which falls upon their fields but in addition RICE IN CHINA. enormous volumes of the run-off from adjacent uncultivable Two crops of rice are commonly grown each year in south mountain country. Wherever paddy fielcls are practicable there ern China, and during the winter and early spring grain, cab riec is grown. In the three main islands of Japan 56 per bage, rape, peas, beans, leeks and ginger may occupy the fields cent of the cultivated fields--11,000 square miles-is laid out as a third or even fourth crop, making the rear's product from for rice growing and is maintained under water from trans the land very large; but the amount of thought, labor, and fer planting to near harvest time, after which the land is allowed tilizers given to securing these is even greater and beyond any to clry, ro be devoted to dry-land crop · during the balance of thing Americans will endure. How great these efforts are will th ~- ear. where the ._·eason permits. be appreciated from what is seen in figure 50, representing two Page 8 : It is difficult to convey by word or map an adequate fields thrown into high i·idges, planted to ginger and covered couC"e1>ticn of the magnitude of the system of canalization ~vith straw. All of this work is done by hand, and when the whieh contribute primarily to rice culture. A - conservative time for rice planting comes every ridge will again be thrown estimate would place the miles of canals in China at fully down and the surface smoothed to a water level. Even when 200.000, and there are probably more miles of canal in China, the ridges and beds are not thrown down for the crops of rice Korea. and Japan than there are miles of railroad in the the furrows and the beds will change places so that all the soil 'United State . China alone has as many acres of rice each is worked over deeply and mainly through hand labor. The year as the United States has in wheat, and her annual prod statement so often made that these people only barely scratch uct i. more than double and probably threefold our annual the surface of their fields with the crudest of tools is very far wheat crop, and yet the whole of the rice area produces at from .the truth, for their soils are worked deeply and often, least one and sometimes two other crops each year. notwithstanding the fact that their plowing, as such, may be Page 11 : X otwithstanding the enormous acreage of rice shallow. planted each year in these countries it is all set in hills and WAGES IN CHINA. every spear is transplanted. Doing this they save in many Page 93: Through Dr. John Blmnann, of the missionary hos ways. except in the matter of human labor, which is the one pital at Tungkun, east from Canton, we learned that the good thing they haTe in excess. By thoroughly preparing the seed rice lands there a few years ago sold at $75 to $130 per acre, bed. fertilizing highly, and giving the most careful attention but that prices are rising rapidly. The holdings of the better they are able to grow on 1 acre. during 30 to 50 days, enough class of farmers there are 10 to 15 mow-H to 2! acres-upon plant to occupy 10 acres, and in the meantime on the other which are maintained families numbering 6 to 12. The day's 9 acres crops are maturing, being harvested, and the fields wage of a carpenter or mason is 11 to 13 cents of our currency, being fitted to receive the rice when it is ready for trans and board is not included, but a day's ration for a laboring planting, and in effect this interval of time is added to their man is counted worth 15 cents Mexican, or less than 7 cents growing season. gold. WAGES IN SHAXTUNG. ILLUSTRATION OF JAPANESE AND CHINESE LABOR. . At Tsingtau. in the Shantung Province, a missionery was pay Pages 17, 18, and 19: Everything here was strange, and the ing a Chinese cook $10 per month, a man for gen~ral work $9 ·cenel'l shifted with the speed of the wildest dream. Now it per month, and the cook's wife, for doing the mending and other wa:-: driYing piles for the foundation of a bridge. A tripod of family servi.ce, $2 per month, all living at home and feeding pole. was erected above the pile and from it hung a pulley. themselves. This. service, rendered for $9.03 gold per month, 0Yer the pulley passed a rope from the driving weight, and covers the marketing, all care of the garden and lawn, as well from its end at the pulley 10 cords extended to the ground. In as all the work in the house. a circle at the foot of the tripod stood 10 agile Japanese women. Page 119: We had a soil tube made in the shops of a large They were the hoisting engine. They chanted in perfect rhythm, English shipbuilding and repair firm, employing many hundred hauled and stepped, dropped the weight and hoisted again, Chinese as mechanics, using the most modern and complex ma making up for heavier hammer and higher drop by more blows chinery, and the foreman stated that as soon as the men could per minute. When we reached Shanghai we saw the pile understand w:ell enough to take orders they were even better driver being worked from above. Fourteen Chinese men stood shop hands than the average in Scotland and England. An edu upon a raised staging, each with a separate cord passing direct cated Chinese booking clerk at the Soochow railway station, in from the hand to the weight below. A concerted, half-musical Kiangsu Province, was receiving a salary of $10.75 gold per chant, modulated to relieve monotony, kept all hands together. month. What did the operation of this machine cost? Thirteen cents P.llOPLIC OF CHINA A.ND JAPAN A.RE TBGSTARIANS. gold per man per day, which covered fuel and lubricant, both Pages 134 and 135: The small number of anima:1 product · automatieally served. Two additional men managed the piles, which are included in the market list given should not be taken 2 directed the hammer, 18 manned the outfit. Two dollars and as ind· eating the proportion of animal to vegetable foods in the thirty-four cents per day covered fuel, superintendence, and re dietaries of these people. It is nevertheless true that they are pairs. There was almost no . capital invested in machinery. vegetarians to a far higher degree than are most western na Men were plenty and to spare. Rice was the fuel, cooked with tions, and the high maintenance efficiency of the agriculture of out salt, boiled stiff, reinforced with a bit of pork or fish, ap China, Korea, and Japan is in great measure rend_ered possible (>etized with salted cabbage or turnip and perhaps 2 or 3 of by the adoption of a diet so largely vegetarian. Hopkins, in his 40 and more other vegetable relishes. And are the!e men Soil Fertility and Permanent Agriculture, page 234, makes th~ 10074 CONGRESSIONAL RECORD-SENATE. JULY 8~-. :vointed statement of. fact: "One thousand bushels of grain has 1 _lli POMIDRENE.. I w President, in which to save the Republican Party from defeat goods, show tha t the level of American prices i but slightly in the congressional election of 1922 and from disaster in the different from the British ; in fact, even substantially below the presidential election of 1924, and that is to return this bill to British and in some periods even below the Japanese prices. the committee and rewrite all the schedules of it so that they l\lr. SIMMONS. Mr. President. would it interrupt the Seua conform to the old Republican p1inciple of protection by merely tor for me to ask him if. in the course of his exhaustive investi equalizing the cost of production at home and abroad, and if gation, he has been able to ascertain the amount of imports of they are unable so to do, then to abandon general tariff legis the class of cotton goods which are made in this country? lation at this time. 1\Ir. LA FOLLETTE. Such. imports are negligible, I will say It may be said, 1\Ir. President, that although the tariff rates in answer to the Senator. That particular clas of cotton good· on the cotton schedules of the Fordney-1\IcCurnber l>ill. which is not made in thi · country, becau e it can not be made profitably we are about to con ider, are as high or higher than tllo:;e of here and our manufacturer fin Calendar years-Continu~d. Cents per cut. period beeome applicable here and must be accepted as . tandard 1~92------~------~1 high-grade proof, for there is a less difference in the compara 1893------~------~~------l f'!l4______1618 tive rates of wages between Great Britain and the United States 1895----~---~------~------18 to-day than there was when the tariff board made its report, to 1898------~------16 which I directed the attention of the Senate yesterday in a 18991s n 9------~~----- ______1819.80 somewhat elaborate way. 1902--~--~------~ 21.78 l\fr. POMERENE. -Mr. Pre ident, it seems to be the opinion 1!1 0 3 ------~------19.80 of the Senator from Wisconsin that the majority of the Finance 1 9 04------~---- , ------17. 32 Committee must get back to normalcy in their tariff views. 1905-----~------18.61 1906------~------:------19.80 Mr. LA FOLLE'l"TE. Yes; I do think that that is very im 1906------~------21.78 portant, Mr. President. We can not make a tariff bill based on 1907------23. 96 the fluctuating and changing conditions of all industrie at this 19121908------______19.6621.63 time and expect it to be a fair and just measure. If we make 1~16------~------22.71 it to-day it will not be appli able to the conditions to-moITow. 1916------~------24.98 If it is determined that we are to pass a general tariff bill at 19161917-- ______------~------30.27.48 23 this time it is my contention-and I want to stress that as 1917------~--~------~--~------34.01 much as I can-that that bill should be made to conform as 191R______~---~------~ 39. 11 1 ~ 19 ______4~.~8 nearly as possible to normal conditions as they exi::ited before 1919------~O . !'iO the war, taking into account ome vrobable changes. There 1920 _- __---~------______45R.19~. 10 may be changes which would Tequire a re 1922. CONGRESSIONAL RECORD-SENATE~ 10077 thi and competing countries. The standpatter in tbe present on the- face of- tbe earth who move so rapidl~ jn. the dire~tion Senate--of whom the Senator from New Jersey is one of the of improvement and higher efficiency as the American people, mo t pronounced examples-have resisted the establishment of and I believe that it it were possible for us to have · an impar4 a tariff commission in this country for many years. tial investigation of the- whole field of industrial production, Mr. EDGE. I thank the Senator for the compliment. comparatively, between the United States and tJhe other coun l\lr. LA FOLLETTE. Aldrich and. Hale,. when the ·peyne. tries, and to have an honest, scientific report made to the Aldr-ich bill was pending, fought against the. establishment of Congres o:t the United States, it. would be the greatest blow an effective tariff commission, and the RECORD is fnll of. state ever dealt to the form of tari.ff making which we encounter ments upon. their. part showing such opposition ; but enlight every time the.re is a change in political supremacy in this ened men for 25 years and more have contended that the only country of ours-. wn.y to determine these nice q.uestions of the cost of production Mr. UNDERWOOD. :Mr. President, I am ·rnry much in· is not in the committees of Congress but by an independent and terested in· the Senator's statistics. I think he has thrown gr~at scieutific tariff commission. light on this controversy. But if the Senator stated the source Mr. EDGE. If the Senator will permit me once more, and from which he got his statistics I did not hear it, and I want then I will not interrupt him further-- to know, because possibly I may want to use the statistics Mr. LA FOLLETTE. I will permit a: question. I do not hereafter. Will the Senator advise me as to the source from want to be diverted at any length in my argument. If the which he got these statistics_?· Senator desires to submit a question·, 1 will yield for that Mr. LA FOLL.ETTlD. Mr. President, the cotton experts em pul'J>ose. ployed by the Government assist Senators in studies of tariff Mr. EDGE. Following up the question that I have already legislation from time to time. Throughout my whole career propounded, I assume, then, that the Senator, inasmuch as he in the Senate I have had to. labor at a good deal of a disadvan criticizes the work of the present committee which has pre· tage on tariff matte.rs.- sented thi bill, really favors greater powers for some tribunal I want to say, with l'egard to the mets I am giving to the outside of a congressional committee. If: he does, I must say Senate now, while I am giving them as from my.self, they are that I agree with that contention, but I do not see how we can furnished to· me-- greatly improve the pr..esent system. Mr. UNDERWOOD. I do not ask the Senator for any name Mr. LA FOLLETTE. Let me say, in response to that, that he may not want to give- the present Tariff Commission has that power now, but the 1\11'. LA FOLLETTE. They were not furnished b:y a.ny im conditions are not fe...vorable to an exercise- of that power, be porter; I will say that much. cause all of the elements that they are to consider in arriving Ml". UNDERWOOD. I do not mean that~ What I mean. is, at- a conclusion with respect to tlle cost of production are chang whether the facts come. fro.m an ex.pert-- ing with every hour. Therefore they can not do their work. Mr. LA. FOLLE'liTE. 'JJhey come from, one whom. I consider We can not create a tariff cnmmission that.aould. make a .rep-ort the best expert on textiles in· the United States. to1 Congr.e s to-day on the cost of production upon a single item Mr. UNDERWOOD. I do not want in any way to embarrass covered by the ta.riff bill that would be reliable 10 days from the Senator, but I am v.ery much interested. I am a low to-day. tarllf man myself. I think these. rates are entirely too high, Mr. EDGE. Do~ not that make it all the- more necessary- to and I am in ac.coro with the Senator's argument. But even an pass an elastic bill, a bill with discriminatory powers delegated expert goes to statistics to get the rates, and I thought pos. to· some-authority r sibly the Senator might furnish me with the source from which Mr. LA FOLLETTE. No; that is the reason why it is all the the statistician got his underlying, basic facts. more necessa1•y for Senators to wake up to the fact that this is l\ir. LA FOLLETTE. The statistician who· fn.mished these no time to enact a general tarfff reviE.ion. It was seized· upon tables to me. secured his information from original sources on as a favorable time because of the difference in exchange and the ground abroad and here, and I wilL vouch, as a Member because of the disordered sta~ of business everywhere for the of this hody with all that that implies,. that ke was a scientific tariff robbers to r-ush in and demand big protection. Business· and an impartial investigator. was depressed here, business was-depre.ssed there, and that was Mr. UNDERWOOD. I thought they. might possibly come from made the excuse for coming before the committees of Congress some Government reports, but it was a personal investigation and seeking to force through at this t ime a revision of the tariff and not a Government investigation. " that will be a millstone about the neck of the p.a1fy and the CJon l\fr. LA FOLLETTE. No; it was not a personal investigation; gre that passes it. 1.t was an investigation conducted by our Government through Mr. President, at the point where I was interrupted I was its most experienced textile expert ac.ting in his official capacity. about to say that our system, by superior managerial ability I will say that' much. and a larger use of automatic looms and other improved ma Mr. UNDERWOOD. I merely asked fhe Senator for infor chinery, is operated more efficiently than the British. Those mation. I wanted to pursue it myself. are all items to be taken into aceount by any committee seeking Mr. LA FOLLETTE: Klr. Pt.esident, I thought I had made it to adjust rate upon anything like an honest· competitive basis clear that in regard to weaving the English rates are, on a large or on the difference in the cost of production at home and proportion of fabrics, actually lower per yard· than the Ameri abroad. can. Tbe American weaver on sheeting and plain cloth gets l\!r. SIMl\lONS. Mr. President, may I mention to the Senator less per yard but more per week, due mainly to the much larger a statement I have seen somewhere, which r think is true, so use of automatic looms in this country. English weavers ordi far as investigations show? The statement I refer to is that narily operate 4 plain looms on cloth that an American weaver in England, where the unions have probably greater control would operate 8 plain looms upon, this being partly due, of than they have in this country, the unions have been steadfastly com.'se, t~ the difference in tbe system. On automatic looms oppo ·ed to the installation of automatic labor-saving machinery, American weavers average about 20, whereas, as stated in the and that their influence has operated in curtailing the installa Textile World, some American weavers operate as many as 40 tion of those labor-saving machines. looms each on fine lawn. l\!r. LA FOLLETTE. I think that is the answer. Labor is Mr. SIMMONS. That answers the question which I asked much more potential in Great Britain, much better organized, the Senator a little while ago with reference to the number than it is here, and is able to carry the ideas to which the of men operating certain classes of machinery in Great Britain Senator refers into the operations- of the cotton mills of Great and in this country. Referring to the opposition o:f the union Britain; but in this country production and everything that and how that was controlled in Great Britain, I did not mean contributes to volume of output is the big thing the man to criticize American labor unions, but rather to have tlle ager insists upon, because in the volume of output is found Senator infer in my opinion that American unions were much the great measure of profit and the command of the busi more liberal in these matters than the unions of Great Britain. ness. They do not have the same control and they do not attempt Mr. SIMMONS. Is it not also true that the attitude of labor to exert the same control over the operations of the factories unions toward the number of men who should be employed to in which they labor. operate the machines bas contributed largely to the situation Mr. LA FOLLETTE. When I come to comment, as I shall which seems to exist there as compared with that here, namely, shortly, on tlie matter of wages of cotton operatives in this that more men are required there to operate the machines than country and the profits of mill owners, I think the Senator are required in this country? will find another answer. They have not the power, even if Mr. LA FOLLETTE. Mr. President, I think it is partly due they had the disposition, in this country. to that. I would not want to· say that it can be wholly ascribed l\Ir: SIMMONS. I think tllere is- a great dea l in that. But to· the greater power of the unions. r think there is no people what I rose to ask the Senator was tliis·: The Sena"tor has • 10078: CONGRESSIONAL RECORD-SENATE. JUE£ 8, spok~ about the cost of piecework. Is the Senator able to It thus plainly appears that the difference in labor cost in segregate the piecework from the daywork of any particular producing cotton goods between this country and England is article produced in Great Britain and also produced on the much less than it 'vas at the close of tile period covered by piecework basis in this country? I think that would give us the rates of the Payne-Aldrich law. It follows inevitably, there the best index of the difference in the labor costs of the two fore, that the tariff rates sufficient to equalize the cost of pro countries that we could possibly get. The labor cost of piece duction in the two countries would be very sub tantially lower work in Great Britain compared with the labor cost of piece now than they would haYe been for that purpose in 1914 or in work in this country, where the articles are the same, would 1909, when the Payne-Aldrich law was enacted, or in 1912, when give us a very good basis for an estimate of tlie difference in President Taft submitted to Congress the report of the Taft the labor cost of production in that country and in this country. Tariff Board. If the rates of the Payne-Aldrich law were inde Mr. LA FOLLETTE. I am sure the Senator· must have over fensible at the time they were in force, as stated in his message looked in part or not have heard in part my statement. The by President Taft, and as more elaborately stated by the -Taft tables relate to similar production in the two countries. The Tariff Board in its report, similar rates or anything approaching piecework rates in the Fall River district of this country are those rates are indefensible at the present time. comparable to the piecework rates in the Lancashire district as Not only is there this clo er approximation of the wage rate presented by the two tables which I have here. between the two countries at the pre e.nt time. but other factors Mr. SIMMONS. Wages paid generally do not measure the have come into the problem in the last few years favoring the difference in cost of production, but the labor cost of piecework, American as compared with· the English cotton manufacturer. I think, does very accurately measure the difference in cost of The Tariff Board in 1911 came to the conclusion and reported production. that staple plain cloths were made in the United States as Mr. LA FOLLETTE. Not only have excessive rates been cheaply or more cheaply than in England. Since that time not written into paragraph 903 but the average rates of duty on only have wages advanced proportionately more in England than countable cotton cloths dutiable thereunder have been substan in the United States in this industry but British taxes have tially raised by the application to a large proportion of such been raised proportionately more than in this country. The cloths, probably to between one-third and one-half of the total price of mill supplies bas been raised proportionately higher. of such cloths, of cumulative additional rates levied in para During and just after the war a large proportion of English graph 905a. mills were sold at exorbitant prices, so that a large number of The levying of additional duties on Jacquard cloths is per English cotton mills are working to-day under charges for de haps least open to criticism, inasmuch as many of these cloths preciation and interest that are based on fully three times as carry a high labor cost percentage, but it may be noted that the great a valuation of mill-plant machinery as obtained before the Jacquard is also used on goods of medium price and quality and war, with cotton costing about the same in Manchester as in that, because it puts less strain on the yarn in weaving, it is Boston, while the English now hm-e to pay considerably more frequently used in preference to dobbies, which de cribes an for their material than do the American mills, due to increased other form of attachment. ocean freight, storage, and other immediate charges. Although exact comparative data on this subject is not available so far The levying of additional duties on swivels can not be justified as I am aware, it must be evident that the English costs of except as a revenue measure, inasmuch as American mills, production have advanced much more than the American costs after experiments in the past tmder high tariffs, discarded of production since 1914. swivel looms as being less remunerative, because of their slow Every change in the industry which the passing years have rate of production, than looms making plain, dobby, and Jac brought since the Payne-Aldrich law was repudiated and re quard fabrics. pealed have been in favor of the American manufacturer as That does not justify putting these high duties on the Swiss compared with the British cotton manufacturer. Every argu goods which are made on these swivel looms when we have ment which applied against the Payne-Aldrich tariff rates when nothing to compete with it and when our consumers want that the people of this country so overwhelmingly repudiated that particular class of goods and can not get it any other way. law is to-day much stronger against any simpar rates or any The scheme of putting high duties upon that class of Swiss rates that approach the Payne-Aldrich rates. imports is to make the consumers of the country buy something Why is it, l\1r. President, that the people are having thrust they do not want at a higher price. upon them general tariff legislat·on at this time, and especially The extra duty on fabrics woven with eight or more hru·ness legislation which proposes to revise the rates upward to the cover not only eight harness sateen Venetian linings but also extent proposed in the cotton schedules of this bill? On the dobby goods. In the House bill it was intended to penalize in average the rates as reported in this bill are higher than the particular the import of Venetians, which constitutes the largest rates of the Payne-Aldrich law, very much higher, of course, item of cotton cloth imported, but it is to be noted that the than the rates of the Underwood law. Some of the rates in the uomestic manufacturers of Venetians have been gradually re pending bill as reported by the Finance Committee of the Sen stricting English importations only to the highest qualities under ate are very much higher than the Parne-Al<.lrich rates, some of the Underwood rates, and the higher rates of paragraph 903 will them are lower than the Payne-Aldrich rates, but the average of strongly accentuate this curtailment of imports without the all the rates of the bill as reported to the Senate is Mgher than necessity of this special additional rate of duty. In dobby goods the average of the Payne-Aldrich rate ancl \ery much higher the American industry is strong and increasing and has no need than the a\erage of the Underwood-Simmons rates, under which for exorbitant and extra rates of duty. The least justifiable cotton manufacturing in the United States has advanced in its class included under the cumulative rates of paragraph 905a is control of the world market. that of cloths made with drop boxes; this covers mainly ging Has the Congress come into the possession of any information hams and checks. The extra duty on drop-box fabrics, together worthy to be considered for rate-making purposes which was not with the extra rate in paragraph 903 on vat-dyed good~ was in possessed by the Tariff Board when it made the report from tended to stop importation of Scotch ginghams. It may be noted which I have quoted? Has the Tariff Commission, which suc that tile chairman of the committee on cotton manufacturers, Mr. ceeded the Tariff Board, gathered any facts or gi\·en to the Con Lowe, who secured these special additions to the high duties gress any information respecting the cost of production in this already agreed upon, is a manufacturer of ginghams. country and abroad which changes the figures of the Tariff Board American gingham manufacturers have been unusually pros to which I have referred? Every Senator who has followed perous for a number of years, having probably suffered less from this discussion knows that the Tariff Commission bas made no the recent depression than any other section of the industry. study respecting the cost of production in this country and Probably 98 per cent of the ginghams used in the United States abroad, and particularly in England. Tile reason why the com are made here, and are mainly of 25s to 35s yarn counts; the rela mission has not done so, as its members state to me, is because tively small amount jmported is confined almost entirely to fine the unsettled conditions growing out of the war render it practi ginghams, made of yarn counts from 40s to 60s, and these im cally impossible to make reliable figm·es on production cost for ported ginghams are in almost every instance sold on the Amer purposes of comparison between this and other countries at this ican market at higher prices thl.l,n the nearest comparable ging particular time. But, sir, that is the very rea. on why funda hams of domestic manufacture. The " drop-box " provision mental and general tariff legislation should not be undertaken serves not only to raise the price of such fine imported ginghams at this time. The last authoritative word upon the comparison but makes prohibitive the duties on cheap shepherd checks, of costs of production in this country and in England in the plaids, tweeds, and similar goods made with two colors in the cotton industry is found in the report of the Tariff Board, to tillin~. which I have referred. And every change in the relative posi The rates of duty in paragraph 903 are excessive enough with tions of the industry of the two countries which are really com out the addition of extra duties under paragraph 905a. petitive--Great Britain and this country, and they are only 11922. CONGRESSIONAL · ~ECORD-SEN ATE. .[IOOV9 partly · competitiv~since that time has been in favor of Amer The table is as follows : ica and against the English. If there is to be general tariff RelatW.n ..Qf product·i011., inip91"fs.1. an u:ports of co1'tt.table cotton .cloth legislation in advance of a careful investigation of the subject in census years (all data for calendar gears), by the ·Tariff ·commission, all the l<>gic and reason of the situa ! ~ -QUANTITY. tion w-0uld require a revision downward, and a marke-d revision downward, instead of the proposal to double · and in some in Relation Probable relation stances treble the present rates as provided in this .bill. . Domestic of Domestic Calendar year. Imports. imports exports. of exports For the purpose of showing the growth of the cotton manu production.I to pro t-0 .:pro- faetl:lring business in this -country under high taritis and low duction. duction.I tariffs and revenue tariffs, I bave bad a table prepared showing the imports and exports of cotton cloth, both in quantity and Linear value, since the year 1891. °This includes the period covered by Square yards. Square yards. Per cent. yards. Per cent. the McKinley tariff, the Wilson tariff, the Dingley tariff, the 1889 .•••••• - •••••••.. 3, 002, 761, 037 ' 31, 138, 204 L 04 120, 302, 818 3.61 Payne-Aldrich· tariff, and the present law. I ask leave to have 1899 . •.•.•••••••••••• 4, 422, 269, 461 '61, 8'6, 781 1. 4.0 418, 50!, 132 9.46 1"904 . •.•.•....•...... 4, 952, 188, 834 a 44, 7.55,ZJ8 • 90 - ~'H, 9891 686 8.78 this table printed ·without taking the time of the Senate to 1909 .•• ·--········-·· 6, 122, 143, ll5 a 73, 800, 398 1. 21 380, 521, 971 6.22 read it. 1914 ...••••.•••.•••.. 6, 883, 796, ()()() f 58, 550, 790 • 92 326, 477, 879 -5.11 1919 .•.••••••••••.... 5, 787, 409, 000 .. 47, 846, 024 • 83 683,JH:5, 328 11.~ The PRESIDING OFFICER (Mr. KING in the chair). With out objection, it is so ordered. · The table referred to is as follows : IN VALUE. Foreign trade of United .States in cotton cwth. Relation Probable Domestic ·uf Domestic ·relation Quantity. Value. Average value. Calendar year. Imports. imports exports. of exports production.I to _pro to pro duction. ductlon.2 Fiseal· year. Imports Exports Domestic Domestic per _Per Imports. exports. Imports . exports. square linear Per cent. Per cent. yard. yard. 1889...... • . • • • • • . . • . . Sl.91, 804, 036 a 13, 959, 344 2. 06 SB, 635, 988 4. 50 1899...... 230,989,886 18, 074, 4'36 3. 49 l?, 704, 713 8.53 1904 .•.• - ••••.• -· •• - . • 302, 68.5, 143 I 7,258,159 2. iO , 25,-568, 009 8.45 1909. _ ••••••.••••• _... 426, 100, 290 a 10, 726, 461 2. 52 23, 050, 260 5.U Square yds. Linear gds. Dollar.a. Dollars. C-t'Tll8. Otrlts. 1914 ..•.•.••.•••• _••.. · «O, &74, 000 • 10, 570, 016 2. 40 23, 635, W9 5.36 1891. ---····. .• . ••. 32, 194, 940 174, 546, m 4, 226, 663 11, 868, 046 13.13 6. 80 1919 •...•..••..••..•. - 1, 307, 062, 000 { 17, 047, 514 1. 30 151;991, 817 11.63 1892...... •• • ...... 34, 230, 070 183, 754, 321 4, 508, 915 11, 158,1>23 13.17 6.07 1893 .. -······-- ··-- 45,669,241 143, 792, 114 5, 705, 068 9,.108, 484 12.49 6.33 1894 . . ·--··-······· 27,581,400 185,887,736 3,465,333 U,A94, 786 12.56 6.18 1 The tabulation does not .include special cloths such as pile fabrics, tapestries, 1895 .• ··-··· •....• - 46, 722, 2001, 184, 258, 061 5, 516, 687 10, 479, 217 11..81 5. 69 toweling, terry weaves, and cloths containing silk, nor doesJt .include towels, bed 1896 .••••••••••.•• - 42, 068, 8651 225, 139, '358 4, 998, 739 12, 958, 357 5. 76 spreads, sheets, blankets, or other articles made from cotton cloth. 1897 - • • • • • • . • • . . • • . 40, 178, 8321 313, sa; 044 4,M6,318 17,281,620 ll::1 5.51 2 This percentage is obtained after reducing linear yards to square yards by ·stil> 1898 .. • : ...... 43,440, 363 270,501,818 5, 304, 851 13, 290, 823 12.21 4. 91 tracting 10 per cent-that is, assuming that e~orts average nine-tenths of a yard in 1899 - .•••••• - . . • • • • 54, 294, 327 j 412, 004, 055 6, 911, 306 lB, 969, 897 12. 73 4. 60 width. 1900 ..•.•. - •• - . . • • . 60, 625, 4221 352, 194, 989 7, 994, 064 18, 068, 934 13.19 5.13 a General imports, since imports for eonsmnption are not obtainable by calendar ye&rs before UHL Average 1891- I t Imports for consumption. 1900...... 42, 700, 665 244, 561;178 5,347, 794 13, 467, 819 12.52 5.51 Mr. JONES of New Mexico. Mr. President-- 1901. .•••••••.•.•.• 43, 615, 055 251, 503, 351 6, 422, 959 14, 136, 037 M.73 5.£2 The PRESIDING OFFICER. Does the Senator from Wis 1902. ····-·······-· 48, 260, 978 504, 773, 813 7, 238,355 25, 861, 196 15.00 5.12 58,621,129 49~379,197 9,146,023 25,352,584 15.60 5.12 consin yield to the Senator from New Mexico? 1903 .•• •••••••••••• 5.94 19<». ········-····· 150,254,073 U1,380,7i7 8,~14!6 14,695,199 16.00 Mr. LA FOLLETTE. I yield. .liO, 339, 051 '6ll4, 500, 715 8, 211, 735 41, 320, 542 16.32 6.95 Mr. JONES of New Mexico. May I inquire of the Senator 19061005. •••••••••••••• •••••••••••••· • 74, 868, 012 711, 493, 054 11, 322, 41,l 43, 181, 860 15.12 6-07 ·83, 640, 236 326, 340, 329 13, 059, osn 21, 239, 2n 15.61 6.51 if he has any information as to whether or not the imported 1907 ••• ••••·•···•·• 15.55 6.93 1908. •••••••·•··••• 79, 212, 048 205,-994-, 812 12,320;893 14, 268, 083 goods are comparable to the domestic :pvoduct? 1909. ·---········-- 68,914,101 367,631,542 1.0,499,288 21,£93,080 15.24 6.90 Mr. LA FOLLETTE. Very largely not; the imports are made 1910 ..• •••••·••·•·• 65,350,501 309,911,.304 il,681,846 19,971,491 14.81 6.44 up almost entirely, according to my information, of a quality Average 1901- and character of goods whieh we do not produce in this ·country 1910... •• • • • 62, 307,518 411,490,885 9, 595, 171 24, 172,032 L5. 40 5. 87 and which our manufacturers do not want to produce, because 1911...... 1>5, 516, 744 MO, 590, 169 8, -s.32, 673 24, 38?;-099 15. 91 7. 04 they can produce other cotton cloths more pr.o:fitably in larger 1912 ..••••• ·-.•• - • . 4fi, OU, 533 476, 778,,(99 7 638, 631 31; 388, 998 16. 59 1). 58 volume. 1913 •••• -••• - • • • • • . 43, 648, 762 444, 729, 241 1, 717, 873 30,668, 234 17. 68 6. 90. ·Mr. J01\TES of New Mexico. I desired to call attention to 1914 •••• ·-······-·· 58,621,496 4H,860,0l.3 ll.523,829 28,844,627 19.66 6.95 1915 •••• -• • • • • • • • • • 45, 7o.5, 579 396,944) 195 '1,~,472 28,682,615 ·15.17 7.23 that because just the bare figures of imports and production 1916. ·-·········-·· aa,roo,547 550,571, 120 ·9,002,.'>72 46,.381,390 16. 73 ·8.42 might lead some per ons to believe that we are importing .the 1917. ··-····-······ 73, 752,.185 690,193,896 15, 093, 203 72, 608, 110 20. 46 10. 52 1918. . . • • • • • • • • . • • • «, 522, 663 684, 927, 075 12, 693, 999103, 416, 102 28. 51 15.10 same classes of goods which we are exporting or producing and 1919 .•• -·· •••• ·-. ·- 26,322,4-19 57!!,348,860 g, 853, 735 131, ~~ 495 37. 43 23. M using in this country. 1920·-····-·······- 119,482,121 .86t,292,647 40, 314,983 2ll, "ll61'783 33. 74 24. « Mr. LA .FOLLETTE. No; that is not .true, Mr. President. There is nothing therefore in the history of the cotton in Average 1911- 56, 741, 408 ~. 323, 612 12;987,!"1 22.89 ~ 1920 . ....••• 70,972,0051 dustry, as shown by the records o"f its imports and exports and: production for the last '30 years, that calls for any such tarifr Calendar year 1921. 112, 340, 2591551, 521, 981 33, 723, 908 7l, 578, 'lZT s 30. 02 z 12. 98 rates as those proposed in the present bill, or as those pro vided in the Payne-Aldrich law. Certainly, Mr. President, there i Square yards. •Cents per square yard. is nothing in the condition of the cotton-manufacturing ·business [At this point Mr. LA. FOLLETTE yielded to Mr. HEFLIN, who in this country at the -present time which requires fill upward suggested the absence of.a quor.um, .and the -roll was called.] revision of. the tariff rates, but thete is everything demanding Mr. LA FOLLETTE. The .table which I hav.e just presented a downward revision. Why, -sir, the profits they have ·been to the Senate shows in the first place that imports -of cotton making under the low-tariff -provisions of the present law stag cloth have at all times since 1891 been. a mere fraction of our ger the imagination. exports. Even in the greatest imporullg year, which was 1920, I should be glad, indeed, if some of the representatives of we imported only 119,482,121 square yards of cotton cloth, val· the New England manufacturing States were present at this ued at a little over $40,000,000, while we exported 867,292,647 time. I remember-and that indicates the difference in the square yards, valued at practically $212,000,000. Th1'0ughout psychology ·of the .situation-that 10 years ago, or something all this period neither our imports nor our exports appeared to more than that, when we were . framing the Pa~1 ne-Aldrich have been -substantially affected by tariff legislation. Tbe re tariff' bill, Republican Members representing the cotton .in:du.s ports show that at the present time our imports of cotton cloth tries of New England remained upon the floor t-0 defend in some at this time .are less than 1 ·per cent of our production and are measure the i:ates which were proposed in that bill. I remem constantly decrea.sing1 even-.under the Underwood-Simmons law. ber distinctly something of a ·running debate which I had with. a ,while our exports are over111 per cent of our pl'.oduction and the number of representatives of cotton-manufacturing 'States m percentage is constantly increasing. This is strikingly shown by New England when th,at bill was under consideration. a table which I have prepared and ask leave to insert in the Is it because we have come to a time when nobody dares to B.P.ooRD without reading. stand up here to defend the profits that are being made by the The PRESIDING OFFICER. Without <>bjection, it is :-so cotton manufacturers of this country and that hav~ been made or-dered. e•er since the Dingley ·Act was written on the statute ·books? 10080 CONGRESSIONAL RECORD-SENATE~ JULY 8- ' I do not. know; but I know that we have the situation which Mr. LA FOLLETTE. It is the leading cotton manufacturing is now shown to those Senators present. . concern in the country. I remember that when the Payne-Aldrich bill was under consid~ Mr. UNDERWOOD. I know, but I do not know the grades eration in 1909 I devoted a part of a speech which I made on of cotton that it makes, although I know that it makes some the bill to the cotton schedule, and I there showed from the of t~e hi~her grades of cotton that are made in the country; reports of the companies and other official sources that many of but m this country there are but few mills that spin yarn more them-this was in 1909--had been making yearly profits of than No. 200, whereas the English mills, some of them, spin 15 or 16 per cent upon their investment. Mr. President, the up to No. 400; but the imports coming into this country are statement of that fact upon this floor in 1909, when the Payne- the high-grade cotton goods that are s1Jun out of the finer thread. Aldrich bill was pending, produced a sensation. In the ca8e of many of the low-grade goods, if you put them Your predecessor, l\1r. President [Mr. l\IosEs in the cbairJ, on the free list there would be no competition, because we make Senator Gallinger, of New Hampshire, rose in his place in the them cheaper; and the main purpose, as I understand it, of the Senate and argued that the manufacturers were not making man who wants protection on cotton goods is to have protection so large a per cent of profit as 15 and 16 per cent, which I on tlle higher-grade goods, where there are some imports com had stated from tables based upon the reports which they had ing in. He wants that protection, howe-ver, not for protection made themselves. Your distingui~hed predecessor rose on this against the class of goods he makes, the heavier class of cotton floor to contend that those exces<;:iye rates of 15 and 16 _per c~nt goods, but he "Wants to keep out the high-grade goods, just as could not have been made out of the cotton-manufactunng I he wants a tariff on linen to kee11 out linen, because he thinks business, but that such profits as they were receiving, as sho-w11 if linen comes in it occupies part of the market; and if the by their reports which I presented, must represent outside pecu- high-grade cotton goods comes in, that really high-grade cotton lation of some sort. I wonder what he would say it he were 1 goods ,competes with linen, not with low-grade cotton goods here and could see the balance sheets of those same companies I and he wants to exclude it, so as to make a larger market fo1~ during the last few ;rears under the pre ent low tariff law. I himself in another direction. So I have no doubt that so far Take one of the companies, to the defense of which Senator as the present tariff law was concerned on the bulk of the goods Gallinger c~me on the o_ccasion to which. I refer-the Amoskeag that were made i.n. this co_u!1try this particular bill did not l\fanufacturmg Co., which Senator Galhnger declared was the I charge the competitive conditions at all. leading cotton-manufacturing concern of New England. I ma not bring on the war-ran something less than 3 per cent of Now, note the following: · the annual turnover of the company. I assume the Senator 1;he Beacon did not raise its price but one-third as much as its com· would not consider that as an improper profit? petit!lrs (it only doubled the selling price of its blankets), alth<>ugh at no time c_ould they entirely supply the demand . for their goods. The Mr. LA FOLLETTE. Mr. President, I will go into that a reason prices were not raised further was that the company believed little later on with my friend from New Hampshire, if he will that thei~ then profit was sufficient (100 per cent would seem to be a remain about the Senate. If I remember correctly, this is one pretty fair profit), and it was good business in the long run not to in of the companies which in the last two years has enormously crease the cost of their product to the consumer to such an extent as other man.ufacturers did; as by not doing so they were likely to have increased its capital stock out of profits which it bas-made in better satisfied customers, and their profits already had so increased the business, increasing its capital stock from something like that the larger proportion of any further increases they might bave $5,000,000, before the adoption of the Payne-Aldrich rate, to charged would have gone to the Federal Government in the shape of something like $40,000,000 at the present time. exce s-profits taxes. Mr. MOSES. I think the Senator is in error in the last . The only reason this concern did not take more than 100 per figures. cent profit out of the people was because so much of such excess Mr. LA FOLLETTE. I may be. profits would have gone to the Federal Government in taxes. Mr. MOSES. The capital stock has been doubled, as I re l\1r. CARAWAY. Mr. President, I presume they were one of member. the poor beneficiaries of the repeal of the excess-profits taxes. Mr. LA FOLLETTE. I think it has' gone way beyond thaC. l\fr. LA !OLLETTE. Unmistakably, this concern is one of Mr. MOSES. Unluckily, I do not hold any of it; I wish I that long li~t of companies whose influence was brought to bear did. But I would like to say to the Senator that substantially upon the Fmance Committee from the very beginning of this every dollar of the profits made in the year of excessive profits qongres to repeal the exce s-profits taxes by a propaganda the which the Senator has quoted, the year 1918, is invested in llke of which I think I have never witnessed since I have been Liberty bonds. in public life. Mr. LA FOLLETTE. Mr. President, that does not very Mr. POMERE~E. The Senator does not mean to say they much concern the people who had to pay for the cotton goods made these large profits by reason of the depreciated currency wh!ch this company put out and charged two or three or four abroad? · prices for. I do not conceive that that is any answer. Mr. LA FOLLETTE. They made these large profits because .i.\Ir. MOSES. Mr. President, I hold no brief for the Amos they had a chance to charge the American consumer enough keag Co.-- to take 100 per cent out of him. They could have taken more. l\1r. LA FOLLETTE. I am aware of that. T~ey ~id not take any more, because after they reached that l\lr. MOSES. But I want to say that at the conclusion of porn~, if th~y had gone very much beyond it, the larger pro the war the Amoskeag Co., in an effort to bring business back portion of it would have gone to the Government in excess to normal, decided to break the consumers' strike, and to cut profits · taxes, and their loyalty to the Government did not the price of its standard goods on the market from 37! cents a extend to the point of raising their prices for the benefit of the yard, which was the peak price in 1918, to 12} cents a yard; Government Treasury. and it ran its mills without making a dollar in order to keep l\1r. POl\fERENE. Did these people ask for the increased 16,000 people employed in the city of Manchester. rates foun cent in 1917 42 per cent, in 1916 20~ peT cent. 1n 19.1& their surplus 1 The principal earnings of this eorporatlon are trom two distinct of n'et quick assets was $1.145,181, and now it. stands at. $2,649,986, · branches of the textile industry, which fact aets as a stabilizer. o-r a gain in the period mentioned o.f nearly $1,550,000. Through ownership 1IL cotton mills- they receive profits frO'ln IDaJJ.ufae- Mr. C "RAW "Y. That was in addition to the dividen'ds tur~. From the sale and distribution ot a tr.emendou& volume o.f mer- .o.. 4. I chandisei they recl!iv-e profits in the form ot commission-a. they paid? ; The cmnpa:ny directs or actively assists m tbe mana,,"'ement of nine Mr. LA FOLLETTE. That ls true. 1 textile mills and. is the exclusive sellirrg agent for all of them. • • • Mr. CAR.AWAY. This amount was passed to su-lus in addi- Gross sales el:ceecJed $120,000,000 in l920, as compared with more ~.l-' than $100,600,000 in !919 and· an annual average o! more than $23,- tion to 3() or 40 per cent "dividend's? · 000,000 tor the 10 yea.rs prio-r to 1913. 1rfr. LA FOLLET'l'E~ That is true. Now, I take another We hear a good deal of complaint about the excessive retail company typical of the profits made, the Holmes Mill. 1 price 9f cottono goods, and it is populm- now to refer to the sma'll Mr. POMERENE. Where is it located? retailer as a profiteer. The real explanation al>pears in the lan- Mr. LA. FOLLETTE. It is located· in Massachusetts. guage I have just quoted. Mill owners- simply form themselves Tml HOLMES MILL. into a selling agency to distribute the product for several mills, This stock is now selling, according to Sanford & Kelley, at and to the manufacturing prufit they add' the immense profits $300. I quote from their report: they make as such selling agency. The mill was started In about 1910, and the common stock sold at That the immense profits. in the cotton industry are not con- par. Therefore in 12 years the inveS'tor has seen the market value ·:tined to any particular locality appeaTs from Sanford & of bis &toek trebled and has been receiving d1rldends since 1916 of 20 per cent or more; .tn.1920 he received 88 per cent. Kelley's reports. I quote from the same authority respecting THE NlllILD MILL. Fall River mills : This mill has been paying quarterly dividends of $5 a share, TB'.l!I LTNCOL.~ MILL. or at the rate of 20 per cent in cash dividends. Of this con The Lincoln Mill made an exceptionally fine showing for 1920, indi cern Sanford & Kelley report : cated earnings bei~~ nearly $1,250,000 on a capital of $1,625,060. DiS bursements to stoc1roolde1· amounted to $30 n shlll'e. • • • It the Neild can earn 20 per cent on its capital in one o'f .the worst Dividends of 83 per cent in cash were paid and the inventory was years ever known in the cotton industry, "!'hat will_ i! earn m. norm~l kept down to low levels in the past year. For a great many years a times? It should be remembered in considermg the dividends berng paid large part of the earnings of this corporation ha'Ve been put back into by the Neild that they have nott bad many years to accumulate surp.lus the plant, and the past calendar year was no ell:<.'eption. earnin"'s to. paiy olf th-eir debts as have many of the older companies. "It is therefore worthy of i:emaTk," say San.ford & Kelley, "that~ the THE TECUHSEK MILLS. last five years they have paid successively 1~, 19, 20, 32, and ag~ 20 I quote: per cent." In spite ot these disbursements m five years, amounting to With earnings amounting to abo'tlt 100 \>er cent for 1920, it may considerably mone than their capital stock, they can y~t show a surpl~s surely be felt that the Tecumseh Mills did exceedingly well.· The of more than 100 per cent in their surplus of net quick assets. This, stockholders have every rea on to be gr.atified, as they ha'Ve received too in spite of the tremendous taxes which the corporation bas had to in cash and Liberty bonds 73 per cent, and when all this bas been paid pay becau1>e of Its large earnings, because of excess-profits taxes. out the mill then showed a surplus of net quick assets amounting to T-H» Pl'lm.CZ MILLS. ova- 100 per cent. I quote again : THl!l FLINT MILLS. Tbe Pierce Mills paid its stockholders 34 per cent in cash dividends The Flint Mills- during the year, as compared to 50 per cent last year !111:d 41 per ~ent And I am quoting from the representati:ve of the stol:!ks of the three previous year.a. The Pierce is one of those neli corporations that can well afford to pay substantial dividends in times of depression, these companies, their selling agent on the Boston Stock Ex as so much in the way of surplus quick assets has been laid aside over change- a long period of years and kept as a reserve t-0r just such occasions. The Flint Mills made a remarkable showing for the pa-st year, indl· l\Ir. I cated earnings being in excess of its total capital stock. Tltis more Mr. WALSH of Montana. President, understood. the than justifies the board of directors for its liberal payments of cash Senator to say some time ago that these companies were re dividends, which amounted to $48 a shaTe. ducing wages. It may be said that the profit of fbese mills was abnormally Mr. LA FOLLETTE. I am coming to that pretty soon. large during the war period. That 1s true ; bnt most of the There has been quite a struggle on between the manufacturers :figures that I am giving involve two years subsequent to the of cotton goods and their employees. I am go-ing to take that war, including what is supposed fo be a period of depression in up and present to the Senate some facts which I think are very the industry. Numbers of them also include years prior to the pertinent to the discussion of the subject. I am just now deal war. ing with the profits of these concerns. The t'epresentatives of these organized industries who ap If Senators will foilow me in the quotafions I am mak:in.g peared demanding more tariff protested that there was terrible l1ere from a reputable concern in Boston, a member of the depression in the industry. I have stated the dividends, the Boston Stock Exchange, representing the actual condition of ,profits, made in the period during which they represented they these stocks and of these companies in all the aspects of thetr were suffering from depression which they advanced as a reason financial situation, they will ouserve that they are not dealing f oi; the excessive increases in duties over those imposed by the merely with recent years and the war profits that have been Underwood-Simmons law. made under exceptional conditions, but that every once in a Here is what Sanford & Kelley have to say of the Granite while we get a comment that reaches back into the pre-war Mill, not only during the war period but for a period of 40 period many yea:rs, sometimes 10, 12, 15, or 20 years and' in years: some .instances, as I remember, 40 years. These are not excep THl!l GRANITl!I lfILL. tional cases. Like the FLint Mill, it (the Granite Mill) shows a. surplus of net ~Ir. WALSH of Montana. If the Senator will suffer another quick a.ssets greater than its ca-pital and no debts except unaccrued interruption, I would like to inquire what was the occas~on taxes. The- a-verage dividend record of the Granite Mill over a 40-year period is exceptionally good, during which time there ha never been a for the publication of this information by the concern to which year past but what the stockholders received something in cash in the the Senator has referred. way of dividends, no matter how great the depression in the industry Mr. LA FOLLETTE. It was for the purpose of disposing may have been. of the stocks and bonds of these companies in the usual course TU.. II.NG PHILIP MILLS. of business. People who can make investments in stocks of The King Philip Mills added another to its list of years of prosperity, which was refieded in the payment of dividends to the stockholders this sort that pay 50 per cent o.r 100 per cent are interested, amounting to 73 per c.ent, taking the Liberty-bond r»sbursement as of course in the opportunities which are oifered by the bond worth 100 cents on the dollar. compani~ and the stock companies that deal in and represent The list of mills which I have taken at random from these the various manufacturing companies in the disposition of their reports are typical, not exceptional. Some made more and stock. some less. I come now to the Whitman Mills. The dividend record tells only a part of the story of the THlil WHITlLL~ MILLS. profits of these mills. In some instances, as in the case o~ This is one of the largest and oldest mills in the country, and Amoskeag, dividend paid on preferred stock may be C'arried in was reorganized in 1895. Again referring to the stock of this the statement of the company as " cost of manufacture.'' .A.s company, thi s same report says : in the case of this company also, stock dividends a:ce declared A man who owned 20 shares at that time--1895-and took new stock sometimes equaling or exceeamg tbe original ammmt or stock as it was offered to him afterwards now has 40 shares, which cost him issued. Amos~ for instance, in 1919 declared a stock $3,800 and are worth about double that amo.un.~ in t.he 1!18;1"ket to-<;Ia:v:. From the d"istrfbutions of all kinds be has received lD d1v1dends since · dividend of 100 per cent. Consequently the holders ot that 1895 on what cost Mm $3.,800 the sum o1l $8,01H.50. stoek thereafter received dividends tbereon the same as upon Sanford & Kelley also isStied in 1921 a special report on the the original stock, which, of course, reduced the dividend rate. itman Mills, in which there i.s a most· interesting side light Then also, as in the case of this, compauy, which is reported· to the manner in which the cotton industry is conducted. ] ha:ve a surplus- of $40,000,000, the surplus iS built up enti"rel.Y e from that report : out of the earnings or profits of the company, which is but 1922. OONGR.ESSION AL RECORD-SENATE. 10083 another way of saying that it is built up out of money collected Mr. MOSES. In that respect, then, · Mr. President, I pre- from the publiersity, made an investigation. the case of the Amoskeag or any other New England interest. l\lr. MOSES. Mr. President, before I left the Chamber, with When these facts are presented with respect to that company, the permission of the Senator from Wisconsin, he told me he if the Senator from New Hampshire has any explanation for wa about to refer to the Amoskeag Mills. May I ask the it, let him make it. I say that they have put by in capital Senator if what he has now stated is what he had in mind? stock out of profits since 1895 eight times the capital stock l\1r. LA FOLLETTE. Yes, sir; I think it is. that they had at that time. l\Ir. MOSES. And that finishes the indictment of the Amos- Mr. MOSES. I think the Senator is in error about that keag Mills? with reference to the period of time, but with reference to Mr. LA FOLLETTE. For the present. the practice of the company of putting by a part of its profits Mr. MOSES. I do not want to interrupt the continuity of into surplus, I wish to ·ay that that is a trait that I should be the Senator's argument at all, but it seems to me that he has glad to s~e extended. O\erlooked some elements of the situation which would have l\Ir. LA FOLLETTE. Yes; and out of profits they have been been more familiar to him if he had lived in New England and able to pay round dividend~ e\ery year to their stockholders. had seen the operation of the mill. While it is quite true, I l\Ir. MOSES. I hope they have, and I hope they will con wish to say to the Senator. that the Amoskeag has accumulated tinue to do so. a very large surplus, it has done so, as I understand, because Mr. LA FOLLETTE. I will put into the RECORD the story of it has not been in the habit of distributing its earnings in divi- that institution. I will sati ·fy my friend from New Hamp dends, but it has kept its earnings for the purpose of deyeloping shire upon that ·ubject. the plant and taking advantage of the market. For example, Mr. MOSES. It certainly will be an interesting story of the the Stark l\Iills, in Manchester, neighboring the Amoskeag, have development of a great industr:al concern. been compelled to go out of business because of some element, Mr. LA FOLLETTE. It certainly will be a story of the possibly of imprudence, in the management of their affairs or ex:ce~sive profits that greedy manufacturers can make under because of certain elements of competition in the Southern exces. iYe tariff rates. States, where the particular class of goods which they make ' Mr. l\fOSES. Oh, 1\lr. President, when a concern having a ha. been produced in larger volume. The Amoskeag has bought 1 turnoYer of $35,000 000 a year amasses in profits and dividends the Stark Mills in order to continue the Stark l\Iills as a manu- I sub tantially $1,000,000 a year, less than 3 per cent on its facturing enterprise in Manchester, something that the Amos- turnowr, it is not possible to say that that is profiteering, or keag could not have done but for the prudence of its manage- J that it i · excessive. The Senator knows perfectly well that in ment in the past and the accumulation of the smplus to which the general run of business transactions in the country a gross the Senator from Wisconsin has referred. I profit of 10 per cent on the turnoYer is not abnormal and is It is my recollection from my reading of the last printed re- not deemed excessive. port of the Amoskeag-and I have nothing but newspaper 1\ir. LA FOLLETTE. Mr. President, a profit such as I have sources from which to quote, and I am quoting wholly from been presenting here to the Senate this afternoon of 50 per memory-that the income of the Amoskeag from its invest- cent, 80 per cent, and 100 per cent per year on the manufac ments, including the item Liberty bonds, to which I referred in turing business that these protected interests have been con a colloquy which the Senator permitted me to ha Ye with him a ducting can not be excused on any play ·of term about "turn fe,v moments ago, was fully equal to the income from its manu- over." facturing operations. . Mr. :HOSES. Why, certainly, Mr. President, if a company I hope that the Senator from Wisconsin has not in mind any keeping its capitalization at a s,mall .figure, for nny reason-- notion of penalizing New England thrift and pruuence. The l\1r. LA FOLLETTE. Like the Amoskeag Co., for instance. Senator will remember that my State is far distant from the Mr. MOSES. Like the Amoskeag Co., for instance. source of supply of its raw material. We have in mr State for l\.lr. LA FOLLETTE. With its $40,000,000 of capital inc1·ease native raw material nothing but a few deposits of building in a very brief period of time. stone, a rapidly diminishing supply of timber, and water powers. Mr. l\IOSES. I have not the figures of the Amoskeag Co. in Around those water powers ha\e grown up these mills, and my mind. I do not think it is as great as that, however. around those mills have grown up large, enterprising, flourish- l\Ir. LA. FOLLETTE. I am very certain it is. ing communities, bringing cotton from Alabama and coal from l\fr. MOSES. But in the case of a company keeping its capi- Pennsylvania. This development has been made possible by talization at a small figure, but having a tremendou tnruover. thrift and enterprise. I hope the Senator from Wisconsin has certainly, a I view it, it is somewhat unreasonable to take the not in mind the penalizing of New England for those sterling percentage applied to a small capital, but based upon a 'Very qualities. large turnover, and present that as evidence of a charge of l\1r. LA FOLLETTE. l\Ir. President, I am scarcely in a posi- profiteerb;ig. The particular question which the Senator from tion either in the Finance Committee or in the Senate to penalize Wisconsin is discussing, however, is not one which affects the anybody. I hold views which are not in accord with the ma- Amoskeag Co., because, as I pointed out to him earlier in the jority. Those who boss the legislation of the Senate with regard day, the Amoskeag Co. has not been here asking for higher to the tariff have been for many years in the majority here and tariffs. in the majority in the Finance Committee. I stand quite by l\.lr. LA FOLLETTE. I do not know that that signifies any my elf in that committee. So my friend from New Hampshire thing, Mr. President. They may be represented by those who ha no reason to apprehend any drastic action emanating· from are here asking for higher tariffs. me against the Amoskeag or any other New England manufac- Mr. MOSES. I think I may say of my own knowledge that turing concern for which he speak . they are not-- I have considerable data here upon the A.mo ·keag cotton man- Mr. LA FOLLETTE. Well, that may be true, and if the Sen- ufacturing plant. I had extracted therefrom for the purpose ator says so I know it is true. . of the argument this afternoon just such material as I hn\e l\fr. MOSES. Because, I think, if the Amoskeag Co. had pre ented. I remember, however, Mr. President, without re- wished to ha\e its ca ·e presented here, I would have heard ferring to my more extended notes upon the subject, that the something about it. The other manufacturers of my State haYe Amoskeag had many years ago a capital stock of about not been at all modest in notifying me of their desires. $5,000,000, and it has been able to add to its capital from profits Mr. CARAWAY. l\Ir. President, I might suggest to the Sena in the business under the tariffs which have existed eight times tor from Wisconsin that the Finance Committee has not been the capital stock which it had some 20 years ago, or, perhaps, at all modest when it granted their desires, has it? le than that-15 years ago. Mr. LA FOLLETTE. It has not been necessary, I will say, 1\!r. MOSES. Mr. President-- for anything more than intimations as to advances in rates to The PRESIDING OFFICER. Does the Senator from Wis- be made to have them recorded in this bill as presented here. consin yield further to the Senator from New Hampshire? Mr. CARA. WAY. l\Iodesty, then, has not characterized their l\!r. LA FOLLETTE. I yield. dealings- 1\Ir. MOSES. The Senator would not assert that that in- l\1r. LA FOLLETTE. Not very much; no. crease in capital stock had all come out of profits during the Mr. CARAW A.Y. Not only with the constituents of the Sena- time whlch he mentions, would he? tor from New Hampshire, but with the constituents of other l\1r. LA FOLLETTE. That is the same argument which Senators. the Senator's predecessor, Doctor Gallinger, sought to make l\ir. LA FOLLETTE. When any representative of a marmfac- bere some yea1·s ago. turing interest appeared before the committee, about the first 1 10084 CONGRESSIONAL RECORD-rSENATE. JULY 8,, question that was asked was" What do you want?" And when Mr. L.A. FOLLETTE. I think that is ·true; yes. l it was stated "by the representatives of the concern what they Mr. MOSES. So that the less than 3 per" cent upon theiJS" •wanted, that is about what they got. turnover, which is about what happened-- Mr. MOSES. Mr. President, if I may ask the Senat.or .from Mr. LA FOLLETTE. Well, I do not know. I am oot certafll Wisconsin another question, he having already told m:e that as about that. I have not any data upon that subject. Has the a member of the Finance Committee he has n<>t heard the voice Senator looked that up? , of .any represe.ntative of the Amoskeag Co.-- Mr. MOSES. I beg the Senator to t:a.k:e my word for it. · Mr. LA· FOLLETTE. I do not remember, Mr. President, Mr. LA FOLLETTE. I will take the Senator's word for any whether the Amoskeag Co.'s representatives appeared before the thing that he bas investigated. committee or not. There was a period of about one month when Mr. MOSES. My recollection from my investigation is that I was absent from the hearings in the committee on account of the annual turnover .of this company is about $35,000,000, and a .death in my .family. They may have appeared at that time. $1,000,000 applicable to dividends and surplus would be some I do not know whether they did or not. thing less than 3 per :cent on the turnover, and as I understood Mr. MOSES. I think they did not; and, with reference to the · the Senator in the table which he read earlier in the day that suggestion made by the Senator from Arkansas, I wish the was the total amount available for dividends and-surplus, so Senator from Wisconsin also to give me absolution. I have not that the Senator from Montana [Mr. WALSH] should not think appeared before the Finance Committee asking for higher duties that there is an additional amount that in some way was on cotton. carried to surplus, because, as I remember the table ·which the l\fr. LA FOLLETTE. No; that is very true, and I .am very Senator read, tbat included the total earnings of the company. glad to attest that fact, Mr. President. I think the appearance Mr. LA FOLLETTE. Mr. President, I do not carry all those. .of anybody representing any of these New England cotton manu figures in my mind, and I will not take the time of the Senate facturers and asking for increased rates would be a pi~e of to recur to the table. brazen impudence, and I know the Sena.tor from New Hamp Mr. MOSES. Mr. President, I merely happened to be in shire well enough to know that he could not be enlisted in RD the chair, and my mind was entirely .free to follow what the enterprise of that sort. - Senator was saying, and I think I recall it with litel'al accuracy. Mr. CAR.A. WAY. Mr. President-- Mr. LA FOLLETTE. That may be true. The PRESIDING OFFICER. Does the Senator from Wis Mr. SMITH. Mr. President, will the Senator allow me to get consin yield to the Senator from .Arkansas? clearly in my mind the distinction that the Senator from New Mr. LA FOLLETTE. I do. Hampshire is making in hi.s calculation as to the turnover? Mr. CAR.A.WAY. Granting that, I was going to suggest that The capitalization of this company, I believe the Senator from it was not necessary for anybody except the representatives of Wisconsin has said, is $5,000,.000. That is the amount owned the ooncern to come, was it? I judge from what the Senator by the company .or invested by tlle company, upon which they has said that if they intimated, even by letter, that they wanted are to pay dividends. In the course of a year's business they a raise they got it. will turn over that amount to an aggregate of $35,000,000. and Mr. L.A. FOLLETTE. Mr. President, I think the record of the on that turnover they will earn about 3 per cent; but that 3 per committee will show that an increase was, as a rule, accorded cent represents the .a.mount made upon the ·yearly turno-ver. to those who appeared asking for an increase. I think that is What does it represent upon the capital invested, upon whieh the record of the Committee on Ways and Means in the House dividends will be paid? .of Representatives. I think if anybody will take the testimony Mr. MOSES. Mr. President, upon the figures which the Sen presented to the Ways and .Means Committee of the House ator from South Car.olina has quoted that would be something and the testimony.presented to the Finance Committee ·of the like 20 per cent on tlie capitalization, of which, however, Jess Senate, it will be found that substantially the rates asked for than half is distributed in dividends. The rest of it·goes into by the interests who appeared were accorded to t~m. Of betterments or into available surplus. course many rates were added after the record evidence of the 'Mr. SMITH. Yes; but we want to get clearly in our minds hearings terminated, for a very large body of representatives this idea : There is invested in this business by the individuals of these interests appeared when there was no record made of engaged in it $5,000,000. They have a monthly or bimonthly the hearings that were had by the 1Republican members of the turnover which in the course of-a · year aggregates $35,000,000. committee, and concerning what transpired at that time I have Upon tha.t turnover they earn. annually 3 per cent. That means to depend upon my recollection, as do other . members of the that they have been able, by the use of the $;5,000,000, to earn committee. something like 20 or 25 per cent. Now, the question arises, Mr. WALSH of Montana. Mr. President-- What per cent have they made upon the capital invested? Mr. LA .FOLLETTE. I yield .to ·the Senator from Montana. That is the point that the .Senator from Wisconsin was at Mr. WALSH of Montana. · I have been endeavoring to follow tempting to develop. It is .not so much a question as to •the the argument of the Senator from Wisconsin upon this very turnover as it is a question kind of thing and shutting other people out from the possibility' his profits. The wages paid in the cotton mills of this cmmtey of protecting themselves against it. and the manner in which women and chitdren have been worked Mr. MOSES. Of course, if the Senator from South Carolina in those mills is a national disgrace. I have before me a wishes to pass a statute here which will prevent the Amoskeag pamphlet entitled "Wages and hours in American industry," Co., in Manchester, N. H., from paying the Southern States prepared by the National Inctm~trial Conference Board and $16,000,000 for cotton, as they did last year, be can answer to published in 1921. This concern is composed of manufacturers, the cotton misers on that point. and the cotton manUfacturers of the country occupy a promi Mr. SMI-TH. I am glad the Senator has called attention to nent place in it. In this pamphlet they have a chapter on that. These are not matters which pertain to any particular cotton manllfacturlng, and in that chapter they give what individual or any particular corporation. We are charged here they call "classified pay-roll data." Among other things, this with the duty of making such laws as will give every man an data shoWs for a typical month in 1914 and for six months ot equal chance under the law, and the Senator knows that when 1920 and six months of 1921 the average weekly earnings in the spinners in New England bought $16,000,000 worth of cotton the cotton factories, North and South, of women. and male from the South, if they did, they got their cotton below the cost skilled and male unskilled labor, and the average for all. By of production. The man who sold them the cotton was not multiplying the amount of weekly earnings, as given in the declaring any dividends or laying by any surplus. He was pamphlet of this manufacturers• association, by 52, it is ob :fixing to get a mortgage on his place, to try to meet expenses. vious that one gets the total amount the laborer could earn it Mr. MOSES. I assume that the New England cotton spin he worked every week in the year. Constructed on this basis ners paid for cotton in the South what the cotton raisers in the you get the following table : South asked for it. They could not get it anywhere else. Ootto1i-mill workers' '[/ear'lV eaNt.inga (for 5! weeks' empZO.yment). Mr. SMITH. The cotton raiser in the South takes what the New England man offers. That is notoriously the fact. He has 1914 1920 1921 to take that or take nothing. He ha:s no way of protecting him self. He is in bad ; and, besides that, the monstrous condition ' NORTH. still prevails in this country that the New England mills and $469.(){, Sl,218.93 $924..20 the. southern mills wait every morning for the Liverpool mar ~::~:E~·.:::::::::::::::::::::::::::::::::: 536. 64 1, 68T. 64 l,0&5.4-i ket to open to sell American cotton upon the basis of a European Male uns1t:i1led •••••• _ ••••••••••••••••••••••• _••••• 457.60 l, 162. 82 915. 98 competitor. SOUTH. Mr. LA FOLLETTE. Mr. President-- 369.20 937.61 791.60 Mr. MOSES. I beg the Senator's pardon ; he has the fioor. ~::~1:f~~~::::::::::::::::::::::::::::::::::: 419.64 1,~~ 951.60 Mr. LA FOLLETI'E. .Mr. President, I want to conclude what Male unskilled .••••••••••••••.••• _•.••• __ •••••••••• ' 296.40 625.56 I have to say, and I will leave the discussion of this subject to my friend from South Carolina and my friend from New Hamp This e'°ployers' document also shows that in 1914, before the shi'l'e. I may have occasion at another time to go more fully war, cotton-mill wages in the South were as low, if not lower, into the financial history of the Amoskeag Co. I find I am not than any other wages in the United States; that in 1914 cot able to put my hand upon some notes I had regarding that ton-mill wages in the North were among the very lowest wages company, which I thought I had brought to the Senate floor. in northern industry; and that in 1921, at the peak of cotton I wish to add to the testi1uony as t<> the profits made by mill wages, both North and South, they were at the very bottom these various cotton manufacturing eompanies this statement of the wage scale of the industries of the country. It also from Professor Lauck, formerly Of the West Virginia University, shows that in 1921, after the war, cotton-mill wages, North who made an investigation into the pl"Ofits of various manufac and South, were on the average fUrther below wages in other turing companies and published a pamphlet upon that subject, industries than they were in 1914. Is it any wonder that there which was issued in 1920, from which I read: are strikes throughout New England? This table I have pre PROFITS AS SHOWN IN THE PUBLISHED REPORTS OB' T11XTIL1!1 COMPA..YlilS. sented shows that at no time were the wages paid even to the Snch profits ehould be refleded in the net incomes shown in the most skilled cotton-mill workers anywhere near the health and published reports ot the large textile companies. Here, again, the ma decency level of any of the budgets made up either by the Labor terial at hand is not so full as one could wish. But such returns Bureau or any of the other oTganizations that have made as appea:r in Moody's and Poo-r's Manuals enable us to substantiate the above conclusions for eight large representative cotton and wool studies into that question. It is my recollection, also, that manu!acturing companies. Roughly speaking. the net inco-me of these since the :figures were published from which I have compiled companies for the war years 1916-1918 was five times as large as the this table, cotton-mill workers have accepted a very large cut in corresponding total for the pre-war years 1912-1914. • • • • • • • wages to escape starvation, and they are now generally on In general, the outstanding fact is that in recent years the mano· strike because of a proposal to still further cut their wages and facturer's and retailer's margins ot profits have been absorbing a much increase ·the hours of labor. larger portion ot the consumer's money than in earlier years, that to But, sir, imagine a laborer, skilled or unskilled, in any indus day the amount absorbed by these two elements amounts to approxi mately one-halt the price paid by the consumer for the goods, and that "try supporting himself and maintaining a family on the yearly this is reflected in profits which, for the manufacturer at least, are wage which it would be possible fo-r him to earn in this indus many times those received in pre-war years. This establishes a very try, even though he worked every week in the year without loss close relation hip between prOfiteerJng and high prices. of time. This table demonstrates beyond all question that the I have not given these figures nor discussed the profits or profits of the manufacturer have little to do with the wages ot the business methods of cotton manufacturers for the purpose the worker, no matter what the manufacturer's profits may be. of convicting them of profiteering but for the purpose of show They pTate about low wages abroad and appeal for higher ing that. before the war, during the war, and after the war the rates of protection to o:trset the difference between the wages business has been an extremely profitable one, and the greatest paid in foreign countries and the wages paid here. The labor of this prosperity has been enjoyed under tariff rates less than ers of this country get no wages from their employers except one-half of those which this bill seeks to impose. The only ing as they are able to exact them through collectiYe bargaining, possible pUl'pose of the cotton schedule of this bill is to give and even then they are in an overwhelming and steadily en these great manufacturers an absolute monopoly of the Amer croaching condition of oppression. ican market-its purpose is to give these cotton manufacturers Manufacturers appear before the committees of Congress a monopoly just as complete as though an embargo were im with their mouths dripping "With unctuous phrases about the posed upon importation of cotton cloths. The limit of the protection of labor, and then drive their employees into a price which the American consumer will have to pay for this condition of life such as that shown by the investigations ot great necessary of life will be measured only by the necessities the conditions in Lawrence, Mass., where families are com of the purchasing public and by the greed of the cotton manu pelled to live in one room on the wages which they are able to facturers, who have come to look upon dividends of 20, 2!5, or 50 earn, and then are forced to strike to prevent those wages per cent quite as the ordinary thing in their business. being reduced to a point which makes their condition of life It is rather remarkable that the advocates of prohibitive. more bitter and more exacting and more oppressive than it is. tariffs never point to the real benefkiary of such legislation. The tariffs fixed by Congress ostensibly for the protection ot They ne-ver mention what the tariff does for the manUfacturer, labor never reach the laborer where the employer can prevent but they solemnly declare that the tariffs are necessary for the it. The employer will take every cent of the advantage that poor laboring man and woman. There never was a falser the tariff imposes and labor gets nothing from it excepting as claim made by mortal man than that the tariff wall which the labor, through organization, is able here and there to make cotton schedules of this bill propose to erect for the benefit of an approach toward exacting what will furnish a !air return the cotton manufacturer wfll in any way benefit the laborer in for its services. tthe cotton mills. The cotton manufacturer pays his labor just l\Ir. Eresident, it ought to be enough to say that labor to-day as little as possible without -any regard to tariff legislation -OT in the t:nited States is paid less in the purchasing power of 10086 CONGRESSIONAL JtECORD-SENATE. JULY 8, its wage than at the beginning of this century, No man who bas certain :figures which show the result of the operation of the taken the trouble to go into the figures showing the increase rates under the emergency tariff law, printed recently under in the cost of the necessaries of life will dispute that state resolution of the Senate. ment for a moment. I have submitted to the Senate ample It will be recal1ed that we passed the emergency tariff law proof on that subject. It is overwhelming. The shrinkage in on May 27, 1921. We find that the price of New Orleans rice the purchasing power of the dollar is such that the actual wage in this country for June, 1921, was 2.75 cents per pound. We of labor in the United States to-day is below what it was at the find that in July the price went to 3.63 cents per pound; August beginning of the present century, measured by the purchasing to 3.88 cents per pound ; September, 3.63 cents per pound ; Oc power of the dollar. The purchasing power of the dollar to tober, 5.19 cents per pound; November, 4.51 cents per pound; day is 38 cents as compared with what it was in 1901. December, 4.69 cents per pound. This was an increase of 70 per The table which I have presented demonstrates beyond all ques cent in the price of rice from June, 1921. tion that the profits of the manufacturer have little to do with In order to show that the emergency tariff rate had something the wages of the worker, no matter what the manufacturer's to do with this, I have here figures from the London market profits may be. In the cotton business, at least, its history shows with reference to Siam rice, which is a comparable rice to the that the wages paid to labor will not be voluntarily increased. New Orleans rice. It will be found that in June the price in I think that is true of every other industry. If 10, 20, 50, and London was 4.54 cents per pound, whereas we were receivin<>" 100 per cent annual p:i;ofits do not induce the manufacturer in this country 2.75 cents per pound. Then the price on th: to raise the wages of his labor above starvation level, what is London !llarket .was as follows: For July, 4.14 cents per pound; the use of talking about aiding labor through a protective tariff? August is not given; September, 5.02 cents per pound ; October, Never was a greater fallacy than that you could make labor 4.74 cents per pound; November, 4.98 cents per pound; Decem prosperous by adding to the wealth of the employer. Not one ber, 5.14 cents per pound. cent of the millions or billions that go into the employers' pock Mr. President, it will be seen by a computation and striking ets as the result of a protective tariff in excess of the fair an average that the increase of Siam rice on the London market margin of profit ever benefits labor. That is an axiom that ap during the same period was only 13 per cent, and yet, notwith plies to the cotton schedule and the woolen schedule and the standing the increase in the tariff rate under the emergency steel schedule and every other similar schedule in this bill. tariff law, the American consuming public were paying less Of course, it is true that if a manufacturing business can not for rice than was paid by the British consumers for a com ~be conducted and some moderate profit realized it will in time parable qual:ty of rice. I think that that demonstrates-and be abandoued, and labor thereby will lose employment. But it is one of the lessons which this report clearly teaches; and if if it can be conducted at a moderate profit, no matter how the figures in other instances are analyzed I believe the same great the wealth you may shower upon the manufacturer by result will be apparent-that we were never made to pay more embargoes, tariffs, or other favors, you will not benefit labor than the British consumers paid for rice. Though the duty did one cent. · They will pay labor just what_ they are obliged to increase the prices to the producer by 70 per cent, the consumer pay labor, and not one farthing more, and all the surplus of still paid less during every month than the English people paid profits that come from a tariff and from other favors bestowed on the London market, on which during the same period the will be put into the coffers of the corporations and into the price increased only by 13 per cent. pockets of those who own the business. l\fr. President, I wish to say on behalf of the committee that That is why, Mr. President, the robber rates of tariff in the the statistics concerning rice in the Summary of Tariff Infor cotton schedule, the steel schedule, the wool schedule, and other mation were not sufficiently complete to afford the committee schedules in this bill will not benefit labor in the least, but adequate information, and we find that they dealt with only will simply enrich the great manufacturers by the hundreds of two years, which were the only years that they could have millions and billions of dollars which they will thereby be able selected where the conditiOOls were such. For instance, we find to extort from the consuming public, and will lay upon the con on page 695 of the Summary of Tariff Information-and I am sumer that enormous burden in addition to that which he car now quoting from that document: ries now. Compared with the enormous crops and exports of the Orient, the Mr. President, I want to say just this word in closing: I hope domestic production is insignificant. However, with the exception of to be able to devote some time to the cotton schedule after its certain kinds imported to meet special requirements, the American out put supplies substantially the eutire domestic demand and permits an rates shall have been fully settled upon and presented by the export of over 400,000,000 pounds. committee to the Senate for its consideration. I want to say that I shall be fortified with proof here to show that upon every There could not have been a more inaccurate statement made . step of conversion cost, from the gray cloth to the finished with reference to rice, generally speaking, but it was practically product, the processes are so improved in this country that the true. Immediately after this was published I got together all cost in Great Britain exceeds the cost here. That is my· belief, of the monthly summaries which were issued by the Bureau of based upon cablegrams which I have received within the last 24 Foreign Commerce, and checking them up I found that the ex hours touching this subject. ·Cess of exportations over importations for 1921 amounted to I hope to be able, Mr. President, to submit some observations 344,050,686 pounds; for 1920 the exportations exceeded the im further on this schedule at another time, and I hope to be able portations by 303,463,298 pounds; but before that, going back also to take up certain other schedules in the tariff bill and as far as the time when the industry became generally recog submit them to some discussion and analysis. I believe this is nized as an important agricultural industry in this country, all I care to present at this time. going back to 1895, we find-I will select just a few years by Mr. BROUSSARD. Mr. President, before action is taken on way of illustration-that the excess of importations over ex the rice schedule I have here a few facts which I should like portations was in 1919, the year before that for which figures to insert in the RECORD. We are asking that the House rate on are cited by the Tariff Commission, amounted to 170,000,000 rice be restored. I wish to place in the RECORD a few facts to pouQ.ds plus; that in 1918 the excess amounted to 259,000,000 show what the House rate is on an ad valorem basis and to pounds plus; in 1915 to 199,000,000 pounds plus-practically to show that it is not unreasonable. 200,000,000 pounds, because the total figures are 199,711,000 The imports during the calendar year 1921 of paddy, or rough pounds-and going down to 1909, the surplus of exportations rice, were 56,615 pounds, valued at $3,501, or 6 cents per pound. over importations amounted to 202,388,000 pounds plus. That is equivalent under the House rate of 1 cent per pound ~o These facts were not given to the Finance Committee, and an ad valorem rate of 17 per cent. for that reason the Finance Committee recommended a reduc Of the uncleaned or brown rice there were imported 19,839,596 tion in the rates proposed in the House bill. Immediately I pounds, valued at $1,052.668, or 5 cents per poui;id, which equals presented these figures to individual members of the Finance an ad valorem rate of 25 per cent. Committee I was very much encouraged at the attitude taken, Of milled rice there were imported 17,078,059 pounds, valued and I have been told by practically all of them individually at $804,285, or 5 cents per pound, which would make the equiva that they recognized that the facts had not been presented to lent of an ad valorem rate of 40 per cent. them at the time they took the action recommending a reduction Of rice flour, meal, and broken rice there were imported of the rates. 787,215 pounds, valued at $53,549, or 7 cents per pound, which is I wish to say a word with reference to the amendment equivalent to an ad valorem rate of 7 per cent. which I proposed to offer here. Before proceeding to do that, These are importations for 1921 and show, in my opinion, however, Mr. President, I should like to have permission to that the House rates are not excessive. have the table which I prepared several months ago for my In order to show that the tariff rate is effective and does speech delivered on May 3, 1922, and inserted then in the CoN protect rice, which is an agricultural product-because it has GREssrnN AL RECORD from the Monthly Summary of Foreign Com been said that we can not reach agricultural products through merce re:nserted in the RECORD, so as to show the relative the imposition of a tariff rate-I desire to put into the RECORD importations and exportations of rice from 1895 to 1921. il922. CONGRESSIONAL RECORD-SENATE. 10087 'The PRESIDING OFFICER. Without object1on, leave will 1903 : Pounds. be gr.anted. The Chair .hears none, and it is .so ordered. 1 The table referred to .is as 'follows : ~~;~g~~::::::::::::::::::-_::::::::::::::::: f~:~gf:~: The totals of impoi:ts and ·exports for each year have been added by Surplus importation over exportation______149, 904, 836 fiscal yeal'.S and Show the following result : 1921 : Pounds. 1902: 1 Exportation ------~-- 440, 855, 298 ~g~~:gg~::::::::::::::::::::::::::::.:::::=:: ~i:g~f:~?t Importation ------~------96, 804, 612 Surplus &portation over importation______344, 050, 686 Surplus importation over exportation______128, 067, 620 1901: 1920: IIDporta1;!-on ______, ______117, 119,710 Nxportation ------483, 385, 259 Exportation ______~------25, 527, 846 Importation------179, 921, 961 Surplus importation over exportation______91,671,864 Surplus exportation over importation______303, 463, 298 1900: 1910: Importation.______·------~16, 679,891 Importation ------~---~------363, 726, 263 Exportation------·------41,066,517 Exportation------193, 128, 000 Surplus importation over exportation______75, 613, 374 Surplus importation over exportation.______170, 598, 263 1899: 1918: Importation_------204, 177, 293 Importation ------456, 058, 608 Exportation------·------15,334,589 Exportation------196, 363, 268 Surplus importation over exportation______188, 842, 704 Surplus importation over exportation______259, 695, 340 1898: 1917: Importation______·------190 285, 315 Importation ------216, 048, 858 Exportation______6:200,987 Exportation------181, 372, 310 Surplus importation over exportation______184, 084, 328 Surplus importation over exportation ______34,676,548 1897: 1916: Importa1;!-on__~------197,816,134 Importation ------264, 324, 005 Exportation------·------3, 905, 734 Exportation------121, 967, 465 Surplus importation <>Ver exportation______193, 910, 400 Surplus 1.mportation over exportation______142, 356, 540 1896: 1915: • Exportation_ImportatioD---~------______.______· ------146,.15, 724,031, 607554 Importation------'277, 1.91, 472 77, 480, 065 :Exportation------~------Surplus importation 1>ver 1!x:porta.tion______131, 693, 053 Surplus importation over exportation______199, 711, 407 18tl5: Impartation______~------219, 564,320 1914: Importation ------290, 194, 917 Exportation------·------1, 573, 336 Exportation ------22, 414, 326 ·Surplus importation over exportatto.n______217, 990, 984 Surplus importation over exportation______267, 780, 591 Mr. BROUSSARD. Mr. President, I had offered an amend ment to this paragraph, but I find from the disposition of the 1913: Importation ------222, 103, 547 Oommittee on Finance it is not necessary to press the amend Exportation------~------38, 195, 490 ment. I shall be satisfied to request the Committee on Fi Surplus importation over exportation______183, 908, 057 nance to ask the Senate to disagree to the proposed committee amendment, which action will restore the House rate, which is practically the same rate as that carried in the emergency 1912:Importation ______:.______190, 063, 331 tariff law, and is also the rate which all of the rice growers Exportation------~------39, 446, .571 of the country :have asked the Finance Oommittee of the Surplus importation over ex:portatio•------J.50, 616, 760 Senate and the Ways and Means Oommittee of the House of Representatives to give them. I hope the Oommittee on Fi 1911: .Importation----~------.208, 774, 795 nance will accept "that suggestion and will .a.sk that the com Expo~tation~------30,063,361 mittee amendment be disagreed to, thereby restoring the .Surplus importation over exportation ______178, 71.l, 434 House rate. Mr. JOHNSON. .1\1r. President, I wish -to j<>in in the sug 1910: gestion made by the Senator from Louisiana. I shall make Importatioil------~------225, 400, 545 no extended remarks on the subject, because I think the jus Exporta_tioD------26, 799, 188 tice of the suggestion made by the Senator is conceded upon Surplus im_portation o-ver exportation______198, 601, 357 all hands. I desire, however, to have prlnted in the RECORD a letter received by me from the Riee Growers' Association 1909:Importation ______222, 900, 422 of Oalifornia, together with the resolution adopted by them .Exportation.....------~------20,51~,429 and the names attached thereto. One pangraph from the Surplus impo.rtation over exportation ______202, 388, 993 letter, however, I shall read: The rice :Industry of Cali!omia represents the ,product of 250,000 1908: acres or landi upon which rice is the oruy crop 1:hat can be raised Jmportatinn------..'.------.212, 783, 392 at a profit. t is, therefore, vital that -this industry should be pro Export&tiOD------28,444,415 tected against the invasion of South Asiatic rice, which can be sold in the United States under i:h-e 1-cent tarllf .at one-half the price Surplus importation -over exportation______184, 338, 977 at which Louisiana, 'l.1exas, rA.rkaneas, and Califoo:.nia rice must be sold in order to Teturn to the grower the -cost o! production. 1907: The fact is, Mr. Pres1dent, which ,prohably is little known, 1mportatioD------209, '003, 18-0 .Expo.eta tiOll------30, 174, 371 that California in the last few years has becollle the second rlce-_producing State in the Union., and, .unless Louisiana looks .Surplus importation over 1!Xportation______179,428, 809 to her laurels, it will s.oon be ±he first rice,prodncing State in the Union. I ask -that the Tesolutinn and letter to which I 1006:lmpo.rtation ______166, 049, '957 have ..referred be printed in the .RECORD as a part of my re Jllxportatio»------38, 142, 103 marks. Sui:plus importation over exportation ______128, 407, '854 "The PRESIDING -OFFICER. Without objection, it will be so ordered. 1905: The matter referred to is -as follows: Expo.rtation__----~------113, 282, 760 R.IC!I GROWIDRS' AsSOCIATION DB' Cillll'.OR-N"U.., Importation------106, 483,..51.5 CBNTllAL Oll"l!'nms, CAl.>ITAL "'NAT.JONAL BANK BUILDING, Surplus -exportation over importatiOD.------6, ?99, 2!5 Senator Hmui W . .JoHXSCH>\, Saorame-ri,to, -Oalif., June 29, 1m. 1904 : Benate Bu.iltlilig, Washimgtvn, D. 0. Importation 154 '221 '772 D11AR .S». ATOR JOHNSON : lncloB1'd herewith you will find unanimous Exportation:::::=::::==::::::::::::::::::::::::::::::::::::::::::::=:==:::=::: 29: .121; 7.63 petition at. the -rice growers uf California for a 2-cent tariff on cleaned riee, which involves an 1n-orease from 'the 1-cent ·tariff recowmetlded Surplus importation over exportation ______.. 125, 100, 009 by th~ Senate Finance Committee. 10088 CONGRESSIONAL RECORD-SENATE. JULY 8, The rice industry of California represents the product of 250,000 Frank G. Bremer, hardware; C. B. Kimball, hardware; acres of land, upon which rice is the only crop that can be raised at a B. B. Moreford, sherUl'; J. O. Smith, manager and profit. It is therefore vital that this industry should be protected bookkeeper Lambert's Warehouse; F. V. Lefever, rice against the invasion of south Asiatic rice, which ca.n be sold in the grower; Warren Steel, rancher; T. W. Patmon, United States under the 1-r.ent tariff at one-half the price at which rancher; Grace L. Gilson.I.. rice grower; Garth H. Ott Louisiana, Texas, Arkansas, and California rice must be sold in order ney, rice buyer; P. A. Kerrigan, rice grower; S. G. to return to the grower the cost of production. Harris, rice grower ; W. F. Hoke, farmer ; H. J. Cars The great majority of all rice growers in the State are members of tentrock, contractor; C. A. Duncan, merchant; Marion 1 the Rice Growers' Association of California, and I therefore earnestly Steg~ere., rice grower i.. Samuel Gray, rancher ; Edward ask on their behalf your favorable consideration and support of the Harns, rice grower; .1rrank W. Poole, jeweler; T. H. 2-cent rice tariff. Stafford, fruit grower; V. B. CarrQll, t·ancher; Geo. With kindest personal regards, I am, H. Jackson, landowner; J. L. Smith, rice grower; J. Very faithfully yours, B~innan, . drayman ; Alvin Weis, attorney ; Allen C. F. M. PORTER, Secretary. Miller, CJvil engineer; Robert Ewing, rice grower; H. E. Meyers, rancher· E. J. Kelley Co. (by John F. f'o the Senators and Representatives in Congress from the State of Kelley), merchants; V. M. Cassidy, publisher; Lawrence California: Schelley, attorney; Hugh Joaquin, rice grower· Frank Whereas the Underwood tariff provided a tariff of 1 cent per pound Lane, owner · rice land; Melvin E. Hiller, ihanager on milled rice, with variations for collateral products, which was prop R. B. & Co. Biggs Mill ; Fred N. Kenyon, manager erly and commendably increased to 2 cents in the emergency tarilf ; Kenyon Co. Qrchards; Louis Tarke, farmer and stock and raiser; A. L. Hill, cannery, superintendent California Whereas the Fordney tariff bill as revised by the Senate Finance Packing Corpor'ltion ; L. H. Wilson, rancher; H. p Committee abandons the urgently necessary protection a1forded by the Sta:t>Ier, Horticultural Com. Cutter Co.; A. W. Mc: emergency tariff and places the schedule back at the Underwood tariJI In tire, local manager Union Oil Co. of California; rates, and also provides an exemption of any tariff on rices used in the E. E. Werner, fuel dealer; H. D. Hook, rice grower · manufacture of soups and canned ·goods, which is dangerous and unfair C. M .. Crok, rice gr~wer; B. F. Cattlett, rice grower; to the American producers of rice ; and N. NeIS Varsnka, nee grower; L. A. P. Eichler rice Whereas the stability and development of the rice-growin~ industry grower (newspaper man) ; Frank Richwood ' rice in the United States, and particularly in the State of California, is buyer ; ~· J. Heibert, harware merchant; Cline Bull, vitally dependent upon the protection that would be afforded by a owner rice land · E . T. Barrett, rancher ; Daniel Demp 2-cent tariff and the elimination of the unfair preference given manu sey, fruit ~ealer; Hugh D. Moncur, well driller· Geo. facturers of soup and canned goods ; and T. Lath, nee grower; A. R. Gage, rice grower; F. W. Whereas the livelihood and prosperity of thousands of families of Benton, lumberman; John Joaquin, rice grower; C. E. American farmers, merchants, and workingmen in the State of Cali Button, e~ployee, Sutter Butte Canal; A. J. Wood fornia. are directly dependent upon the return of a reasonable price worth, fruit grower, printer. upon the 350,000,000 pounds of paddy annually grown in the State, which can not be obtained without protection against practically open ~r ..POMEREN?D. Mr. President, I received this morning an competition with rices grown in Asia under living conditions in editorial from this week's issue of the Iron Age entitled "An tolerable and impossible to Americans : Now, therefore, The undersigned, citizens and residents of the State of California unsatisfactory tariff." The Iron Age represents what has been living in the rice-growing area of your State, earnestly urge that you commonly understood to be one of the protected industries of lend you good efforts to securing a 2-cent tariff on rice and the elimina the country. I think Senators and the country will be inter tion of the unfair preference to the manufacturers of soup and canned goods, and by so doing indicate your loyalty to the principle of a fair ested in getting the viewpoint of thiSl'periodical, and I ask that return to Americans for products of American soil and a decent living the editorial to which I have referred may be incorporated in to the farmers, merchants, and workingmen who are giving their time the RECORD without reading. and best ell'orts to the building up of a great and sturdy industry in . The PRESIDING OFFICER. Without objection, leave will your State of California. . S. Latz. E. C. Callender, A. G. Rossi, Jas. A. Kern, Edw. be granted. The Chair hears no objection, a~d it is so ordered. J. Brunelle, and S. K. Briggs, of Modesto ; W. B. Welch, The editorial is as follow·s: Hughson; B. A. Barnes, L. W. Stephens, W. P. Andrews, jr., C. R. Herman, and T. Seversen, of Modesto, Calif.; AN UNSATISFACTORY TARIFF. John H. Free, Turlock; Leonard Latz, Modesto; A. The tariff bill as it stands to-day, much amended by the Senate in Warington, Oakdale; J. B. Moorehead and Geo. T. Committee of the Whole, may fairly be spoken of as more unsatisfac Davis, of Modesto ; A. M. McNeil, Cet·es; Louis Har tory than any of its predecessors. It was to be expected that the ma ris, D. M. McLean, Geo. G. Voight, C. C. Easton, jr., jority party would frame the schedules on a protective basis and there Hugo McKinley, and Mark V. Wilson, of Mod,' sto; fore that these would more closely approach the rates of the Payne A. K. Lockhart, Stockton; Bert Lowry, C. C. Colens, Aldrich Act thll n of the existing Underwood tariff. But no consistent Roy B. Maxey, W. R. Park, W. H. Bohling, M. R. policy bas been followed in making the new schndules. Moreover in Pitts, G. B. Husted, C. L. Routh, John :ll. Orth, Elmer C. Read, and J. W. Hawkins. of Modesto; Eldon P. many insta nces the existing duties have been so greatly increased that Mains, Turlock; G. R. Stoddard, John Hennemuth, advocates of a moderate tariff, of whom there are many more in the Nathan B. McVey, E. H. Tickle, Bert B. Curtis, F. 0. ranks of lifelong protectionists than at any time since revenue bills Harry, Robt- J. A. Henry, A. J. Carlson, Frank H. began to be made, have either· made open protest or washed thelr RPid, Ray Smith, L. E. Blakesley, H. W. Fields, H. L. r:r~&s a~fs. what they fear will be one of the most unpopular of all Wood, F. W. Hosmer, I. J. Nelson, J. C. Chapman, J. K. Ransom, William Folger, and Board of Trade, by It is granted that the public mind in its present state ls highly Geo. T. McCabe, secretary, of Modesto ; Poundstone & receptive to any and a ll statements to the effect that special interests Dwyer, by Geo. Poundstone, Grimes; Jesse Pound are having their way in the making of duties. More easily than ever stone; Geo. W. Davis; L. A. Dunning; Hudson Ford; any increase in existing duties can be put before the people as so Roy Maxey; Claude L. Houchins; T. Crane; T. Har much more added to the consumer's burdens for the benefit of domestic rington; W. P. Harrington Land Co., by T. Harring producers. War taxes a re felt in every quarter ; profiteering by re ton, president; Colusa County Bank, by T. Harring tailers in many lines is still notoriously common. The purchasing ton; Fred W. Schutz; Van Huffman; Ernest V. Eibe; power of many classes in the community has been cut down by the A. J. Lofgren, C. J. Dahlstrom, Helmer G. Hanson, wage reductions of the past yea r. These conditions give uncommon Albert Erickson, J. G. Rys trom, Oscar Fagerstone, Sam weight to criticisms of the pending bill, particularly to criticisms to Lofgren, Admiral Barr, Bert Evans, Chas. Bloom, Clay the effect that in many cases domestic producers have hail their way B. Harris, T. A. Carlson, A. L. Peacock, 0. G. Thomas, completely in the framing of sch edules in which they are interested. Paul Lofgren. David Lindberg, Walter C. Erickson, As has been pointed out in these columns from time to time the H enry R. Rystrom Le Roy Swanson. Alfred Nel on efforts of steel ma nufacturers have been more in the direction of u;·ging Carl R. Rystrom, Glen Harris, John V. Reeve, Ernest that their raw materfals be left free of duty or nt' arly so than in Lofgren, R. G. Clark, G. W. Thiele, A. E. Peterson, securing high duties on their finished products. Their ability to ex Dick C. Graham, Brooks A. Axtell, Harold Nelson, port wa s an import ant consideration in this connection. Excessive J. W. Anderson, Elmer J. Slussen, M. A. Nataas, Chas. transportation charges and the high labor costs of to-day, even after L. Peterson, I. Anderson, John Olsen, Roy S. Olsen, the reductions of 1921, have made the export position of our steel E. H. Meyer, E. H. Lattermore, Louis Anderson, and companies much more difficult than it was in 1913 when the Under J. W. Hendrix, of Richvale; H. S. Brink & Son; F. H. wood bill was passed. There was hope t hat the Senate would re Thomas; C. H. Johnson.; L. H. Gorham; L. A. Ray; duce the House bill duties on manganese ore, f erromanga nese, fluorspar, J. O. Kearns; C. P. Gibson; J. T. Jones; H. R. La magnesite, and some of the ores entering into the manufacture of Point; W. E. Walker; E. M. Korlin~; B. Y. Demes; special steels. But through the action of the agricultura l bloc and W. A. Harlan; C. A. Bayles; u. M. Persons; various combinations of Senators representing sect ional interests, the P erry D. Dunahoo; J. E. Baker; H. T. Green; raw materials duties in the metal schedule have been retained substan W; C. Dunahoo; C. N. Washburn; W. E. Cummings; tially as the House passed them. The manganese ore duty is left at R ..H. Murdoch ; D. L. Taylor; F. S. Wardrobe ; C. W. 1 cent per pound of contained manga nese, or $11.20 per ton for a 50 Heilbronner; P. N. Ashley; F. M. Porter; E. O. per cent ore. Tbe duty on 80 per cent ferromanganese was put at Foste~; Darwin Pickne.n; M. J. Flynl?ci. Jiussell Carter; $33.60, instead of $39.42. The fluorspar duty was raised from $5 per M. Rice; J. Elefante, Leah E. He1 rick; C. J. Mc ton in the House bill to $5.60. The House duties on crude and dead Donell · W. W. Foster; A. Randolph; W. P. Rice; burned magnesite were finally put at one-half cent and three-fourths Ed Anderson; A. G. Ruttrell; D. A. Mirldlecamp; J. E. cent per pound, just as in the House bill. The House duties on ferro Best ; Geo. W. St. Louis; Ted Lanville; E. R. Ed tungsten and ferromol:vbdenum and their ores wera reduced somewhl\t, wards; Ed Barham; A. N. Turner; Frank Shaver; but in other duties affecting tool steel prices the changes are imma Geo. D. Ha.nsen; M. H. Jellison; S. P. Pitt; J. H. terial. Brink; A. P. Rose; E. Douglas Gordon; Irving F. Both House and Senate bills continue the Underwood bill's conces Swift; Kenyon T. Gregg, rice grower; A. L. Gam~an, sion to the farmer in free barbed wire, but protection consistency is grower; C. C. Yeates, rancher; G. W. Carpenter asserted in respect to cotton ties, the Senate retaining the House rancher; M. F. Clyma. grocer; T. M. Gallagher, real bill duty of one-fourth cent per pound, wbe1·eas cotton ties are now estate: Carroll W. Ileipon, rancher; Elizabeth Cough on the free list. lin, district . manager California Peach Growers ; L. K. Changes may yet be made in the metal schedule, as the blll comes up Newfield, editor Sutter Independent; R. W. Skinner, for final consideration in the Senate and later in conference committee, president California Canning Peach Growers ; R. L. but no important departure need be expect ed fr om the policy alrNt dy Morehead, president California Bean Growers; Geo. T. approved of imposing on the raw materials of steel manufactuN duties Boyd, cashier Firs t National Bank, Yuba City ; C. R. that each year will add many milUons of doU')r s w the cost ·ot pr o Boyd, president First National Bank, Yuba City; ducing American steel. 1922. CONGRESSION At RECORD-SENATE. 10089 That tariff making under present world conditions and the un this product; bnt the facts snow that the industry prospered., paralleled problems, industrial and fiscal, existing at home ls a busi 'le!!s of high hazard is being demonstrated almost daily in the popular or at least increase.d greatly. There is no doubt but that be reactions to the provfaions of the pending bill. To add to the un tween 1909 and 1916 the production of rice doubled. and it does certainties of domestic industries the form which the pending bill not seem to me that an industry which increased its production will finally take seems likely to make it short lived. Radical changes by by the next Congress are the well-nigh certain result of its enactment so rapidly during these years could be sa;d to be suffering on substantially the present lines. reason of the want of protective tariff duties. Let us compare the figures of production, imports, and exports. l\fr. GOODING. Mr. President, I have a letter, together with Mr. KING. Mr. President, will the Senator yield before he a numerously signed petition, from the peanut growers of Vir proceeds with that? ginia. I ask that the letter and the accompanying resolution l\fr. WALSH of Massachusetts. I shall be glad to yield. or petition be read, but, as there are about 5,000 names to the Mr. KING. The Senator from Louisiana has just adverted petition, I shall not ask that the signatures be printed in the to the fact that owing to the war there was some development RECORD. and that after the war, as he stated, the industry suffered very There being no objection, the letter and petition were ordered disastrously. to lie on the table and to be printed in the RECORD, as follows : Mr. WALSH of Massachusetts. Every industry has. AMERICAN PEANUT CORPORATION, Mr. KING. I was going to say that farm products and prac Norfolk, Va., July 3, 19!2. tically every industry in the United States suffered, and rice Senator FnANK R. GOODING, United States Senate, Washington, D. O. suffered no more-indeed, suffered less-than some of the DJCAR SENA'.rOR : I herewith inclose you a list of names that are ask other industries of the United States. The depreciation in the ing for a protective tariff on peanuts, and being so many of these price of rice, as I recall, was no greater relatively than the names I have decided best to have them typewritten, and I attach depreciation in the price of corn, where there was no possible copy of resolution passed by the Peanut Growers' Exchange. You will see there are about 5,000 of these names. competition. - Very truly yours, l\fr. WALSH of Massachusetts. If we attempted to frame a P. D. BAIN. tariff bill based upon information as to what the industries of CERTIFIED COPY OF RlilSOLUTIONS PASSED BY BOARD OF DIRECTORS OF this country suffered after the war by reason of the depression PEANUT GROWERS' JDXCHANGE (INC.). in business, we would fix rates here that would be so h igh and SUFFOLK, VA., Mat·oh 1, 192!. so prohibitive that the whole economic structure of our coun Whereas the peanut growers of America can not successfully com try would collapse. Every industry suffered, and suffered tre pete, in our own markets, with foreign growers of peanuts without a tariff thereon sufficient to cover the dilference between the cost of mendously, even including those heretofore among the most labor abroad and in this country ; and prosperous in this country, during that period of time, as the Whf'reas the present emergency tariff on peanuts bas been of de Senator well knows. cided benefit to the peanut farmers: Therefore, be it . Resolved, Tbat the di.rectors of the Peanut Growers' Exchange Mr. KING. And it might be added, too, that there was no (Inc.), representing more than 5,000 farmers in Virginia and North interruption of importations by reason of the war, because Carolina, appeal to the Representathes and Senators of Virginfa and our imports of rice have always come from the Orient, not from North Carolina to secure such a competitive tariff on peanuts as is now provided for in the pending tariff bill, which is not more than Europe; and there was no such chaotic or industrial perturba sufficient to cover the difference between the cost of production here tion in the Orient as to interrupt the importation of rice from and abroad, and that a special appeal be made to the officials of pea the Orient to the United States. Rice could come just as freely nut organizations in other peanut-growing States to appeal to their Rf'presentatives and Senators in Congress to assist us in securing this during the war as before. much-needed lPgi~ latlon. Mr. WALSH of Massachusetts. I have just had handed to We hereby certify that the above is a correct copy of the resolutions me some figures that will enlighten the Senator. passed by the board of directors of the Peanut Growers' Exchange (Inc.) at their meeting March 1, 1922. The importations in 1920, after the war and before the emer . PEANUT GROWERS' ExcHANGiil (INC.), gency tariff law, were 50,000,000 pounds, while the importations T. H. BIRDSONG. Manager. from 1909 to 1913 averaged 71,000,000 pounds, nearly 50 per J. FRANK FoOSHE, Secretarg. cent more. Mr. W A.LSH of Massachusetts. Mr. President, the Finance Now, let us see what the imports and exports show. Committee reported amendments to the pending bill making Out of a production of 930,000,000 pounds of rice in 1921 we substantial reductions in the rates fixed upon rice in the House exported 600,000,000 pounds. Two-thirds of the crop produced b ." ll. The rates named in the House bill are the highest ever went out of the country. Suppose that it all went out. Would named in any tariff bill with which I am familiar-certainly you need a tariff duty to protect it? An industry that is ex higher than those of the Payne~Aldrich Ia.w or the Underwood porting two-thirds of its crop can not justify the levying of any law or even the emergency law. I am informed that the com protective duty. It is preposterous to make any such claim. mittee now is in favor of the rejection of their amendments It stands to reason that the world price must be the controlling lowering the rates on rice. which means the restoration of the factor in the sale of a product that is exported in such large House rates in this bill. Why the committee came to that con quant:ties. Nearly two-thirds of our products were exported. clusion since this b ll has been before the Senate I do not Do we want a system established of selling American products know, but it is significant that after much study-for I assume at home higher than abroad? they studied all these schedules-they recommended a reduc Mr. NICHOLSON. Mr. President, will the Senator yield for tion in the rates named by the House. It may be that the a question? change of heart is due to pressure exerted upon the committee Mr. W .ALSH of Massachusetts. Certainly. by the able Senators from Louisiana. But why not? As this Mr. NICHOLSON. When the large export took place to b 11 bas been drafted by ba!'gain-counter methods Louisiana which the Senator refers was a profit made by the producers should have its demand gratified just as California was a few of the rice? Can the Senator show or demonstrate by the days ago. If the efforts to reject the committee amendments figures which he is now in possession of that the growers of prevail, then the House rates will be restored and the rates rice made large profits? imposed upon this very important food product will in conse Mr. WALSH of Massachusetts. I have no figures as to that. quence be the highest ever levied. Of course, that action will I assume the situation is the same as with other industries, prevail, for the committee has surrendered its former position. sometimes large profits were made and sometimes smaller The record of exports and of imports, the volume of the pro profits. · duction, the expansion and growth of the industry does not war Mr. NICHOLSON. Has the Senator ever been around where rant, in my opinion, these high duties upon rice. The average rice has been planted? p~·oduction in the years 1909 to 1913 amounted to 681,000,000 Mr. W A.LSH of Massachusetts. Yes, sir. pounds, while the production in the year 1916 rose to the enor Mr. NICHOLSON. Has the Senator ever visited the fields mous figure of 1.135.000.000 pounds. What need is there for where it is planted? increased duties upon rice if this industry was able under the Mr. WALSH of Massachusetts. Yes, sir; I have. rates named in the Underwood law to increase its production Mr. NICHOLSON. And the Senator knows that the people by nearly 100 per cent? who work in the rice fields work in mud up to their knees? Mr. BROUSSARD. Mr. President, will the Senator yield? Mr. W A.LSH of Massachusetts. Yes, sir. Mr. WALSH of 1\1assachusetts. I yield. Mr. NICHOLSON. And if the Senator or I had to work in Mr. BROUSSARD. I would suggest to the Senator that the those fields we would look for a tariff of 10 cents a pound war made the Underwood rate as to this item inoperative and instead of 2 cents a pound, if we had to endure the labor, the ineffective, and when it became operative after the war it was hardships, that they have to endure. necessary to put it in the emergency tariff bill in order to save Mr. W .ALSH of Massachusetts. There is just as much reason the industr-y. for giving them a tariff of $1 a pound as 2 cents a pound. Mr. W A.LSH of Massachusetts. I am glad to get the Sen Mr. NICHOLSON. No; I would not say so· nut they are ator's information as to the effect of the Underwood law upon entitled to protection from the mere fact that-- ; !{._ • F~ !10090 CONGRESSION Ab RECORD-SENATE. JULY 8, Mr. WALSH . of Massachusetts. You can not protect this ; as to put all their earnings in their own pockets ; but labor's irrdustry except in one way, the way that is, contemplated here, bene.tits are insignificant compared to the benefits that have by the rice producers selling their crop to growers' organiza come . to the manufacturers and others who have benefited by tions who control prices, and who get tbe benefit of the pro the high protective tariff system, and the concentration of the tectiye duties in making the American price higher than the great wealth of this country in the hands of a few is at· foreign price. tributable, in my opinion, to two things : The favors bestowed Mr NICHOLSON. From the Senator's statement, then, there upon certain classes and privileged interests through tariff is ve{·y little hope for the producer. protection and the damnable stock-watering processes and p:ro Mr. WALSH o:f Massachusetts. In my opinion this tariff does ceedings that have taken place in the industrial life of this not amount to the paper it is written on, except that if the country in the last 50 years. The statistics clearly show that information I have is correct, that the price is controlled by the those industries that have been the most highly protected have growers' associations, they can manipulate the price so as to amassed the greatest wealth, and have amassed enormous get a larger price at home than abroad. fortunes and paid great dividends because they were able to Mr. BROUSSARD. Mr. President-- collect through a government subsidy from the consumers of The PRESIDING OFFICER. Does the Senator from Massa America. chusetts yield to the Senator from Louisiana? I repeat what I said a few days ago: In my opinion the agri Mr. WALSH of Massachusetts. I shall be glad to yield to the cultural interests of this. country would be serving the farmers Senator. better if they were here driving down these excessive high 1\Ir. BROUSSARD. I wish to say to the Senator that his rates on the things that the farmer must buy, rather than seek information is not correct. There is a rice growers' associa ing to get tissue-paper rates for the farmer that will mean tion, but it is a cooperative association, just the same as we nothing and will not protect the farmer. authorized under the amendment of the agricultural law some Mr. GOODING. · Mr. President-- months ago. It is not one which buys rice and then sells it The PRESIDING OFFICER. Does the Senator from Massa again, but the association is merely one w~ch maintains an chusetts yield to the Senator from Idaho? office and furnishes the producer with the price, and then com Mr. WALSH of Massachusetts. Certainly. bines the product of two or three small farmers in order to Mr. GOODING. If it is true that labor has received some market their crop. It is a cooperative plan, however, and the benefits from protection, then, because there is in this countrY. men who are conducting it are wo.rking under a salary for the a condition which I agree with the Senator is deplorable, so growers of the rice themselves, and no profit is made by the far as that is concerned, in the way of combinations and trusts, American Rice Growers' Association, because they are taxed the Senator would deny the laboring men of this country proper for the e:x:pense of conducting it. protection. - Mr. GOODING. Mr. President-- !\fr. WALSH of Massachusetts. I have never taken any such 'lhe PRESIDING OFFICER. Does the Senator from Massa position. I have never taken :f position against protection, in chusetts yield to the Senator from Idaho? so far as protection is invoked to equalize the difference be Mr. WALSH of Massachusetts. Just a moment. May I tween the cost of labor here and the cost of labor in Europe; finish my answer to the Senator from Louisiana? I have sym but your system of protection has been carried away beyond pathy for the men and women who work on rice plantations, that theory. Your system of protection has resulted in in and I bave sympathy for the men and women wbo toil in the creasing dividends and profits and amassing the wealth of this cotton mills of New England; but the result of tariff legis country in the hands of a few, and is bound to increase more lation has been to impoverish them and to enrich the few. For and more the wealth of those few privileged tariff barons. the 10 per cent benefit that the working classes receive from Your system has been used to blind the public by giving small tariff protection, 90 per cent of the benefit of the protection benefits to the laboring class to blind them against the tremen goes to the few who constitute the capitalistic class. That is dous wealth accumulated by the few. the trouble with high protective tariff duties. It results in en Mr. GOODING. Then the laws of the country and the people riching the few, a.nd it is responsible for the unrest in this are to blame, or those who represent the people are to blame, country to-day, namely, that our economic system is resulting and not the principle of protection. in concentrating the wealth of the country in the hands of the Mr. WALSH of Massachusetts. Mr. President, I suppose few, largely through excessive protective tariff duties. there are several groups on this door who entertain widely Mr. NICHOLSON. Mr. President, will the Senator yield for different V'iews upon what prin'ciple of protection ought to be just a minute? applied to the making of a tariff law. One thing we have Mr. WALSH of Massachusetts. Yes; I yield. . learned during the discussion of this bill, and that is that Mr. NICHOLSON. I will agree that the larg~ corporations nobody has tried to find out what the facts were in a given have benefited from the protective tariff; likewise, the laborers. industry to determine whether or not any principle of protec There is no country in the world where the laborer is upon as tion fitted those facts and justified the levying of a protective high a pedestal as he is in this country of ours, and that is tariff duty. largely due to protection. • Mr. GOODING. I think the Senator is entirely mistaken. l\Ir. GOODING. Mr. President-- Mr. WALSH of Massachusetts. Here is an illustration o:t The PRESIDING OFFICER. Does the Senator from Massa the lack of any definite principle in the formulation of this chusetts yield now to the Senator from Idaho? rate on rice. The rice industry is daing a tremendous export Mr. WALSH of Massachusetts. Yes; I yield. business and yet is given a high protective duty. Yesterday, Mr. GOODING. Admitting that we grow all the rice we can industries which produce only 3 per cent and 5 per cent of our consume in this country, I will ask the Senator if he does not consumption were given a protective tariff duty. It makes · think that fo-reing a great lot of rice into this country from absolutely no difference in giving protection whether the d&o foreign countries on what the Senator calls an already glutted mand.B of the American consumers are satisfied by the indus market has the effect of reducing the price to practically noth try's p.r.oduction or whether we must go out into the world . ing at all? markets to buy the things our people need to consume because Mr. WALSH of Massachusetts. I will discuss directly the. an industry can not compete with foreign industries; there is extent to which this market has been flooded by imports. absolutely no distinction made as to whether the industry is ·Mr; GOODING. I ask the Senator if that must not have an, a small, growing one or whether the industry is a trust or effect in the way of beating down the price? expanding· so. that it controls the world market.. Mr. WALSH of Massachusetts. Why, certainly. Mr. BROUSSARD. Mr. President-- Mr. GOODING. And will not a tariff keep it out? The. PRESIDING OFFICER. Does the Senator yield to the 1 Mr. WALSH of Massachusetts. Certainly, if it is Possible Senator from Louisiana? 1to flood the market with any commodity, and that will affect Mr. W ALSR of Massachusetts~ I yield. ' the price. That is why prices fluctuate in many lines. o! busi Mr. BROUSSARD. I think the Sena.tor was out of the, ! ness, tartft' 'OT no tarift. Chamber a moment ago when I took up the question of the Mr. GOODING. It the tariff is so low that it is not protec importations and the exportations of rice. The only two yea.rs ti-ve, it flows in here. of com·se, and it can llave but one res.ult. in which we imported more l!ice th.an. we exported were mo Mr. WA.LSH of Massachusetts. The facts show that under and 1921. Previous ta- that, as far as there is any record in , the UndeTwood law, where the rate was very much lower, no the·Department of Commerce or the Department of Agriculture, such flood of importations came into tbe country as to force we. have imported an average. of over 200,000,000- poonds every down the prices. year in excess of our exportations. • It is true that in some industries the working _pe<).ple have If the. Senator will permit me, I can explain in two minutes been benefited by the protective tariff system~ there is no-doubt why we expo~t rl~ We would export rice if we did not pro about that; no one thinks the tariff barons were ·so fool!Sh duce one-tenth of the rice the people consume. because the , • 1922. CONGRESSIONAL RECORD-SENATE. 10091· American consumer will not buy what we call broken rice. about 3 per cent of our total production. The exportations They want first-class, white, whole grains. We buy and import were about twenty times the importations. 11 rice from rice-producing countries and in milling it we break 1i1r. President, compare these figures of production, imports, it. There is bound to be some br~akage; and then we have to and exports. Do these disclose any urgent need for ta1iff in export the broken rice because the American consumer will creases? Out of a production of 983,000,000 pounds of rice in not buy it. ' . ! 1921 we exported 600,000,000 pounds. Nearly two-thirds of our For many years we sold nearly 500,000.000 pounds of rice to enormous production exported ! How can a duty be expected the brewers and we still had a surplus of broken rice and inferior to benefit the growers in Louisiana and California under condi rice that we have to ship out of this country. Since prohibi- tions like these? Total imports in 91921 amounted to only tion the market for that 500,000,000 pounds of rice has been 37,000,000 pounds. These imports consist largely of Japanese destroyed, so that added to what we previously exported i~ this brown rice for Japanese residents of Hawaii and of special quantity which was known as brewer's rice, and that is shipped types not grown in the United States. to other countries, which ship whole rice to us. The ~eri- In this country rice is cultivated by machine methods in large can consumer will not buy it. I wish to say further to the tracts in similar fashion to wheat, while in the Orient laborious Senator that every year previous to that our importations far methods prevail. There the seed is first planted in nurseries exceeded the exportations. and laboriously transplanted by hand. Because of this differ- During the war those of us in the State of Louisiana who ence in method, it is probable that in spite of the low wages in had a little influence were put to work persuading the people the Orient costs are higher there than in the United States, to increase their production. where rice is grown under the modern, improved, machine The Senator from Utah has referred to the fact that the methods of large-scale production. Orient was still shipping its rice here. It could, in a measure; Domestic rice growers are so strongly organized that the but our ships were out of that market, and the Asiatic bottoms members of the associations grow the great bulk of domestic were carrying other things besides rice, and they could not rice. The associations annually fix minimum prices and have have brought to us the whole quantity which they produced at great influence in determining what the prices shall be. that time. The tremendous preponderance of exports shown by the fig- We know that the whole world was stimulated in the produc- ures I have quoted indicates that the proposed duty will be a tion of agricultural products, and when the war ended there nominal one, except for the possibility that the tariff barriers, came an accumulation of rice upon us, which the emergency by shutting off competition in the domestic market, may enable tariff law stopped to a large extent. To say that we are ex- the organizations to sell at one price in the United States and porters of rice is not true in the common acceptation of that at a lower price abroad. term, because we export rice which the American consumer How can this industry demand a protective tariff duty? will not buy. . . Against what? Protective tariff duties are invoked to keep Mr. WALSH of Massachusetts. Mr. President, I have no something out that is lowering the price of the American prod personal feeling in this matter. If I could select my course, uct; and we are shipping out twenty times as much of this I would much prefer to remain silent and let the statements of product as is coming into this country and twice as much as both the Senators from Louisiana, whom I esteem very highly, we consume. remain undisputed. But it is my duty to look at the thing im- I am not going to prolong the discussion. The1:'e is no use partially and to apply to the facts presented to me such prin- in doing that. The policy of the other s ide is settled. Any ciples of tariff protection as I think my party and country body and everybody who will vote for this bill can get protec ought to stand for. I have tried to be fair in presenting the tive tariff duties, whatever he wants, with no attempt made to facts, without any purpose of distorting them. In fact, I. would justify them, no attempt made to distinguish between the nature naturally try to construe them in :favor of the position of the and character of the industry and the needs of the industry. Senator from Louisiana, if possible. I repeat, it does not seem to me, upon the evidence, that these Mr. HARRELD. A while ago the Senator made the state- increased tariff duties can be defended. But I want to say that ment that the statistics show that those industries which have rice is not different from many other agricultural products in been most heavily protected have made the greatest profits. the bill. Similar facts have been shown as to other agricul I would like to ask him if it is true also that those which have tural products, but duties have been levied just the same-yes, been least protected have made the least profits'? That follows the highest duties in our history. It is useless to protest here, as a natural consequence, does it not'? but the American people will not hesitate to protest when they Mr. WALSH of Massachusetts. No; it does not necessarily realize the burdens we are inflicting upon them. follow at a.II. Mr. GOODING. Mr. President, it is especially fitting that Mr. HARRELD. What is the matter with the farmers' a Democratic Senator from New England should oppose pro profits? The reason they have not made profits is because they tection to the rice growers of the South. For 130 years, or as have not had protection, is it not? long as the existence of this Government, the manufacturers Mr. WALSH of Massachusetts. The Senator claims we have of New England have been given protection. During most of a right to invoke the power of the Government to help make those years they have had free cotton, free hemp, free silk, as profits for people. I do not believe that. I do not believe this they call it, and when the Democratic Party was in power free Government has a right to invoke its power to help make wool, and now, when the people of Louisiana and the other profits for anybody. It has a right to help an industry that is Southern States come and ask for a little protection, how fitting essential for the happiness and prosperity of our people. It it is that those people who have been protected all those years has a right, perhaps, to invoke this unusual power to help de- should oppose it. I do not believe the junior Senator from Mas velop an essential industry that will take care of the reasonable sachusetts represents the people of New England in that stand. demands of our people at a reasonable price; but it has no right I can not believe that they are not willing to give to other people to pass ta1iff laws for agricultural industries or for manufac- what they have enjoyed for so many years, regardless of turing industries simply to make prosperity and profits for whether the Republican Party or the Democratic Party has groups of individuals. been in power. Mr. HARRELD. I did not say that at all. The Senator The manufacturing indust1ies of New England to-day, under coined the expression that those1 who have been most highly the Underwood-Simmons bill, have a protection of from 30 to protected made the highest profits. 60 per cent on most things, where they are given any protection Mr. WALSH of Massachusetts. I repeat it, that the pro- at all, unless it is the boot and shoe industry. Yet the junior tected industries in this country have become enriched through Senator from Massachusetts has stood upon this floor and their exactions upon the consumers of America, made possible fought every proposition to give protection to the agricultural by reason of indefensible and pernicious high-tariff duties. industry of this country. Mr. HARRELD. Then, would it not be wise to let the farmer Our clothing is not on the free list. There is a duty of 35 per· profit a little by putting a protective tariff on his products? cent on fabrics made of wool, and there is a duty of 40 per cent 1\Ir. W ALSB of Massachusetts. I repeat, it seems to me that on manufactured garments. Outside of one or two manufac the agricultural bloc would be rendering a better service to the tured articles, there is nothing on the free list in the Underwood ag1·iculturists of this country if it were seeking to lower some bill that is not on the free list in the pend;ng bill. You put of the high rates upon the things the farmer buys, rather than farming machinery on the free list, and it was an insult to the put high rates upon agricultural products which can not be re- American farmer to tell him he could buy farming machinery fleeted in intreased prices, such as the rates upon rice, wheat, cheaper because 31ou put it on the free list, because the inventive and other products named in this bill. genius on the .American farm has led tbe whole world in provid- The figures before me show that the imports of rice in 1921 ing improved farming machinery, and the whole world uses amounted to only 37,000,000 pounds. The imports of rice were American-made farming machinery, as there is none made any • ' ~10092 OONGRESSION AL RECORD-SENATE. JULY 8, The reason is that this 33 cent grows to $1 a pound after it hlls place on earth we can use or do use. So putting farm machinery passed thro11gh the hands of the wool dealer, the spinner, the cloth on the free list did not help the farmer by giving him cheaper manufacturer, the clothing manufacturer, a.nd the retailer, after each far"m machinery. ohe has added bis over1lead and profit. Moreover, tbe tariff taxes all wools alike, regardless of quality or The boot and shoe industry is not given much protection in cost, which will practically put an embargo ODi the lower-grade wools this bill ; only 5 per cent. You had it on the free list. Barbed and the workingman and the average farmer Will have to be satisfied wire you had on the free list. This bill puts it on the free list. with wool substitutes-cotton or shoddy. Tbe wool tariff will not even protect the farmer, because only 7 But practically everything else the farmer uses in his home or per cent or the farmers of this country grow any wool. Of tho e who upon his farm ·you put high duty on, almost without a.n ex do, only a small fraction of 1 per cent grow it in commercial quanti ception. Every tool he us s, every nail-whether that nail is in ties, so that the farmers as a cla:ss will be taxed more for their clothes th:in they will get in the' enhanced prlce of wool. his coffin or used on liis farm-you put a high duty on; prac- The bill is not a protective measure, because half of this tariff would tically everything tnat the farmer must buy. . be ample protection. It will cost the American people $360 000 000 I want to read a letter from a man, not in New England but a11d will merely enrich a compa1·atively few large ranch owners in the West. in the great State of New York. I agree with the Senator from The only thing that will modify the bill is a widespread pr-0test. Massachusetts that there are a lot of things wrong in this If you will write to your Congressman, protesting against this useless country, things that have got to be made right. But I am not extravagance, an The next_ amendment of the> committee was, on page 105, lines .N.ATJONAL GIU.l<"'Ul!I F()a Yt:SCLE SHO.U.."!. 1 and 2, to strike out the words " all the foregoing not specially NATIONAL GJU.NGFl, PATitO-NS OF HtrSllANMY, provided for." Was114ngton., D. o., J.u ly '1, 1922. 1 Hon. ID. F. LADD, T he amendment was agreed to; ' Senate O'(ftce B ·1'1lding, Washington, D. C. l\Ir. BROUSSARD. Mr. President, a parliamentary inquiry. MY DEAR SENATOR LAoo : In refe1·ence to the disposition by the GOT• The PRESIDING OFFICER. The Senato:r will state the ernment of the Muscle Shoals property and sucb action as the Senate inquiry. may be about to takB on. the offer of Henry Ford to pw·chase and 0pel18.te these properties, I beg to submit herewith a. copy ·of the resolution Yr. BROUSSARD. r think we have voted on only three which was taken by the national grange at its. last annual session, held amendments in the waragraph. fn Portland, Oreg., fn November, 1921 : The PRESIDING OFFICER. All the amendments to para Resolution on Muscle Shoals air-nitrate plant. graph 728 have been disposed of-frve in all. uResoZved, That we favor the immediate- sale of this pla.nt by tlte Gev· l\-1r. RANSDELL. Mr. President, I ask permission to have emment to the bigbest bidder, subject to sueh safe-guards as mq oo printed in the- REcORD and referred to the Committee on Finance necessary to }U'Otect the interest of the pnbllc in p.ower and products there, and providing for its use by the Ga.vernment when a protest from four prominent and well-knawn 'TitOmen of New ~~~~~ Orleans, La., against the food, tableware, and women's wear This resolution was.. referred to the committee on a&"rlcqlture. dul,i considered, and the committee: made a report favoiing its adoption, and schedules of the pending tariff bill the report was adopted. Re!erence : .Page 130, Juurnal of rroceediniS There being no objection, the memorial was :referred to tbe of tbe National Grange, 1921. Committee on Finance and ordered ro be printed in the RECORD, ID my opinion thi.si Henry Ford pro.position more nearly conforms tQ the· pl'ovisions of this resolution than any other pending proposition. as follow : Yours sincerely, Hon.. JOSEPH E . RANSDELL, T. C. ATKESON, Unit ed States Senate, Washitr!Jf-OA, D. a. Wash4ngtott- R@r'Osentati~o. D»AB SIR : Will yo.<1 please read into tlie· CONGRBSSIONAL RllCOBD the :f'ollowini: resolution and have a copy ot the' RECORD containing it sent Resolution adopted at tb.e agrieultural conference called by the Seere to us: tuy of Ag:ric:ultura a..t the request of the President., Ja1ma.ry 23. to 21, "Resolvedj That we protest against the·food, tableware, and women's 1922, wear scbedu es oil the Fordney-McCumber bitl. These schedules· will Resolved, That to accomplish results without any further delay what increase the costs of living in every· Ameriean bome~ They are fines levied by American men upon American- women and upon Amedcan soever, we urge the Seeretary of War to recommend and the Congress to. cllildl'en. They should not be allowed to hecome law." accept Henr)" J.ilord'a proPosal to take over the hydFodectric po.wer and air-nitrate plants at Muscle SboaJs~ under a guaranty to opernte same Youl"S ti·uly, for 100 years at its present capacity o.r approximately 100,000 to11s of Mrs. J. A.. STORCK, ammoninm nitrate per annum, opeaing th-e Tennessee River to na:vi°"' Mrs. FLOBIA H~ CATOlUlll, Mrs. STEPHICN E. SMITH, tion, ~heapelling. the i;>roduction of fertilizer, me a.ls, and other com Mrs. ANDRJllW J. R•ro, modities, and assuring the United State& nitrogen inde~nd:ence in peace Neto OThians, Ltr. or- war. THE JCUSCLE SHOALS PROJECT. Jl'ARM'ERS' U:810N AND MUSCLE SHOALS. Mr. LADD. Mr. President, 1 desire at this time to intro We indorse the proposal made by Henry Ford · to take OTer and duce a bill providing for the disposal of Muscle Shoals. I will opera1e the Governmeut nitra:te plant at Muscle ShoalSl, .Ala.,. and urge that the offer be accepted. say that th.ia bill as it now stands has. had the approval of a Adopted by the Farmers' Unton Convention at Topeka, November large number of agricultural associations of this country. I 15, Ht, and 17, 19'21. present resolutions from the American Farm Bureau Federa tion, from the National Grange, a resolution adopted at the THE AMERICAN! Jl'EDBATION OF LAllOB agricultural conference called by the Secretary of Agriculture At its annual eonventiun lately held' bl Cincinnati, June 20, 1922, ado~ted the following resolution with referenee to Muscle Shoals : at the request ot the President, resolutions adopted by the ' Resolved That this.r the forty-second annual convention of the Farmers' Union at their co.nYention at Topeka.. resolutions American Fede.ration or Labor, sides with the farmers in thel:r c-0n adopted by the ·American Federation of Labor, and a telegram troversy as to the acceptance of the Ford bid, and that this c.onven-. tion instruct its executive. council to use all means in its po.wer tQ from the. president of the American Farm Bureau. I request secure favor.able. action on the final offer of Mr. Ford to lease Muscle that, without 1·eading, these communications be referred to the Shoals, and in view of the deterioration of the property at Muscle Committee on Agriculture and Forestry and printed in the Shoals and the immediate and very urgent need of the :f'fil·mers for more fertilizer. that the executive council use all haste possible in RECORD as part of my rema.rlts. bringing pressure to bear on tbe Congress of the. United States to The PRESIDING OFFICER. The Sena.tor from North Da secure favorable action at th~ present session on the Ford c.ontrac-t kota asks unanimous consent out of order to introduce a bill. to develop Muscle Shoals. 0 Is there objection? The Chah· hears none. Mr. LADD. Mr. President, I desire to make a few obser The bill (S. 3802) authorizing the acceptance of the proposal vations in connection with the bill introduced by me. The. of Henry Ford for the completion and leasing of the dams and average importations of Chilean nitrate for five years, 1911- hydroelectric plants at Muscle Shoals and for the purchase of 1915, inclusive, amounted to 551,714 long tons, with an aver nitrate plant No. 1, nitrate plant No. 2, the Waco quarry, and age value at the Chilean port of $17,5ll,697 and with an ex the interest of the Government in the Gorgas Warrior River port duty paid to Chile on this tonnage amounting to $6,- steam plant, all in the State of Alabama, dated l\Iay 31, 1922, 910,978.92. The cost o:ila:>cean freight, inslll'ance, commissions, was read twice by its title and referred to the Committee on and so forth, on this five~year period of Chilean nitrate im Lgriculture and Forestry. ptJrtations can be- conservatively estimated at $10 a ton, mak Tbe PRESIDING OFFICER. Without objection, the com· ing a total cost at port of approximately $29,939,815.92. munications presented by the Senator from North Dakota will Of this tonnage, during this perio AMENDMENT OF FEDERAL RESERVE A(,"l'. ship complies with rules and re~ulations which the Federal Reserve Bo~rd shall prescribe fixing the time within which and the method by Mr. HARRIS. Mr. President, last week the Senator from which the unimpaired capital of such bl!lnk shall be increased out of PEPPER] net income to equal the capital whlch would have been required if such Pennsylvania [Mr. reported from the Committee on ~nk. had been admitted to membership under the provisions of sub Banking and Currency the bill ( S. 3531) to amend section 9 of d1vis1on (a) of this paragraph: Provided, That every such rule or regu the Federal reserve act, a bill which I introduced and which lation shall require the applying bank to set aside annually not less than ?O per ce~t of its net income of the preceding year as a fund ha ..· the favorable recommendation of that committee. The exclusively appllcable to such capital increase." Senator from Utah [Mr. KING] asked that it go over until the next day, which was agreed to, but he was absent on that day The amendments were agreed to. and I did not call it up, so it has gone over until to-day. I am Mr. KING. Mr. President, I objected to the consideration of sure it will only take a moment to consider it. It is reported the bill the other day. I have conferred with the members favorably by the Committee on Banking and Currency-a sub of the Committee on Banking and Currency and they seem to committee of that committee composed of the Senator from approve of it. I did not object to its consideration, but I shall Pennsylvania [Mr. PEPPER], the Senator from Virginia [l\Ir, vote against it. I regard the bill as objectionable for two GLA s], and the Senator from New Jersey [Mr. EDGE]. It is r~asons, first, because it rather tends to encourage the forma recommended by the Federal Reserve Board and by the gov tion of T"ery small banks with limited and wholly inadequate ernors of the Federal reserve banks, and also by the junior capital; ancl secondly, the e:trect will be ultimately to drive Senator from Alabama [Mr. HEl<'LIN], and many other Senators Stat~ banks out of existence, not by any physical force or with whom I have discussed the matter. I do not think that physical power, but because of the moral pressure which will there will be any opposition to it, and I ask unanimous con ent be brought to drive them into the Federal reserve system. for its present consideration. I eem to stand alone in my views, although I know many entertain the same apprehensions as those which I have so im There are a large number of small banks whose capital is p~rfectly expressed. I believe it is unwi ·e legislation, but I le than is required by law to become members of the Federal did not feel justified in oppo 'ing the consideration of the bill. reserve system. This amendment to the act will permit banks The bill was reported to the Senate as amended, and the having 60 per cent of the required capital stock to become amendment were concurred in. members of the system, provided they increase annually their The bill was ordered to be engrossed for a third reading read capital stock amounting to 20 per cent of its net earnings the third time. and passed. ' until it meets the present requirement as to capital stock. This will give the small banks in the agricultural sections the bene DEEDS FROM FITE CIVILIZED TRmEs. fits to be derived from the Federal reserve system and will help Mr. HARRELD. l\lr. President, I ask unanimou consent for the system. It will also encourage the smaller banks to in the pre ·ent consideration of the bill (H. R. 11054) to validate crease their capital stock and be in a position to better accom certain deed · executed by members of the Five Civilized Tribes, modate their customers. It will help greatly the small-town and for other purposes. The bill passed the House, and was banks and greatly benefit the merchants, farmers, and others referred to tlie appropriate committee, which made a favorable dependent upon these banks to finance them. report on it. Mr. SMOOT. Does the Senator know whether the junior There being no objection. the bill was considered as in Com Senator from Utah [Mr. KING], who is at present out of the mittee of the 'Yhole, and wa · read as follow : Chamber, has withdrawn his opposition to the bill? Be it enacted, etc., That any conveyance of allotted or inherited Indian lands by any member of the Five Civiliezd Tribes or his or her Mr. HARRIS. The junior Senator from Utah told me to-day heirs, which may have been heretofore approved by the Secretary of that he would make no objection to its consideration. I have the Interior or any order heretofore issued bv the Secretary of the held it over now more than a week on his account. Interior autborizing the removal of restrictions from lands belonging to such In!Iians under and in accordance with, or purporting to be Mr. SMOOT. The reason why I ask is because I understood under and rn accordance with, the acts of March-1 1901 (31 Stat L although I may have misunderstood him this morning when I p. 863), June 30_. 1902 (32 Stat. L., p. 503), March 3, 1903 (32 Stai: L., p. 996), April 21, 1904 (33 Stat., L., p 204) April 26 1906 (34 was discussing the bill with him, that he still objects to it. Stat. L .• p. 145 l. June 21, 1906 ( 34 Stat.' L., p'. 373) an'd May 27 But if be told the Senator from Georgia that he now bas no 1908 (35 Stat. L., p. 312), or under any of said acts, be: and the same objection to the consideration of the bill, I shall interpose no are hereby, confirmed, approved, and declared valid from the date of such conveyance or order: Prorrided, That nothing in this act 8hall objection. be construed to confirm, approve, ¥alidate, or affect any conveyance l\lr. HARRIS. The junior Senator from Utah said he would order, or action procured through fraud or duress. ' not object to the· bill coming up, but would vote against it. I The bill was reported to the Senate without amendment did not know he was not in the Chamber when I called it up. ordered to a third reading, read the third time, and passed. , The PRESIDING OFFICER. The Senator from Georgia ask:· unanimous consent for the present consideration of the COCONIJ.'\O AND TUSAYAN NATIONAL FORESTS. bill which the Secretary will report for the information of the Mr. ASHURST. Mr. President, I ask unanimous consent Senate. for the present consideration of the bill (H. R. 7812) to extend The reading clerk read the bill. the time for cutting tin1ber in the Coconino and Tusayan The PRESIDING OFFICER. I there o~jection to the pres National Forests, Ariz. The bill has been reported unani ent consideration of the bill? rnou ly and favorably from the Committee on Public Lands There being no objection, the Senate as in Committee of the and Surveys. It proposes to extend the time within which Whole proceeded to consider the bill, which had been reported the Arizona Lumber & Timber Co., in, northern Arizona may from the Committee on Banking and Currency with amend cut timber from certain land . It has passed the Hous~ and ments, on page 2, to strike out " and, under such rules and ·reg there is a favorable report upon it from the department. ulations as the Federal Reserve Board may prescribe, it sets Mr. SMOOT. I am familiar with the bill and I have no aside annually in a fund an amount not less than 20 per cent objection to its passage if it does not lead to any discussion. of its net income for the preceding year and it increases its There being no objection, the bill was considered as in Com capital from such fund from time to time until it posses es a mittee of the Whole, and was read as follows: paid-up and unimpaired capital not less than," and to insert Be it enacted, e.tc., That the Secretary of Agriculture is hereby au "and, under penalty of loss of membership, complies with rules thorized to extend the rights of the Arizona Lumber & Timber Co. and its succes ors in interest to cut and remove the timber from such and regulations which the Federal Reserve Board shall pre of the following-described lands: Sections 3 and 9, township 19 scribe, fixing the time within which and the method by which north, range 5 east ; section 33, township 20 north, range 5 east ; the unimpaired capital of such bank shall be increased out of section 31 township 21 north, range 5 east ; section 35, township 20 north, range 6 east ; section 31, township 20 north, range 7 net income to equal." And, after line 14, page 2, to add the east; all of the Gila and Salt River principal base and meridian following proviso: " Provided, That every such rule or regula within the Coconino and Tusayan National Forests, Arizona; as have tion shall require the applying bank to set aside arumal1y not been r econveyed, or are under contract to be reconveved, to the United States, subject to outstanding timber-right contracts held by said less than 20 per cent of its net income of the preceding year as company under the rules, regulations, and conditions imposed by the a fund exclusively applicable to such capital increase," so as Secretary of the Interior at the time of said recenveyance or contract to make the bill read : to reconvey until such time as he may determine to be in the public interest but not later than December 31, 1950: Proi·idedA That said Be it enacted, etc., That paragraph 9 of section 9 of the Federal company executes and en~rs . into an agr~ment wi~h tbe ~ecretary of reserve act as amended is amended to read as follows : Agriculture to comply with such additional reqmrements upon the " No applying bank shall be admitted to membership in a Federal above-de~cribed lands and any other lands for which timber rights are reserve bank unless (a) it possesse a paid-UJ?, unimpaired capital claimed by said company within the Coconino and Tusayan National sufficient to entitle it to become a national bankrng association in the Forests, as may be mutually agreed upon to promote forest-fire pro place where it i situated under the provisions of the national bank tection, reforestation, and forestry administration : Pro1;ided fu1-ther, act, or (b) it possesses a paid-up, unimpaired capital of at least 60 That all its present rights to cut and remove timber from any lands per cent of the amount sufficient to entitle it to become a national within said national forests are to terminate on the date fixed by the banking association in the place where it is situated under the pro Secretary of. Agriculture and agreed to by .the company, but this Act visions of the national bank act and, under penalty ot lo s ot member- shall not be construed to confer upon said company any rights in , 16100 GOi~GRESSION AL RECORD-SENATE. JULY 8, addition to those held by the company at the time of said reconvey "As soon ns the physical examination of Black had been completed ance, and in tbe absence of the execution of 1uch an· agreement tbta he made npplicatien for the envelepe of vafoables and it could not be act . hall.neither -extend nor restrict the present rights of said company. found. Immediately upon making discovery of the loss the doors of the recruiting omee were closed, th~ police were called in, and every The bill was reported to the Senate without amendment, ·person In UM! rooms was searched. The valuables could not be found ordered to a third reading, read the third time, and passed. the thief evidently having already escaped. ' "After n thorough investigation no evidence co'UJd be found as to FORREST R. BLACK. how the valuahles had disappeared, the thought being that nt some Mr. WILLIS. 1.fr. President, I submit a request for the time when the attention of the de kman was diverted some unautlTor ized person took adv.antage of the situation and stole the envelope con present consideration of the bill (H. R. 314) for the relief of taining the valuables. Forrest R. Black, a sailor who lost his valuables at the ti.me of "The hospital apprentice •as a duly authort~ed agent of the Gov ernment in accepting the valuables.. He acted within the scope o:f bis his enlistment. If I may have permission to have it considered, authority, and, apparently, through his efforts to expedite the work I shall ask f)ermission also to print in the RECOBD a letter from of the office rather than through any neglect of duty the valuables former Secretary Daniels and one from present Secretary were lost. While the Government is not legally bound to reimburse this man for the amount o:f hls loss, yet in the opinion of this depart Denby, both of whom favor the passage of the bill. A similar ment it Is morally so bound. So far as known there is no existing appro bill has passed the House twice, but failed here because it was priation from whlcb payment can be made, and the attached propo ed not reached on the calendar. ..