SENATE - US Government Publishing Office

CO~GRESSIONAL .RECORD-SENATE MARCH 12· WILL ROGERS, the P®e plan fur direct Federal old--age pen- .3-660. By Mr. TRUAX· ~ :eetffinn of the -Delano Lodge,, sions of $3:0 to $:5() a month; to the Committee on W.ays and Amalgamated Association of Iron, Steel, and Tin W<>rkersJ Means. - Mansfield, Ohio. -by their president, Thomas Williams, urg-

3643. Also. petition at James .Motley and m.µnerons other mg support of Wagner labor bill without revisions, as in no citizens of Memphis. Tenn.. favoring· House bill 2a56, b:Y in.sta.nce have they been able to secure an el.eetion among Congressman Wn..L ROGERS, the Pope plan for dlrect Fed~ employees to see who shall represent them even though old-ag€ :pensions of $30 to ·$50 a month; tG the Committee the steel labor board has ordered them held; to the Cam-on Ways and Means. mittee on Labor.

3644. Alsoc1 petition :of J. I. Hoke .and numerous other 3061. Also, petiticm of th~ National .Association of Tobacco , citizens of Fastrill and Rusk., Tex., f av-.oring Hcmse bill 2-856, Distributors, execilti.w.e ofiires, New York City. by their .execu- · by CongTessman WILL RoGERs, the Pope phm for direct Fed- tiv-e secretary, Jose:ph K<>lod.ey, stcang}y urging tire ren.ewal eral old-age pensions nf $30 oo $S0 a month; to the Com- or extension of the Nation.a.l .lndustri-al Recovery Aet, ns they mittee on Ways and Means. believe it is ideally adapted to promote the best interests of

3645. AlBo, petition of J''Ohn Hackett and numerous .oth~r the ind~tries of t.he United .Stat.es, including labor a.s a citizens uf .FWshea.r .and Sim'Ollton. T.ex., famring H'<>U5e constituent pa.rt ~f said industries; to the Committee on bill ~56, by Congressman WILL RoGEBS, the Pope plan far Labor. direct Federa.l old-age pensions of $30 .to $50 .a ID(}nth; to 3662. Also, petition of the Benedict Club, <>f Clev~land, the Committee on Ways a.nd Means. _ Ohio, by their president, S. .J. Perchm.an, .and their secretary,

3646. Also,, petition of Rev. Allen New and ~erous Charles Basey, urging the Chairman of the .Judiciary Comother citizens of Harwood .and Loving, Tex.., fa.varing House mittee, the Ohio delegat~ to use .all influence to secure the . bill 2856, by -Congressman Wn.L RoGERS, the Pope pl&n fo.r passage of the Cos~an-W.a.gner antilynching bill, as this direct Fed~ral old-age pension$ of $30 to ~3Q a month; to lbiU is a decisive step tow.a.rd the termination of the lynching the Committee on Ways and Means. , evil which has ior many years humiliated tb.e decent .and

3647. Also .. petition Qf J. IL Bowman and numerous other Jlaw-abidi.ng citizens oI this countzy; t.o the Committee on citizens of Fastrill, Rusk • .and Grapeland, Tex.., favoring !the Judiciary. H<>use bill 2856, by Congressm-an Wn.L RoGERS, the Pope '3663. Also, petition of the Lakewood Association of Fire plan for direet F'ed.era1 .old-age pe..nsi<>ns .of .$30 to $5U a Fighters, Lakewood, Ohle, by their recording secretary, E. A. month; to the Committee on Ways and Means. O'Neill, w·ging on behalf of organized labor the support of

.3648. By Mr. SADOWSKI: Senate ~oneurrent Resolu- any legislation that will provide for the payment of the pretion No. 5, of the State of Michigan, asking that the o1d vaili:ng rate of wages to those who may be employed on any · post-office site and bulld1ng m Lansing, Mich., be deeded to J;JroJects under the provisions of the bill ·now before 'Conthe State of Micltiga.n.; to the Committee on Appropriations. gress known as "" House J'oint Resohltion ll"l "; t'O the Com- ·

3649. Also, petition of tlle Detroit ,Fire Department, Post . mittee on Labor. No. 1339, Veterans of Foreign Wars, asking that a -Veterans' Administration general ho.spital be builli m the Detroit area; to the Committee on Appropnations.

365U. _A1so. petition of the Slovak League of America, endorsing House bill 282'1; to the Committee on Yfays and Means. ..

SENATE · TlIBsDAY, MAltCH 12, 1935

. . (Legislative day of M_muJ,ay, Mar~ _4, 1935)

21351. Also, petition of the St. Patrlck"s 'Holy N-am-e Com- The Senate met at 12 -o'clock meridian, 'Oil the expiration mittee asking that the Mexiean Govennnent be -admonished of the recess. · and w~rned to .refrain from further -outrages; to the Committee on Foreign Affairs.

3652. Also, petition of Group No. 9U uf the Polish N'!.tional Alli:ance asking th&t October 11 of each year be .set aside 11.S General' Pulaski Mem{lrial ·nay; to ~ Committee on t'be Judidary.

3653. Als<J, petition of Corporal James W. Johnson Post, No. 78, of the Veterans of Foreign Wars -0f the United states, endorsing House bUI ·1; to the Coimnittee an Ways and Means ..

3654. Also, petition of the Unity Citu.ens Club oI Detroit, Mich., ender.sing HoliSe bill 2827; to tbe Cmnmittee rQl2 Wan and Means.

3t>55. Also, Senate Concurrent Resolution No. 2 . of the State of Michigan. asking fur the immediate ]layment -of the adjusted-service certmr:a-tes; tD the Committee an Ways and Means. _ . .

3656. Also, Senate Concurrent Resolution No.. 6 cl the State of Miclligan, asking that the Gena;'Sl ~ki ~morial Day resot:ution now ,µenti!ng be enacted py Congress .. to the Committee on the .)'udiciary~

·.3657. Also, Senate Resolution 28 of the State of Michigan, requesting the authorizing and .appropriating of sl,lfficient mo-neys to build a V.erera.ns' Administration hospital; to the Committee fill .Appropriations.

3658. By Mr. SP.ENCE: Petition -of too bl1r1ey tobaeeo growers of Grant County. ~ .. requesting th'C .ffi:n~se Committee on Agriculture m support the Flannagan bill, which provides for the compulsory gI"?.ding iof burley tobacco; to the Committee on .Agriculture.

3659. By Mr. STEFAN: Resolution adopted by the Nebraska House of Representatives, memorializing the C~ngress of ·the United States to pass the President':s work-. relief bill. as submitted., without further deiay; to the Committee on Appropriations.

THE JQURN i\L

On request of Mr. RomNsoN, and by unanimmzs cunsent, the Teading of the Journal of-tire ]Jroeeedings uf the calendaT day Monda-y, Mareh 11, 1935, was dispensed with, 13.mi thl? Journal was -approved.

MESSAGES FROM -THE PRESIDENT

.Messages in writing .from the Pres.idezit of the United States were oommunica.ted to the senate by Mr • . Latta, one cot biS secretaries.. · · - ·

. :PUBUC U"m.ITY l!DLDINC ~Am'ES .w. DOCA :NOA "U7)

Mr. ROBINSON. I suggest that the Chair lay before the ' ·senate the messa.g~ from the Presklent,: and then I will suggest the absenee cf s quorum.

The VICE PRESIDENT. The Chair lays before the Sen- : ate a message from the President <>f the United Stares.

Mr. ROBINSON. I suggest the absence of a qaorum. The VICE PRESIDENT. 'The clerk will call the r.an. The legislative derk called the r&lf 1Ltld the following ·

Senators answered to their names: Adams Ashurst Austin Bachman Bailey Bankhead 'Barl;xmr Barldey Bilbo Bia.ck Bone Bor.ah Brown Bulkley Bulow Burke Byrd Byrnes Cappel" Carey

Ol:aTk Oonnally CDolliige Copeland

- Q>st'igan OmmeBS Gutting Dk:k:mson

. Dietelicb Donahe.Y Du1fy Fl et.ell.er Frazier George Gerry Gibson Glass 'QQre Gnl!ey Hale

Ha.rrt'SOn &st1ll,gs Hatch Hsytten Johlisan Keyes King l.Ja.FoUette .Lewis .Logan Lonergan Long McAdoo McCarran MoGUl MCK-ella;r McNa.ry Maloney .Metcalf Minton

-Moore .Mmphy Murray Neely Nor heck Norris Nye O'Mahoney "Pittman Pope, . Radcliffe Reynol ds B.o.binson Russell Schall Schwellen bach Sheppard 6hipstead Smith Steiwer

1935 . CONGRESSIONAL RECORD-_ SENATE I 3425 Thomas, Okla. Trammell Vandenberg Walsh Thomas, Utah Truman Van Nuys · Wheeler Townsend Tydings Wagner

Mr. AUSTIN. I announce that the Senator from Pennsylvania [Mr. DAVIS] is absent because of illness, and that the senator from Maine [Mr. WHITE] is necessarily detained from the Senate. I ask that the announcement stand for the day.

Mr. LEWIS. I announce that the junior Senator from Arkansas [Mrs. CARAWAY] and the junior Senator from Louisiana [Mr. OVERTON] are absent because of illness.

The VICE PRESIDENT. Ninety-one Senators have answered to their names. A quorum is present.

The message from the President of the United States will be read.

The Chief Clerk read as follows:

To the Congress of the United States: I am transmitting to you herewith a report submitted to me

by the National Power Policy Committee. I named this committee last summer from among the departments of the Government concerned with power problems to make a series of reports to coordinate Government Policy on such problems. This report I am submitting to you is the recommendation of the committee with respect to the treatment of ·holding companies in the public-utility field. It deserves the careful attention of every Member of the Congress.

·The so-called " public utility holding company bill " <title I of House bill 5423 and of Senate bill 1725), which was drafted under the direction of congressional leaders, incorporates many of the recommendations of this report.

·I have been watching with great interest the fight being waged against public utility holding company legislation .. I have watched the use of investors' money to make the mvestor believe that the efforts of Government to protect him are designed to defraud him. I have· seen much of the propaganda prepared against such legislation-even down to mimeographed sheets of instructions for propaganda to exploit the -most far-fetched and fallacious fears. I have se~n enough to be as unimpressed by it as I was by the similar effort to stir up the country against the securities exchange bill last spring. The Securities Exchange Act is now generally accepted as a constructive measure, and I feel confident that any fears now entertained· in regard to proposed utility hold• ing company legislation will prove as groundless as those Ia.st spring in the case of the Securities Exchange Act.

:so much has been said through chain letters ·and cir.culars and by-word of mouth that misrepresents the intent and purpose of a -new law .that it is important that the people of the . country understand once and for all the actual facts of the case. Such.a measure will not .Eiestroy legitimate business .or wholesome and productive ·investment. , I~ will not · destr'6y 'a penny of actual _ value of those operating properties which holding companies now control and 'which holding company securities represent insofar as they have any value. on· the contrary, it will surround the necessary reorganization of the holding company with· safeguards which will in fact protect the investor.

We seek to establish the sound principle that the utility holding company so long as it is permitted to continue should not profit from dealings with subsidiaries and affiliates where there is no semblance of actual bargaining to get the best value and the best price. If a management company · is equipped to offer a genuinely economic ·management service to the smaller operating utility companies, it ought not to own stock in ·the c-0mpanies it manages, and its fees ought to be reasonable. The holding company should not be permitted to establish a sphere-of Influence from which independent engineering, construction, and other private ~nterprise is excluded by a none too benevolent private paternalism. If a management company is controlled by related operating companies, it should be organized on a truly mutual and cooperative basis and should be required. to perform its services at actual cost demonstrably lower than the serv:ices can be obtained iri a free and open market.

We do not seek to prevent the legitimate. diversification of investment in operating utility companies by l~itimate investment companies. But the holding company in the past has confused the function of control and management with that of investment and in consequence has more fre:quently than not failed in both functions. Possibly some holding companies may be able to divest themselves of the control of their present subsidiaries and become investment trusts. But an investment company ~ases t<.:> be an investment company when it embarks into business and management. Investment judgment requires the· judicial appraisal of other people's management.

The disappearance at the end of 5 years of those utility holding companies which cannot justify themselves as necessary for the functioning of the operating utility companies · of the country is an objective which congressional leaders I have consulted deem essential to a realistic and far-s_ighted treatment of the evils of public utility holding companies. For practical reasons we should off er a chance of survival to those holding companies which can prove to the Securities and Exchange Commission that their existence is necessary for the achievement of the public ends which private ut~lity companies are supposed to serve. For such companies, and during the interim period for other companies, the proposal for a comprehensive plan of public regulation and control is sound. ·

'But where the utility holding company does not perform a demonstrably useful and necessary function in the operating industry and is used simply as a means of financial control, · it is idle to talk of the continuation of holding companies ·on the assumption that regulation can protect the. public ag:;i.inst them. Regulation has ·small chance of ultimate succe~s against the kind of concentrated ·wealth and economic· pow~r which holding companies have shown the . ability. to acquire in the utility field. No Government effort can be expected to carry· out effective, continuous, and intricate · regUlation · of -t1:ie kiiid of :Piivate· empires within the Nation which- the _ .. holding-company device ,haS proved -capable ·of creat~ng . .. · :

-Except where it is ·absolutely necessary to· the continued functioning of a geographically integrated operating. utility system, the utility holdi:o.g company with. its present ' powers : must go. If we could remake our financial history in the light.-of experience, . certainly. we would .. have none . of this , holding comi,}any business. It is a device which does not b~-:- :· long to our American traditions of law and business. . It i~ : only a comparatively late- innovation. It · dates· definitely .. -from the ·same .unfortunate .period which -marked .. the "beliiri- ~· ilings of a host of ·other laxities in our · corporate law ·which · have brought US to OUr present .disgraceful ·conditfori of com:.. : petitive charter monger_ing between our· States. 'And it offe~s : too well demonstrated temptation . to arid. faeility.- ·~~1:' ~b1:1~e f :' ~. -tel' be tolerated-as a ·-rec.ogi:lized business· institution. ' ·That ,- tc- -~- ·.- '-·

temptation~ ahd- tbat facility. are inherent iri-its .. very natur.e . . i:t is a corporate' inventfon which Can give a few corporate ' -insiders unwartanted and intolerable .powers. ewer other peo .. pie's money. In its destruction of local control and its sub-

. stitution of absentee management 'it has built up in the pub- - , ,.. lie-utility field what has justly been called a system_ of pri'.. vate · socialism which · is inimical to the welfare of a free -people.

. Most of us agree that we should take the control and the benefits of the essentially local operating utility.industry out of a: few financial . centers and give back that control. and · those benefits to the localities which produce the business ) and create the wealth. We can properly. favor economically independent business, which stands on its own feet and diffuses power and respansibility among the many, and frowris . u:Pon those holding companies which through interlocking directorates and other devices have given tyrannical power and · exclusive opportunity to a favored few. -n is time to ' make an effort to reverse that process of the concentration of power which has made most American citizens, once traditionally independent owners of their own businesses, helplessly dependent· for ·their daily bread ·upon the favor of a -very few, who, by- devfoes such ·as holdmg companies, have

3426 ~ CONGRESSIONAL RECORD~ENATE MARCH 12 _ taken for themselves unwarranted economic ·power. I · aril against pl'ivate socialism of concentrated private pc)wer as thoroughly as I am against governnient socialism. The one. is equally as dangerous as the other; and destruction . of private socialism is utterly essential to avoid governmental socialism.

FRANKLIN D. ROOSEVELT. THE WmTE HousE, March 12, 1935.

Representatives of PUerto Rico, on behalf of that house, -which was ordered to lie on the table and to· be printed in the RECORD,. as f 9llows:

SAN JUAN, P. R., March 8, 1935. Hon. JOHN N. GARNER,

President of the United States Senate, Washi ngton, D . . C.:

The House of Representatives of Puerto Rico endorses House Joint Resolution No. 117 that gives power to the. national administration to carry out an ample program of public works and plans for economic social rehabilitation in the States, Territories,.. and insular possessions, and it likewise requests that any rehabilitation plan established by the national administration in Puerto

The VICE PRESIDENT. The message from the President, together with the accompanying report, will be printed and referred to the Committee on Interstate Commerce. _ Rico be implanted through the legislature and the executive de-_

partments of the insular government determined by the organic . act 1n order to avoid duplication o! government or the creation of a supergovernm.ent in the island.

.MESSAGE FROM THE HOUSE A message from the House of Representatives, by Mr.

Haltigan, one of its reading clerks, announced that the House had passed a bill CH. R. 6359) to repeal certain provisions relating to publicity of certain statements of income, in which it requested the concurrence of the Senate.

MIGUEL A. GARCIA MENDEZ, Speaker House of Representatives.

PETITIONS AND MEMORIALS The VICE PRESIDENT laid before the Senate the follow-

FINAL REPORT OF ALIEN PROPERTY CUSTODIAN ing resolution of the -Senate of the State of Kansas, which The VICE PRESIDENT laid before the Senate the follow- was referred to the Committee on Military Affairs:

ing message from the President of the United States, which senate Resolution 17 was read and referred to the Committee on the Judiciary:

To the Congress of the United States: In accordance with the requirements of section 6, of the

Trading with the Enemy Act, I transmit herewit~ for the information of the Congress, the final report of the Alien Property Custodian on proceedings had under the Trading with the Enemy Act. _

FRANKLIN D. RoOSEVELT. THE WmTE HousE, March 12, 1935. <NoTE.-Report accompanied similar message to the House

of Representatives.>

INTERNATIONAL TECHNICAL COMMITTEE OF AERIAL LEGAL EXPERTS The VICE PRESIDENT laid before the Senate the foll-ow

ing message from the President of the United States, which was read, and, with the accompanying papers, ref erred to the Committee on Foreign Relations:

To the Congress of the United States: I commend to the favorable consideration of the Con

gress the eµclosed report from the . Secretary of s _tate to the end that Public Resolution 118, Seventy-first Congress, be amended so as to authoriie an annual appropriation to pay the pro rata share of the United States in the expenses of the International Technical Committee of Aerial Legal Experts and to authorize an annual appropriation in the sum of $6,500, or so much thereof a.s may be necessary, for the expenses of participation by the Government of the United States in the meetings of the International Technical Committee of Aerial Legal Experts and/or of the commissions established by that Committee.

FRANKLIN D. ROOSEVELT. THE WHITE HOUSE, March 12, 1935.

CLAIMS OF SIOUX Il...-XlIANS

The VICE PRESIDENT laid before the Senate a letter from the Secretary of the Interior relative to the claims of individual Indians enrolled at the various Sioux agencies for loss of personal property and failure to receive allotments of land to which the applicants were entitled, etc., which, with the accompanying papers, was referred to the Committee on Indian .Atrairs.

CREWS OF FIS'".dING VESSELS IN FOREIGN PORTS The VICE PRESIDENT also laid before the Senate a let

ter from the Chairman of the United States Tariff Commission, submitting a report on an investigation wit! .l respect to " The employment of crews in foreign ports for temporary service on United States fishing vessels, including the practice of dispatching United states fishing vessels with socalled ' skeleton crews ' ", which, with the accompanying report, was ref erred to the Committee on Finance.

_ WORK RELIEF· IN PUERTO RICO The VICE PRESIDENT laid before the Senate a telegram

from Hon. Miguel A. Garcia Mendez, speaker of the House of

A resolution memorializing Congress to enact legislation providing _for the payment of travel pay to certain Spanish-American War soldiers Whereas during the Spanish-American War the troops who were

serving in the Philippine Islands in 1899 and their period of enlistment was about to expire. request was made from the War Department to have them remain in service for 6 ~onths or longe:i: until the troops could be sent over to replace them; and

Whereas these , troops were promised by the_ officers in charge in the Philippine Islands at said time that if they would reenlist or ·remain in service during -the emergency then existing they would · be given the regular travel pay 01'. soldiers whose enlistment expired and reenlisted in the service of the United States which was authorired by section 15 of the Army bill ~en in force; and _

Whereas these troops were held to service for approximately 6 -months or longer under said agreement and the promise made to them, thus saving the United States millions of dollars, and were so held without being formally mustered out and mustered in, it being a physical impossibility to go t hrough the formal act of muster at that time; and

Whereas these troops were never paid the money promised them by their superior officers, it taking an act or Congress to appropriate the money, although the men have been repeatedly promised this money since being mustered out, and committees in Congress have recommended the passa.ge of an act appropriating . the money; and

Whereas numerous citizens of the State o! Kansas would be greatly benefited by this bill; ~d _

Whereas the Court of Claims o! the United States has held that this was a moral obligation to these soldiers, and 1n previous Congresses the war claims committee has recommended the bill do pass, and there 1s now pending in Congress, before the Committee on War Claims in the House of Representatives, H. R. 2024, which will provide for the payment or this obligation; and

Whereas under present financial conditions this money would immediately go into circulation and help relieve the present financial distress, and pay an obligation which the Government has . owed these soldiers for 36 years: Therefore be it

Resolved by the Senate of the State of Kansas, That the Congress of the United states be, and hereby is, respectfully memoria~d to enact with an convenient speed such legislation as may be necessary to pass this measure which will thus pay the obligations which the Government has owed to these soldiers for 36 years; be it further

Resolved, That certified copies of this resolution, duly certified, be transmitted to the President of the Sena,te and the Speaker of the House of Representatives in Congress and to the Senators and Representatives in Congress from the State of Kansas, and that the latter be urged to use their best omces to procure the enactment of such legislation as will accomplish the purpose o! this resolution.

Adopted March 6, 1935. CHAS. W. THOMPSON,

President of the Senate. CLARENCE W. MILLER, S~cretary of the Senate.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the State of Iowa, which was ref erred to the Committee on Agri .. culture and Forestry: A concurrent resolution memorializing the Congress of the United

States to amend the rules and regulations of making loans by the Federal Land Bank of Omaha, Nebr. Whereas the Federal Land Bank of Omaha, Nebr., under its pres•

ent rules and regulations, has refused to ma1te loans -on lands which are located in drainage districts where the lands situated therein are subject to special assessment for the drainage system

1935 CONGRESSIONAL RECORD-SENATE 34.27 installed in the said districts, and have also refused to make loans on lands which have been established as permanent pasture land; and

Whereas due to the said rules and regulations there are numerous farmers located in the said districts who are in financial distress at the present time, and are unable to get financial aid; and

Whereas the said lands on which the said Federal Land Bank of Omaha, Nebr., has refused to make loans under its rules and regulations, are valuable, tillable lands, and taxed on the same basts as other lands located in the State of Iowa: Be it

Resolved by the House of Representatives, State of Iowa (the Senate of the State of Iowa concurring), That we petition and pray the Congress of the United States to amend the law relating to loans made by the Federal Land Bank of Omaha., Nebr., and to liberalize the rules and regulations of the said Federal land bank so that the owners 'of land as enumerated in this resolution may receive the eame advantages as owners of other Iowa !arm lands; and be it further

Resolved, That the chief clerk of the house be and he is on the passage of this resolution directed to forward a printed copy of this memorial resolution to the President of the Senate and the Speaker of the House of Representatives of the Congress of the United States, at Washington, D. C.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Lfgislature of the State of North Dakota, which was referred to the Committee on Agriculture and Forestry:

Senate Concurrent Resolution A Be it resolved by the Senate of the State of North Dakota (the

house of representatives concurring)-Whereas during the present depression the original cost of pro

ducin.g meat and grain products is greatly in excess of the price now realized by the sale of the same, and that by reason thereof farmers are unable to pay their bills and debts, and each year find themselves further behind with their debts and obligations, and if the above situation continues for any additional length of time the farmers will lose their homes and all; and

Whereas during the time farmers are operating at a loss they

Whereas the Frazier-Lemke bill has the endorsement of 22 State legislatures, and in addition the lower houses of the States of New York and Delaware, and of many commercial clubs, chambers of commerce, bank organizations, and of business and professional men and women, as well as the great majority of the farmers of this Nation; and

Whereas the enactment of this bill will have a vital effect not only upon agriculture, but upon all classes of industry; and

Whereas agriculture is the basic industry of this country, and there can be no recovery until agriculture is put upon a sound basis: Now, therefore, be 1t

Resolved, That it is the sense of your memorialists, the Legislature of Texas, the senate and the house concurring, that the Congress of the United States should enact the Frazier-Lemke bill without further delay; and be it further

Resolved, That a copy of this memorial, duly authenticated, be sent by the secretary of state to the President of the Senate and the Speaker of the House of Representatives of the United States, and to each Senator and Representative in Congress from this State, to the President of the United States, and to United States Senator LYNN J. F'RAzIER and Congressman. WILLIAM LEMKE.

WALTER F. WoonUL, President of the Senate.

I hereby certify that Senate Concurrent Resolution 10 was adopted by the senate February 19, 1935, by the following vote: 21 yeas, 2 nays.

BOB BARKER, Secretary of the Senate. JAKE I. STEVENSON,

Speaker of the House of Representatives. I hereby certify that Senate Concurrent Resolution 10 was

adopted by the house of representatives February 20, 1935. LOUISE SNOW PHINNEY,

Chief Clerk of the House of Representatives.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the State of North Dakota, which was referred to the Committee on Banking and Currency:

cannot be purchasers of other manufactured products, and such Senate Concurrent Resolution A industries will in turn fail for lack of business; and that all busi- Be it resolved by the Senate of the State of North Dakota (the ness of every kind and nature will be affected by this injustice to house of representatives concurring): _ agriculture; and

Whereas it follows that every kind of business located in the Whereas the United States Constitution under article I, section agricultural communities must rise or fall with the farmers, and 8, providing for powers granted to Congress, among other things, that the important and absolutely essential industry of agricul- specifically provides" the Congress shall have power to coin money, ture cannot be stricken down without causing disaster to the regulate the value thereof and of foreign coins, and fix the standard country as a whole; and of weights and measures"; and

Whereas the placing of an embargo on the products mentioned Whereas this function and governmental power has been turned would stabilize the prices thereof and bring such prices more in over to the national banks and thereby placed in the practical conharmony with the production costs, together with a fair margin trol of such banks; and of profit, and bring the farmers out of the dire and distressing Whereas the use and abuse of this power has placed the economic depression which now affects them: Now, therefore, be it direction and control of our country in the hands of a few men, and

Resolved by the Twenty-fourth Legislative Assembly of the State thereby determining its destiny; and of North Dakota, That we respectfully petition the Congress of the Whereas by reason of the delegation of this governmental power United States to pass laws and provide rules and regulations to place a few men own the great mass of wealth and property in this an embargo on fiax, wheat, hogs, cattle, and sheep, and upon country; and pork, beef, and mutton products until such time as the prices of Whereas the result of such system was foretold by Jefferson, who said grains, livestock, and meat products shall cover the cost of said, "Already they have raised up a money aristocracy that has set production, and we further petition that the law now permitting the Government at defiance. The issuing power should be taken wheat to be milled in bond be repealed; be it further from the banks and restored to the Government and the people, to

Resolved, That a copy of this resolution be forwarded to the whom it rightfully belongs", and Lincoln said, "The money power President of the United States, to both Houses of the Congress of of the country will endeavor to prolong its reign by working upon the United States, and each Member thereof from this State, to the prejudices of the people until all wealth is aggregated in a few the Secretary of Agriculture, and ~ each house of the le~islative i hands and the Republic · is destroyed. I feel at this time more assembly of those States whose legIBlatures are now in session. anxious for my country than even in the midst of war", and

A. S. MARSHALL, Woodrow Wilson said, " The great monopoly in this country is the President pro tempore of the Senate." money monopoly. So long as that exists our liberty and freedom

F. E. TuNNELL, and individual energy of development are out of the question. Secretary of the Senate. • • • This is the greatest question of all, and to this statesmen

WILLIAM M. CROCKE'IT, must address themselves with an earnest determination to serve Speaker of the House. the long future and the true liberties of men"; and

WAL~ S. MARTIN, Whereas it is necessary that this great power be restored to the Chief Clerk of the House. Government and its people, even though the hour is late:

The VICE PRESIDENT also laid before the Senate the Now, therefore, we urge upon Congress the passage of all neces-

f 11 · t 1 t• f th Le · 1 t f th sary laws to reestablish the issuing of money as a monopoly of o owmg concurren. reso u ion ° e gIS a ure. o e Government, and that there be established a system of Government ·

State of Texas, which was referred to the Committee on banks exclusively owned, to the end that a bank system be provided Agriculture and Forestry: for the people at cost; be it further

Resolved, That copies of this resolution be sent to the President of the United States, the President of the United States Senate, the Speaker of the House of Representatives, and the Senators and

Senate Concurrent Resolution 10 Whereas, unless immediate relief is given, hundreds and thou

sands of additional farmers will lose their farms and their homes, and millions more will be forced into our cities and villages, and the army of the unemployed will necessarily increase to alarming proportions; and

Whereas there is no adequate way of refinancing existing agricultural indebtedness, and the farmers are at the mercy of their mortgagees and creditors throughout this State and Nation; and

Whereas the Frazier-Lemke refinance bill, being S. 212 and H. R. 2066 in the Congress of the United States, provides for the liquidating and refinancing of agricultural indebtedness at a reduced rate of interest, through the Farm Credit Administration and the Federal land banks; and

Congressmen from North Dakota. A. s. MARSHALL,

President pro tempore of the Senate. F. E. TUNELL,

Secretary of the Senate. WILLIAM M. CROCKETT,

Speaker of the House. WALTER s. MARTIN,

Chief Clerk of the House.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the

3428 CONGRESSIONAL RECORD~SENATE MARCH 12 State of Indiana, whfoh was· ref erred· to the Committee on Interstate Commerce: A concurr~mt resolution memorializing Congress to extend to the

States the privilege of imposing a nondiscriminatory tax upon retail sales in interstate commerce Whereas necessity for property tax relief is imperative in In

diana, as well as in other States throughout the Union; and Whereas more than half of the States in an effort to afford prop

perty tax relief and to provide revenue for essential functions of government have enacted laws imposing taxes based upon or measured by sales or tangible property purchased and delivered in such States; and .

Whereas the State of Indiana has enacted a law imposing a tax upon gross income, such tangible gross income including that derived from retail sales, from which source a considerable proportion of the revenue from this tax is derived; and

Whereas by virtue of judicial interpretation of the Federal Constitution, the States may not levy without consent of the Congress taxes based upon or measured by sales moving in interstate commerce; and

Whereas there is at least serious doubt whether the State of Indiana or any other State imposing such a gross income tax may, without the consent of Congress, tax such gross income derived from retail sales moving in interstate commerce; and

Whereas as a result of such interpretation of the existing law there is a discrimination in favor of interstate sales as against intrastate sales; and

Whereas such discrimination, if permitted to continue, will tend to divert business from normal channels in Indiana and elsewhere throughout the Union, thus subjecting local merchants to unfair competition; and ·

Whereas it is of vital importance to the welfare of the people of the United States that all things be done to promote the stability of local business in order that the financial structure of Indiana and other States throughout the Union may be preserved; and

Whereas it rests within the power of Congress to permit the States to levy nondiscriminatory taxes upon sales, or upon or with respect to income derived from sales in interstate commerce; and

Whereas the Honorable PAT HARRISON, Senator from Mississippi, introduced a measure at the second session of the Seventy-third Congress designed to afford the States relief in this matter, and reading as follows:

.. s. 2897

"An act to regulate interstate commerce by granting the consent of Congress to taxation by the several States of certain interstate sales "SECTION 1. Be it enacted, etc., That all taxes or excises levied

by any State upon sales of tangible personal property, or measured by sales of tangible personal ' property, may be levied upon or measured by sales of like property in interstate commerce, by the State into which the property is moved for use or consumption therein, in the same manner, and to the same extent, that said taxes or excises are levied upon or measured by sales ·of like property not in interstate commerce, and no such property shall be exempt from such taxation by reason of being introduced into any State or Territory in original packages, or containers, or otherwise: Provided, That no State shall discriminate against sales of tangible personal property in interstate commerce, nor shall any State discriminate against the sale of products of any other States: Provided further, That no State shall levy any tax or excise upon, or measured by, the sales in interstate commerce of tangible personal propery transported for the purpose of resale by the consignee: Provided further, That no political subdivision of any State shall levy a. tax or excise upon, or measured by, sales of tangible personal property in interstate commerce. For the purpose of this act a sale of tangible personal property transported, or to be transported, in interstate commerce shall be considered as made within the State into which such property is to be transported for use or -consumption therein, whenever such sale is made, solicited, or negotiated in whole or in part within the State.

" SEc. 2. Receivers, liquidators, referees, and other officers of any court of the United States are required to pay a.ll taxes and licenses levied by any State or subdivision thereof the same as corporations, partnerships, concerns, persons, or association of per.sons are required to pay the same"; and

Whereas said measure was passed by the Senate on March 15, 1934, but was not voted upon by the House of Representatives, and hence did not become law; and

Whereas need for such legislation is imperative in order to correct grave injustice in Indiana and in all other states throughout the Union where taxes are based upon or measured by sales of tangible personal property or where taxes are imposed upon or with respect to income from such sales: Therefore

SECTION 1. Be it resolved by the Senate of the General Assembly of the State of Indiana (the house of representatives concurring), That the General Assembly of the State of Indiana hereby respectfully memorialize the Congress of the United States to give relief to the State of Indiana and all other States imposing taxes based upon or measured by sales or tangible personal property or taxes upon or with respect to income derived from s1:1ch sales by immediately providing for the regulation of interstate commerce by granting consent to taxation by the several States of certain interstate sales substantially as provided by the measure (S. 2897)

introduced by Senator HARRISON during the second session of the Seventy-third Congress.

SEc. 2. The secretary of the senate is hereby instructed to send copies of this resolution to the President of the United States, the President of the Senate, and to the Speaker of the House of Representatives of the Congress of the United States, to each United States Senator and Member of the Congress from Indiana, and to the Honorable PAT HARRISON, United States Senator from Mississippi .. author of the measure which is intended to afford the States relief in this important matter.

This is an exact copy of Senate Concurrent Resolution No. 9 as passed by the Senate of the Seventy-ninth Indiana General Assembly, on February 15, 1935, and concurred in by the house on March 1, 1935.

NORMAN W. GORDON, Secretary.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the State of Minnesota, which was referred to the Committee on Interstate Commerce: A concurrent resolution memorializing Congress to authorize the

States to tax sales and gross income and/ or gross receipts arising from transactions in interstate commerce Whereas the tax burden upon real estate and tangible personal

property is at this time the heaviest in the history of the State of Minnesota and in many instances amounts to confiscation, and a similar situation exists in many other States in the Nation; and

Whereas by reason of economic conditions and of the nec~s:ity of appropriations for relief in the State of Minnesota and throughout the Nation, it has become imperatively necessary for the State of Minnesota and other States to seek new sources of revenue, such as the sales tax and the gross-income tax, and to use the revenue thus received in part to relieve the unconsc:onable burden now resting upon real estate and tangible personal property; and

Whereas neither sales taxes nor gross-income taxes may be imposed upon transactions in interstate commerce and thus many billions of dollars of income from sales and gross receipts entirely escape such taxation by the State: Now, therefore, be it

Resolved by the Senate of the State of Minnesota (the house of representatives concurring), That we earnestly urge the Congress of the United States to pass appropriate legislation so that the several states may have power to tax sales and gross income arising from interstate commerce; Be it further

Resolved, That the secretary of state is hereby directed to send a duly authenticated copy of this resolution to the President of the United States, Vice President of the United States, Speaker of the House of Representatives, and to each Member of the Senate and Congress from the State of Minnesota.

HJALMAR PETERSEN, President of the Senate.

GEORGE w. JOHNSON, Speaker of the House of Representatives.

Passed the senate the 13th day of February, 1935. G. H. SPAETH,

Secretary of the Senate. Passed the house of representatives the 28th day of February,

1935. JOHN I. LEvIN,

Chief Clerk, House of Representatives. Approved March -, 1935.

Governor of the State of Minne1

sota. Filed March 2, 1935.

MIKE HOLM, Secretary of State.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the State of Minnesota, which was ref erred to the Committee on the Judiciary:

Concurrent Resolution 14 A concurrent resolution memorializing the Congress of the United

States to enact a Federal antilynching law Whereas more than 15 citizens of the United States in widely

scattered sections of the country have been lynched during the past year, though a great decrease over the previous year, yet sufficient to cause public expression of condemnation thereof to be made throughout the land; and

Whereas lynching is an unlawful deprivation of the rights of the citizens to the protection of article VI of the amendments to the Constitution of the United States which reads as follows:

"In all criminal prosecutions the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, • • • and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; • • • and to have the assistance of counsel for his defense."

Article XIV of the amendments of the Constitution of the United States of America, which reads, in part, as follows:

"Nor shall any State deprive any person of life, liberty, or property without due .process of law; nor deny' to any person within its jurisdiction the equal protection of the laws"; and

193~ CONGRESSIONAL RECORD-SENATE 3429 Whereas lynching and mob violence tend to promote a general j Speaker of the United States House of Representatives, the Sec

disregard for law and order and to undermine the very purpose retary of Agriculture of the United States, and to each Member and stability of government, and has a deteriorative effect both of the Oregon delegation in Congress. upon the people participating th~rein and the community wherein Th VICE PRESIDENT 1 1 "d bef th S t th same occurs: And, therefore, be it e. . a so a1 ore . e . ena e e

Resolved by the Senate of the State of Minnesota (the house of followmg resolution of the House of Representatives of the representatives concurring therein), That the Congress of the State of Nebraska which was ordered to lie on the table: United States be and is hereby memorialized to enact a Federal ' antilynching law at the present session. That a copy of this Resolution memorializing the Congress of the United States to resolution be transmitted to the President of the United States, pass the President's work-relief bill as submitted without further the President of the Senate, the ·speaker of the House of Repre- delay s·entatives, and to each of the Senators and Representatives of Whereas there are many needy and unemployed people in the the Congress from the State of Minnesota. State of Nebraska and in other States of the United States who

GEORGE W. JOHNSON, are in dire distress and who must have immediate relief if they Spealcer of the House of Representatives. are to receive the. bare necessities of life; and

H.rALMAR PETERSEN, Whereas the President of the United States has presented a President of the Senate. work-relief bill appropriating $4,800,000,000 for such relief; and

Passed the house of representatives the 13th day of February Whereas such sum of money is necessary to carry on the com-1935. prehensive relief program for the United States under present

JOHN I. LEv!N, Chief Clerk, House of Representatives.

Passed the senate the 4th day of March 1935.

Approved March 6, 1935.

Filed March 6, 1935.

G. H. SPAETH, Secretary of the Senate.

FLOYD B. OLSON, Governor.

MIKE HOLM, Secretary of State.

The VICE PRESIDENT also laid before the Senate the following resolutions of the General Court of Massachusetts, which were ref erred to the Committee on Finance: Resolutions memorializing Congress in favor of the immediate cash

payment of the adjusted-service certificates of veterans of the World War Whereas it appears that present national economic conditions

warrant the extension of adequate relief to a large number of those who served in the armed forces of the United States Government during the recent World War; and

Whereas it appears that adjusted-service certificates were issued to those mentioned above by the Director of the United States Veterans' Bureau in compliance with section 501 of title V of the World War Adjusted Compensation Act; and · Whereas it appears that it is the consensus of opinion and the desire of a larger number of those who have received the abovementioned certificates to realize the immediate cash value of their adjusted-service certificates: Therefore be it

Resolved, That the General Court of Massachusetts respectfully represents to Congress and the President of the United States the advisability of providing for the immediate payment to war veterans of the face value of their adjusted-service compensation certificates; and be it further

Resolved, That a copy of these resolutions be forwarded forthwith by the secretary of the Commonwealth to the President of the United States, to the presiding officers of both branches of Congress, and to the Members thereof representing this Commonwealth.

In house of representatives, adopted February 27, 1935. In senate, adopted in concurrence, March 6, 1935. A true copy. Attest: [SEAL) F. W. COOK,

Secreta1·y of the Commonwealth.

The VICE PRESIDENT also laid before the Senate the following joint memorial of the Legislature of the State of Oregon, which was ref erred to the Committee on Appropriations:

Senate Joint Memorial 18 To the Honorable Senate and House of Representatives of the

United States of America in Congress assembled: We, your memorialists, the Thirty-eighth Legislative Assembly

of the State of Oregon, convened in regular session, respectfully represent that:

Whereas the ravages caused by prune thrips amount to millions of dollars of loss to the prune growers of Oregon; and

Whereas this pest is spreading rapidly into the adjoining States of California, Washington, and Idaho; and

Whereas the State of Oregon still is seriously suffering financially from the effects of the recent depression and cannot, therefore, finance necessary investigations and control measures: Now, therefore, be it

Resolved by the Senate of the State of Oregon (the house of representatives jointly concurring therein) , That we, your memorialists, the Thirty-eighth Legislative Assembly of the State of Oregon, convened in regular session, respectfully petition the Congress of the United States to make necessary appropriations available immediately to the United States Department of Agriculture, collaborating with the Oregon agricultural experiment station, to combat and control this pest; and be it further

Resolved, That the secretary of state of the State of Oregon be, and he hereby is, directed to forward a copy of this joint memorial, under his certificate and seal, to the President of the United States, the President of the United States Senate, the

conditions; and Whereas this house is in complete accord with the President in

the position which he has taken in his said work-relief bill whereby the amount of compensation paid for relief work shall not exceed $50 per month, a little less than the rate of pay which relief workers will be able to receive as and when they are again absorbed in the profitable pursuits of labor in connection with private industry; and

Whereas the failure of certain politicians in Congress promptly to pass the President's work-relief bill is causing unrest among those who, without fault of their own, find it impossible to procure work to obtain the necessities of life and uncertainty in business transaetions in the several States: Now, therefore, be it

Resolved by the House of Representatives of the State of Nebraska in fiftieth session assembled--

I. That this house respectfully petitions and memorializes the Congress of the United States to pass with all convenient speed and celerity the President's work-relief bill, appropriating $4,800,-000,000 for the purposes therein set forth.

2. That the clerk of this house be hereby ordered and directed forthwith to forward a copy of this resolution, properly authenticated and suitably engrossed, to the President of the United States, to the Vice President of the United States, to the Speaker of the House of Representatives of the United States, and to each of the United States Senators representing the State of Nebraska, and to each of the Congressmen in the House of Representatives of the United States representing the State of Nebraska, to take such steps as may be necessary without further delay to the end that said work-relief appropriation bill shall immediately be enacted into law.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of Puerto Rico, which was ref erred to the Committee on Banking and Currency:

I, Enrique Gonzalez Mena, secretary of the Senate of Puerto Rico, do hereby certify that the following concurrent resolution was unanimously approved by the Senate of Puerto Rico on February 19, 1935, and by the house of representatives on March 5, 1935: "Concurrent resolution to petition the Congress of the United

States of America to make extensive to Puerto Rico the benefits of the act in regard to the insurance of deposits in banking institutions, and especially those derived from the activities of the Federal Deposit Insurance Corporation "Whereas it is unquestionable that the inclusion of Puerto

Rico in the benefits of the Deposit Insurance Corporation created by virtue of amendments introduced into the Federal Reserve Act would considerably improve the condition of ·insular credit bound up in the local banks organized under the laws of Puerto Rico with Puerto Rican capital;

"Whereas such inclusion of Puerto Rico in the benefits of oaid organization will place the local banks in circumstances similar to those of the national banks doing business in Puerto Rico, and will avoid unjust and unequal competition on the part of national banking institutions against those organized under the laws of Puerto Rico;

"Whereas insular credit requires that the native credit institutions organized with local capital, where numerous interests of the country are united, be placed on the same plane of action as the national banking institutions doing business in this island of Puerto Rico, and be protected in like manner by national legislation so that no new uneasiness may be caused in our economic structure, actually bankrupted by the acute economic depression through which we have been passing for the last few years;

"Whereas neither the previous act creating the Deposit Insurance Corporation nor the pending bills now under the consideration of the Congress of the United States, and especially the Steagall banking bill, H. R. 5357, include Puerto Rico, notwithstanding the fact that the benefits of the act are made extensive to the Territories of Hawaii and Alaska;

"Whereas it is urgently necessary that all said legislaticn include Puerto Rico, making its benefits extensive to the locJ.l credit institutions established, organized, and operating undc?: the laws of Puerto Rico; •

3430 CONGRESSIONAL RECORD-SENATE MARCH 12 "Whereas by this resolution the Legislature of Puerto Rico

expresses its desire, willingness, and -wish that the benefits of the said Deposit Insurance Act be extended to Puerto Rico, and the cre.dit corporations and institutions and banks organized under the laws of this island and doing business in Puerto Rico, receive the benefits thereof: Now, therefore, be it

"Resolved by the Senate of Puerto Rico (the House of Representatives of P.uerto Ric.o concurring) :

" SECTION 1. That the Congress of the United States of America be petitioned, · and it is hereby petitioned, to make extensive to Puerto Rico the benefits of the Deposit Insurance Act, and likewise to extend to our island all the activities of the Federal Deposit Insurance Corporation so that all credit institutions and banks organized under the laws of Puerto Rico may receive its benefits. .

" SEC. 2. That as the said measure is also of prime importance for the guaranteeing of insular credit, the President of the United States of America is likewise petitioned to intervene and give his decided cooperation toward securing for this island all the benefits of the said act.

~· SEC. 3. That a copy of this resolution be sent by air mail, immediately after its passage, to the President of the United states, to l::)o.th Houses of Congress of the United States of America, to the Chief of the Division of Territories and Possessions of the Department of the Interior of the United States, and to the Resident Commissioner of Puerto Rico in Washington, requesting the latter to give his whole cooperation to the petition herein contained; and that · a. copy be sent to the Governor of Puerto Rico, asking for his cooperation."

For transmittal to the President of the Senate of the United States I have hereunto set my hand and caused to be affixed the seal of the Senate of Puerto Rico on this 6th day of March 1935.

ENRIQUE GONZALEZ MENA, • Secretary of the Senate.

The VICE PRESIDENT also laid before the Senate the following concurrent resolution of the Legislature of the Territory of Hawaii, which was referred to the Committee on Territories and Insular Affairs:

Whereas the strategic military and naval position of the Territory is well known throughout the world and has been made manifest through recent large appropriations by the Congress of the United States to strengthen the defenses of the islands; and

Whereas some 7,000 former service men, including many veterans of the World Wa:t, a:te now resident in this Territory; and

Whereas the only hospitalization faeilities available in this Territory for any of these 7,000 former .service men in the event of sickness or disease are at the Pearl Harbor Naval Hospital when a bed or beds may not be needed to care for any ailing man on active service with the United States naval forces; and

Whereas records on file in the Veterans' Bureau at Washington, D. C., of a survey made by the Honorable Lawrence M. Judd, then Governor of Hawaii, through his adjutant general, showed the dire necessity for additional hospitalization facilities for the use of former service men and that at least 90 beds are needed at once: Now, therefore, be it

Resolved. by the Senate of the Territory of Hawaii (the hoose of representatives concurring), That the Congress of the United States be petitioned, through the Governor of Hawaii and the Delegate from Hawaii 1io Congress, to provide adequate funds for the establishment in Hawaii of a home for the Territory of Hawaii as a branch of the National M.ilitary Home; and be it further

Resolved, That a copy of this resolution be transmitted to the Vice President of the United States, the Speaker of the House of Representative~. the Governor of Hawaii, and the Delegate from Hawaii to the Congress of the United States.

The VICE PRESIDENT also laid before the Senate a joint memorial of the Legislature of the State of Idaho, favoring the enactment of legislation known as the "Townsend oldage pension revolving-fund plan"; which was referred to the Committee on Finance. .

(See joint memorial printed in full when presented by Mr. BORAH on the 11th instant, pp. 3326-3327, CONGRESSIONAL RECORD.)

The VICE PRESIDENT also laid before the Senate a joint resolution of the Legislature of the State of Montana, memorializing Congress to . enact legislation requiring the use of granite and natural stone in the construction of public buildings under the Public Works program, which was ref erred to the Committee on Public Buildings and Grounds.

(See joint resolution printed in full when presented by Mr. MURRAY on the 11th instant, p. 3327, CONGRESSIONAL RECORD.)

The VICE PRESIDENT also laid before the Senate resolutions adopted by Farmers Union Locals of Solon, Brittain, and Campbell, all of Hettinger County, N. Dak., favoring the passage of the so-called "Frazier-Lemke farm refinancing -bill", which were referred to the Committee on Agriculture and Forestry.

He also Paid before the Senate resolutions adopted by the Board of Commissioners of the City of Camden, N. J., and

McFarland Post No. 9, American Legion, Department of Colorado, of La Junta, Colo., favoring the enactment of legislation providing for the immediate payment of adjustedservice certificates of World War veterans, which were referred to the Committee on Finance.

He also laid before the Senate petitions of sundry citizens of the State of Indiana praying for the enactment of legislation providing penalties for persons who seek or plan the overthrow of the Government by force or violence, which were referred to the Committee on the Judiciary.

He also laid before the Senate a resolution adopted by the Yuba-Sutter Bar Association, of the State of California, favoring the enactment of legislation providing a fifth circuit judge of the United States Circuit Court of Appeals, Ninth Circuit, which was referred to the Committee on the Judiciary.

He also laid before the Senate petitions of sundry citizens of the States of California, Maryland, Michigan, New Jersey, and New York, praying for an investigation of charges filed by the Women's Committee of Louisiana relative to the qualifications of the Senators from Louisiana CMr. LONG and Mr. ' OVERTON], · which were referred to the Committee on Privileges and -Elections.

He also laid before the Senate resolutions adopted by the City Commissioners of Madison, Wis.; the City Commission of Brenham, Tex.; the mayor and council of the Borough of Fairview, N. J.; and the Common Councils of the cities of Ottawa, Ill., Attica, Ind., Holdenville, Okla., Fall River, Mass., Milwaukee, Wis., and Ely, Minn., favoring the enactment of pending legislation proclaiming October 11 in each year as General Pulaski's Memorial Day, which were ordered to lie on the table.

Mr. MALONEY presented a resolution adopted by Group No. 513, Polish National Alliance of the United States of North America, of Wallingford, Conn., favoring the enactment of pending legislation proclaiming October 11 in each year as General Pulaski's Memorial Day, which was ordered to lie on the table.

Mr. COPELAND presented a resolution adopted by the Chamber of Commerce of Geneva, N. Y., protesting against the adoption of proposed amendments to the Agricultural Adjustment Act, as embodied in Senate bill 1807 and House bill 5585, which was referred to the Committee on Agriculture and Forestry.

He also presented resolutions adopted by the ParentTeacher Associations of Chester and Greenwood Lake, and No. 42, School Parent-Teacher Association, favoring the establishment of a national :film institute, to encourage the production, distribution, and exhibition of motion pictures for visual education and suitable entertainment, which were referred to the Committee on Education and Labor.

He also presented a resolution adopted by the United Taxpayers of Long Beach, N. Y., protesting against the enac~ment of measures to extend the Federal power so as to tax such commodities as gasoline, which was referred to the Committee on Finance.

He also presented a resolution adopted by the Board of Supervisors of Monroe County, N. Y., favoring the ratification of the Great Lakes-St. Lawrence Deep Waterway Treaty, which was referred to the Committee on Foreign Relations.

He also presented petitions of sundry citizens of Rochester, N. Y., praying for the repeal of the so-called "WheelerHoward _Indian welfare bill", which were referred to the Committee on Indian Affairs.

He also presented a resolution adopted at a public meeting in the Town Hall Club, sponsored by the Women's International League for Peace and Freedom, New York City, N. Y., fav01ing the passage of the s·o-called "Wagner-Costigan antilynching bill", which was referred to the Committee on the Judiciary.

He also presented a resolution adopted by the Ministers' Association of Hornell, N. Y., and vicinity, favoring the nationalization of the manufacture and sale of arms and munitions, etc., and the outlawry of war, and protesting against proposed naval activities in the Pacific, which was referred to the Committee on Military Affairs.

1935 CONGRESSIONAL RECORD-SENATE 3431 He also presented a resolution adopted by the executive so-called "Townsend old-age-pension plan", which was re-

council of the Order of the Sons of Ireland in America, New ferred to the Committee on Finance. · York City, N. Y., favoring the enactment of Senate Joint He also presented a resolution adopted by the Holy Name Resolution No. 41, authorizing the issuance of a special Society of St. Joseph's Church (Lithuanian), of Lowell, postage stamp in honor of Commodore John Barry, which Mass., protesting against alleged religious persecutions in was referred to the Committee on Post Offices and Post Mexico, and favoring the withdrawal of the United States Roads. Ambassador to that country, which was referred to the Com-

Mr .. TYDINGS presented a petition of sundry citizens of mittee on Foreign Relations. the State of Maryland, praying for the passage of old-age He also presented memorials of sundry citizens of Ampension legislation, which was referred to the Committee on herst and Beverly, Mass., remonstrating against the enactFinance. - ment of legislation affecting adversely the interests of in-

He· also presented resolutions adopted by the western vestors in securities of public-utility companies, which were Maryland section of the Holy Name Society, comprising referred to the Committee on Interstate Commerce.

- Catholic. parishes in Garrett and Allegany Counties, and the He also presented a petition of sundry citizens, being vet-Holy Name Society of the Sacred Heart Church, of Balti- erans domiciled at Veterans Facility Home, Tagus, Maine, more, in the State of Maryland, p:rotesting· against alleged praying- for· the enactment of legislation providing free use 2-eligious persecutions in Mexico, and favoring the recall of of the mails to veterans . during the period of domiciliary the American · Ambassador · to · that -country, which were care and hospitalization in nation~! homes, which .was re-referred to the Committee on Foreign ReJations. f erred to the Committee on Post. Offices and Post Roads. ~

He also presented a resolution adopted .by the Baltimore Mr. PITI'MAN .presented the following joint resolution of (Md.) Preachers' Meeting of the Methodist Episcopal Church, the Legislature of the State of Nevada, which was ref erred to urging that the Committee on Foreign Relations do not re- the Committee on Appropriations: port favorably to the Senate the resolution (S. Res. 70) pro- Assembly joint resolution petitioning the Honorable Harry L. Hop-testing against religious persecutions by the Govenunent of kins, Federal Emergency Relief Administrator of the United Mexico, and authorizing an investigation thereof by the States, for an allotment of funds in the sum of $27,000 for the Committee on Foreign Relations, which was referred to the aid and relief of the Clark County school system at Las Vegas, in Committee on Foreign Relations. Clark County, Nev.

Whereas the in.flux of thousands of people with their families 'He also presented a resolution adopted by the Coal Control was brought about· through the construction of the Boulder Dam,

Association of Georges Creek and Upper Potomac, Md. and near Las Vegas, in Clark County, Nev., with a great increase in the W. Va., protesting _against the enactment of legislation pro:- number of children of school age; and viding a 6-hour day and a 30-hour week in the bituminous Whereas the school population of the high school at Las Vegas,

which in normal times have a total enrollment of 285 students; and coal industry, which was ref erred to the Committee on Inter- Whereas the accommodation of students in the Las Vegas schools state Commerce. from Boulder City increased this normal school enrollment to more

He also presented a memorial numerously signed of than 600; and sundry citizens of Oakland and vicinity, in the State of Whereas Boulder City is situated approximately 26 miles from

the Las Vegas schools, making it necessary that transportation Maryland, remonstrating against the enactment of legisla- should be provided for the children living at Boulder City and tion adversely affecting the interests of investors in the attending the Las Vegas school, which cost of transportation is at securities of public-utility companies, which was referred the rate of $55 per day; and

t t Whereas the school funds in this district have been depleted to to the Commi tee on In erstate Commerce. the extent that on and after the 1st day of March teachers will be

·He also presented petitions of sundry citizens of the State unable to draw their pay; and of Maryland, praying for the publication at Government Whereas this condition of affairs has been brought about by the expense of all testimony taken by the Federal Communica- honest efforts and the requirements of the law in the State of

t Nevada to properly educate the young in this State, by reason of tions Commission, Broadcas Division, in relation to the which efforts the children of Boulder City were accorded the same broadcasting of programs of interest, convenience, and ne- opportunities as those normally resident of said district; and . cessity, together with the report of the Commission, which Whereas unless relief can be obtained from the Federal Govern-were referred to the Committee on Interstate Commerce. ment to alleviate this condition it will be equivalent to penalizing

the parents and students of Clark County for conditions that have Mr. WALSH presented a resolution adopted by Branch been brought about by being fair to the Federal Government: Now,

LOwell No. 60, of the Polish Workmen's Aid Fund, in the therefore, be it State of Massachusetts, endorsing the so-called "Wagner Resolved by the Assembly and Senate of the State of Nevada, bill", providing for majority rule in collective bargaining, That the Honorable Harry L. Hopkins, Federal Emergency Relief

Administrator, be petitioned to provide relief in the sum of $27,000 the outlawry ·of company-promoted unions, etc., which was to the Clark county School Board, Clark County, _State of Nevada, referred to the Committee on Education and Labor. for the purpose of maintaining their schools which have been .

He also presented a memorial of several citizens of Bridge- reduced to bankruptcy in taking care of the students from Boulder · t City; and be it further

water and East Bridgewa er, Mass., remonstrating against Resolved, That duly certified copies of this resolution be trans-the enactment of legislation · providing immediate payment mitted by the ·secretary of state of the state of Nevada to the Hon- · of adjusted-service certificates of World War veterans, which orable Harry L. Hopkins, Federal Emergency Relief Adm1nistrator, was ref erred to the Committee on Finance. at Washington, D. c., to each of our Senators in the United States

·He ·also p:resented the· petition of · Curtis Guild Post No. Senate, and to our Representative in Congress, with the request that provisions ·be made immediately for the financing ·of said

1538, Veterans of Foreign Wars of the United States, of school district. to the end that teachers shall be justly compensated Chelsea, Mass., favoring the enactment of the so-called for their services. "Patman bill", being the bHl CH. R. 1) to provide for the Wn.1s~~af:~~~ Ass~mbly.

· immediate payment to veterans of the face value of their LEoNARD A. WILsoN, adjusted-service certificates and for controlled expansion of Chief Clerk of the Assembly. the currency, which was referred to the Committee on FRED s. ALWARD, Finance. President of the Senate.

Enw ARD A. DUCKER, Jr., He also presented a petition of sundry citizens of Fitch- Secretary of the Senate.

burg, Mass., praying for repeal of the section of the Reve- State of Nevada, executive gepartment. Approved March 7, 1935. nue Act of 1934 relative to publicity of income-tax returns, · RrcHARD KmMAN, Governor.

which was referred to the Committee on Finance. Mr. PITrMAN also presented the following joint resolution He also presented a petition of sundry citizens of Los An- of the Legislature of the State of Nevada, which was referred

geles, Calif., praying for the adoption of the so-called to the Committee on Post Offices and Post Roads: "Townsend old-age-pension plan", which was referred to Whereas experience has shown that the special provisions pro-the Committee on Finance. mulgated by the Federal Bureau of Public Roads authorizing con-

He also presented the petition of Orange Townsend Club tractors to be the sole judge of the qualifications of employees No. 1, of Orange, Mass., pravina for the adopt1·on of the u.Sing heavy equipment, defeats the object and purpose of the law

,,~ to employ local labor: Now, therefore, be it

3432 CONGRESSIONAL REeORD~SENATE Resolved by the Assembly and Senate of the State of Nevada,

That the special provisions permitting contractors to be the sole judge of the qualifications of employees using heavy equipment be abrogated, and a rule requiring· that only citizens of ·the State wherein said work is being performed shall be employed on such work; and further · · ·

Resolved, That copies of this resolution be forthwith transmitted by the secretary of state to our Senators and Representatives in Congress, to the Chief of the Bureau of Roads, and that · a copy, under the great seal of the State of Nevada, be sent to the President of the United States.

FRED S. ALWARD, President of the Senate.

EDWARD A. DUCKER. Jr., Secretary of the Senate.

WILLIAM KENNET!', Speaker of the Assembly.

LEONARD A. WILSON, Chief Clerk of the Assembly.

State of Nevada, executive department. Approved March 7, 1935. RICHARD K!RMAN, Gooernor.

Mr. REYNOLDS presented the following joint resolution of the Legislature of the State of North Carolina, which was referred to the Committee on Agriculture and Forestry: A Joint resolution requesting the Senators and the Members of

the House of Representatives from North Carolina in the Congress of the United States to vote against a bill known as the "Flannagan bill", relating to Governm~nt grading of tobacco Whereas it is the sense of the General Assembly of North Caro-

lina that the passage of the Flannagan blll, relating to the Government grading of tobacco, will work a great hardship on the f¥mers, warehousemen, and others interested in the handling of tobacco in ·North Carolina, and will not be beneficial to anyone: Therefore be it

Resolved by -the house of .representatives (the senate con-~rring)- .

SECTION 1. That the Members of the United States Senate and the House of Representatives from North Carolina in the United States Congress be, and they are hereby, requested to vote and to use their influence· against the passage of that bill now pending in the United States Congress known as the "Flannagan bill ", re1ating to the Government grading of tobacco.

SEc. 2. That a certified copy- of this resolution be filed by the Governor of North Carolina to the Congress of the United States and to each of the Members thereof from North Carolina.

SEC. 3. That this resolution shall be in full force· and etrect from and after its ratification.

In the general" assembly, read· three times and ratified this the 8~h day of March 1935. .

A. H. GRAHAM, President of the Senate.

R. G. JOHNSON, Speaker of the House of Representatives.

Examined and found correct. R: G. CARSON, For Committee.

REPORTS OF COMMITTEES

Mr. LOGAN, from the Committee on the Judiciary, to which was referred the bill CS. 509) to prevent the use of Federal official patronage in elections and to prohibit Fede~al. office:~wlq~rsJroJl! misuse qf positions of public trust for private and partisan ends, reported it without amendment.

· He also, from the· Committee on Claims, to which was ref erred the bill CS. 538) for the relief of H. Kaminski & Co., ~minsk.i Hardware Co., and the Carolina Hardware Co., reported it with an amendment and submitted a report <No. 307) thereon.

Mr. TRAMMELL, from the Committee on Naval Affairs, to which were referred the following bills, reported them severally without amendment and submitted reports thereon: ·

S. 93. A bill to authorize certain officers of the Navy and Marine Corps to administer oaths (Rept. No. 304);

S. 1210. A bill authorizing certain officials under the Naval Establishment to administer oaths (Rept. No. 305) ; and

S.1606. A bill to prohibit the unauthorized wearing, manufacture, or sale of medals and badges issued by the Navy Department (Rept. No. 306).

. Mr. WHEELER, from the Committee on Indian Affairs, to which Wa.5 referred the bill (S. 613) to add certain publicdomain land in Montana to the Rocky Boy Indian Reservation, reported it without amendment and submitted a report <No. 308) thereo~. · ·

Mr. THOMAS of Oklahoma, from -the Committee on Indian Affairs, to which were referred the following bills~

reported them severally without amendment and submitted reports thereon:

S. 380. A bill to reserve 80 acres on the public ·domain for · the use and benefit of the Kanosh Band of Indians in · the State of utah (Rept. No. 309);

S. 612. A bill for the benefit of the Omaha and Winnebago Indians of Nebraska <Rept. No. 310) ;

S. 654. A bill authorizing the exchange of the lands reserved for the Seminole Indians iii Florida for other lands (Rept. No. 311)·;

S. 1142. A bill to reserve certain public-domain lands in Nevada and Oregon as a grazing reserve for Indians of Fort McDermitt, Nevada <Rept. No. 312) ;

S.1498. A bill for the relief of Robert D. Baldwin (Rept. No. 313);

S. 1499. A bill for the relief Qf Robert J. Enochs (Rept. No. 314);

S. 1502. A bill for the relief of Charles L. Graves (Rept. No. 315);

S. 1520. A bill for the relief of Charles E. Dagenett <Rept. No. 316) ; and .

S. 1814. A bill to authorize the creation of an Indian village within the Shoalwater Indian Reservation, Wash., and for other purposes (Rept. No. 317> ..

Mr. HATCH, from the Committee on Indian Affairs, to which was referred the bill CS. 1831) transferring certain national-forest lands to the Zuni Indian Reservation, N. Mex., reported it without amendment and submitted a report (No. 318) thereon. ·

Mr. FRAZIER, from the Committee on Indian Affairs, to which was referred the bill CS. 1942) to repeal the act entitled "An act to grant to the State of New York and the Seneca Nation of Indians jurisdiction over the taking of fish and game within the Allegany, Cattaraugus, and Oil Spring Indian Reservations", approved January 5, 1927, reported it without amendment and submitted. a report <No. 319) thereon. · · ·

Mr. POPE, from the Committee on Mines and Mining, to which was referred the bill CS. 1476) to provide for unemployment relief through development of mineral resources.; to assist the development of privately owned mineral claims; to provide for the development of .emergency and deficien~y minerals; and for other purposes, reported it with amendments and submitted a repart <No. 320) thereon.

BILLS INTRODUCED

Bills were introduced, read the first time, and, by unanimous consent, the second time, and referred as follows ·:

By Mr.MALONEY: -A bill CS. 2222) granting a pension to Jane A. Britton; to

the Committee on Pensions. By Mr. ASHURST (by request) : A bill CS. 2223) to amend section 1 of the act of July 8,

1932; to the Committee on the Judiciary. By Mr. DUFFY: A bill (S. 2224) making it unlawful for jurors who have

served in criminal trials to move or travel in iriterstate or foreign commerce to give a public performance for profit involving the giving of information as to what transpired at such trial; to the Committee on the Judiciary. · ·

By Mr. BAILEY: A bill CS. 2225) authorizing adjustment of the claim of the

Western Union Telegraph Co.; to the Committee on Claims. By Mr. NEELY: . . . .

A bill <S. 2226) for the relief of David J. Pritchard; to the Committee on Claims. ·

By Mr. TYDINGS: A bill (S. 2227) for the relief of John T. Armstrong; to the

Commit~e on Claims. By Mr. BANKHEAD: . A bill <S. 2228) to provide for the further development of

cooperative agricultural extension work and the more complete endowment and ~upp01-t of land-grant colleges an.d agricultural experiment stations; to the Committee on Agriculture and Forestry.

1935 CONGRESSIONAL RECORD-SENATE 3433

By Mr. RUSSELL: A bill cs. 2229) for the relief of Nellie S. Barbee; to the

Committee on Claims. By Mr. TRAMMELL: A bill CS. 2230) to authorize the Secretary of the NavY to

acquire a suitable site at Pearl Harbor, Territory of Hawaii, for a rear range light; to the Committee on Naval Affairs.

By Mr. WAGNER: · A bill CS. 2231) prohibiting homestead entry on certain

public lands; to the Committee on Public Lands and Surveys. By Mr. McCARRAN: A bill CS. 2232) to terminate certain foreign trade agree

ments and to terminate the authority to enter into them; to the Committee on Foreign Relations.

A bill CS. 2233) to provide for the bonding of Federal officials and employees; to the Committee on the Judiciary.

HOUSE BILL REFERRED The bill CH. R. 6359) to repeal certain provisions relating

to publicity of certain statements of income was read twice by its title and ref erred to the Committee on Finance.

PUBLICITY OF INCOME-TAX RETURNS---AMENDMENT Mr. LA FOLLETTE submitted an amendment intended to

be proposed by him to the bill CH. R. 6359) to repeal certain provisions relating to publicity of certain statements of income, which was ordered to lie on the table and to be printed.

COMMITTEE ON AVIATION AND RADIO Mr. McADOO submitted the following resolution _ CS. Res.

101), which was referred to the Committee on Rules: Resolved, That rule XXV of the Standing Rules of the Senate

be, and the same is hereby, amended by inserting, on page 30, after the seventh line of paragraph 1, the following:

"Committee on Aviation and Radio, to consist of 15 Senators."

THE MERCHANT MARINE-ADDRESS BY SENA'J.'.OR WALSH Mr. COPELAND. Mr. President, I ask unanimous consent

that there may be printed in the RECORD a very valuable and instructive address delivered last evening over the radio by our colleague the senior Senator from Massachusetts [Mr. WALSH].- . The address rela.tes to the merchant marine.'. I heard a ·portion of it over the radio, and I was sorry I did not hear it all. When I get my copy of the RECORD tomorrow I shall take the opportunity-of reading the address · iri full. I ask unanimous consent that it may be inserted in the RECORD.

. Th~re _being no objection, _the _address was ordered to be printed in the RECORD, as follows:

Representing in part in tb,e United States Senate a State whose early history was conspicuously ·associated with maritime activities, I have long been of the · opinion that an adequate merchant marine is one of the major requirements of the United States. ·

.In times or · peace we .need a merchant fie~t in .order that_ O"Ql' ·

trade .may be ~xtended and protected witl;l adequate service at fair . and reasonable rates. ·

In times of war; whether this country or others alone be involved, the need for adequate shipping facilities is even more imperative.

If the United States is engaged · iil combat, our merchant fieet serves as an auxiliary to our Army and Navy operations.

· If other countries are involved in strife, their merchant vessels wm be chlefiy in war activities and will be withdrawn from Al,llerican commerce. In the absence of an American merchant marine, the result wm be American products piling up at our .termi~ls for lack of shipping facilities, or transportation only in foreign bottoms at exorbitant rates and uncertain service.

Today our merchant marine facilities are inadequate to effectively meet the .requirements of either .peace or war. Our tonnage has declined in both size and effectiveness since the close of the World War. In numbers they may appear adequate, but in· effectiveness they are not. Our fieet is weak because most of its vessels are old and slow. Worst of all, arrangements are not being made rapidly enough for replacement of ships when they pass the age of usefulness.

Our merchant fleet operating in international trade, carrying goods and passengers, is only approxjmately one-fourth the-size of Great Britain's and about the same size as that of Japan. From the total number of our merchant ships it would appear that we have almost three times as many ships as are listed above. The catch in that fact is that many of them are engaged in coastwise trade.

. Were war to .break out tomorrow, it would be necessary for the United States Navy to take over a large part of American merchant shipping for auxiliary work. Even then, this arm of our national defense would be far short of our requirements. Our national defense would be seriously endangered by a lack of ce.r-

tain types of merchant vessels which naval authorities declare are absolutely essential to the waging of successful warfare.

President Roosevelt, in a recent message to Congress, has called attention to our inadequate merchant-marine facilities and urged remedial action during the present session of Congress. Senators and Representatives already are studying the problem attentively, and I am urging all citizens who believe in a strong line of national defense to vigorously support the administration program for an adequate merchant marine.

The President in addressing Congress presented out.standing and imperative reru;ons for an adequate merchant fieet, as follows:

" To me there are three reasons for answering the question in the aftlrmative. The first is that in time of peace, subsidies granted by other nations, shipping combines, and other restrictive or rebating methods, may well be used to the detriment of American shippers. The maintenance of fair competition alone, calls for American :flag ships of su.tncient tonnage to carry a reasonable portion of our foreign commerce.

" Second, in -the event of a major war in which the United States is not involved, our commerce in the absence of an adequate American merchant marine, might find itself seriously crippled because of its inability to secure bottoms for neutral peaceful foreign trade.

" Third, in the event of a war in which the United States itself might be engaged, American fiag ships are obviously needed, not only for-naval auxlliar~s. but also for the maintenance of reasonable and necessary commercial intercourse with other nations. We should remember lessons learned in the last war."

The Ainerican merchant marine problem is not a political question. It is a patriotic question. It is one of economics as well as military defense. Presidents of the United States, beginning with George Washington, have recognized it as such. All of them have stressed the urgent need of a strong merchant :fleet.

Up to the period prior to 1860 the Nation recognized the need for possessing and maintaining a merchant :fleet strong enough at all times to cope with fieets of other nations.

In the days of sailing vessels the United States held a strong position in world shipping. My own State of -Massachusetts was rich in mariti~ history during the clipper-ship period. Prior to 1860 we carried over . three-quarters of our foreign commerce in American bottoms. Since that time other nations have been permitted to wrest commercial sea supremacy from us. In 1910 we reached the low point in our shipping activities, carrying less than 9 percent of our foreign commerce under the American. :flag. And today, despite the fact that exigencies caused by the World : War compelled us to ·spend more _than $3,000,000,000 in rehabilitating our merchant fieet, we are actually carrying ·only a third of our foreign .trade. _ .

Our shortsightedness compelled us to spend in 20 months for an emergency fieet an amount twice the sum of the value of the ocean-g-0ing -fieets of -the world before the· w,ar . . And even tnis · stupendous expenditure only sei:ved during the emergency and did not proviqe an · adequate, competitive merchant marine , for the United States.- Practically 90 percent of this expenditure was lost so far as providing for a permanent merchant marine. This experience is a painful illustration of the cost of our lack of preparedness.

In 1933, the last year for which official figures are available, . ships :flying the American fiag represented only about .8 percent of the total tonnage ·or all countries participating in in~rnatio~al , trade. · . . .

This failure on our part to occupy a prominent position in world . shipping is due to a gravely erroneous impression. The a~gument -is repeate<Uy-and regularly. advanced . here and_ abroad that .there 'always will be ·enough -foreign vessels _to take ·care of our requi-re- , ments . . This -assertion -is fallaci..Ous and dangerous to our national . welfare . . The_ price of such a policy. is too big. to_ pay, as hl,l.S . been . conclusively demonstrated prior to and after our entry into the World War. ·

· It is true that in peace times foreign vessels generally may be , obtained to carry American goods, but at what a price! . An official · report made by the Secretary of the · Treasury in . 1915 estimated . that agriculture and industry paid foreign ship owners in increased freight rates during that 1 year alone a total of $3U,684,400. · It 1was estimated that our people were taxed over a billion dollars . during the 3 years l;lefore our entry into the World War for transporting their products through increased rates. This vast sum went mostly into the pockets of foreign ship owners.

-Let us now consider this plea for the use of foreign bottoms from the defense standpoint. We were in a tragic situation at the outbreak of the World War because we had practically no -merchant fieet ·to use as a naval auxiliary. Having been lulled into the belief that we probably never would be involved in another , war, and that if we did become involved in one, we could easily obtain merchant vessels under charter from other countries, we ·were woefully unprepared when the demand for ships to carry troops and supplies to them arose. The result was that we suffered a costly delay and that we had to pay exorbitant sums of money to foreign nations for the use _of their vessels, most. of these vessels being used to carry the American soldiers that helped the Allies win the war.

The United States paid to Great Britain and France alone during the war period a total of $120,576,150.07 for the transport of our troops and war supplies. The War Department estimates that Great Britain's share of this sum for the carrying of United States troops alone was $91,992,900. This tremendous amount of money would have built many American ships. Undoubtedly it did go a long way toward paying for the ships of Great Britain, a nation -

3434 .CONGRESSIONAL .RECORD-SENATE MARCH. 12 that always has been foresighted enough to recognim the urgent mg systems. for all companies participating in publlc funds , oe necessity of always lmlintaining a strong merchant fleet. Ther-e cset up. This and .other safeguards .are an imperative condition never was :an hour durillg the World Wa.r that th"e United States to granting subs1d1es. · · -was not handicapped. by a i&ck of amciliary merchant vessels. The ~~erican ~axpayer, I believe, is ready and Willing to help

Any nation -wtt.h an .d:nte.lUgent .national-defense policy must any leg1t1mate ship operator expand foreign trade and to aid him support a naval-DeServe pemonnel through its merchant marine. in making .ships ava.tlable to the cormtry in time of war, but he is Yet the United SDit es had no such reserive -at the QUtbreak <>f the not willi~ that bis hard-earned money shall be dissipated. World W11.r, and tt has n<t 'Slleh reserve now. During the war it Hence, it- i:s the duty -of the Congress and administrative officials actually had to take men from nawi. vessels to man merchant to see that no ioopholes are left open so that the taxpayer may ships. iBy way of contrast, at the outset of hostilities Great Brit- be wronged in future subsidy operations. ain drew upon its merchant ships !or il.6,000 men to supplement .Another proposal made by .the interdepartmental committee its n:am personnel. It .is ridieulous to compare the l'elative Wh1ch I heartily endorse, proposes the establishment of a Navai strength of the navles of the Dations without including 1tbeir .Reserve to be ·manned by membel's -of the merchant marine. If mercbant-mmne strength. · this suggestion is adopted, young men would be giv.en training in

Our unfortunate experten.ces in the wa.r should -convince us at tSea .duty -0n merct:ra.nt vessels J.n peace times and stand in readithe necessity -of ne lon;ger delaying plans far -a mer.chant marine ness to serve their country in emergency periods. This not only in the United &lates .seoond to Umt of .no other natton. Many would -create 'a new line· of defen-se· for the United states but it efforts have been made, during the is.st 15 y-ears (beginning with also would give employment :and mvatuable training t~ many the Merchant Marine .Aet o! 1920).. to start such a movement~ ibut young men who .are .now M.thout remployment or who may have we have been unsuecessfut a real desire to make the ea a. .ca.reer.

We have tr.led t.o build up oor Ameriean merc1la.nt marine in Throughout my public 1lfe 'I llave always advocated a strong sever.al ways. First, :by -Gow?:rnment operation <>f shipping .lines, merchant marine, and it has been a pleasme to reiterate my faith and then through the sale of Government vessels at low pri-Oes to in 1t ~onight ... .P.r.esident Roosevelt has, I believe, laid down a private operators, and -again through subsidies paid to operators splendid progTam for our merchant marine, and I for one shall do under the guise of mail-pay oon.tr.acts. AH these .eft'e>rts have 11'-e- my utmost to bring about tts ~doption. sulted in failure. The mail--contr.a.et suhsklies increased from $9,304,217 in 1928 to $27,012,519 .1n 1934. INCOME-TAX l'UBLICITY-ADDRESS BY SENATOR "METCALF

Today out of 37.400,000 toos o-f vessels e~~ m interaationeJ Mr STEIWER "ir- Pr "d nt I k · trade, Gr-eat Britain ~eads with u,1191000, and the .others na.nk in . · · · . J.vu. esi e • as unanimous consent the following order: Unttied States. .8,-084~00; · Japan. 8 ,049,000; to bave published in tire RECORD an address delivered over ·a Germany, 2,832,000; France. 2,571,00D; Italy, ~.264;;000; .8'Dd all l'adio network on March 11, 1'9'35, by the <senior Senator from others, 9,481,000. Rhode Island [Mr. METCALF] urging Tepeal of the income-

Speed today .is one of the outstanding :reqllirements C>f merchant tax publicity law. viessels, 'B.lld in this rep.rd the United States 1s in a. :relatirely weak position. It ranks fifth in tonnage of ships with~ or There being no objection, the address was ordered to be 12 knots and upward. Great Britain, Germany, France, .and ;printed in the RECORD, as follows: Japan all exceed this arun:try :in -the 'Speed of vessels. Seven 1 h ul 1 oo-untries--Oreat Brtta.tn. Germany. Italy, Norway, Netherla.uds~ · 'S 0 d ike to a-sk my listeners a question-: Suppose the Con-J d Fr u ha mod.el ls .1 ! 1 gress should propose ttle enactment of a law which would Iequire apan, an ance-a ve more · vesse 'vessels 0 · ess 'YPU to furnish any person who .mJ,ght .ask you for it a complete

than 10 years of age) than the United States. .sta.tement of the amount of money you earned last year, how mucb Admiral George H. Rock. :former .chief constructor of the United -you gave to charity, and the genera.I details of your financial trans

states Navy, recently testified befor£ a Government committee actions? Would you object to such 11. law? Co11ld you defend it that the United States ranks lower m cargo vessels of 2.-'000 gross ron any ground whatsoever? tons or over (which means ocean-going types~~ built irtthin :the Suppose the newspapers of yGur city made it a practioe to publast 10 yea.rs, than an-y other cotmtry having shipping ·except lish on the front page the total amount of your income, the deducSpain. Figures compiled .a few yea.rs ago 'Show Great Britain has ti.om; from your income tax, and the general facts .concerning your 735 such -vessels as compa.rEd 'With B. tot.a.I of 9 for the United .financial transactions during <the 'Year? Would you favor that? States. Even Norway has approximately 15 times as many vessels l:I.ow would it affect your plans and .hopes for the future? Would of this type as the U:nited States. ·you Jlk.e your neighbors, your fellow 'Yorkers, your competitors,

President Roosevelt, whuse eKperlence as Assistant Secret&ry ;y-our creditors, and your debtors -to have details -of your personal of the Navy led him to study and understand our shipplng pr,ob- b.usiness a:ff.aii:s.? lem, Teeognlzes the need for a stJ10ng mer.chant marine, and is Unfortunately. the Congress of t-he United States, during a meeting the 1ssue In bls usual straightforwaTd manner. thoughtless moment~ passed just such a law. Now, that we are be-

He frankly urges that the -country do away with -all subterfuges, ginning to understand the full effect -of this law, a d.rtve has 'been admit that subSidies -are necessary to 'Sueeessful -operation of undertaken to repea.1 it. The reqtiirements are .simply this: Every United Stares mereh1'.nt -vessels in -eompetiti'on -with the· ships uf ;person in the United St.ates who is required oo fil~ an ineeme-tax other nations, and then for the Congress to grant these subsidies :return, whether he pays a tax or not, must also file a " pink slip " on openly -and squarely .and eall them by their right name. which is certified the total gross income during the year, together

This reeommendation ls, ln my :op-inron, -one of the -greatest 'With the amount Qf ·cootributions to' rcb.arity and other items dean"d most courageous contribut1ol'l'S th'at bas been ma'de t-owaTd tductible for income-tax purposes. an American merchant marine. We have avoided too long the This "pink slip" is .to be .available to .anyone who might wish t.o fact that this Nation•s 'Shipping needs cann<Jt enst without Inquire into the personal 1inancia1 affairs of anyone el-se. It will subsidies. lbe av.ailable to the gossip monger. the racketeer, the ktdnaper,

American shipping m:ast be supported by subsidies for the the collection agency.. the bla-ckmaller. and the :seller of lists of obvious reason that i:t co~ more to bnild -and operate vessels J>ersons presumed to be e~ prey ot the crooked and corrupt. under the United states fiag -than -under other flags. We have a There .is a wide...spread objection to the "p.fnk .slip", wnich will big.her standard of living in this country and this tact ls :re- become nothing more or less than a racketeers' directory. rt fleeted in building and operating costs. :affects the affairs of every peI:SOn in the United States, and all

A cargo vessel may be built in a British yard .for about 1ive- citizens o! the Ulllted States have every reason to object violently eighths of What the same -vessel would cost U built in a "United !to such unwarranted lntrusion lnto theh' -personal affairs. States yard. This increased cost is retlected 1n ma.ny items.. When the income-tax .amendment was .ado,pted 20 years ago, tt including materials_. labor., and su;ppHes. The erroneous impres- was followed by legislation passed with the distinct understandsion exists in some .quarters that wages are chlefly .responsible ling that the prlv.ate a.tiairs of the .individual~ .revealed in conftdence for these added charges. Wages are a contributing factor. but it to the Government, should .rema:in invlolateA That confidence is ls unfair to say that tbey are the only one. now to be .abolished,, .and the private business of our citizens is

Increased operating costs under the American flag Me .easily to be revealed to b1ackmallers .. Tacketeers, curlosity seekers, and· explained; for example. the wages, :toad, .and repairs are .higher gossip mongers, a1ong with the vexy few persons W'hB may, for than on foreign sb.i.ps. T.he average wage paid American .seamen some yet unknown reason, nave a legitimate use for such inforis a.bout $56.50 per month, .and .some opera.tors pay ev.en mo.re mation. than this .a.mount. Oontrastecl with seamen's wages on fQl'~n .Persons who have .r.eason to I.eel 1ncensed over this outrageous ships, in some insta.nces less than half, the difference in cperating 11.aw can be divlded .in.to two groups. They are the nearly 5,'000.000 expenses is easily .recognizable. citizens who file .an income-tax :return and the remaining millions

Pr-esident Roosevelt pr"poses that a. GoverD:IDent subsidy be w.ho do not. .In these dal'.k days 'the millions who do not file a paid to provide for the differenoo in building and <>perating costs. !I'eturn ha'Ve every r.eason to cry out against this unfair invasion That is the issue, directly and dearly stated. ()f their private affairs. There are milllons of persons in ·every

The payment cl these necessary subsidies must meet iWith the walk of life, who .have been struggling against adversity during approval of -0ur citizens if we 61'0 to have a merchant marine. !the past 2 years.

In behalf of the Ameriea.n taxpayer, it is only fair to say that There are men and women with large potential earning power some -operators m the past have not been square in dealing with whG live in the hope that the tide of depression will turn and they the Government. They have~ taken unfair ad·vantage of the taic.- may once .again assume thelr place in the a1Ia.1rs of the country. payers in obtaining _public .funds appropriated primarily to build !Men and women who once .earned a comfortable living and look new ships, and dissipated so.me 1:>f these funds tor other pur- forward to that possibility again should resist vlgorously the poses, such as rumrbitant salarJ.es, dividends, real .estate, and other iflaunting .of theix names before the wo.tld as people who last year ventures. The interdepartmental .committee appointed to £itu.dy were unable to iearn enough to file a tax retur.n, and consequently this question, in its report to the President, which he trans- lha.:ve filed no tax return. How can the people who want and hope mitted with his message to Congress, strongly urged that maxi- to work, to increase their earnings, expect to maintain the credit mum safeguards, including th~ installation of unif.orm a.cccGUn.t- -and self-respect necessacy to regain their normal place in the wm:ld,

1935 CONGRESSIONAL RECORD-SENATE 3435 if every Tom, Dick, and Harry can meet them on the street and say, "Well, your income was small last year. Why should you expect more this year? How can one rely on your credit?"

Every man with business experience knows that the credit of an individual depends as much upon his record for paying his bills and on his integrity of character as it does on the facts of income. There are many people in this country who can build up their small business enterprises so long as they have the invaluable resource of good credit behind them. Faith in the moral integrity of a human being is much more important in granting credit than the inaccurate and piecemeal information which may be gleaned by curiosity seekers from the " pink slips." Why should we jeopardize the standing of people who are proud and honest, simply because the Government does not publish the facts of a large income during the past year? Is it fair? I ask my listeners-is there one iota of justice in such an act?

There is not one thing to be said in favor of income-tax publicity. The idea of its sponsors is that publicity will help the Government collect more taxes by causing the citizen's neighbors, competitors, and personal enemies to inform the Government of any suspicions as to false returns. Something might be said for such a theory if the " pink slip " really exposed the truth about a m an's income. But this it does not do. Gross income means absolutely nothing unless the expenditures set off against it are made known. One man might have a gross business income of a hundred thousand dollars a year and legal expenditures in connection with that of $90,000 a year. A second man may have a gross income of only $15,000 a year, but expenditures of only $3,000. In such a case the man w1th a gross income of $100,000 actually has a net income of less than the man whose gross is 15 thousand. Although the larger business employs more men, while more assets are at stake and the hope of future increase is greater, his return actually gives a much weaker financial picture than the smaller business. Unless one knows the full details of a man's income and expenditures there can be no evidence whatever of an effort to avoid the payment of legitimate taxes. Thus the whole purpose of the " pink slip " is lost. It fails to serve any desirable purpose.

Wisconsin has expertmented with income-tax publicity with sad results. Honest citizens have been subjected to the prying eyes of jealous and suspicious neighbors. Racketeers and kidnapers have available a perfect directory for prospective victims of their crimes. And the whole experiment has led to an admission of failure on the part of the Wisconsin Tax Commission.

The Commission has stated as follows: "Experience has taught us that this (publicity) is not a true ad

junct to the disclosure of additional income and has become a source of nuisance by credit agencies, bond salesmen, and business competitors. We have no instances where public inspection has brought forth unreported incomes, and. although a matter of conjecture, we believe that it has retarded the ma.king of complete returns. It has worked to a direct disadvantage as far as the Federal Government is concerned."

The failure of the law in the State of Wisconsin should be a lesson for the Nation at large. It will lead to the preparation and sale of lists of income-tax payers available to all sorts of quack salesmen, stock promoters, blackmailers, business competitors, and curiosity seekers. There is nothing in the statute that would prevent any blackmailer or ex-convict from examining your incometax return or finding out whether or not you have filed one. The inquisitor need not even reveal his identity.

Such a system will inevitably lead to petty jealousies in communities and among men and women who work together. All of the employees of any institution may know exactly what sort of a return their fellow workers have made. Suspicion will run riot. Jealousies will spring up where harmony and friendship once existed. Credit will be jeopardized for many who deserve credit. Churches and charities wm see their donors subjected to a public inquisition. This is un-American and unjust.

The " pink slip " opens up to public scrutiny the private affairs of this country. No free nation can conscientiously subscribe to such a law. The publication of incomplete and inaccurate tax data can under no circumstances reveal a true picture of the financial integrity of an individual, but it can easily have the opposite effect of undermining this integrity. It will encourage high-pressure collectors and force struggling and honest small business men into bankruptcy. It will enable unscrupulous competitors of small business men to take unfair advantage of the taxpayer. Professional men will have revealed to their clients their small incomes, often the result of the inability of these clients to pay their bills, thereby damaging the professional standing of doctors, lawyers, and engineers of ability and character. Young men will be embarrassed by new undertakings simply because these undertakings have not shown a profit during the past year. And most dangerous of all, the fortunate few who have managed to earn a comfortable income will be made the targets of kidnapers, blackmailers, · high-pressw·e stock promoters, and confidence men.

The income-tax publicity clause should be repealed. A bill to do this today passed the House of Representatives by a 3-to-1 vote, and tomorrow it will go to the Senate Finance Committee. To be effective, this repeal should take place before March 15, for by then the " pink slip " directory for racketeers will already be under way. What do my listeners think?

Of my listeners who are not filing an income-tax return this year, I should like to ask: Do you believe this fact should be public information? Do you think all of your neighbors, and your

LXXIX--217

competitors, and your creditors, all your friends and enemies, should be told that your income for the year was less than $1,000? Particularly if this fact will serve no good purpose?

Do you want your enemies writing to the Bureau of Internal Revenue stating their belief that you should have made a retµrn and subject you to the inquisition of revenue agents? I am sure all honest and fair-minded Americans would resent this.

Of my listeners who are filing an income-tax return this year I ask: Do you believe the Government should open up to the prying eyes of all curious or suspicious persons the facts concerning your income? What good purpose can it serve? Will it not subject you to the eternal nuisance of crooked promoters and high-pressure collectors who will take advantage of incomplete information? Do you want your private financial affairs aired in the newspapers, by the sellers of lists of persons presumed to be easy prey of the crooked and corrupt, and even over the radio?

It is a mistake to believe that the man with a big income will be the only one hurt by this publicity law. It ls the little business man and the man with hardly any income at all who will suffer most. These, men rely upon the faith of their fellow men and on the confidence which their character and past record has merited rather than on a few dubious facts made public by a " pink slip." To make every man's business the business of all can work no good. It can work only harm, particularly when the information to be made public is incomplete. Partial truths a.re worse than no truths at all.

The adoption of the publicity law was wrong in the first place. Let us admit our error and repeal tt as quickly as possible, in order that our tax laws may be truly American tax laws and that the pride and self-reliance of American citizens may continue to be their greatest asset.

TWO YEARS OF THE NEW DEAL-EDITORIAL IN THE NEW YORK HERALD TRmUNE

Mr. DICKINSON. Mr. President, I ask unanimous consent to have printed in the CONGRESSIONAL RECORD an editorial appearing in the New York Herald Tribune of Monday, March 4, 1935, entitled " Two Years of the New Deal."

There being no objection, the editorial was ordered to be printed in the RECORD, as follows:

[From the New York Herald Tribune of Mar. 4, 1935] TWO YEARS OF THE NEW DEAL

Two. years ago Franklin D. Roosevelt stood on the Capitol steps and took the oath of office as President of the United States. He came into the White House in an hour of gloom. The low point of the depression had been reached and passed months before. But the confusions and hesitations of a national election and a. shift of leaders had halted recovery and brought on a. financial crisis. Mr. Roosevelt took command with the vigor and confidence of a born leader. By his voice on the air and by his example of smiling assurance he captured the imagination and loyalty of the American people. For months, through a series of swift and dazzling governmental adventures, he held that re-· gard and lived on the heights of popularity.

Nothing could be plainer than that this attitude has changed markedly in recent weeks. Faith has been replaced by criticislll. Enthusiasm for the new deal is the exception. Where lilting for the President personally remains there is suspicion and doubt of his administration. Part of this rapid and unexpected descent is undoubtedly due to the distrust awakened by a Farley and the petty malice exhibited toward a Robert Moses. But the main causes lie deeper in the character of the President and his record at Washington. They deserve examination as the country stands at this midway mark.

Any impartial review of that record must begin with the fact-which his admirers like to ignore-that he reversed his policies abruptly in the very first weeks of his Presidency. He had taken office pledged to economy as the only possible foundation of recovery, and he at first respected that pledge, forcing economy out of a reluctant Congress, to the applause of the whole country. Then he suddenly abandoned economy along with the dollarwhich he had also pledged himself to maintain-and embarked on a vast program of governmental spending, coupled with a devaluation of the dollar. Both measures indicated a conversion to the pump-priming theory-that recovery could best be obtained through the artificial stimulation of business, domestic and foreign.

The suddenness of this somersault should perhaps have given pause to the national enthusiasm for the new deal. So might well the fantastic episode of gold buying to boost prices that followed. The monetary advice of an expert in dairy farming from Cornell proved so irresistible in Mr. Roosevelt's mind that he embarked the country upon what was probably the most ridiculous financial venture ever seriously undertaken by a great nation. It failed utterly, as all the fina.n.cia.J. experts predicted, and was silently abandoned. It was of less significance economically than it was as a forecast of the President's light-heartedness in juggling with the Nation's vital possessions.

But the Nation was kept too busy watching the letters of the alphabet form and reform in the air to give much thought to its dollar. It is only a year and a half ago that the extraordinary ballyhoo of N. R. A. first broke over the land. Theory, forethought, and common sense were alike forgotten in this appalling orgy of experimentation. The Russian system of a _planned economy which

3436 CONGRESSIONAL RECORD-SENATE MARCH 12 1t was sought to force upon American industry through threat of The PRESIDENT pro tempore. Is there objection to the boycott, fine, and imprisonment, has since vanished almost as completely as have the dead cats with which General Johnson's request of the Senator from Louisiana? picturesque vocabulary once darkened the sky. The wreckage Mr. ROBINSON. I should like to know what the speech is. remains, however, to clog business and delay recovery. Mr. LONG. I suggest the Senator look at it and see if

There was much more need and much clearer thinking behind h b' t t ·t It · h h' h I d A. A. A. Secretafy Wallace showed himself at the outset a far more e 0 Jee s 0 1 • 1S a speec W lC ma e over the radio candid, a far abler executive than anyone in the direction of the other night. N. R. A. The farmers' plight plainly called for help, as Republican Mr. CONNALLY. Mr. President, I am not going to object efforts under Mr. Hoover bore witness. Unfortunately, what began but I think the Senator should have enough respect fo~ 1n a spirit of frank experimentation, with the stress on cooperative, the Senate to indicate what it is he asks to have P"'m· ted. voluntary action by individual farmers, gradually went out of hand. ... Like every bureaucratic interference with the individual, it grew Mr. LONG. Everyone in the Senate listened to it the by feeding on its vic~ims until one field of farming after another other night, or read it in the New York Times. I want it was brought within its control. Mr. Wallace himself deprecated to go to the remainder of the country and doubted much that was done. His recent radical speech · seemed the utterance of confusion, not to say despair. · Mr. CONNALLY. The Senator handed in something and

The third great failure of the administration has unmistakably I asked to have it printed in the RECORD, but did not state been in relief. Much can be forgiven here, for the problem has what it was been pressing, grave, and enormously complex. But unfortunately · . . here, as in every other field, Mr. Roosevelt has neither learned by Mr. LONG. It 1S my last radio speech. experience nor helped the country to progress. Even the facts are Mr. CONNALLY. The Senate is entitled to that infor-still lacking. Nothing would be as valuable at the present moment mation. as an accurate census of unemployment. Yet none exists. All Mr LONG I beg the Senate's pardon that Mr. Roosevelt can think to do is to ask for $5,000,000,000 with · · . • which to make another gigantic experiment. The ideal held up- The PRESIDENT pro tempore. Without objection, the work relief-is appealing. The ways and means by which the un- speech will be printed in the RECORD. . employed can be put to work without destroying private business There being no objection the speech broadcast from are unrevealed and, as far as anyone can discover, do not exist W hi t D C M h 7 1' 935 ' even in Mr. Roosevelt's wishful thinking. No wonder even an over- . as ng on, · ., arc • , was ordered to be printed whelmingly Democratic Congress hesitates and asks questions. m the RECORD, as follows:

The new deal has broken down, and the Nation is strewn with its wreckage. So much seems plain. But who is to clear away the hampering remnants and save what needs to be saved? Has the President displayed either the judgment or the willingness to listen to criticism or the ability patiently to study facts to do this job of salvage that the situation urgently calls for?

By one of the swift ironies of time it is to the courts that the country turns for relief. Only a few months ago there was nothing so negligible in the eyes of a " new dealer " as the Supreme Court. If lip service was paid to the Constitution, behind the scenes there was frank talk of its obsolescence and of plans to pack the Supreme Court if it dared stand in the way of the Roosevelt 5-year plan. Now some of the most eloquent advocates of the administration view the decision of Judge Nields, kicking N. R. A. out the window, as the one hope left to Mr. Roosevelt. As for the Supreme Court, it spoke for the " conscience of the sovereign" in its gold-clause decision, and the administration is still pondering and silent. The President, by his hospitality to radical and alien ideas, by his attacks upon large groups of the community, by his own careless thinking and reckless acting, has opened the door to the wild men. Who is there in Washingtonsave the Supreme Court and the Constitution-to halt them?

The picture is not a cheerful one, and it speaks well for the heart and will of the country that it continues to hold its own and go forward despite every doubt and obstacle. There can be no solid foothold for any business man, or any investor, large or small, so long as the administration continues to foment labor troubles through section 7a; to threaten the utilities with destructive Government competition; to treat every business man like an unconvicted criminal, through regulation and threat of fine and imprisonment; to demand that a vast program of social insurance be improvised and installed in the midst of a depression; to insist upon a continuance of a hugely unbalanced Budget; and to build up a specter of inflation lying just below the horizon. Yet the great natural wealth and the great natural man power of the American Nation are plainly not likely to be defeated by any politicians. The curve of business shoots up and down, in and out of season, thanks to the artificial stimulants administered from Washington. Some broad advance was inevitable.

Such are, in our estimate, the major successes and failures of President Roosevelt in his first 2 years. If we are right, he stands at a critical point in his administration. The first enthusiasm has disappeared in a welter of confusion and doubt. That 2 more years like the last would bring him to the end of his term a discredited leader, seems as fair a prediction as any that the swift changes of politics permit.

The central question raised, therefore, at this half-way mark is as to Mr. Roosevelt's own ability to face the present and cope successfully with the hard, new facts which confront his administration. The country cannot stand, and, in our opinion, is resolved against any more hasty experiments or destructive reforms. It asks for an end of threats to business, to investors, to the taxpayer, to the dollar. It wants in Washington careful planning and skilled administration, and an end of fine phrases that merely disturb and incite. It wants, in short, above all else a basis for confidence upon which to consolidate its gains and go forward to -prosperity. President Roosevelt captured the affection of his fellow citizens in the early months of his term. Can he now regain their confidence by displaying restraint, fairness, and good judgment in the real test that lies ahead?

OUR BLUNDERING GOVERNMENT-SPEECH BY SENATOR LONG Mr. LONG. Mr. President, I ask to have a speech printed

in the RECORD. Mr. ROBINSON. Mr. President, what is . the request? Mr. LONG. To have a speech printed in the RECORD.

Ladies and gentlemen, it has been publicly announced that the White House orders of the Roosevelt administration have declared war on HUEY LONG. The late and lamented, the pampered ex-crown prince, Gen. Hugh S. Johnson, one of those Gatellltes loaned by Wall Street to run the Government and who at the end of his control over and dismissal · from the N. R. ·A.: pronounced it "as dead as a dodo", this Mr. Johnson was apparently se!ected to make the lead-off speech in this White House charge begun last Monday night. The Johnson speech was followed by more fuss and fury on behalf of the administration by spellbinders in and out of Congress.

In a far-away island, when a queen dies, her first favorite is done the honor to be buried alive with her. The funeral procession of the N. R. A. (another one of these new-deal schisms or isms) is about ready to occur. It is said that General Johnson's speech of Monday night to attack me was delivered on the eve of announcing the publication of his obituary in the Red Book Magazine. Seems then that soon this erstwhile prince of the deranged alphabet makes ready to appear at the funeral of N. R. A. like unto the colored lady in Mississippi who there asserted: " I is de wife of dese remains!'

I shall undertake to cover my main subject and make answer to these gentlemen in the course of this speech tonight.

It will serve no purpose to our distressed people for me to call my opponents more bitter names than they call me. Even were I able, I have not the time to present my side of the argument and match them in billingsgate or profanity.

What is this trouble with this administration of Mr. Roosevelt, Mr. Johnson, Mr. Farley, Mr. Astor, and all their spoilers and spellbinders? They think that HuEY LONG is the cause of all their worry. They go gunning for me. But, am I the cause of their misery? They are like old Davy Crockett, who went out to hunt a possum. He saw in the gleam of the moonlight that a possum in the top of a tree was going from limb to limb. He shot and missed. He saw the possum again. He fired a second time and missed again. Soon he discovered that it was not a possum he saw at all in the top of that tree. It was a louse in his own eyebrow.

I do not make this illustration to do discredit to any of these gentlemen. I make it to show how often we imagine we see great tro~ble being done to us by someone at a distance, when, in reahty, all of it may be a fault in our own make-up.

The trouble with the Roosevelt administration is that when their schemes and isms have failed, these things I told them not to do and voted not to do, that they think it will help them to light out on those of us who warned them in the beginning that the tangled messes and noble experiments would not work. The Roosevelt administration has had its way for 2 years. They have been allowed to set up or knock down anything and everybody. There was one difference between Hoover and Roosevelt. Hoover could not get the Congress to carry out the schemes he wanted to try. We managed to lick him on a roll call in the United States Senate time after time. But, different with Mr. Roosevelt. He got his plans through Congress. But on cold analysis they were found to be the same things Hoover tried to pass and failed.

The kitchen cabinet that sat in to advise Hoover was not different from the kitchen cabinet which advised Roosevelt. Many of the persons are the same. Many of those in Roosevelt's kitchen cabinet are of the same men or set of men who furnished employees to sit in the kitchen cabinet to advise Hoover.

Maybe you see a little change in the man waiting on the tables, but back in the kitchen the same set of cooks are fixing up the victuals for us that cooked up the mess under Hoover.

Why, do you think this Roosevelt's plan for plowing up cotton, corn, and wheat; and for pouring milk in the river, and for destroy-

1935 CONGRESSIONAL RECORD-SENATE 3437 ing and burying hogs and cattle by the milllons, all while people starve and go naked-do you think those plans were the original ideas of this Roosevelt administration? If you do, you are wrong. The whole idea of that kind of thing first came from Hoover's administration. Don't you remember when Mr. Hoover proposed to plow up every fourth row of cotton? We laughed him into scorn. President Roosevelt flayed him for proposing such a thing in the speech which he made from the steps of the capitol in Topeka, Kans.

And so we beat Mr. Hoover on his plan. But when Mr. Roosevelt started on his plan, it was not to plow up every fourth row of cotton as Hoover tried to do. Roosevelt's plan was to plow up every third row of cotton. just one-twelfth more cotton to be plowed up than Hoover proposed. Roosevelt succeeded in his plan.

So it has been that while millions have starved and gone naked; so it has been that while babies have cried and died for milk; so it has been that while people have begged fer meat and bread, Mr. Roosevelt's administration has sailed merrily along, ploWing under and destroying the things to eat and to wear, With teardimmed eyes and hungry souls made to chant for this new deal so that even their starvation dole is not taken away, and meanwhile the food and clothes craved by their bodies and souls go for destruction and ruin. What is it? Is it government? Maybe so. It looks more like St. Vitus dance.

Now, since they sallied forth with General Johnson to start the war on me, let us take a look at this N. R. A. that they opened up around here 2 years ago. They had parades and Fascist signs just as Hitler, and Mussolini. They started the dictatorship here to regiment business and labor much more than anyone did m Germany or Italy. The only di.tl'erence was in the sign. Italy's sign of the Fascist was a black shirt. Germany's sign of the Fascist was a swastika. So in America they sidetracked the Stars and Stripes, and the sign of the Blue Eagle was used instead.

And they proceeded with the N. R. A. Everything from a peanut stand to a power house had to have a separate book of rules and laws to regulate what they did. If a peanut stand started to parch a sack of goobers for sale, they had to be careful to go through the rule book. One slip and he went to jail. A little fellow who pressed a pair of pants went to jail because he charged 5 cents under the price set in the rule book. So they wrote their N. R. A. rule book, codes, laws, etc. They got up over 900 o! them. One would be as thick as an unabridged dictionary and as confusing as a study of the stars. It would take ~ lawyers to tell a shoe-shine stand how to operate and be certain he didn't go to jail.

Some people came to me for advice, as a lawyer, on how to run a business. I took several days and then couldn't understand it myself. The only thing I could tell them was that it couldn't be much worse in jail than it was out of jail with that kind of thing going on in the country, and so to go on and do the best they could.

The whole thing of Mr. Roosevelt, as run under General Johnson, became such a national scandal that Roosevelt had to let Johnson slide out as the scapegoat. Let them call for an N. R. A. parade tomorrow and you couldn't get enough people to form a funeral march.

It was under this N. R. A. and the other funny alphabetical combinations which followed it that we ran the whole country into a maresnest. The Farleys and Johnsons combed the land with agents, inspectors, supervisors, detectives, secretaries, assistants, etc., all armed with the power to arrest and send to jail whomever they found not living up to some rule in one of these 900 catalogs. One man whose case reached the Supreme Court of the United States was turned loose because they couldn't even find the rule he was supposed to have violated in a search throughout the United States.

And now it is with P. W. A.'s, C. W. A.'s, N. R. A.is, A. A. A.'s, J-U G's, G-I N's, and every other flimsy combination that the country finds its affairs and business tangled to where no one can recognize it. More men are now out of work than ever; the debt of the United States has gone up another $10,000,000,000. There is starvation; there is homelessness; there is misery on every hand and corner, but mind you, in the meantime, Mr. Roosevelt has had his way. He is one man that can't blame any of his troubles on HUEY LoNG. He has had his way. Down in my part of the country, if any man has the measles he blames that on me; but there is one man that can't blame anything on anybody but himself, and that is Mr. Franklin De-La-No Roose-velt.

And now, on top of that, they order war on me because nearly 4 years ago I told Hoover's crowd it wouldn't do and because 3 years ago I told Roosevelt and his crowd it wouldn't do. In other words, they are in a rage at HUEY LoNG because I have said, "I told you so."

I am not overstating the conditions now prevailing in this country. In their own words they have confessed all I now say or ever have said. Mr. Roosevelt and even Mrs. Roosevelt have bewailed the fact that food, clothes, and shelter have not been provided for the people. Even Gen. Hugh S. Johnson said in his speech of Monday night that there are 80,000,000 people in America who are badly hurt or wrecked by this depression. Mr. Harry Hopkins, who runs the relief work, says the dole roll has risen now to 22,375,000 persons, the highest it has ever been. And now, what is there for the Roosevelt crowd to do but to admit the facts and admit further that they are now on their third year, making matters worse instead of better all the time? No one is to blame, except them, for what is going on Qecause they have had their way. And if they couldn't change the thing in over 2 years,

now bogged down worse than ever, how could anyone expect any good of them hereafter1 God save us 2 more years of the disaster we have had un"der that gang.

Now, my friends, when this condition of distress and suffering among so many millions of our ' people began to develop in the Hoover administration, we knew then what the trouble was and what we would have to do to correct it. I was the first man to say publicly-but Mr. Roosevelt followed in my tracks a few months later and said the same thing. We said that all of our trouble and woe was due to the fact that too few of our people owned too much of our wealth. We said that in our land, with too much to eat, and too much to wear, and too many houses to live in, too many automobiles to be sold, that the only trouble was that the people suffered in the land of abundance because too few controlled the money and the wealth and too many did not have money with which to buy the things they needed for life and comfort.

So I said to the people of the United states in my speeches which I delivered in the United states Senate in the earl¥ part of 1932 that the only way by which we could restore our people to reasonable llfe and comfort was to limit the size o! the big man's fortune and guarantee some minimum to the fortune and comfort of the little man's family.

I said then, as I have said since, that it was inhuman to have food rotting, cotton and wool going to waste, houses empty, and at the same time to have millions of our people starving, naked, and homeless because they could not buy the things which other men had and for which they had no use whatever. So we convinced Mr. Franklin Delano Roosevelt that it was necessary that he announce and promise to the American people that in the event he were elected President of the United States he would pull down the size of the big man's fortune and guarantee something to every familyenough to do away with rll poverty and to give employment to those who were able to work and education to the children born into the world.

Mr. Roosevelt made those promises; he made them before he was nominated in the Chicago convention. He made them again before he was elected in November, and he went so far as to remake those promises after he was inaugurated President of the United States. And I thought for a day or two after he took the oath as President, that maybe he was going through with his promises. No heart was ever so saddened; no person's ambition was ever so blighted, as was mine when I came to the realization that the President of the United States was not going to undertake what he had said he would do, and what I knew to be necessary if the people of America were ever saved from calamity and misery.

So now, my friends, I come to that point where I must in a few sentences describe to you just what was the cause of our trouble which became so serious in 1929, and which has been worse ever since. The wealth in the United States was three times as much in 1910 as it was in 1890, and yet the masses of our people owned less in 1910 than they did in 1890. In the year 1916 the condition had become so bad that a committee provided for by the Congress of the United States reported that 2 percent of the people in the United States owned 60 percent of the wealth in the country, and that 65 percent of the people owned less than 5 percent of th~ wealth. This report showed, however, that there was a middle class-some 33 percent of the people--who owned 35 percent of the wealth. This report went on to say that the trouble with the American people at that time was that too much of the wealth was in the hands of too few of the people, and recommended that something be done to correct the evil condition then existing.

It was at about the same time that many of our publications began to deplore the fact that so few people owned so much and that so many people owned so little. Among those commenting upon that situation was the Saturday Evening Post, which, in an issue of September 23, 1916, said:

"Along one statistical line you can figure out a Nation bustling with wealth; along another a bloated plutocracy comprising 1 percent of the population lording it over a starveling horde with only a thin margin of merely well-to-do in between."

And it was, as the Saturday Evening Post and the. committee appointed by Congress said, it was a deplorable thing back in 1916, when it was found that 2 percent of the people owned twice as much as au of the remainder of the people put together, and that 65 percent of all of our people owned practically nothing.

But what did we do to correct that condition? Instead of moving to take these big fortunes from the top and spreading them among the suffering people at the bottom, the financial masters of America moved in to take complete charge of the Government for fear our lawmakers might do something along that line.

And as a result, 14 years after the report of 1916, the Federal Trade Commission made a study to see how the wealth of this land was distributed, and did they find it still as bad as it was in 1916? They found it worse! They iound that 1 percent of the people owned about 59 percent of the wealth, which was almost twice as bad as what was said to be an intolerable condition in 1916, when 2 percent of the people owned 60 percent of the wealth. And as a result of foreclosures, failures, and bankruptcies, which began to happen prior to and in the year of 1929, before the campaign of 1932, and at this late date, it is the estimate of all conservative statisticians that 75 percent of the people in the United States don't own anything, that is, not enough to pay their debts, and that 4 percent of the people, or maybe less than 4 percent of the people, own from 85 to 90 percent of all our wealth in the United States.

3438 CONGRESSIONAL RECORD-· SENATE MARCH 12 Remember, in 1916 there was a middle class-33 percent of the

people--who owned 35 percent of the wealth. That middle class is practically gone today. It no longer exists. They have dropped into the ranks of the poor. The thriving man of independent business standing is fast fading. The corner grocery store is becoming a thing of the past. Concentrated chain-merchandise and banking systems have laid waste to all middle opportunity. That "thin margin of merely well-to-do in between" which the Saturday Evening Post mentioned on September 23, 1916, has dwindled to practically no margin of well-to-do in between. Those sutiering on the bottom and the few lords of :finance on the top are nearly all that are left.

It became apparent that the billionaires and multimillionaires even began to squeeze out the comm.on millionaires, closing in and taking their properties and wrecking their businesses. And so we arrived (and are still there) at the place that in abundant America, where we have everything for which a human heart can pray, the hundreds of millions-or, as General Johnson says, the 80,000,000-0f our people are crying in misery for the want of the things which they need for life, notwithstanding the fact that the country has had and can have more than the entire hmnan race can consume.

The 125,000,000 people of America have seated themselves at the barbecue table to consume the products which have been guaranteed to them by their Lord and Creator. There is provided by the Almighty what it takes for them all to eat; yea, more. There is provided more than what is needed for all to eat. But the financial masters of America have taken off the barbecue table 90 percent of the food placed thereon by God, through the labors of mankind, even before the feast begins, and there is left on that table to be eaten by 125,000,000 people less than should be there for 10,000,000 of them.

What has become of the remainder of those things placed on the table by the Lord for the use of us all? They ~re in the hands of the Morgans, the Rockefellers, the Mellons, the Baruches, the Bakers, the Astors, and the Vanderbilts-600 families at the most, either possessing or controlling the entire 90 percent of all that is in America. They cannot eat the food, they cannot wear the clothes, so they destroy it. They have it rotted; they plow it up; they pour it into the rivers; they bring destruction through the acts of mankind to let humanity sutier; to let humanity go naked; to let hmnanity go homeless, so that nothing may occur that will do harm to their vanity and to their greed. Like the dog in the manger, they command a wagonload of hay, which the dog would not allow the cow to' eat, though he could not eat it himself.

So now, ladies and gentlemen, we come to that plan of mine for which I have been so roundly denounced and condemned by such men as Mr. Farley, Mr. Robinson, and Gen. Hugh S. Johnson, and other spellers and speakers and spoilers of the Roosevelt administration. It is for the redistribution of wealth and for guaranteeing comforts and conveniences to all humanity out of this abundance in our country. I hope none will be horror-stricken when they hear me say that we must limit the size of the big man's fortune in order to guarantee a minimum of fortune, life, and comfort to the little man; but, if you are, think first that such is the declaration on which Roosevelt rode into the nomination and election of President. While iny urgings are declared by some to be the average of a madman, and by such men as General Johnson as insincere bait of a pied piper, if you will listen to me you will find that it is restating the laws handed down by God to man; you will find that it was the exact provision of the contract and law of the Pilgrim Fathers who landed at Plymouth in 1620.

Here's what the Pilgrim Fathers said in the contract with the early settlers in the year 1620. I read you article 5 from that contract:

"5. That at ye end of ye 7. years, ye capital & profits, viz. the houses, lands, goods, and chatles, be equally devided betwixte ye adventurers, and planters; wch done, every man shall be free from other of them of any debt or detrimente concerning this adventure."

So the Pilgrim Fathers wrote into the covenant to do just exactly what the Bible said to do, that they should have an equal division of the wealth every 7 years. I don't go that far; I merely advocate that no man be allowed to become so big that he makes paupers out of a million other people.

You will find that it is the cornerstone on which nearly every religion since the beginning of man has been founded. You will find that it was urged by Bacon, Milton, and Shakespeare in England, by Socrates, Plato, Theognis, and other wisest of men in Greece, by Pope Pius XI in the Vatican, by the world's greatest inventor, Marconi in Italy, by Daniel Webster, Ralph Waldo Emerson, Abraham Lincoln, Andrew Jackson, William Jennings Bryan, and Theodore Roosevelt in the United States, as well as by nearly all of the thousands of great men whose names are yet mentioned in history.

The principle was not only the mainspring of Roosevelt's nomination and election, but in the closing speech of Herbert Hoover at Madison Square Garden in November 1932, even Hoover said:

" My conception of America is a land where men and women may walk in ordered liberty, where they may enjoy the advantages of wealth, not concentrated in the hands of a few but diffused through the lives of all."

And so now I come to give you again that plan, taken from these leaders of all times and from the Bible; for the sponsoring of which I am labeled America's menace, madman, pied piper, and demagogue.

I propose: F~rst. That every big fortune shall be cut down inuo.ediately by a

capital levy tax to where no one will own more than a few million dollars, as a matter of fact, to where no one can very long own a fortune in excess of about three to four millions of dollars. I propose that the surplus of all the big fortunes, above the few millions to any one person at the most, shall go into the United States ownership. How would we get all these surplus fortunes into the United States Treasury? Not hard to do. We would not do it by making everyone sell what he owned; no. We would send everyone a questionnaire. On that he would list the properties he owns, lands and houses, stocks and bonds, factories and patents, and so on. Every man would place his appraisal on his property, which the Government would review and maybe change on some items. On that appraisal the big fortune holder would say out of what property he would retain the few millions allowed to him, the balance to go to the United States. Say Mr. Henry Ford should allow that he owned all the stock of the Ford Motor Co., worth, say, $2,000,000,000; he could claim, say $4,000,000 of the Ford stock, but $1,996,000,000 would go to the United States. Say the Rockefeller fortune was listed at $10,000,000,000 in oil stocks, bank stocks, money, and stores. Each P..ockefeller could say whether he wanted his limit in either the money, oil, or bank stocks, but about nine billion · and eight hundred million would go to the Government. And so, in this way, the Government of the United States would come 1nto the possession of about two-fifths of its wealth, which on normal values would be worth, say, $165,000,000,000.

Then we would turn to the inventories of the 25,000,000 families of America. All those who showed properties and money clear of debts that were above $5,000 and up to the limit of a few millions would not be touched. But those showing less than $5,000 to the family free of debt would be added to, so that every family would start life again with homestead possessions of at least a home and the comforts needed for a home, including such things as a radio and an automobile. These things would go to every family as a homestead, not to be sold either for debts or truces or even by consent of the owner except by the consent of the court or Government, and then only on condition that the court hold it to be spent for the purpose of buying another home and comforts thereof.

Such woulfl mean that the $165,000,000,000 or more taken from big fortunes would have about $100,000,000,000 of it used to provide all with the comforts of home and living. The Government might have to issue warrants for claim and location, or even currency to be retired from such property as was claimed, but all that is a detail not impractical to get these homes into the hands of the people.

So America would start again with millionaires, but no multimillionaires or billionaires; with some poor, but none too poor to be denied the comforts of life. America, however, would still have maybe a $65,000,000,000 balance from these big fortunes not yet used to set up the poor people. What would we do with that? Wait a moment. I am coming to that, too.

Second. We propose that after homes and comforts of homes have been set up for the families of the country, that we shall turn our attention to the children and the youth of the land, providing first for their education and training. We would not have to worry about the problem of child labor, because the very first thing which we would place in front of every child would be not only a comfortable home during his early years but the opportunity for education and training, not only through the grammar school and the high school but through college and to include vocational and professional training for every child. If necessary, that would include the living cost of that child while he attended college, if one should be too distant for him to live at home and conveniently attend, as would be the case with many of those living in the rural areas.

We now have an educational system, and in States like Louisiana-and it is the best one--where school books are furnished free to every child and where transportation by bus is given to every student, however far he may live from a grammar or high school; there is a fairly good assurance of education through grammar and high school for the child whose father and mother have enough at home to feed and clothe them. But when it comes to a matter of college education, except in few cases the right to a college education is determined at this day and time by the financial ability of the father and mother to pay for the cost and the expense of a college education. It don't make any difference how brilliant a boy or girl may be, that don't give them the right to a college education in America today.

Now, Gen. Hugh Johnson says I am indeed a very smart demagogue, a wise and dangerous menace. But I am one of those who didn't have the opportunity to secure a college education or training. We propose that the right to education and the extent of education shall be determi.ned and gaged not so much by the financial ability of the parents but by the mental ability and energy of a child to absorb the learning at a college. This should appeal to General Johnson, who says I am a smart man, since, had I enjoyed the learning and college training which my plan would provide for others, I might not have fallen into the path of the dangerous menace and demagogue that he has now found me to be.

Remember, we have $65,000,000,000 to account for that would lie in the hands of the United States, even after providing home comforts for all families. We will use a large part of it immediately to expand particularly the colleges and universities of this country. You would not know the great institutions like Ya.le, Harvard, and

1935 CONGRESSIONAL RECORD-· SENATE 3439 Louisiana State University. Get ready for a surprise. College enrollments would multiply 1,000 percent. We would immediately call in the architects and engineers, the idle professors and scholars of learning. We would send out a hurry call because the problem of providing college education for all of the youth would start a. fusillade of employinent which might suddenly and immediately make it impossible for us to shorten the hours of labor, even as we contemplate in the balance of our program.

And how happy the youth of this land would be tomorrow morning if they knew instantly their right to a home and the comforts of a home and to complete college and professional training and education were assured! I know how happy they would be, because I know how I would have felt had such a message been delivered to my door.

I cannot deliver that promise to the youth of this land tonight, but I am doing my part. I am standing the blows; I am hearing the charges hurled at me from the four quarters of the country. It is the same fight which was made against me in Louisiana when I was undertaking to provide the free school books, free busses, university facilities, and things of that kind to educate the youth of that State as best I could. It is the same blare which I heard when I was undertaking to provide for the sick and the a.filleted. When the youth of this· land realizes what is meant and what ls contemplated, the billingsgate and the profanity of all the Farleys and Johnsons in America can't prevent the light of truth from hurling itself in understandable letters against the dark canopy of the sky.

Now, when we have landed at the place where homes and comforts are provided for all families and complete education and training for all young men and women, the next problem is what about our income to sustain our people thereafter. How shall that be arranged to guarantee all the fair share of what soul and body need to sustain them conveniently. That brings us to our next point. We propose:

No. 3. We shall shorten the hours of labor by law so much as may be necessary that none will be worked too long and none unemployed. We shall cut the hours of toil to 30 hours per week, maybe less; we may cut the working year to 11 months' work and 1 month's vacation; maybe less. If our great improvement programs show we need more labor than we may have, we will lengthen the hours as convenience requires. At all events, the hours for production will be gaged to meet the market for consumption. We will need all our machinery for many years, because we have much pubHc improvement to do; and, further, the more use that we may make of them, the less toil will be required for all of us to survive in splendor.

Now, a minimum earning would be established for any person with a family to support. It would be such a living which one, already owning a home, could maintain a family in comfort, of not less than $2,500 per year to every family.

And now by reason of false statements made, particularly by Mr. Arthur Brisbane and Gen. Hugh S. Johnson, I must make answer to show you that there is more than enough in this country and more than enough raised and made every year to do what I propose.

Mr. Brisbane says I am proposing to give every person $15,000 for a home and its com.forts, and he says that would mean the United States would have to be worth over a trillion dollars. Why make that untrue statement, Mr. Brisbane? You know that is not so. I do not propose any home and com.fort of $15,000 to each person-it is a minimum of $5,000 to every family, which would be less than $125,000,000,000, which is less than one-third of this Nation's wealth in normal times of $400,000,000,000.

General Johnson says that my proposal is for $5,000 guaranteed earning to each family, which. he says would cost from four to~~~~~~~~~~~~~~~is~ times more than our whole national income ever has been. Why make such untrue statements, General Johnson? Must you be a false witness to argue your point? I do not propose $5,000 income per year 1118 each family. I propose a minimum of from $2,000 to $2,500 income per year to each family. For 25,000,000 families that minimum income per family would require from $50,000,000,000 to $60,600,000,000. In the prosperous days we have had nearly double that for income some years already, which allowed plenty for the affluent; but with the unheard prosperity we would have, if all our people could buy what they need, our national income would be double what it has ever been.

The Wall Street writer and statistician says we could have an income of at least 4110,000 to every family in goods if all worked short hours and none were idle. According to him, only onefourth of the average income would carry out my plan,

And now I come to the remainder of the plan. We propose: No. 4. That agricultural production will be cared for in the

manner specified in the Bible. We would plow under no crops; we would burn no corn; we would spill no milk into the river; we would shoot no hogs; would slaughter no cattle to be rotted. What we would do is this:

We would raise all the cotton that we could raise, all the com that we could raise, and everything else that we could raise. Let us say, for example, that we raised more cotton than we could use.

But here again I wish .to surprise you when I say that if everyone could buy all the towels, all the sheets, all the bedding, all the clothing, all the carpets, all the window curtains, and all of everything else he .reasonably needs, America would consume 20,000,000 bales of cotton per year without having to sell a bale to the foreign countries. The same would be true of the wheat crop, and of the corn crop, and of the meat crop. Whenever everyone could buy the things he desires to eat, there would be no great excess in any of those food supplies.

But for the sake of the argument, let us say, however, that there~ would be a surplus. And I hope there will be, because 1~ will do the country good to have a. big surplus. Let us take ce>tton as an example. Let us say that the United States will have a market for 10,000,000 bales of cotton and that we raise 15,000,000 bales of cotton. We will store 5,000,000 bales in warehouses provided by ·the Government. If the next year we raise 15,000,000 bales of cotton and only need 10, we will store another 5,000,000 bales of cotton, and the Government will care for that. When we reach the year when we have enough cotton to last for 12 or 18 months, we will plant no more cotton for that next year. The people wm have their certificates of the Government which they can cash in for that year for . the. surplus, or if necessary, the Government can pay for the whole 15,000,000 bales of cotton as it is produced every year; and when the year comes that we will raise no cotton, we will not leave the people idle and with nothing to do. That is the year when, in the cotton States, we will do our public improvement work that needs to be done so badly. We will care for the :flood-control problems; we will extend the elec~ tricity lines into rural areas; we will widen roads and build more roads; and if we have a little time left, some of us can go back and attend a school for a few months and not only learn some of the things we have forgotten but we can learn some things that they have found out about that they didn't know anything about when we were children.

Now the example of what we would do about cotton is the same policy we would follow about all other crops. This program would necessitate the building of large storage plants, both heated and cold storage, and warehouses in all the counties of America, and that building program alone would take up all the idle people that America has today. But the money spent would go for good and would prevent any trouble happening in the future. And then there is another good thing. If we would fill these warehouses, then if there were to come a year of famine there would be enough on hand to feed and clothe the people of the Nation. It would be the part of good sense to keep a . year or two of stock on hand all the time to provide for an emergency, maybe to provide for war or other calamity.

I give you the next step in our program: No. 5: We will provide for old-age pensions for those who reach

the age of 60 and pay it to all those who. have an income of less than $1,000 per year or less than $10,000 in property or money. This would relieve from the ranks of labor those persons who press down the price for the use . of their :flesh and blood. Now the person who reaches the age of 60 would already have the comforts of home as well as something else guaranteed by reason of the redistribution that had been made of things. They would be given enough more to give them a reasonably comfortable existence in their declining days. However, such would not come from a sales tax or taxes placed upon the common run of people. It would be supported from the taxes levied on those with big incomes and the · yearly tax that would be levied on big fortunes, so that they would always be kept down to a few million dollars to any one person. · No. 6. we propose that the obligations which this country owes to the veterans of its wars, including the soldiers' bonus and to care for those who have been either incapacitated or disabled, woUld be discharged without stint or unreasonable limit. I have always supported each and every bill that has had to do with the payment of the bonus due to the ex-service men. I have always opposed reducing the allowances which they have been granted. It is an unfair thing for a country to begin its economy while big fortunes exist by in:fiicti~g misery on those who have borne the burden of national defense.

Now, ladies and gentlemen, such is the share-our-wealth movement. What· I have here stated to you will be found to be approved by the law of our Divine Maker. You will find it in the Book of Leviticus, from the twenty-fifth to the twenty-seventh chapters. You will find it in the writings of King Solomon. You will find it in the teachings of Christ. You will find it in the words of our great teachers and statesmen of all countries and ~ all times. If you care to write to me for such proof, I shall be glad to furnish it to you, free of expense, by mail.

Will you not organize a share-our-wealth society in your community tonight or tomorrow to . place this plan into law? You need it; your people need it. Write me, wire to me; get into this work with us if you believe we are right. Help to save humanity. Help to save this country. If you wish a copy of this speech or a copy of any other speech I have made, write me and it will be forwarded to you. You can reach me always in Washington, D. C.

I thank you.

The Senate resumed the consideration of the Join lution CH. J. ·Res. 117) making appropriations for purposes.

Mr. GLASS obtained the floor. Mr. COSTIGAN. Mr. President, a parliamentary inquiry. The VICE "PRESIDENT. The Senator will state it. Mr. COSTIGAN. Will the Chair indicate in what form

the joint resolution now comes before the Senate with respect to amendments?

The VICE PRESIDENT. The Senate gave unanimous consent to consider committee amendments first. The ques-

3440 CONGRESSIONAL RECORD-SENATE MARCH 12 tion is on the first amendment orthe committee-to the ·oint I The Committee on Appropriations, after earnest delibera.:. resolution. That is the parliamentary situation. tion and discussion, accepted, without the change of a word,

Mr. COSTIGAN. Does that signify that we take the joint the suggestions ap.d alterations made by these gentlemen, resolution as it was originally presented to the Senate, and the committee has accordingly reported the joint resostripped of all amendments acted on in the Senate? lution. Personally, I thoroughly agree with the conclu

The VICE PRESIDENT. The joint resolution is now be- sions of the administration authorities that the words" pro-f ore the Senate in the form in which it was reported the vide relief and work relief" are all comprehensive and in-second time by the Committee on Appropriations. elude all the purposes in mind for the expenditure of this

Mr. COSTIGAN. The first amendment would be-- $4,000,000,000. The VICE PRESIDENT. The first amendment of the The administration authorities also are in agreement with

Committee on Appropriations is on page 1, line 3, to strike me that the words on page 2, referring to this fund of out, beginning with the word " protect " and ending with $4,000,000,000, " to be used in the discretion and under the the word "conditions", and to insert the words "provide direction of the President", give the President complete relief and work relief." That is the first amendment offered authority, subject only to the limitations on page 3 of the by the committee and that is the pending question. joint resolution, to use this fund in any way his judgment

Mr. COSTIGAN. Mr. President, will the Senator from may suggest and to employ any agencies he may desire for Virginia yield for an inquiry? the use of the fund.

The VICE PRESIDENT. Does the Senator from Virginia I said to the Senate yesterday that I was a little disposed yield to the Senator from Colorado? to accept the suggestion to embody in this measure a rider

Mr. GLASS. I yield. - extending for 2 years the life of the P. W. ·A. Upon con-Mr. COSTIGAN. If the amendment now to be acted upan, ference I find that that is to be done, or attempted to be

to be followed by a second amendment containing the words done, in a separate bill, and that even should it not be done, "provide relief and work relief", might be agreed to, with an the President, under the terms of the pending joint resoluadvance indication of willingness on the part of the chairman tion, would feel, and I think he is, entirely at liberty to of the committee to add to· the words "provide relief and employ the eIDsting agency of the P. W. A. in the use of work relief " the words " and, with a view to reducing and the $4,000,000,000. relieving unemployment, to provide for the construction of That is my answer to the inquiry of the Senator from useful public works", it seems to me there would be no objec- Colorado. ·tion to striking out the words comprehended by the first Mr. COSTIGAN. If I may be permitted a word before I amendment and incorporating the second amendment of the make a further inquiry, perhaps some Members of the chairman of the committee. The amendment I suggest was Senate have been diverted from an expected course by the submitted to the chairman of the committee yesterday. suggestion of the able Senator from Virginia yesterday that

Mr. McNARY. Mr. President, a parliamentary inquiry. an amendment continuing the life of the P. W. A. would The VICE PRESIDENT. The Senator will st ... te it. be incorporated in the joint resolution with the consent of Mr. McNARY. Ha.S the Senator from Colorado proposed a. the chairman of the committee. Had that amendment been

formal amendment, or has he merely suggested it? tendered, I was expecting to ask the Senator from Virginia Mr. GLASS. He is just asking a question. to give us an advance opportunity to consider the phrase-Mr. COSTIGAN. I am asking whether the chairman of ology of the amendment, which I assumed might cover the

the committee would be willing to consider later, in the event difficulties some of us have encountered with the joint resothe first and second amendments of the committee are lution as it now stands. In view of the expressed position adopted, the addition, following "provide relief and work of the Senator from Virginia, I assume that there is nothing relief", of the words "and, with a view to reducing and re- for us to do but to attempt to perfect the measure to the best lieving unemployment, to provide for the construction of of our ability today on the fioor. The reasons I assigned useful public works." yesterday for necessary changes in the joint resolution, and

Mr. GLASS. Mr. President, responding to the inquiry of ~e. great importance of the is~ues involved, make it seem the Senator from Colorado of course the Senator from Vir- mdispensable, under these circumstances, that I offer ginia is willing and expects' to consider any amendment pro- amendments as the joint resolution progresses. posed to the joint resolution. I am not authorized to speak I ask the Senator from Virginia if he will indicate whether for the committee as to whether or not the committee would the committee itself has any amendments it proposes to favorably consider the words suggested by the Senator from offer to the pending measure which ma.y alter the attitude Colorado. I may say, however, that since the recess of the of any of us here, as outlined by me in my remarks Senate I have discussed this matter with those who might be yesterday. regarded as the intimate proponents of the joint resolution; Mr. GLASS. I may say that one member of the commitand it is their considered judgment that the words" provide tee-to wit, the Senator from South Carolina [Mr. relief and work relief" comprehend the entire purposes of BYRNES]-has in mind an amendment to be propased by him the joint resolution in connection with other provisions of the on page 3, lines 17 and 18, where, after the numerals measure. " $600,000,000 " and the semicolon, he proposes to insert

I have always understood that all appropriations for "loans or grants for public projects of States or political public-works purposes were for the purpose of relieving subdivisions or agencies thereof." unemployment and relieving the distresses incident to the That, I believe, is the only amendment of which I am depression; and it is the opinion of those having the matter aware. immediately in charge before it was presented to the Appro- Mr. KING. Mr. President, I wish the Senator would priations Committee that those words would comprehend repeat; some of us did not get the full language he suggested. everything they have in mind. Mr. GLASS. On page 3, line 17, after the numerals

I may say furthermore, Mr. President, that when the "$600,000,000" and the semicolon, the Senator from South joint resolution was recommitted to the Committee on Ap- Carolina proposes to add the language "loans or grants for propriations, it was handed back to administration au- public projects of States or political subdivisions or agencies thorities for such alterations or suggestions as they might thereof." care to make. They made the particular alteration to Mr. BYRNES. Mr. President, will the Senator from which the distinguished Senator from Colorado refers; and Virginia yield? they also submitted to the committee these alleged break- Mr. GLASS. Yes; I yield. downs to indicate rather more definitely than theretofore Mr. BYRNES. I simply wish to say that I share the view had been indicated the purposes for which this fund is to expressed by the Senator from Virginia, that under the be used and the approximate measure of the allocations of language of the joint resolution the President would be the fund. authorized to make loans. The language of the measure, as

1935 CONGRESSIONAL RECORD-SENATE 3441 the Senator from Virginia has recited it, is, "To be used ·1 Mr. FLETCHER. We do not need to undo anything. The in the discretion and under the direction of the President for Senator wants to add something to the language of the joint public projects of States or political subdivisions thereof." resolution. Manifestly it would be used either for grants or loans. The VICE PRESIDENT. It is germane now, but it would When the question is raised as to whether loans are author- not be after the amendment had been adopted, unless there ized, the same question could be raised as to whether grants should be reconsideration of the vote. are authorized. But as long as objection is made, in the Is there objection to the request of the Senator from Colohope of saving time, I am offering this amendment merely to rado that the vote by which the first amendment was agreed clarify the language, and make certain that the money to be reconsidered? The Chair hears none, and the vote is would be available for loans or grants for public projects. reconsidered, and the Senator from Colorado offers an

The VICE PRESIDENT. The question is on agreeing to amendment to the committee amendment, which the clerk the first amendment of the committee. will state.

Mr. McNARY. Mr. President, I wish to inquire as to the The CHIEF CLERK. On page 1, line 8, after the word" re-parliamentary status of the proposal of the Senator from lief " and the comma, it is proposed to insert the words " and, Colorado. Is that presented now, and is it before the with a view to reducing and relieving unemployment to pro-Senate? vide for the construction of useful public works."

Mr. GLASS. The Senator from Colorado has not pre- The VICE PRESIDENT. The question is on agreeing to sented an amendment as yet. the amendment to the amendment.

Mr. McNARY. Then, Mr. President, the question is upon Mr. COSTIGAN. On this I ask for the yeas and nays. the adoption or rejection of the committee amendment? Mr. GLASS. Mr. President, let me again say to the Sen-

The VICE PRESIDENT. That is correct. ate that, in conference with the highest possible authority Mr. COSTIGAN. Mr. President, I merely wish to say that, on the subject of administration of legislation, I was very

in view of the statements made, it is my intention to vote definitely told that it was the interpretation of the President against the first amendment of the committee on the basis of that, under the language of this section as reported from the discussion which took place in the Senate yesterday; if the committee, public works and all other work designed to that shall be adopted, to vote for the second amendment, and relieve unemployment, and to cure in any measure the disto off er an amendment to the second amendment. tresses incident to the depression, were comprehended in

The VICE PRESIDENT. The question is on agreeing to this language, and I hope it will not be altered. the first amendment of the committee, on page l, line 3; Mr. COSTIGAN. I ask for the yeas and nays on the

The amendment was agreed to. question. It seems to me to be of great importance and is The VICE PRESIDENT. The clerk will state the next fortified by sound legal opinion.

amendment. Mr. KING. Mr. President, will the Senator yield to me? The CHIEF CLERK. The next amendment of the committee Mr. COSTIGAN. I yield.

is, on page 2, line 2, after the word" President", to strike out Mr. KING. I ask the Senator whether a proper and not the wo1·ds " in such manner, and for such purposes and/or a meticulous, legalistic interpretation of the joint resolution such projects, Federal or non-Federal, as shall be adapted to further on in its provisions would not comprehend the amendthe accomplishment of any one or more of the objectives ment which is offered by the Senator and permit the conspecified in clause (1), (2), (3), or (4) ." struction of useful public works and carry out, indeed, the

The VICE PRESIDENT. Without objection, the amend- intention and purpose of the Senator's amendment? ment is agreed to. Mr. COSTIGAN. Will the Senator direct our attention to

Mr. COSTIGAN. Mr. President, I understood the second the language he has in mind? amendment would be to add the words "provide relief and Mr. KING. For instance, the following language: "High-work relief." ways, roads, streets, and grade-crossing elimination, * * *

The VICE PRESIDENT. That was a part of the first rural rehabilitation and relief in stricken agricultural areas, amendment, and the first amendment has been agreed to. * * * rural electrification, • * * housing, * * * The first amendment was on page l, where the committee Civilian Conservation Corps, * • • public projects of proposed to strike out, beginning on line 3, down to the word States or political subdivisions thereof"; and a tremendous "conditions", on line 8, and to insert the words "provide sum appropriated, $900,000,000; and "sanitation, prevention relief and work relief.', of soil erosion, reforestation, forestation, flood control, and

Mr. COSTIGAN. Mr. President, in order to broaden the miscellaneous projects." It would seem to me that those purposes of the joint resolution, and to make sure that public comprehensive words would include all that the Senator has works may be included, I desire to add, following the words in mind, and would cover the useful public projects to which "provide relief and work relief", language which I have sent the Senator is directing our attention. to the desk. Mr. TYDINGS. Mr. President, will the Senator from

The VICE PRESIDENT. The Senator from Colorado was Colorado yield to me? under the impression that there were two amendments, but Mr. COSTIGAN. I yield. under the rules o~ t~e ~:~te the amendment is a. single Mr. TYDINGS. In addition to what has been said by the amendment, and is mdivis1ble. If the Senator desires to Senator from Utah let me call the Senator's attention to the perfect the amendment, it will b.e necessary to reconsider fact that section 8 'uses this language, "On all building conthe vote of the Senate by which the amendment was · struction work or projects undertaken." It strikes me that agreed to. . by implication we have already assumed that public-works

Mr. COSTIGAN. I ask unammous consent that the vote projects are to be undertaken as a part of the work-relief be reconsidered. program.

The VICE PRESIDENT. Is there objection? Mr. COSTIGAN. Mr. President, the able Senator from Mr. FLETC~. Mr. President, would not the. Senator's Maryland was not present yesterday during the discussion,

amendment be~ order a.:fter we had agreed to this amend- as I recall it; the Senator from Utah was. The argument ment; could he not subsequently offer an amendment? which was made, and which, as I stated, was fortified by the

The VICE PRESIDENT. No; it would be necessary to considered opinion of careful Government attorneys who undo the affirmative action of the Senate. have dealt particularly with projects of this sort, was to the

Mr. FLETCHER. The Senate can agree to the amend- effect that we are opening the door to new court interpreta-ment proposed by the committee. tions based upon this initial qualifying language," relief and

The VICE PRESIDENT. If the Senator from Colorado work relief." permits the Senate to adopt the amendment, that will · be If that vie-wpoint is sound, this joint resolution as it now affirmative action of the Senate, and it would not be in order stands, and as it is likely to stand if amended in ~cordance to go back and undo the action by amendment. with the construction of the chairman of the committee,

3442 CONGRESSIONAL RECORD-SENATE MARCH 12 will, first of all, permit court proceedings to test the effect of these new words, " work relief ", with respect to particular projects, with the possibility, indeed, the probability, in the opinion of such attorneys, that the joint resolution will not be extended, with court sanction, to many of the projects later enumerated in the joint resolution. If that point was not made clear yesterday, I hope it is now understood by Members of the Senate.

The Chairman of the Committee on Appropriations said repeatedly yesterday that everything under heaven could be done by the President under the joint resolution. If that be so, what possible objection can there be to incorporating in this clause indicating the policy of Congress such moderate language as that suggestng that part of these funds may be

-used with a view to reducing and relieving unemployment, and providing authority for the construction of useful public works?

Mr. KING. Mr. President, will the Senator yield? Mr. COSTIGAN. I yield. Mr. KING. I heard only a part of the argument of the

Senator yesterday. Was it his argument that the words " provide relief and work relief " would be so construed as that those projects and activities to which I directed attention might be successfully .challenged?

Mr. COSTIGAN. That was the argument which I presented, and which I supported, ·in a measure, by an opinion of the Acting Comptroller General, which the Senator from Utah will find in the RECORD of yesterday at the conclusion of my remarks.

Mr. KING. The amendment which the Senator has now suggested would not expand the activities on projects beyond those which were enumerated in the joint resolution?

Mr. COSTIGAN. It would not. There is every purpose to cooperate with the chairman of the committee and with the committee itself. The only purposes of the amendment are to make more certain that the ends which the Senator from Virginia says may be attained under the joint resolution can certainly be attained, and that there ·wm be ample authority to deal with public works ·without court construction which may halt us when we come to a particular project.

:i call for the yeas and nays. Mr. LONG. Mr. President, what is the question? The VICE PRESIDENT. The Senator from Colorado

[Mr. COSTIGAN] has offered an amendment to the committee amendment, and on that amendment he has asked for the yeas and nays.

Mr. LONG. Will the Senator from Colorado please read his amendment?

Mr. COSTIGAN. Mr. President, as the joint resolution now stands the Senate has approved the opening paragraph from line 3 to line 8 by striking out the original words in the joint resolution as it passed the House. of Representatives, and has added "provide relief and work relief", so that the language of the joint resolution as it now stands is:

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to provide relief and work relief-

! am now offering, as an amendment to that, the further words-and, with a view to reducing and relieving unemployment to provide for the construction of useful public works.

Mr. LONG. Mr. President, I desire to direct the attention of the Senator from Colorado [Mr. CosTIGAN] and the Senator from Virginia [Mr. GLASS] to the parliamentary situation in which we shall be if the amendment of the Senator from Colorado shall be adopted. Its adoption will mean that this particular language will not be subject to change by subsequent amendment. In other words, if we amend this committee language we shall not be able to amend it again. That is to say, I cannot .propose another amendment.

I desire to say to the Senator from Virginia, the Senator from Colorado, and other Senators that at a later time I had intended to insert in the joint resolution, if I could get enough votes to back me up, a proviso that several hundred

million dollars of the money might be used for the purpose of advancing to the universities of the United States, as has been done to a limited extent already, funds which the universities might be permitted to give to students wishing to attend college who are not able to pay their own way.

As an example, out of all the $3,300,000,000 we have heretofore appropriated through one of our bureaus-I do not care which one it was-the sum of $20,000,000 was given around to the various universities. They took that money! know they did in my State-and they would give to a student a maximum of around $15 a month, and by means of that $15 and the help the school itself would give, either in reducing tuition or crediting the student with tuition, many of the schools accommodated as many . as 500 or 600 young men. We spent only $20,000,000 in that way for the United States.

I was recently inf armed by one of the gentlemen in the University of Iowa who came to see me when I was down in my · home State that lately they had decided to discontinue this $20,000,000. I do not propose to offer jnst $20,000,000. Here is a place to spend our money.

If Senators will turn to page 3 of the joint resolution and look over this apportionment they will find that there is provided $600,000,000 for our Civilian Conservation Corps. I am not going to argue against the Civilian Conservation Corps, but if we put in this measure today, or take from some of these other funds $600,000,0UO to start the work of education, with $15 per month we would be ·able to put a young man in the university of one of our States as against the $35 to $50 now expended to put him in a conservation camp, perhaps in the same State. In other words, for 40 cents on the dollar we can give a young mari or a ·young girl an education, and we can train them in any ·line we wish to train them; we can remove them from the path of the unemployed, and we can build up the fiber of their manhood and womanhood and save the Government a great deal of money while we do it.

As an example, Mr. President, the college enrollments in every State during this depression, with the exception of one State university, I think-there may be other exceptionsas a general rule decreased 15 percent. I believe the attendance at universities which heretofore had not had sufficient facilities to care for those seeking admittance fell during this depression around 15 percent. That was due to only one thing in the world-that students did not have the money with which to go to college.

Our science of high education is not based upon the ability of the young men or the young women to learn. It is not based upon their willingness to expend energy to study but it is based upon the financial capacity of the parents to support the cost at college. So this little help which was given was given because of the fact that in the universities of the country 15 percent less students were seeking admission than during normal times because their parents could not pay the cost.

There was one exception which stands out, which is my own State university, Louisiana State University. That university showed an increase of about 150 percent instead of a reduction of about 15 percent. That was due largely to the fact that the costs at that university were reduced so much as largely to attract students who theretofore could not seek entrance to that school. So I wish to suggest to the Senator from Colorado that before the words of the Senator's amendment,- which reads-

And with a. view to reducing and relieving unemployment to provide for the construction of useful public works-

we insert the words " and education ", so the language will be "provide relief, work relief, and education", and then insert the words of the amendment proposed by the Senator from Colorado " and with the view ", and so forth.

Is the Senator from Colorado willing to ofier his amendment with that modification? As the Senator from Virginia [~. GLASS] says, such amendment would still be optional in later amendments we might offer.

Mr. COSTIGAN. Mr. President, there is no objection on my part, although I believe on full consideration that the


objective or the purpase of the Senator from Louisiana is realized under the word " relief."

As I view the language of the joint resolution, I have no difficulty with the powers intrusted to the President to spend money for relief purpases, including educational purposes. If there is any objection to the measure .as it now stands from the viewpaint of the expenditure of funds by the President, it is that he does not need to fear any limitation in giving relief to any person needing financial relief. He might go down the street and hand out cash to the people on the street under the terms of this bill. He may help students in college, as I view it. The difficulty arises when we come to construction in the nature of public works. There we are confronted with the words "work relief", which the courts may construe as not applicable to a given project in a given locality. The Senator from Louisiana is a keen lawYer. He can weigh the significance of that language without suggestion from any of the rest of us. I am inclined to think that on reconsideration he will feel that what he is seeking is covered by the present language.

Mr. LONG. Mr. President, if the Senator will Permit, I wish to say that when we begin to specify, an old rule of law applies, that rule being, as I remember it, "Inclusio unius est exclusio alterius ",which translated from the Latin would mean, " If you put something in there, it means you are trying to leave the other thing out of there."

Mr. LEWIS. Mr. President, may I give the Senatoc from Louisiana t,Pe language of th~t law maxim, which is "Ex. Pressio unius est exclusio alterius." It means just what the Senator says.

Mr. LONG. Yes, sir. In other words, if you put something in there, it means you do not want to put the other thing back. In other words, to include one means to exclude the other.

Mr. GLASS. Mr. President, to get back to plain English, the suggestion of the Senator from Louisiana [Mr. LoNG] is included in the bill; and I do wish the classical scholars would let us go on and have a vote on the propasition.

Mr. LONG. I do not want to offend my friend from Virginia. I am glad he called me a classical scholar. The last time I heard the Senator he was not speaking so kindly about me, and I want the tecord to "stay put" on the matter.

I think the language is all right as it is; I can agree With the Senator in that respect. I think it covers everything in the world. My theory is that when we begin to specify we begin to exclude.

Mr. ~OSTIGA:tf. What the Senator from Louisiana says is true with respect to the language incorporated by the committee on page 3. In that amendment there is a specification of certain subjects with respect to which money is to be allocated, but in the initial clause to which we are now referring, may I say to the Senator that the purpose of the language is to make as broad as passible the purpases of the joint re.solution?

It is difficult to conceive of anything desirable in the form of relief, whether direct relief, work relief, or public works, which would not be covered by this combination of words:

In such manner, and for such purposes and such type or types of projects, Federal or non-Federal, as are now or may be hereafter authorized by law of the United States.

The project to which I have referred, together with the other projects, was approved by the President of the United States on the recommendation of the Chief of Engineers of the Army, and there might be some question as to whether or not that could be construed as an approval.

May I suggest to the Senator that he modify his amendment by adding after the words " United States " in line 9, "or approved by the President of the United States"?

Mr. COSTIGAN. Mr. President, the able Senator from Montana has directed attention to the next amendment which I have been planning to offer to the joint resolution and which has not as yet been presented to the Senate.

Mr. WHEELER. I am sorry; I just came in a few moments ago.

Mr. COSTIGAN. It should be said that yesterday I directed a large part of my remarks to the necessity of incorporating language which will protect such public works as Fort Peck, the Grand Coulee, and many other important projects in the Northwest. It seems to me that the amendment suggested by the Senator may be valuable and should be proposed by the Senator when we reach the second amendment unless at this time by rejecting the amendment I am now proposing, we limit the authority given to relief and work relief. The Senator has presented another argument why the amendment now before the Senate should be adopted .

Mr. BONE. Mr. President--Mr. COSTIGAN. I yield to the Senator from Wash

ington. Mr. LONG. I thought I yielded to the Senator from

Colorado, but go ahead, I do not want to interrupt the Senator from Colorado.

Mr. COSTIGAN. The Senator from Washington [Mr. BoNE] requested me to yield to him.

Mr. BONE. I merely want to ask the Senator a question. I understand the purpose of this amendment to be-because! have submitted a similar one-to make sure that there shall be no question of the power of the President to proceed with present public-works operations that are pending or those that are being set up by the various States; in other words, what we commonly know as " public-works. operations" under the old P. W. A. Is that correct?

Mr. COSTIGAN. That is correct, and the Senator from Virginia is urging that the President already has the power. What I am now urging upon the Senate is that, if he has that power, there ought to be no objection whatever to the adoption of language which, in the view of competent attorneys, will safeguard that power and not leave it subject to technical attacks.

Mr. LONG. Mr. President, I am sure that the Senator from Colorado only has in mind expanding the joint resolution, but when you begin to specify you begin to exclude. There is not any question about that in my mind. The minute you say " relief and work relief ", one of those even is a modification of the other. Over further, on page 3, from which the Senator read, there is something said about

In order to provide relief and work relief, and with a view to "flood control, and miscellaneous projects, $350,000,000." reducing and relieving unemployment, to provide for the con- That is not enough money for the purpose. struction of useful public works.

Mr. GLASS. Mr. President, the Senator will observe that Mr. LONG. Mr. President, the trouble is you reach the the President is authorized to strip from other funds as

idea of being just and generous the same as if the word much as $800,000,000, and add it to the miscellaneous "similar" were written in. When you begin to specify, that projects. is when you begin to get into trouble. If we leave it a Pan- Mr. LONG. I understand that to be true. dora's box, it covers everything. Mr. LOGAN. Mr. President, will the Senator yield?

Mr. WHEELER. Mr. President-- The VICE PRESIDENT. Does the Senator from Louisiana Mr. LONG. I yield to the Senator from Montana. yield to the Senator from Kentucky? Mr. WHEELER. I wish to call the attention of the Sena- Mr. LONG. I yield.

tor from Colorado [Mr. CosTIGAN] to the fact that there is Mr. LOGAN. I should like to ask the Senator what dif-a serious question in my mind as to whether his amendment ference it makes as to the language that is used in the joint would not prevent the administration from completing the I resolution, because if we make no better progress than we Fort Pe~k Dam and some other projects in the Northwest, have ~een maki~ all those threatened by starvation will because it reads: long smce have died before we shall ever pass the measure.

3444 CONGRESSIONAL RECORD-SENATE MARCH 12 Mr. LONG. I have not obstructed the progress of the

joint resolution. I notice in the newspapers this morning that they say I conducted a filibuster because I kept quiet.

Mr. LOGAN. Mr. President, I did not mean to suggest the Senator from Louisiana was delaying the progress of the joint resolution, but we have had it up now, I do not know for how long, and we do not seem to have made any progress; and, at the same rate, we will never pass the joint resolution.

Mr. LONG. When this measure was up once before the Senate, and the McCarran amendment was under considera

. tion, I never opened my mouth on the floor of the Senate about the joint resolution at all; and never had anything

. whatever to do except to vote and to help secure a pair for a colleague which I had been asked to secure. I asked a question or two yesterday, but practically I have said nothing about the measure at all, though, none the less, I read in the newspapers that because I have not said anything there has been a "silent" filibuster against the joint resolution. [Laughter .l

Mr. BARKLEY. If the Senator will yield, as between that type of filibuster and the other, we infinitely prefer the "silent" kind, and if the Senator will continue that type we will not fall out with him.

Mr. LONG. I want the Senate to take a; vote on that and find out if the Senator's colleagues stand with him be

.fore he commits the Senate. However, Mr. President, my great difficulty is in getting

Senators really to listen for just a moment to the thought of the educational world. The educators of the whole world would like to have a little better consideraition. Out of the $3,300,000,000 appropriated last year education was given $20,000,000; that is all. I want to say that the colleges and universities of this country did more good and less harm with the $20,000,000 a.Uotted to them than was done with the entire remaining amount of the $3,300,000,000. So far as the Civilian Conservation Corps is concerned, we would far rather have had 500 young men in Louisian~ taken care of under that organizaition than to have all the other work which was undertaken in the State. I believe in putting fiber in manhood and keeping it there after it has been put there. ·I do not believe in destroying the incentive a man ha..s to make a living. I think when ·a dollar is spent a.ind with that expenditure there is breathed into a man the spirit of indolence, the spirit of being no account in general, more harm is done in the destruction of the fiber of manhood than is done by dislodging more money from the Government Treasury. In other words, what money is spent ought to be spent in order to build up the fiber and the virtue of mankind rather than to tear it down.

I am told that a man \fired here to Washington and said, "Send us a carload of leaves; we have worn the last ones out and we have not anything to sweep any more in this park." Some man told me in Oklahomai City that back of his office there was a lot of dirt in a park and that he counted six times when they moved that dirt from one place to another and then moved the dirt back to where it was.

Mr. President, Louisiana. is the leading State in reforestation. We taught the world how to reforest. I am not speaking now from any other standpoint than that of history and what the reports of the United States departments will show. We taught the country how to reforest; we taught them how to plant saplings. I wish to tell you, Mr. President, thait sending young men out today to plant saplings tomorrow accomplishes very little, because they do not know a thing in the world about it, and 99 percent of the saplings planted died and never did sprout and never will sprout.

Planting saplings is just as much of a business as is the work of making a cake or setting type in a printing office. It is not something that can be done without any previous experience. While we sent young men to the country so as to take them out of the cities and off the box cars where they were going from city to city, and probably it is somewhat better at least to send them into the country rather than to have them remain in the city, none the less we spent $50 to take one young man off the streets and place him in the

Civilian Conservation Corps out in the woods somewhere. I propose with that $50 to take three young men and give them a college education, just like other young men are getting today, at $15 per student, if the money shall be given to the universities and spent as the last $20,000,000 was spent. Why can we not profit by the good things that develop as well as by the mistakes that we make? Here is an expenditure along lines that many of us have been sponsoring for 15 or 20 years in this country. We have been sponsoring the idea that college education ought to be given to the youth of the land, not based upon the financial capacity of the parents of the students to pay the costs, but based upon the mental capacity of the students to absorb knowledge and of their energy to apply themselves for the purpose of acquiring a college training.

We have been talking about eliminating the "pork" from the joint resolution and having no politics in it. What I want to do is to save and preserve the fiber there is now and to give better fiber to the manhood and womanhood of the United States. What I want to do is to eliminate all politics from our relief program. Another desire of mine is to do the most good to the greatest number with the lea.st drain upon the taxpayers of the United States. For $15 per person-think of it!-$15 per person we can take out of the ranks of labor young men and young women and, insiiead of teaching them idleness, put them in a university where they may be trained in a way that will redound to the benefit and the advancement of the country.

When the .joint resolution was recommitted to the commitee I thought I was going to have a chance to present this matter to the committee. I said to my friend from Virginia, "When the measure goes back to the committee I want a chance to come before the committee." Later on I telephoned the chairman that I hoped the committee would hold hearings and that I should like an opportunity to come before the committee and discuss the matters I wanted to present. Later on I was informed that the joint resolution had been reported and that the committee had had no hearings of any consequence. I do not know whether that statement is exactly correct.

I am not criticizing the committee and I am not criticizing the chairman. I wanted the opportunity to show the committee from facts and from figures that a great part of this money or the larger part of it had been thrown away, that the taxpayers were meeting a bill every day that was being doubled and redoubled. on them, that they had to pay the principal and interest. I wanted to show that they were doing in many cases only downright harm.

With all of the unemployment in the country there are many places where we cannot hire men to work. That is a fact. With all the unemployment we have today, I know of instances where men have tried to hire labor and could not get labor because the laborers were afraid if they got a job for a few days they would be taken off the relief and they preferred to stay on the relief, to get a little hand out from day to day, rather than to take the chance of getting off the relief roll and then not getting back on the relief roll. There are certain people who do not want to work anyway. There are a lot of people who are downright lazy and do not want to work. Sometimes I feel inclined that way myself, and I know how people get that feeling.

Mr. BONE. Mr. President--The VICE PRESIDENT. Does the Senator from Louisi

ana yield to the Senator from Washington? Mr. LONG. I yield. Mr. BONE. I wonder if the Senator from Louisiana will

enlighten us and tell us in what section of the country those people may be found. I think his statement requires some further illumination.

Mr. LONG. There always have been about half a million people in the United States who do not want to work.

Mr. BONE. The Senator might be a little more frank and say where they are.

Mr. LONG. There are a few tramps and hoboes at the bottom, and there are a few tramps and hoboes too rich at the top. •

1935 CONGRESSIONAL RECORD-SENATE ·3445

Mr. BONE. ·The Senator still .does not illuminate the situation as to where are those people who refuse to work and refuse to earn a living.

Mr. LONG. I mean to say there have always been. even in prosperous times in the United States. or at any time, several hundred thousand people who just do not want to work and will not work. I will give the Senator an example. In my own home town I knew a carpenter who let the front doorsteps of his own house rot down before he undertook to patch them. We have people everywhere who do not want to work. The point I make is that there is latent in the bones of lots of us a spirit that we should like to live without working if we could do so. Some of us are that way. There have always been, even in our prosperous times, anywhere from 250,000 to 300,000 or 500,000 people who never did work. I know we have such men around my home town. They are around everybody's home town. They are men who sit in the coUI"thouse and play checkers in the sumn::ertime or sit in front of the fire in tlie sheriff's office in the wintertime. There has always been a certain number of people who do not want to work. I do not mean to say that is general or half general, but there are some who will not work. That has been true always. That has been aggravated by the further condition that when a man who really did want to work got on the relief roll through necessity he dared not have the work on the relief roll stopped for fear if he got any private work he never would get back on the relief roll.

Over in a little town out near Mamou, La., a man had a garden where he was raising some turnips, beets, snap beans, cabbage, a little popcorn. and stuff like that. The relief agent came along and said he could not be put on the dole because he had a garden and therefore did not have any business on the dole. The man went out the next day and plowed up his garden so he would be qualified to go on the dole.

It has gotten so now all through that part of the countryand not only that part of the country, but all over the United States-that a man does not dare have a garden, because if he does he will be taken off the relief roll.

Mr. BONE. Mr. President--Mr. LONG. I yield to the Senator from Washington. Mr. BONE. I do not wish to interrupt the interesting dis-

coUI"se of my friend from Louisiana, but I have a very keen interest in the suggestion of the Senator from Colorado [Mr. CosTIGANJ, because in my section of the country and throughout the West there are a great many projects designated as public-works projects which are very vitally tied into the suggestion made by the Senator from Colorado in his amendment. I have subinitted an· amendment of a similar character. I hope the Senator from Louisiana will let us vote. If he wishes to offer an amendment of his own, I am perfectly willing that he should do so, but I should like to have a vote on the pending question. I recognize the Senator's right to talk on this matter, but I should like to have a vote on the pending question, which is so vitally important to my people. If the Senator from Louisiana wishes to offer an amendment of his own, I certainly shall not object.

Mr. COSTIGAN. Mr. President, will the Senator Yield? Mr. LONG. I yield to the Senator from Colorado. Mr. COSTIGAN. There are no differences in opinion be

tween the Senator from Louisiana and other Members of the Senate as to the importance of education and our desire to aid a proper educational program. The inquiry, which I now address to the Senator, is whether his amendment may not be included among the specified limiting items on page 3 of the joint resolution, rather than as a qualification of the broad purposes designed to be covered by the joint resolution.

Mr. LONG. I think it can be done, but while I am speaking on this educational matter I desire to take a few minutes further to complete my statement. It will not take long. I want my friend from Washington to listen to what I have to say, rather than to watch the time clock to see how long I take to say it.

I .have just been stating tlle fault which would be in any system, and more in this system than in any other system,

which is that when we go out to spend $100 and do not do any good with it, we do not build anything, but we tear down the very thing we have taught the people all our lives to do as necessary. For instance, I had rather the Government never spent a dime in the state of Louisiana than to have taught my people not to raise a garden in order that they Inight get on the relief dole.

I went over Louisiana for years. I started the "pot likker " craze throughout the State. Why? I started out to teach the people of Louisiana to plant a garden, to raise turnip greens, to raise various and sundry vegetable products. and to live at home and by that we never felt the depression when it came on in 1929 until the dole money began to be put out. The minute an effort was made to put out the dole money and the people found they could not get on the dole if they had a garden, that they could not get on the dole if they had a little job of any kind, then we began to have the dole in the rural sections in the State of Louisiana. I do not think we ever would have had to have near all we did, if the dole had not been started in that way in Louisiana. The Federal Government has gone to those people, where we spent millions of dollars to teach them to raise a garden. and has educated them not to plant a garden and not to have a garden because they could not stay on the dole if they did have a garden.

So, Mr. President, at a later time in the consideration of this joint resolution-I am going to speak to the point-I shall off er an amendment, and I hope Senators will not think I am delaying the joint resolution. I have talked on this measure less than anybody here that I know about. All told, I have not consumed 40 Ininutes of the Senate's time on the joint resolution, and yet I am the only Senator about whom there has been any complaint.

I do not understand this kind of business. The only man about whom there has been any complaint on the ground of taking up time has been myself. I did not talk a minute on the joint resolution the last time it was before the Senate, and I have talked on it less than 40 minutes since it has been here this time. I shall offer, however, and I shall explain, in connection with this joint resolution, an amendment which I believe will be accepted by practically everybody interested in education throughout the country, to take $1,000,000,000 of this money that the authorities do not know what they are going to do with, and with which they probably will do more harm than good in some cases, and let it be used for the purpose of providing college education that can be provided for around $120 a year as the part paid by the United States.

The VICE PRESIDENT. The question is on the amendment of the Senator from Colorado [Mr. CosTIGAN] to the amendment of the -cominittee.

Mr. COSTIGAN. I suggest the absence of a quorum. The VICE PRESIDENT. The clerk will call the roll. The Chief Clerk called the roll, and the following Sena-

tors answered to their names: Adams Coolidge Johnson O'Mahoney Ashurst Copeland Keyes Pittman Austin Costigan King Pope Bachman Couzens La Follette Radcll1Ie Bailey Cutting Lewis Reynolds Bankhead Dickinson Logan Robinson Barbour Dieterich Lonergan Russell Barkley Donahey Long Schall Bilbo Duffy McAdoo Schwellenbach Black Fletcher McCarran Sheppard Bone Frazier McGill Shipstead Borah George McKellar Smith Brown Gerry Maloney Steiwer Bulkley Gibson Metcalf Thomas, Okla. Bulow Glass Minton Thomas, Utah Burke Gore Moore Townsend Byrd Guffey Murphy Trammell Byrnes Hale Murray Truman Capper Harrison Neely Tydings Carey Hastings Norbeck Vandenberg Clark Hatch Norris Walsh Connally Hayden Nye Wheeler

The VICE PRESIDENT. Eighty-eight Senators have answered to their names. A quorum is prese:o.t. The question is on the amendment offered by the Senator from Colorado CMr. CosTIGAN] to the amendment of the committee.

3446 CONGRESSIONAL 'RECORD-SENATE MARCH 12 Mr. COSTIGAN. I ask for· the yeas and nays on my

amendment. The yeas and nays were ordered, and the Chief Clerk

called the roll. Mr. LOGAN. I have a general pair with the senior Sen

ator from Pennsylvania [Mr. DAVIS], who is absent. I transfer that pair to the senior Senator from Indiana [Mr. VAN NUYsJ and will vote. I vote "nay."

Mr. LEWIS. I rise to announce the absence of the Senator from Arkansas [Mrs. CARAWAY] and the Senator from Louisiana [Mr. OVERTON] caused by illness.

I also announce the absence of the Senator from Indiana [Mr. VAN NuYSJ and the Senator from New York [Mr. WAGNER], who are necessarily detained.

Mr. HARRISON (after having voted in the negative). I have a general pair with the Senator from Oregon [Mr. McNARY]. but I am advised that if present he would vote "nay " on this question. Therefore I will let my vote stand.

Mr. AUSTIN. The Senator from Pennsylvania [Mr. DAVIS] is absent on account of illness. His general pair and its transfer have been announced.

The Senator from Maine [Mr. WHITE] is necessarily absent. I am not advised how he would vote on this question. He has a general pair with the Senator from Arkansas [Mrs. CARAWAY].

The result was announced-yeas 32, nays 56, as follows':

Adams Black Bone Borah Bulow Capper Costigan Couzens

Ashurst Austin Bachman Bailey Bankhead Barbour Barkley Bilbo Brown Bulkley Burke Byrd Byrnes Carey

Cutting Duffy Frazier Hatch Johnson King La Follette Long

Clark Connally Coolidge Copeland Dickinson Dieterich Donahey Fletcher George Gerry Gibson

· Glass Gore Guffey

YEAS-32 McCarran McGill Murphy Murray Neely Norris Nye O'Mahoney

NAYS-56 Hale Harrison Hastings Ha.yd en

. Keyes Lewis Logan Lonergan McAdoo McKellar Maloney Metcalf Minton Moore

NOT VOTING-7

Pope Schall Schwellenbach Shipstead Steiwer Thomas, Okla. Thomas, Utah Wheeler

Norbeck Pittman Radcliffe Reynolds Robinson Russell Sheppard Smith Townsend Trammell Truman Tydings Vandenberg Walsh

Caraway McNary Van Nuys White Davis Overton Wagner

So Mr. CosTIGAN's amendment to the amendment of the committee was rejected.

Mr. BONE. Mr. President, I have joined with my colleague the junior Senator from Washington [Mr. ScHWELLENBACH] in presenting a group of amendments which I think are exactly like those submitted by the Senator from Colorado. I ask the clerk to read the amendments, which follow the one which has just been voted on, and I will ask for a vote on the amendments. · Th'ey are somewhat similar in character to the one just voted on.

The VICE PRESIDENT. The clerk will read. The LEGISLATIVE CLERK. On page 2, line 2, after the word

"President", it is proposed to insert the following: "in such manner, and for such purposes and such type or types of projects, Federal or non-Federal, as are now or may be hereafter authorized by law of the United States."

Mr. BONE. May I add to that the words: "or approved by the President."?

The VICE PRESIDENT. Without objection, the amendment is modified as suggested by the Senator from Washington.

Mr. BONE. I will ask that the clerk read the rest of the amendments, and that we may have a vote on them en bloc. I take it they will be voted down.

The VICE PRESIDENT. The clerk will state the other amendments.

The LEGISLATIVE CLERK. On page 3, line 17, it is proposed to strike out the word " public ", and in line 18, strike out the words " or political subdivisions thereof " and insert in lieu

thereof the following: "Territories, possessions, municipalities, public bodies and projects (other than those included in other categories herein specified) of a type or types now eligible for loans or grants or both under section 203 of title II of the National Industrial Recovery Act."

On page 7, line 15, before the word "to" insert the following: "(a) to make loans Cl) to States, Territories, possessions, municipalities, and public bodies and (2) to private bodies to finance projects of a character now eligible for loans under section 203 of title II of the National Industrial Recovery Act; (b) to make grants as well as loans (1) to States, Territories, possessions, municipalities, and public bodies and (2) to nonprofit agencies, corporations, and associations established for the purpose of providing electrification to rural communities; (c) to establish and prescribe duties and functions of governmental agencies (including corporations with corporate authority only as approved by the President and within the scope of this joint resolution); (d) to delegate the powers conferred on him under this joint resolution to any governmental agency (including a corporation or permanent department of the Government); and (e) ."

The VICE PRESIDENT. The question is on agreeing to the amendments.

Mr. BONE. Mr. President, I have just a word to offer. A great many communities in this country, not hundreds, but thousands of communities, pursuant to what appears to have been a deliberate invitation on the part of the Governmen, acting through its agencies, have been asked to prepare programs of public works. I assume that every Member of the Senate is familiar with that operation in his own State. If it has not been accomplished in other States, I should like to know which State has been missed.

In my State the word went out from the Government representatives there for each community to prepare a budget of its public-works projects of the character indicated in the joint resolution, or in the amendment of the Senator from Colorado.

I stated yesterday, and I desire to repeat, that if by any chance the courts shall so construe the language of the pending measure as to make the consummation of the desires of these people impossible, then a very great disillusionment is coming to them, and I think we ought to know that in advance; we should be fully advised of the -possible effects of judicial construction. I ask for a vote.

Mr. BORAH. Mr. President, may I ask whether the amendment on page 2, line 2, was agreed to?

The VICE PRESIDENT. It was agreed to. The first amendment of the ~ommittee, on page 1, line 3, was agreed to; and the vote was reconsidered, and the question now is on agreeing to the amendments offered by the Senator from Washington [Mr. BONE]. '

Mr. CLARK. A parliamentary inquiry. The VICE PRESIDENT. The Senator will state it. Mr. CLARK. It is my understanding that by a Senate

order the committee amendments were to be taken up first for consideration.

The VICE PRESIDENT. That is correct. Mr. CLARK. Has the Senator from Washington offered

an amendment to the pending committee amendment? The VICE PRESIDENT. He has done so and has received

unanimous consent of the Senate to consider an entire block of amendments which cover the entire joint resolution. The Senate can do anything by unanimous consent that does no'f; violate the Constitution of the United States.

Mr. BONE. I pursued the course referred to in order to expedite a vote.

Mr. BORAH. The amendment on page 2, line 2, has been agreed to, as I understand?

The VICE PRESIDENT. It was agreed to. Mr. BORAH. The first amendment offered by the Senator

from Washington proposes to insert the words: In such manner, and for such purposes and such type or types

of projects, Federal or non-Federal, as are now or may be hereafter authorized by law o! the United States.

How could non-Federal projects be authorized. by law of the United States?

1935 CONGRESSIONAL RECORD-SENATE - 3447 Mr. BONE. Because the original P. w. A. Act authorizes

the President to allocate funds for that purpose. Mr. BORAH. But the amendment says "' authorized by

law of the United States.u . Mr. BONE. We have added the. words "or apprnved by

the President.0 If there is any doubt or any question, if there is .any twi1ight zone there, 'that expression ought to correct it.

The VICE PRESIDENT. The questi-0n is .on agreeing to the amendments offered by the Senator from .Washington.

The amendments were.rejected. The VICE PRESIDENT. The questimi now is on· agreeing

to the first committee .amendment. THE RIGHT TO EDUCATION

Mr. LONG. Mr. President, I hope that I will not offend anyone who. has an amendment pending if I now proceed to complete a few remarks. I stopped short a moment ago because the Senator from Washington wanted certain amendments voted on; I cut my speech short SQ as to accommodate him.

Mr. GLASS. Mr. President, I wish very much the Senator from Louisiana would accommodate the Senator from Virginia and let us vote on the first committee amendment, which has been pending 2 days.

Mr. LONG. Mr. President, I sidetracked any effort to talk for the benefit of the Senator ·from Washington and the Senator from Colorado; then I voted for the amendments of both, tho~h I thought they were both wrong, in order to show that I was not going to stand in their way.. I not only stopped talking after letting them talk but I voted with them. So I th-Ought that ought to please everyone who was trying to amend the bill.

I desire to complete my few remarks concerning what seems to me to be about the only sensible thing which has been said regarding this joint resolution since it has been before the Senate the second time. I am trying to appeal to the Senate, instead of throwing away any more money, to use this money actually for relief, actually to cure unemployment and to educate the youth of the United states. I am trying to get the Senate to think ·just for a moment whether it is not better to spend this money at the rate of $15 per month per person to educate the youth of this land in the universities and colleges we now have rather than to pay $50 a month to someone to sweep leaves from one side of the road to the other until the leaves are worn out.

I said in the beginning that I had a friend who told me that in a certain park where the leaves had. been swept out so many times that they telegraphed to Washington to send them another carload of leaves.

I also said I had a friend in Oklahoma City who told me last week when he came to see me in my room that he had counted six times when they had mo-ved dirt from one place t.o another and then moved the dirt back to its original place.

So I have proposed to the Senate and to the country that there be incorporated on page 3 of the joint resolution an amendment providing that a billion dollars shall be devoted to be spent as we have lately spent $2<l,OOO,OOO. The colleges of this country, unless there has been a late message to the contrary, have been given to understand that the measly $20,000,000 which we managed to have appropriated to the universities of the country so as to help young men who were undertaking to secure an education will no longer be available.

That money was given to the universities and was used at the rate of around $15 to the student, as a result of which the University -of Louisiana and other similar universities were able to take care of from 450 to "500 students who otherwise would not have been able to attend college.

One of our fundamental defects, one of our fundamental troubles, is that the right to a high education, the right to a college education, and in some places even to high-school education, depends upon the financial capacity uf the parents to support the cost of · education. A fundamental fault with this country today, one which is tending. to create unemployment, one which is tending to create inequalities that exist between men, is that the right to education and

the right to training does not depend upon the ability of a. child to learn nor upon the energy a child is willing to expend in order to learn, but the right to .a college education depends upon whether or not the parents of the child have the money with which to send him to. college. One can get an education and the other cannot get an e.dueation. One is taught in a law school and another one is not taught in a law school. One is taught the science of medicine and another one is not taught the science of medicine. They are born equal in one respect only-they are equal Jn the matter of debts. Today every child who is born in America has tied around his neck his proportionate part of the public debt. The debts of the United States, public and private, amount to $252,000,000,000. That means that every chi!~ male and female., when it comes on earth and as long as it remains on earth, .on the average, owes about $2,000. So we .are carrying out the Constitution of the United states, as interpreted before it was written by the Declaration of Independence, that all men are created equal; we are carrying that out in one particular-that is, that there will never be any child born on earth so poor that he will not have hung around his neck the present, his birth present uf a $2;'()00 debt, some may say.

We do not neglect children in that particular; every child who comes here is given one present, a $2,000 debt the day he is. born.

It is because of the fault in the distribution of education that SQ many of these inequalities have been :caused. The only boy who can iO to college is the boy whose father is able to shell out enough mon-ey to pay the living expense and the cast of tuition at college.

So during this depression there seemed to be a little idea of social justice along the line of education. The Louisiana plan was fallowed to some extent. Mr. President. and an attempt was made to apply it in the United States, but they have found out that it is creating a terrible germ. We found out that with $20,000,000 the universities could expend that money at the. rate of $15 a child and give young men such credits and reduced costs for tuition that for $15 a child, $120 a year on the average, a boy or a girl could go through the university, and the magnificent sum of $20,000,000 out of $3,300,000,000 was spent for that purpose. Jn other words, they spent for this purpose about one-half of a copper cent every time they spent a dollar on the folderols. But they have now decided that they have -got to stop that; that-itis creating a germ which is going to be hard to control. They have decided that they have started something which is setting a bad example, because every other man's boy and girl in the United States is trying to be :eared for, as .some were eared for out of the little $20,000,000. In other words, they say they have got to turn the hands of the clock back because uf the fact that many boys and girls are now being led to expect that the Government is going to .see that they are educated; that it is a terrible thing to have people depending upon the Government for an education, and, therefore, according to one of the learned men from Iowa, according to one of the learned men who ca.me to see me, they are now undertaking to take away the little $20.,000,000 because the example which is being set is such that one man's boy is getting to the point where he thinks he has as much right to a college education as has the other man's boy.

In other words, a bad example, a very pernicious example, has been set with $20,000,000. -Out of the entire total debt of $10,000,000,000, from which one can hardly see any good that has come even with a .spirit level and a periscope-out of the total sum of $10,000,000,000, the little sum of $20,000,000 which has been spent for education amounts to about one-fifth part of 1 percent, and they want to discontinue that because it is setting a bad example.

Mr. President, I desire the Congress of the United Sta~ to spend the money of the :People in such way as Will do the ~ost good. Has Congress reached the point where it will not think? Has Congress reached the point where it will not use its mind at all? If Congress would stop for just a minute and use its own faculties, it would come to understand that here is an advantageous way to spend this money.

3448 CONGRESSIONAL RECORD-SENATE MARCH 12 Here is a cheap way to cure the depression. Here is a way to do eternal, permanent good. Here is a way by which the fiber of mankind is encouraged and virtue is not destroyed. Therefore, I propose to offer an amendment in a latter part of the pending joint resolution to effectuate the purpose I have described.

Mr. President, I have completed the remarks I intended to make on this subject at this time. I am not going further to tax the good humor of my friend from Virginia. I only have a few remarks to add under this heading. I want the Senator from Virginia to understand that I have no intention of unnecessarily taking up time. But the Senator from Virginia comes from one of the leading States from an educational standpoint. In his State we find the University of Virginia, and when Thomas Jefferson set forth what he 'wished to have on his tombstone one of the things he wanted there was that he was the founder of the University of Virginia. I want to find in the Senate the person or the persons who are able or who are capable of extending education throughout the United States. I do not believe that the Senator from Virginia is nearly so sympathetic toward this joint resolution as he has been toward other bills I have heard him sponsor. He lacks the fire he formerly had. He has not as yet told any of us what he thinks ·about us, even in private, and I do not believe he is really nearly so enthusiastic over the pending measure as I have seen him over other bills; but if we could get written into this joint resolution a provision that a billion dollars shall be used as I have indicated it would be well. Of the $5,000,000,000, 95 percent is going to be thrown away and never will do any good. I say that advisedly; I am not saying it merely for the sake of talking. Senators may think these power dams are going to do a lot of good-and I am for all of them; I should like to see 10 where 1 has been provided for; but by the time they get through spending this money and throwing away about $4 where they beneficially spend $1, and having it messed up by a bunch of bureaus in Washington, and by the time you get through paying your part of the taxes to do it, you would have been better off if you had taken your own money and done it in the first place, as you know.

I had a little experience with some of these bureaus. When I was Governor of Louisiana they wrote me a letter saying that if I did not reform one of our boards they were not going to give us any Federal help. I wrote the board a letter which is here in the files and it would be well if somebody would look at it and read it. That was before I learned to use diplomacy. [Laughter.] I cannot understand that kind of a greeting accorded such a remark. When they said, "Either do this or do that or we will do nothing", I wrote them back and said, "Keep your little money up there; we do not need it. You are not going to tell us how to spend a dime of it. If you have anything that looks good that you want to tell us, that is all right." What did they do? They finally came down there and interfered with us in the use of limestone as an aggregate in publicroad construction. They would not allow us to use the marble limestone there on the ground because, as they said, it did not meet the Federal specifications. Whereupon we told them to keep their money and we would use the limestone, anyway. They said that it would not do; that they required 3,500 pounds tensile strength to the square inch and that such strength could not be obtained with our limestone. Lo and behold, when we got our limestone roads built they brought a machine down there that would crack a road up at 5,000 pounds to the square inch, but their machine would not crack the road work; it would not crack the blocks. So they sent back and got a machine that would test up to 10,000 pounds to the square inch, but that would not crack the road. What did they do, this gang that had been down there telling us that they would not give us Federal relief money if we did not build the road as they said we should? They took our formula and put the inscription "Federal specification number so and so" on it, and sent that out to the country as being a great discovery that bad been made by the Federal Government, notwithstanding the fact that they would not pay a dime in the begin-

ning on the road that we were constructing with ·that limestone.

They were going to dedicate a bridge I built with money of other people. I said., " When are you going to dedicate this bridge?" They said, '~We have 1 mile of road to build yet." I said, "That is 1 mile of road, and at the most it never did take more than a week for us to build 1 mile of road." They informed me that they had to have about 4 or 5 weeks . to build that other mile of road; that the Federal Government had so many rules anct regulations and other things that they would not be able to build that mile of road for 5 weeks. So we . set the ceremony for the opening of the bridge ahead 5 weeks; and, I will be dadgummed if when the 5 weeks had passed that mile of road had not been completed and the bridge was not connected with the road, and so we had to hold the ceremony incident to opening the bridge without the connecting link being ready.

So I want to say for my part-and I mean every word I am saying-we would have been better off if we had never had a dollar of Federal money. The Government has gone in there and spent this money and told our people, " If you have got a garden, we are not going to put you on the relief roll", and they, therefore, do not raise any gardens. It has said to the man who has a potato patch that it is not going to let him have any relief money, and so he does not have a potato patch.

In my section a man can go into the country and raise a garden in 6 weeks' time. He can plant turnips and soon they will be up above the ground, and one can have turnips and com meal and catch fish somewhere and live easier than anywhere else on Gad's living earth. The sun shines there about 300 out of every 365 days, and the people have absolutely not much to worry about a.long the lines ref erred to, except in some of the crowded points, and with less employment our people in Louisiana can make out better than can people anywhere in the world.

When I saw the hard times coming on, we put out a 'little paper from the agricultural department of Louisiana, and we taught everybody in that State how to plant a garden. We taught them how to swap; we taught them how to swap a sack of beans from the hills of north Louisiana for a sack of rice from the lowlands of south Louisiana, whether either party had a dollar or not. We published an exchange list, which I should like some of the Members of the Senate to see; so that if a man in south Louisiana had a coop of chickens he could not sell he could trade it to a man in north Louisiana maybe for a sack of beans or a sack of potatoes. Lo and behold, this relief outfit came along, and if a man advertised that he had anything that he wanted to put on the list to swap to somebody they cut him off the relief roll, and, therefore, now none of them have anything they want to swap. That is how the relief agencies act; that is what is happening to relief.

The Senator from Virginia reminds me that I was not to tax his patience. · The reason I am doing so is the Senator looked as if he was getting interested as I was talking, and for that reason I am proceeding for a few minutes longer than I had intended. But the point is, you are never going to get the country back on a good basis when you are teaching the people to do away with the very things they have got to have. This straightedge of relief! If you are going to give any relief money, why not amend this joint resolution-I guess we could not get it amended in that particular-and let the States be responsible for it. I will guarantee that the State of Louisiana can exist on half what they are spending there right now and do much better. I make the statement that we can get along on 25 percent of what they are spending down there now if they will spend it in the right way.

I would make a man have a garden before I would give him any relief, instead of telling him he had to plow up his garden in order to get relief.

I would say," God helps those who help themselves. You can raise some things in this ground, and if you are so low down and so trifling and no account that you are not will-

1935 CONGRESSIONAL RECORD-SENATE 3449 ing to plant a few turnips and a few beans and a few potatoes and make what you can make, and have a shoat around the house, I will take you off the relief roll." I would not give anything to a man who is that low down. Instead of that, they come along and say, "If you have a garden, we will not give you any relief at all, and if you accidentally go out and, by chance, catch a day's work, we will take you off the relief roll altogether." Along comes somebody with a little temporary work; here is a man who decides he wants to build a barn. He would go out and hire a few people for 5 days, or perhaps for 2 weeks, in order to build a barn, but, lo and behold, he cannot get anybody to work for him, f.or the reason that anybody who works on a barn is going to be taken off the relief rolls. That is how the money is being spent.

It is mighty hard to get the Senate interested in any thing sensible right now because it is liable not to receive approval on the outside. It is mighty hard to get the Senate to be concerned about anything sensible in connection with this matter. Oh, it is somebody else's business. Who is spending this money? Who picked these men to spend this money? Did anybody ever vote for one of them? Not one of them could get enough votes to wad a shotgun. Who is it that is picking them to spend this money? Who is setting up these rules and these regulations and these laws to spend this money, anyway? It is nobody's business except to load on to the public debt. That is all they have been doing.

We had a little relief of our own in Louisiana; we had , a little relief in the city of New Orleans before Federal relief was started. The entire sum we spent in a year, l think, was around three or four hundred thousand dollars; at any rate, it was under a half million dollars; and there was not a single complaint down there.

Now Federal relief agencies are spending in the State probably a million and three-quarters dollars a month, and I would say that they are spending three-quarters of a million dollars a month in the city of New Orleans, whereas we went a whole year on $350,000. We told the people, "Go out and do a little fishing on your own account, raise your gardens, do what you can to help yourselves, and then we will give you what little we have; if you can get a day's work, go get it, and we will help you what we have to on the side." Today they are spending in that city probably $750,000 a month-perhaps it is less than that, but at least a halfmillion. They are spending three-quarters of a million dollars a month where we spent from $350,000 to $400,000 all winter; and there is more distress today, with their relief, than we had before we ever had any relief at all. If, however, I could get the Senate to do the sensible thing about this matter, if I could get the Senate to take a billion dollars of the five billion dollars and use a billion dollars for the purpose of giving to every boy and to every girl an opportunity to go to college at a cost of $15 a month, we would only pay out from $120 to $135 a year on any boy or girl, and we would take care of a million people much cheaper than it is costing us to take care of a quarter of a million at the present time.

We would be able to take out of the ranks of labor young men and young women who are going from door to door and from place to place trying to get a job of some kind when they have no business trying to get a job of any kind ' until their education shall have been completed. We would end the age-old .curse that the only man who can get an education is the young man whose father is wealthy enough to send him to college.

Am I arguing anything new? No! We did it to the tune of $20,000,000 last year, but now it is said, "Oh, no; we are starting a bad system." It is said we are getting young men and young women to depend upon the Government for their education, and thi&system must be stopped because it is liable to grow. It is the very system that ought to grow. The United States Government and the State governments owe to these boys and girls the right to · a college education. I had just as much right to a .college education as any boy that was ever born. I was not able .to go to college

while my neighbor's boy was able to go. The only reaso·n he was able to go was because his father was better off than my father. I had just as much right at my birth to a college training and to an education which the college could give me as any other boy who was ever born, and so did the neighbor's boy.

If the United States today would do its duty and would try to equalize opportunity instead of throwing this money away that is going to be thrown away-I wish to say that again: Throwing this ·money away, because that is what is being .done with 95 percent of it-we would not have the condition which exists today. We could take a billion dollars of this money and do what with it? We could give 800,000 young men and young women the opportunity to go to college tomorrow morning who cannot now go to college because of the fact that they have not the money with which to pay their college expenses. Such a plan would take 800,000 young men and young women who are looking for a place to get a job, and put them in college, would keep them from throwing some able-bodied man out of a job, and the fiber and the virtue of young American manhood and womanhood would be developed rather than diminished as a result of the relief activities which are now being carried on. That is what a billion dollars would do_. But that is too sensible a thing to talk about in the United States Senate right now.

Mr. GLASS. Mr. President, if the Senator from Louisia.na will let us get to that part of the joint resolution which he proposes to amend, we may be able to do what he desires sooner than we otherwise could.

Mr. LONG. That is the greatest concession I have ever had. With that statement, I shall certainly stop talking.

The PRESIDENT pro tempore. The question is on the adoption of the committee amendment. ·

The amendment was agreed to. The next amendment of the Committee on Appropriations

was, on page 3, line 5, to insert the following proviso: Provided, That except as to such part of the appropriation made

herein as the President may deem necessary for continuing relief as authorized under the Federal Emergency Relief Act of 1933, as amended, this appropriation shall be available for the following classes of projects, and the amounts to be expended for each class shall not, except as hereinafter provided, exceed the respective amount s stated, namely, highways, roads, streets, and gradecrossing elimination, $800,000,000; rural rehabilitation and relief in stricken agricultural areas, $500,000,000; rural electrification, $100,000,000; housing, $450,000,000; projects for professional and clerical persons, $300,000,000; Civilian Conservat ion Corps, $600,-000,000; public projects of States or political subdivisions thereof, $900,000,000; sanitation, prevention of soil erosion, reforestation, forestation, flood control, and miscellaneous projects, $350,000,000: Provided further, That not to exceed 20 percent of the amount herein appropriated may be used by the President to increase any one or more of the foregoing limitations if he finds it necessary to do so in order to ettectuate the purpose of this joint resolution.

Mr. BYRNES. Mr. President, I offer the amendment which I send to the desk to the amendment of the com .. mittee.

The PRESIDENT pro tempore. The amendment to the amendment will be stated.

The LEGISLATIVE CLERK. In the committee amendment, on page 3, line 17, after the numerals " $600,000,000" and the semicolon it is proposed to insert the words " loans or grants for"; and, in line 18, after the word "subdivisions"~ to insert the words "or agencies", so as to make the sentence read " loans or grants for public projects of State or Political subdivisions or agencies thereof, $900,000,000."

Mr. GLASS. Mr. President, I have no objection to the amendment.

The PRESIDENT pro tempare. Without objection, the amendment to the amendment is agreed to.

Mr. McCARRAN. Mr. President, I have an amendment, which has been printed and is lying on the table, which I desire to offer at this time to the committee amendment.


The LEGISLATIVE CLERK. On page 3, line 14, after the comma following the word " areas ". it is p11oposed to inse~

·3450 CONGRESSIONAL RECORD-SENATE MARCH 12 the words "and irrigation and· reclamation", so as to make the sentence read: "Rural rehabilitation and relief in stricken agricultural areas, and irrigation and reclamation, $500,000,000."

Mr. BYRNES. Mr. President, I will say to the Senator from Nevada that under the language of the ·amendment l'eported by the committee, both irrigation and reclamation projects are authorized.

Mr. McCARRAN. Will the Senator kindly indicate wherein they are authorized?

Mr. BYRNES. If the Senator will look at the RECORD of this morning and read the letter of the Comptroller General, I · invite his attention to the fact that under item 8 appear the words "miscellaneous projects." In the letter I submitted to the Comptroller General I specifically referred to reclamation projects, and the Comptroller General, in the letter which he wrote me and which I have had inserted in the RECORD, states they are included in item 8.

Furthermore, I am sure the Senator will be interested in line 21, section 10, where the joint resolution itself refers to reclamation projects. I think there can ~ no question as to the construction to be placed upon the language as including reclamation projects. The preceding item is held to include irrigation projects. In order that the RECORD may ·show the intention of the committee, I will say that there is no question that both should be included in the classification set forth. ·

Mr. McCARRAN. If that be true, I see no reason why the language I propose should not be ado.pted. We would all rather have it in the law than in the interpretation of the 'law.

Mr. GLASS. The amendment should not be adopted because the language it proposes to incorporate is already in the joint resolution. It wowd be a useless repetition.

Mr. BYRNES. May I suggest to the Senator that I know what ~e . has in mind? Because there are really not 8 but some 60 projects which would be cared for tinder his classification, that is the only reason why · they were not all included. They could not very well all be included. If it were attempted to itemize them with that particularity we would be in some danger of having an adverse determination hereafter.

In order to make sure that they were included, I submitted the matter to the Comptroller General. So long as the Office of the Comptroller General says they are included and he will approve the vouchers, then there is no question as to the ruling of that· Office. There can be a question only where the Comptroller General does not approve. Then there is an argument between the executive departments and the ·comptroller as to whether he is right. But where he approves it the matter is determined, and he has said that he approves.

Mr. McCARRAN. That is under the title" Miscellaneous .Projects"?

Mr. BYRNES. Yes; and it is also confirmed by section 10 of the joint resolution . .

Mr. McCARRAN. Of course, if we read section 10 and apply the plain simple language of that section, we could get no consolation whatever. Permit me to read it.

Mr. KING. Mr. President, will the Senator yield before he does that?

Mr. McCARRAN. Certainly. Mr. KING. May I say to my friend from South Carolina

that in addition to passing the scrutiny of Mr. Mccarl, the Comptroller General, it probably will have to pass the scrutiny of Secretary Ickes, and perhaps of the Attorney General, and the Director of Reclamation?

Mr. BYRNES. I will state to the Senator that this classification, as the Senator from Virginia has said heretofore, was prepared by officials of the Federal Relief Administration and their attorneys, and their construction was that the projects referred to were included; and expenditures under it will be submitted, not to the Attorney General, but to the Comptroller General. If he approves an expenditure, it is paid. It is only when he disapproves it that there is a

controversy between the Attorney General and the Comptroller General.

Mr. -SHIPSTEAD. Mr. President-- . Mr. McCARRAN. I yield to the Senator from Minnesota. Mr. SHIPSTEAD. Having heard the explanation, it ap-

pears to me that there is danger that Comptroller General · Mccarl may be doing the legislating, instead of the Senate.

Mr. BYRNES. I do not think so. I do not think it is fair to say that. The Comptroller General is not legislating. I asked his interpretation solely to obtain an informal opinion as to whether or not, under this classification, the various things that were intended to be done would be construed as authorized; that is all. He is not legislating. He is simply interpreting the.language of this particular section.

·Mr. GLASS. As a.matter oUact, is it not true that Compoller General Mccarl · is not in Washington, and that this

was an opinion of one of his assistants? Mr. BYRNES. That is correct. That is why I said, "the

Office of the Comptroller General." Mr. GLASS. So far as I am concerned, I do not need any

Comptroller General or any Attorney General or Secretary Ickes or anybody else to tell me that "miscellaneous projects" under this joint resolution include anything and everything that the President, in his discretion, may determine to do. In addition to the $350,000,000 suggested-because it is all suggestive; there _is not a mandatory word in the jo1nt resolution-in additio.n to the $350,000,000 suggested for use for miscellaneous purposes the rre~ident is specifically authorized to transfer $800,000,000 more, making $1,150,000,000 that he may use for irrigation or education or anything else for which he may determine to use it. If he does not determine to use it for those purposes, it is not going to be used for those purposes. There is nothing in the joint resolution that compels its use.for those purposes.

Mr. SHIPSTEAD. Mr. President--Mr. McCARRAN. I yield to the Senator from Minne

sota. Mr. SHIPSTEAD. If it is the clear understanding that

Congress agrees with the interpretation of the chairman of the committee, I am perfectly willing to go by that, if that is to be the law. There has been a great deal of controversy here·, however, and there seems to be a great deal of misunderstanding. We desire to have a clear understanding that there is no limitation; there is nothing barred out. For instance, river and harbor works are not mentioned in this category, although millions of dollars have been spent in that way, and various projects are in process of being built. We desire assurance that such projects are not going to be discontinued, and that the projects under construction are going to be finished.

Mr. GLASS. I will remind the Senator from Minnesota that on yesterday the Senator from Florida [Mr. FLETCHER] interrogated me about rivers and harbors, and I seemed to satisfy him completely by telling him that rivers and harbors could be included under this miscellaneous item, with the right of the President to transfer $800,000,000 to the $350,-000,000 provided.

Mr. SHIPSTEAD. With that understanding, I shall not off er an amendment.

Mr. BYRNES. Mr. President, will the Senator yield to me further?

The PRESIDENT pro tempore. Does the Senator from Nevada furt:tier· yield to the Senator from South Carolina?

Mr. McCARRAN. I yiel_d to the Senator. Mr. BYRNES. I will say to the Senator that the joint

resolution provides that in the discretion of the President he may spend the money for anything; and the only reason for asking any interpretation is because of th~ questions that have been asked. Therefore we asked those who are going · to administer the joint resolution. They say they can spend money for reclamation, irrigation, and rivers and harbors. Because of the questions which have been asked, and because it has been said that even though those who are to administer the joint resolution say they can spend the money in a certain way, some question will be raised by the Comptroller General; we asked the Comptroller General, and

1935 CONGRESSIONAL RECORD-SENATE 3451 he says they can spend it in that way. What more could be done? · Mr. McCARRAN. Mr. President, I desire first to address myself to the enlightening remarks of -the , Senator .from South Carolina [Mr. BYRNES], whose views I always respect, as I always respect the views of the Chairman of the Appropriations Committee, even though at some time he does not go along with me on the amendment for the master plumbers of the country. ·

I address myself to section 10, referred to by the Senator from South· Carolina. With --.the permission of the Senate, I will read section 10 :

Federal public-roads projects, rivers and harbors projects, reclamation projects, and public-buildings projects undertaken pursuant to the provisions of this joint resolution shall be carried out under the direction of the respective permanent Government departments or agencies having jurisdicti9n of such pro1ects, and the performance of all contracts in connection with such projects shall be subject to the supervision and control of such departments or agencies.

The language, together with the punctuation used therein, is so specific that it has nothing to do with the section we now seek to amend. In other words, if reclamation and irrigation are not included in the amendment of the committee as it appears on page 3, then section iO has no application whatever. That is so clear to me, at least, that I cannot see it .. otherwise. If, however, reclamation and irrigation are included in the allocations as they have been attempted to be made in section 3, then perchance section 10 would become operative.

That brings us back to page 3, and to the lines to which .I have attempted to make a very simple and, to my -mind, only a corrective amendinent. · I say " corrective " because I have been advised that the term "miscellaneous" covers a multitude of thing&-covers everything.

Mr. GLASS. A multitude of faults. Mr. McCARRAN. I hope I shall not be indulging too -much

in facetiousness if I say that the old spinster, ''Miss Cellane-~ 'ous ",· bas · only served to · bring suitors i:rito court. I have

never known that term to bring any other result; neither have I ever known that partfoular and now avowed thing to bring greater· results. · . If, as a matter of fact, all that is said by the Senator from South Carolina [Mr. BYRNES] is true-and I have a most profound respect for his interpretation-I ask the Senate of the United States who does the legislating for the people of this country? I ask the· Senate of the· United States-:-why should we unload our burdens on the Comptroller General? .Are they not ours? Are we not responsible for the language? Why say that the Comptroller Genera.I has said, in anticipation of the enactment of legislation, that be will construe certain language along a certain line?

To my mind, that was never the office or the province or among the ·powers of the Comptroller General. I think we should write the law and, when we have· written it, let the Comptroller General construe it as best he can. But when an opportunity is afforded here for those who are charged with a responsibility to write something into·a law the making of which they have in their hands, why shirk the duty? Why say to the Comptroller General, " You may construe it afterward. We have on file your letter in which you say you will construe it so-and-so."

There are only two words here, but those two words mean more to the life of the West than anything else of which I have personal knowledge. When I say "the West", may I enlist the attention of those who are wedded to the East and the South, and who do not know the problems we in the West have to encounter? They do not realize, perchance, that we cannot cause two blades of grass to grow where one has formerly grown unless we have the water that comes down from the snowy summits of the mountains. They do not realize, perchance, that the great territory into which the unemployed must go in the years yet to come is the West. When I say" the West", I am going to limit myself to the territory west of the Mississippi; and t_hen, if I might be more specific, I would say the West of adventure yet existing; the West of

LXXIX--218

the Mountain States, where reclamation a.nd irrigation are the only means of livelihood.

In the pending· joint resolution, Mr. President, there are terms that might imply the creation of homesteads where men might live and employ agencies around them, or might ·live by · their own exertions. Where is the possibility for homesteads? Where does it exist? Where is the possibility for toil, for labor? Where is the possibility to absorb the 20,000,000 -now out of employment?

I point to the West, and then I am going to point to something else, I hope, before the Congress shall adjourn, and that is. th~ great Territorial possession of Alaska, which stands today as the West stood in the years that have passed.

Reclamation, the conservation of the waters which otherwise will flow down and be lost, and irrigation, will make for this country new homes, new possibilities, new things that are worth while.

Why deny us the right to insert the two words in this joint resolution?

Mr. President, I hope that my advocacy of another amendment which will come before us, with whatever contentious elements may be involved, will not take from the force of my advocacy of something which means so much to the people of the great western section. I hope there will be nothing in my words or in my thoughts that will take from the force and effect of an effort which was made after the publicworks bill was passed, when groups of us-for there are Senators on the floor who joined with me at that timewent to the President and to Secretary Ickes and asked them to allocate $250,000,000 for reclamation and irrigat10n, just as we had allocated $400,000,000 in the same measure for public highways.

Mr. ASHURST. Mr. President, will the Senator yield? Mr. McCARRAN. I yield. Mr. ASHURST. My disposition and desire as to the pend

ing joint resolution are to follow the Senator from Virginia in all the points, but frankness compels me to say that there is so much force, from a legal viewpoint, in the argument made by the Senator from Nevada [Mr. McCARRAN] that I hope ·the committee will take this amendment to conference for a careful examination.

Mr. GLASS. I have no objection whatsoever, Mr. President. The whole thing is merely suggestive, and I have no objection in the world.

Mr. COSTIGAN. Mr. President, if the Senator from Nevada will yield, will the Senator from Virginia permit the ad.dition of the words· " transmountain diversion", which I discussed yesterday, as part of the amendment for inclusion?

Mr. McCARRAN. I think that is all a part of irrigation -and reclamation, and I should be glad to accept it.

Mr. COSTIGAN. And may I acid the words" water conservation "?

Mr. GLASS. What else? This shows the difficulty about the thing. If we accept one project, then they come tumbling one after another. I have no objection to the inclusion of reclamation and irrigation, because the whole thing is suggestive anyhow; it is all up to the President, and I accept the amendment.

Mr. COSTIGAN. I offered an amendment to the amendment, which I understood the Senator from Nevada to accept, so as to add the words "water conservation" and "transmountain diversion." Mr~ McCARRAN. I think that is all included in the two

generic terms. Mr. GLASS. If it is all included in the two generic terms,

let us have the two generic terms, and nothing else. Mr. McCARRAN. I accept the amendment to my amend

. ment offered by the Senator from Colorado. Mr. GLASS. The Senator is running a risk of my with

drawing my acceptance of his amendment, if he is going to accept all other amendments.

Mr. McCARRAN. It is only explanatory. I know the Senator will not do that. ·

Mr. GLASS: Oh, well; let it go. It does not matter.

3452 CONGRESSIONAL RECORD-SENATE MARCH 12 The PRESIDE~ pro tempore. The .question is on agree- ator from Georgia [Mr. GEORGE], th~ Sena.tor from Okla

ing to the amendment offered by the Senator from Nevada, , homa [Mr. GORE], the Senator from Kentucky [Mr LOGAN] as modified, to the committee amendment. . and the Senator from Montana [Mr. WHEELER] a~ neces~

The amendment to the amendment, as modified, was sarily -detained from the Senate. agreed 1;>· . Mr. BULKLEY. I have a general pair with the senior

Mr. 0 MAHONEY. Mr. President, I have sent to the desk Senator from Wyoming [Mr. CAREY] who is necessarily an amendment I propose to the committee amendment, which absent. I transfer that pair to the junior Senator from I ask the clerk to read. Oklahoma [Mr. GORE] and vote " nay." ·

The PRESIDENT pro tempore. The clerk will state the The result was announced-yeas 5, nays 75, as follows: amendment to the amendment. YEAS-5

The CHIEF CLERK. On page 3, line 8, after the word Frazier Norbeck Schall " amended ", it is proposed to insert " or for restoring to the Long

Thomas, Okla.

Federal Emergency Administration of Public Works any sums which after December 28, 1934, were, by order of the President impounded or transferred to the Federal Emergency Relief Administration from appropriations heretofore made available to such Federal Emergency Administration of Public Works."

The PRESIDENT pro tempore. The question is on agreeing to the amendment of the Senator from Wyoming [Mr. O'MAHONEY] to the committee amendment.

The amendment to the amendment was agreed to. Mr. LONG. Mr. President, I send to the desk an amend

meut which I desire to propose to the amendment of the committee.

The PRESIDENT pro tempore. The clerk will state the amendment to the amendment.

The CHIEF CLERK. In the committee amendment, fallowing line 18, page 3, it is proposed to insert the following:

For affording funds to colleges and universities to advance to , students needing and desiring financial assistance to pay costs and living expenses necessary for college courses and study at or in such colleges and universities, $1,000,000,000.

Mr. ASHURST. Mr. President, I did not hear the numeral.

Mr. KING. One billion dollars. Mr. GLASS. Mr. President, that amendment has been

extensively discussed, and I ask for a yea and nay vote on it. Mr. BYRNES. Mr. President, I should like to say one

word before the v.ote is taken. Under the item "projects for professional and clerical

persons, $300,000,000 ", the President is authorized, and it is the intention of the ad.ministration, to carry on the work it has been doing specifically in giving aid to students. The administration has the authority now to continue that work, and it will be done in the discretion of the President, under the appropriation of $300,000,000.

Mr. BORAH. Mr. President, may I ask the author of the amendment whether this would increase the sum total appropriation by $1,000,000,000?

Mr. LONG. No; if the amendment shall be adopted, I intend to shave down other items,

Mr. BORAH. But if the Senator did not succeed in shaving them down, it would increase the sum total?

Mr. LONG. That is correct. The PRESIDENT pro tempore. The question is on agree

ing to the amendment offered by the Senator from Louisiana to the committee amendment. The yeas and nays have been requested. Is the demand seconded?

The yeas and nays were ordered_. and the Chief Clerk called the roll.

Mr. AUSTIN. I announce the absence of the Senator from Pennsylvania [Mr. DAVIS] on account of illness. He has a general pair with the Senator from Kentucky [Mr. LOGAN]. I do not know how either Senator would vote on this question.

I also announce the pairs of the Senator from Maine [Mr. WmTE] with the Senator from Arkansas [Mrs. CARAWAY], and the Senator from Vermont [Mr. GIBSON] with the Senator from Colorado [Mr. COSTIGAN]. I am no advised how any of these Sena rs would vote on this question.

Mr. LEWIS. I announce the absence -0f the Senator from , Arkansas r:Mrs. CARAWAY] and the Senator from Louisiana

[Mr. OVERTON] occasioned by illness. I also announce that the Senator from Washington [Mr.

. BoNEJ, the Senator from Colorado [Mr. COSTIGAN], the Sen-

Adams Ashurst Austin Bachman Balley Bankhead Barbour Barkley Bilbo Black Borah Brown Bulkley Bulow Burke Byrd Byrnes Capper Clark

Connally Coolidge Copeland Couzens Cutting Dieterich Donahey Duffy Fletcher Gerry Glass Guffey Hale Harrison Hastings Hatch Hayden Keyes King

NAYS-75 La Follette Lewis Lonergan McAdoo McCarran McGill Mc Kellar McNaTY Maloney Metcalf Minton Moor-e Murphy Murray Neely Norris Nye O'Mahoney Pittman

NOT VOTING-15 Bone Davis Gore : Caraway Dickinson Johnson Carey George Logan Costigan Gibson Overton

Pope Radcllffe Reynolds Robinson Russell Sch wellenbach Sheppard Smith Steiwer Thomas, Utah Townsend Trammell Truman Tydings Vandenberg VanNuys Wagner Walsh

Shlpstead Wheeler White

So Mr. LoNG's amendment to the amendment of the committee was rejected.

The_ PRESIDENT pro tempore. The question is on agreeing to the amendment of the committee, as amended.

Mr. STEIWER. I offer an amendment to the committee amendment, which I send to the desk and ask to have read.


The LEGISLATIVE CLERK. In the committee amendment, on page 3, line 20, it is proposed, before the word "and", to insert the words "rivers and harbors."

Mr. STEIWER. Mr. President, I ask the Senate's atten-tion for just a minute to this proposal. ·

I think there is no Senator who would try to exclude from the list of projects provided in the pending joint resolution the construction of river and harbor works. I understand it is the purpose of the administration to carry on the important work of improving rivers and harbors out of the funds provided by the joint resolution. That is so definitely understood that the War Department appropriation bill recently passed by the Senate carried no appropriation at all for rivers and harbors. We are advised that it is the purpose, or at least it is contemplated by the Bureau of the Budget, and I think it is true that it is contemplated by the President himself, that the important work to be carried on in the country in the development of rivers and harbors shall be carried on by moneys diverted from the pending appropriation. It would seem, therefore, that there could be no objection to the amendment offered by me except on the ground that 1t may not be necessary.

I shall not argue that question, because I would rather obtain a quick conclusion with respect to this matter if it be possible; but I do wish to say to Senators that there is more than one view which m1ght well be held with respect to the inclusiveness of the categories set forth in section 3 of the joint resolution.

I know that the chairman of the c9mmittee takes the view that the President may do anything within his discretion under the joint resolution. Personally, I take quite a different view. When the language starts with an exception, as it does in line 5, and then proceeds· to say that, with the exception of the uses there named, the money shall be available for a certain purpose, it seems to me that may be construed as meaning that the money is available for those purposes, and for those purposes only; and, Mr. President,

1935 CONGRESSIONAL REGORD-SENATE 3453

inasmuch as there may well be· a controversy about it, it\ line 20, "miscellaneous projects", for which $350,000,000 is would seem to me the part of prudence to include the amend- provided, the President would have the power to build hos-ment I have just proposed to the committee amendment. pitals or schools on Indian reservations.

Mr. GLASS. Mr. President, I feel authorized to accept the Mr. GLASS. He would have the power to do anything. amendment to the amendment. Mr. BYRNES. I think really there is a wide discretion,

Mr. STEIWER. I thank the Senator. and that he could use money in constructing houses, cer-The PRESIDENT pro tempore. The question is on agree- tainly on reservations.

ing to the amendment offered by the Senator from Oregon Mr. THOMAS of Oklahoma. With the expressions by the to the committee amendment. chairman of the committee and by the Senator from South

The amendment to the amendment was agreed to. Carolina, I will accept their interpretation and withdraw Mr. BARBOUR. Mr. President, I should like to direct a the amendment.

question to the chairman of the committee. I do not think The PRESIDENT pro tempore. The question is on agree-any amendment is necessary to cover the subject matter of ing to the amendment of the committee, as amended. my question, but I should like to have an expression of his Mr. METCALF. Mr. President, I offer the amendment opinion. which I send to the desk.

I refer to line 19, page 3, where the language of the joint The PRESIDENT pro tempore. The amendment will be resolution is "prevention of soil erosion.'' I shall ask the stated. chairman of the committee if he feels that that would also The CHIEF CLERK. On page 3, line 13, before the comma, include what is known as "coastal erosion'', erosion due to and after the world "elimination", it is proposed to insert the ravages of the sea, the protection of coastal areas of the the words "or protection." United States. Mr. METCALF. Mr. President, the necessity for this

Mr. GLASS. I think it would comprehend any kind of amendment was called to my attention by a very sad case land erosion, whether it is on the sea or anywhere else. where a man lost his only son at a very awkward grade

Mr. BARBOUR. In other words, soil erosion would include crossing. The adoption of the amendment offered by me coastal areas, so far as the Senator's opinion is concerned? may afford an opportunity to provide such protection as may

Mr. OLASS. I should think so. be necessary when it would not be desired to go to. the great Mr. THOMAS of Oklahoma. Mr. President, in order that expense of building an over or an under pass. There are

I may obtain a construction of one word, I offer an amend- many things in the way of .protection at grade crossings ment which I ask to have read, and then I shall direct a which might be afforded. question to the chairman of the committee. Mr. GLASS. Mr. President, I will say to the Senator that

The PRESIDENT pro tempore. The amendment to the that can be done by the President under the item "Miscel-amendment will be stated. laneous projects " for which $350,000,000 are proposed to

The CHIEF CLERK. In the committee amendment on page be appropriated, with the privilege of transferring $800,000,-3, line 15, after the word "housing", it is proposed to insert 000 more to it. "including hospitals, schools, and other structures or plants Mr. METCALF. But the amendment is designed to come of public character on land under the jurisdiction of the right in after the words "grade-crossing elimination", and United States.'' it seems to me that it would not harmfully affect the joint

Mr. THOMAS of Oklahoma. Mr. President, the word resolution in any WBIY.

"housing'', as I understand it, is not an all-inclusive term. Mr. GLASS. We cannot load the joint resolution down According to thP. dictionary, the word "housing" means with everything that occurs to the minds of Senators, when shelter or cover, or houses collectively; not a single house. the laqguage of the joint resolution is so broad that prac-It means shelter or lodging. tically everything may be done.

I offer the amendment in order to obtain an understanding Mr. METCALF. I did not think in the respect I have in-of what is meant by the one word "housing.'' If this joint dicated it was quite broad enough, and so the adoption of resolution shall be enacted, in all probability the Interior De- the amendment might simplify and improve the provision. partment will ask for funds with which to construct some The PRESIDENT pro tempore. The question is on the improvements on Indian reservations. amendment offered by the Senator from Rhode Island [Mr.

Funds will be requested to make additions to hospitals on METCALF] to the amendment reported by the committee. Indian reservations; funds will be requested to build day The amendment to the amendment was rejected. schools where numerous Indian children reside and where Mr. COPELAND. Mr. President-no white schools are provided. This amendment is intended Mr. GLASS. Mr. President, I promised to yield first to so to broaden the term "housing" as to permit the Interior the Senator from California [Mr. McAnooJ. Department to make a request for funds for the uses Mr. COPELAND. Mr. President, I gladly yield to the indicated. Senator from California, in the hope that I may ultimately

I should like to ask the chairman of the committee or any obtain the floor. other Senator who can give the interpretation whether the Mr. McADOO. Mr. President, I do not care to occupy the word "housing" is sufficiently broad to cover the allocation floor at this time. of funds for the particular purposes I have indicated. Mr. COPELAND. Mr. President, I feel it my duty at some

Mr. GLASS. Mr. President, the chairman of the com- stage of the proceedings to comment on the pending joint mittee does not possess any great familiarity with the mean- resolution. Perhaps I may well do so now. ing of that item aside from the fact that the public officials There are many reasons why I do not wish at any time to having charge of housing activities were called in consulta- appear to be in oppo.("~tion to the administration. I prefer to tion in connection with the preparation of this amendment support the President in all the things he desires to do. I to the joint resolution. It is the opinion of the chairman cannot disregard the fact, however, that I, too, took an oath of the committee, for what it may be worth, that it would when I entered upon this office, and I have some feelings include the things mentioned by the Senator from Oklahoma about the joint resolution which I consider it to be my duty and that those things in some measure are now being done to my State to present. by the Housing Administration. In New York City there is the largest unit of unemployed

Mr. THOMAS of Oklahoma. I realize that is true, but persons to be found in any part of om country. About I think that in the existing appropriations the word "hous- 2,000,000 of our people in New York City are on the dole. ing" is not in the law. Think of it, a third of our population are now receiving

Mr. BYRNES. Mr. President- relief benefits. Because of that fact, I think I should speak Mr· THOMAS of Oklahoma. I yield to the Senator from about the joint resolution as it affects the people not alone

South Carolina. of New York City but of New York State. Mr. BYRNES. I will say to the Senator from Oklahoma Frankly, I fail to find in this measure anything which will

I have not the slightest doubt that under the language in be of material benefit to my State. I have said that 2,000,000

3454 CONGRESSIONAL RECORD-SENATE MARCH 12 of our people in New York City are on relief. Who are I should be grateful if the Senator would point out how they? these women could be put to work, as the men are to be

They are milliners and dressmakers and needle workers put to work, who are garment makers and employed in and garment makers; clerks and stenographers and mani- similar lines of industry. So far, I have not been able to curists; nurses and doctors and lawyers, engineers, and ascertain just bow we might employ them in an employment draftsmen. They are not persons who can go out and use a program. pick and shovel. So I am frank to say that I cannot see Mr. COPELAND. Mr. President, as a member of the Combow the people I have the honor in part to represent are to mittee on Appropriations I tried, when we bad witnesses bebe benefited by the passage of this measure: fore us, to get information with reference to this matter.

I bad a very significant letter yesterday-I am not going Unfortunately I cannot tum to the exact place in the hearto read it all, but I wish to insert it in the RECORD if I may ings which I desire to quote. I asked the question, "Are have permission to do so. there plans formulated by which these people will be taken

The PRESIDING OFFICER. Without objection, permis- care of? " The answer was " no." Later came the proposal sion is granted. which was incorporated in the joint resolution as we have

The letter appears as exhibit A at the conclusion of Mr. it before us. I could have recited these same figures at the COPELAND'S remarks. time I spoke in the Appropriations Committee a month ago,

Mr. COPELAND. I want Senators to know about this because I bad in my possession a paper which showed practiletter. It is written by a highly respected young man who cally the same break-down included in the pending measattended a meeting of "white collar" persons in my city ure. The paper I hold in my hand purported to state how two or three nights ago. He said he thought it to be his the money would be spent-$500,000,008 for the elimination duty -to let me know about the situation in New York City. of railroad grade crossings; $300,000,000 to $400,00tl,OOO for In this letter he asks me certain questions as follows: railroad equipment, and so forth; about $200,000,000 on

Do you kn:ow that over 20,000 accountants are unemployed in urban construction; $75,000,000 on rural construction; about the metropolitan area? ' $100,000,000 on rural electrification; and further with refer-

Do you know that over 100,000 men and women clerks and ence to rural electrification it was stated $1,000,000,000 stenographers have no work?

Do you know that 12,000 lawyers, doctors, engineers, and den- should be spent. This would build transmission lines from tists are walking the streets? Maine -to Seattle and across the country from Canada to

Mr. President, I do know the answer to these questions the ·Mexican border. How would that help the unemployed and my answer is, "Yes; I know that this is true." in New York City?

There is another thing said in this letter which I wish the Mr· BYRNES. Mr. President--Senate to know: The PRESIDENT pro tempore. Does the Senator from

We had a report last night that the National Employment Ex- New York yield to the Senator from South Carolina? change and other such agencies were picketed by Communists to Mr· COPELAND. I yield. make members of disappointed patrons of such agencies. These Mr. BYRNE.5, In response to the point the Senator has Communists do not make themselves known, but hang a.round the been discussing with reference to the professional and clericorridors and hallways of the various buildings in which these cal worker, the administration of the F. ·E. R. A. stated this agencies are locateC:.. One of these men was approached by a Yale Ph. D., think of it, and handed literature of a communistic item is intended to give employment to a large number of nature. professional and Clerical workers now on the relief roll by

That is what is going on in all the cities and in all the enabling them to be employed in dramatic work, educational centers of population. work, student aid, workers' education, literacy classes, nuts-

Mr. BORAH. Mr. President--- ery schools, vocational training and rehabilitation, map-The PRESIDENT pro tenipore. Does the Senator from ping, nursing, and other public-health work, officers' plan-

New York yield to the Senator from Idaho? ning work, keeping of records, research and special services, Mr. COPELAND. I yield. population problems, and traffic studies. These are some of Mr. BORAH. Would not the provision reading, "projects the projectS upon which the professional and clerical work

for professional and clerical persons, $300,000,000 ", meet ers are being employed. I am satisfied it will give comfort the situation of which the Senator speaks? to the Senator to know that the item will furnish opportu-

Mr. COPELAND. I do not think it would. nity to employ some of the people 'to whom he has referred. Mr. BORAH. I presume it was intended to meet it. Mr. COPELAND. · Mr. President, I wish I had the same Mr. COPELAND. I have no doubt that the authors of confidence the Senator from South Carolina has that the

the joint resolution intended to reach tho.se persons. But, 2,000,000 unemployed in the city of New York would have the for myself, I would rather have the c. w. A. reestablished work he suggests. But everybody knows that they would not and inade active and given sufficient money to take care of have work. How would the great work projects provided in these people than to have great building projects under- the joint resolution-and amendments have been offered this taken which will give no relief to the large groups of afternoon to add other work projects-help in the great cities unemployed in the cities. I have no doubt that on the of America? How would they help in Baltimore, spoken of various projects there may be found work in connection by the Senator from Maryland [Mr. TYnmGs]? How would with which orofessional and clerical persons may be em- they help in Chicago or Boston or St. Louis or some of the ployed, but 1rn might better· frankly create work, initiate other great cities? There would be practically the same projects that make work, than undertake to mislead the number of unemployed persons that we have today. public by the thought that by the passage of this joint Mr. DIETERICH. Mr. President--resolution these idle professional and clerical workers will The PRESIDENT pro tempore. Does the Senator from be employed. New York yield _to. the Senator from Illinois?

Mr. TYDINGS. Mr. President--- Mr. COPELAND. Certainly. _ The PRESIDENT pro tempore. Does the Senator from Mr. DIETERICH. The Senator asks how these projects

New York yield to the Senator from Maryland? would help in Chicago. They are going to help in Chicago Mr. COPELAND. I yield. because there is a movement there now for improved trans-Mr. TYDINGS. The situation described by the Senator portation in the matter of elevated streets. New York would

from New York, to a lesser degree, is the situation in my derive the same advantage from it, and it would be of benefit own State of Maryland, particularly in the city of Baltimore not only to the city but to the country and to those who have and some of the larger towns, where a great many people to visit that city. -who are unemployed are women. I have been advised, not Mr. COPELAND. I have no question about the material being able to engage in manual labor of the kind generally benefits which would follow and which would be given to my outlined in the joint resolution, that they will have to look community. Of course, I .should like to have grade-crossing to the regular relief appropriations for support as differen- elimination and fine paved streets and bridges and elevated tiated from work projects. structures. I should be glad to have all such things, but if

1935 CONGRESSIONAL RECORD-SENATE 3455 I have to choose between such projects and the relief of human beings who will not be benefited by this proposed legislation, it is perfectly clear where my duty lies.

Mr. DIETERICH. If they would furnish the opportunity for work, would not that be relief to the class of citizens to whom the Senator has referred?

Mr. COPELAND. Would it not be wonderful! We could put all the milliners and needle workers and manicurists and nurses at work in building elevated structures in New York City! [Laughter.] I know how kind-hearted is the Senator from Illinois, and I am glad to know that he has solved the unemployment problem in New York by suggesting that we build elevated structures.

I know I am simply talking into the blue vaults of heaven to speak as I do;_ nevertheless, I do not intend to be silent or to let my people be deceived. There is nothing in the pending joint resolution- which will relieve unemployment of the sort I have indicated in the cities of the State of New York. We could build highways and eliminate grade crossings; we could build transmission lines from here to the moon, but unemployment in New York will be there just the same. I desire to make it clear that the pending joint resolution does not provide the relief which we must have in order to prevent communism and unsocial proposals being advanced and perhaps the social order threatened.

Senators do not know how serious this matter is until they go to the crowded communities. We think that our Republic is as stable as the earth-itself. - There have been changes in government before now and in this generation; we do not know how soon it may be that there will be a change here. We cannot afford as a Nation to permit people to be humiliated,- to permit our citizens to be hungry, to permit our citizens to be without proper clothing and housing. We cannot permit these conditions to continue and then imagine that the old order is going to continue as

. it has through the -last 150 years. This matter is far more serious than the question of

whether we are going to appropriate money for flood control or rivers and harbors or other such projects, which in themselves are worth while and which in their proper place I should be glad to support.

Mr. TYDINGS. Mr. President, will the Senator yield? Mr. COPELAND. Certainly. Mr. TYDINGS. Does the Senator know whether or not

there is any place in the Federal Government where a census bas been made of the unemployed, and broken down into what they can and cannot do?

Mr. COPELAND. I think such studies have been made. Mr. TYDINGS. But there has been no real census taken.

They are mere estimates. I rose to suggest to the Senator, in view of bis own equation which seems to have been omitted in most of the unemployment legislation, that it might be wise for him to draft a bill to have that kind of census made so we would know accurately just what the unemployment situation is. He could certainly use some of the unemployed in New York in making that kind of census, which would be worth while for us to have in the consideration of this kind of legislation in the future.

Mr. REYNOLDS. Mr. President, will the Senator from New York yield?

Mr. COPELAND. Certainly. Mr. REYNOLDS. In pursuance of the statement made

by the brilliant Senator from Maryland, it is my inf ormation that of the some 5,000,000 unemployables and employables on relief, 3,500,000 employables and 1,500,000 unemployables, there are approximately 750,000 of the whitecollar class listed on the relief rolls.

I am going to be perfectly frank in stating that I am very happy indeed that the Senator from New York has brought this subject to the attention of the Senate, because I agree thoroughly with him that we are overlooking that great class of people sometimes ref erred to as the middle class or the white-collar class, who are not going to receive under this measure the relief which they should receive.

I believe the Senator and all here will agree with me that the people of the middle class, the white-collar class, are

entitled to just as much consideration as any others who are being considered in connection with this public-works measure. As the matter now stands, the only way in which we can possibly be of assistance to that great class which is being championed by the Senator from the State of New York is to provide those people who by their labors are to get the benefits of this works bill with a wage sufficient, from a living standpoint, to buy the necessities of life, which will raise the standards of living, and which will aid the industries throughout the entire Nation, and thereby provide work for the middle class of which the Senator has made mention.

Mr. COPELAND. Mr. President, I thank my friend from North Carolina, always kind-hearted, always interested in the welfare of the common man.

Mr. President, have Senators thought about the humiliation of self-respecting persons, thrifty persons, persons who lately have been unemployed, who formerly were employed in activities where they had enough income to maintain decent homes, to bring up their children, to give them some of the "gravY" of life? Have Senators thought about tbe humiliation of those persons now, when they are deprived of income, and are farced actually to go to public relief stations in order that they may be fed? Think of the effect of this situation upon the morale of the youth of America!

Mr. VANDENBERG. Mr. President--Mr. COPELAND. I am here to say to the Senate that in

my judgment we are pursuing a course which will undermine respect for law and respect for American institutions; that we are on a road which will lead to destruction unless we find some means of dealing with the great problem which is presented.

I yield to the Senator from Michigan. Mr. VANDENBERG. Mr. President, the Senator from

Maryland a moment ago asked the Senator from New York whether any study had been made to determine whether work is available for the various types of unemployed.

I will state to the Senator from New York that precisely that sort of an analysis has been made in my State of Michigan. I have been going over it during the past 2 days, and I am driven to the irresistible conclusion that the statement now made by the Senator from New York is inescapably correct. Prom the information submitted within the past 48 hours by the Michigan Planning Commission, which is one of the ablest bodies of its kind in the country, I am driven to the conclusion that, even under the most optimistic prospectus of those who promote the pending legislation, 4 out of 5 of the unemployed in the State of Michigan will be disappointed as a result of what ultimately will occur. Therefore, the Michigan Planning Commission is forced to the conclusion-and I submit it for what it is worth, because it so completely supports the attitude of the Senator from New York-that each State has a problem of its own in respect to one phase or another, first of relief and then of relief work, and that the logical way to handle a measure of this character would be to allocate the sum total to the proper authorities in each State on the basis of their relative unemployed and permit subdivision of the amounts within each State to fit the necessities of realities which actually exist in the State.

I cannot escape from the logic of that position, and I think the Senator from New York will agree with me regarding it.

Mr. GLASS. Mr. President, what is the matter with the logic of the contention that each State should take care of its own affairs? ·

Mr. VANDENBERG. Mr. President, if the Senator is addressing me, I agree with him 1,000 percent.

Mr. GLASS. Very well. Mr. VANDENBERG. I have always said in the State of

Michigan that if we could be permitted to raise and spend our own money, we would be infinitely better off than on any other basis.

Mr. GLASS. I know that my State would be better off, because it is not only supplying money for Virginia but it is supplying money for 15 States, all of ~hich put together

3456 CONGRESSIONAL RECORD-SENATE MARCH 12· do not pay as much taxes into the Federal Treasury as does Virginia.

Mr. VANDENBERG. But. Mr. President. we are confronting the problem that there is to be an allocation of Federal funds. and I am discussing the practical fact that we desire to have the funds accomplish the purpose to which they are dedicated; and I do not believe they will accomplish that purpose in many States where conditions exist precisely as defined by the Senator from New York. and as reported to me by the Michigan Planning Commission.

Mr. GLASS. It will be interesting to the Senate when we shall put into the RECORD, as I think we shall in a day or two. some information covering the question of what has been done with the $3,300,000,000 already appropriated and allocated; and it may be that the Senator from New York will find that New York has received a considerable slice of that fund.

Mr. VANDENBERG. Mr. President, will the Senator from New York permit me to make one further observation regardi.ng his State?

Mr. COPELAND. I yield. I find the discussion of the Senator very interesting and profitable.

Mr. VANDENBERG. The Senator from New York ·will find at the same time, from the CONGRESSIONAL RECORD of February 22, that the disbursements of the Federal Emergency Relief Administration up to O.ate indicate that the State of New York has received only 49 percent of its total relief expenditures from the F. E. R. A., and has itself paid the balance out of its own State and local funds, whereas other States have received as much as 99 percent of their relief expenditures from the Federal Government. According to this statement. the State of Virginia has received 79 percent from the Federal Government. My own State of Michigan is in approximately the same classification. I wish to be entirely fair about it. The Michigan percentage is 72 percent; Mr. President. is not this a further challenge in equity? Why should one State be required to carry a larger share of its own burdens than another State? Why should there not be equality in the distribution?

Mr. OLASS. Yes; and there should be some reference to the taxes paid into the Federal Treasury by the respective States. Virginia is sixth in the United States in paying taxes into the Federal Treasury.

Mr. VANDENBERG. Again I agree with the Senator from Virginia that it is one of the factors that ought to be taken into consideration.

Mr. GLASS. I desire to say, furthermore, that so far as the senior Senator from Virginia is concerned, whatever percentage Virginia has obtained from the Federal Treasury never was obtained by my request. and never will a dollar be secured by my request. I think Virginia ought to take care of her own affairs, · and I think every other State should be required to do likewise.

Mr. COPELAND. Mr. President, if I may be permitted now to proceed in my own right, I have not raised the question of how much my State will be called upon to pay of this proposed appropriation. 1 -do not do that because in years past. in resisting appropriations, it was a favorite effort of mine to call attention to the taxes paid by New York. Whenever I mentioned the fact that New York pays 30 percent of the Federal taxes, the fine Senator from North Carolina, Mr. Simmons, used to rise in his place and say, "New York is the reservoir into which the wealth of the Nation flows. It is not made there. It is made elsewhere." Nevertheless, my State will be called upon to pay a billion and a half of the money proposed to be appropriated in this joint resolution.

I am not proud of the fact that large Federal projects have been given to my State. I am glad, of course, to see those great projects carried out; but with the wealth of the State of New York it is not necessary for us to pass the hat and ask for money to carry on our work, provided, as the Senator from Michigan and the Senator from Virginia have suggested, each State is left free to carry on its own relief work. I realize that there are . States in the Union where it is not possible to provide the funds through State taxa-

tion; but I desire Senators to know that we. in the State of New York, have not failed to recognize our responsibility,

The Senator· from Michigan has put in figures showing that of the relief money expended in the State of New York, 49 percent came from the Federal Government; the other 51 percent through our State and its municipalities. My city of New York is spending $16,000,000 a month to take care of unemployed persons in the city. The State has bonded itself for large sums to carry on relief work in the city.

Mr. President, this joint resolution carries a false implication. The joint resolution on its face appears to say-to use the figures called to my attention by the Senator from South Carolina-that we are going to spend $30,000,000 for professional and clerical persons. As a matter of fact. it does not actually do anything of the kind. There is a. break-down for these various projects; but at the end it says:

Provided further, That not to exceed 20 percent of the amount herein appropriated may be used by the President to increase any one or more of the foregoing limitations if he finds it necessary to do so in order to effectuate the purpose a! this joint resolution.

Twenty percent of $5,000,000,000 is $1,000,000,000. A billion dollars may be taken from any pa.rt of this joint resolution and added to rural electrification, or some other project. I realize that it could be added to profe~ional and clerical workers, but experience leads me to believe that that would not happen.

Mr. President, I desire to have the citizens of my State know that, in my judgment. the joint resolution offers no relief to the suffering people in New York. As I said a moment ago. I would prefer to go back to the C. W. A. and make work, and give these people employment, rather than to have this joint resolution pass.

Now I wish to make another statement. We could give this human relief by a very much smaller sum than we have written into the pending joint resolution.

We are asked to provide $880,000,000 for direct relief. For my part, I am willing to add to that any amount necessary to give relief. If the joint resolution were written so that it provided $1,880,000,000, or $2,880,000,000, to make sure that those people who are now hungry and without shelter and clothing could be taken care of, I would gladly vote for it; but the proposal is to give $880,000,000 for direct relief. and then $4,000,000,000 is allocated, as suggested in the joint resolution, but with the proviso which sets aside at once such allocation.

Mr. President, how long can this country continue to borrow billions of dollars? Is there no limit to the possi· bilities of what we may produce from our banks in the taking up of Government securities? We have gone on and on, until we find, in the portfolios of some banks, 50, 60, and even 75 percent of their securities in the form of Government bonds.

No bank in the United States today dare lend money for the ordinary activities of the community in whicn the bank is located, because of the demand which is likely to come at any time for more money to take over Government securities. The banks are forced to take those Government securities because, if there should no longer be a market for them, there would be a slump in the price. I think I am right in quoting the Senator from Virginia, that if there should be a 10-percent slump in Government securities, every bank and trust company and insurance company in the United States would be in insolvency.

How long can we continue this sort of thing? We can continue it indefinitely, if it is a' matter of taking care of human beings, but when we provide what is in effect a "pork barrel••, to build projects here or there or elsewhere. even though some of them are in the State of New York. if we go on doing that sort of thing month after month and year after year, the time will come when there will be no funds to give for human relief.

Mr. President, I realize that it is utterly useless to speak about these things; but let me remind you a bank which uses a million dollars of its deposits to buy Governm'ent securities has a million less to use for local enterprise, for


the business and agriculture and the manufactures of the community.

We are not going to buy our way into prosperity; we are going to buy our way into poverty. That is my honest judgment.

Mr. TYDINGS. Mr. President--The PRESIDING OFFICER (Mr. GERRY in the chair).

Does the Senator from New York yield to the S~nator from Maryland?

Mr. COPELAND. I yield. Mr. TYDINGS. I should like to point out to the Senator

from New York that this $•.000,000,000 is broken down into about 10 or 12 subdivisions, and the President would have the authority to take 20 percent of the total amount and use it" to increase any one or more of the foregoing limitations if he finds it necessary to do so."

I make the observation that where the large reservoirs of unemployment exist, many of these projects will do very little good, as the Senator has already pointed out, and in order to allow the President to have enough latitude to take care of unemployment where it exists, I suggest to the Senator that one way to at least work in that direction would be to strike out the 20 percent figure, and make it 33 Ya percent.

Mr. COPELAND. The Senator may offer any amendment he chooses to offer, but these figures total $4,000,000,-000; so, if the President takes 20 percent or 33% percent he will have to take it from something in the measl1te, something in the enumerated projects. I cannot say to the people in my city of New York that professional persons are going to be benefited by the expenditure of $300,000,000.

I know the great heart of the President, and I know he will do the human thing, but, at the same time, I cannot make any positive statement to the suffering people in my community. I cannot answer the letter before me in all honesty and say, " We are going to take care of you."

Mr. President, it is my judgment that we are presenting to the country a measure which, no matter how honorable were the intentions of its authors, is deceptive and misleading. There are likely to be further disappointment and more heartbreakings because of the failure of the joint resolution to accomplish what its authors intended.

Mr. ROBINSON. Mr. President, will the Senator yield to me?

Mr. COPELAND. I yield. Mr. ROBINSON. Assuming that the fund may prove in

adequate or that the distress may not pass during the period in which the fund is being expended, and further arrangements may prove necessary, what is the suggestion of the Senator? Should the pending legislation be rejected and nothing be done by the Federal Government looking toward giving work to those who are out of employment?

Mr. COPELAND. The Senator is not serious in asking me that question, is he?

Mr. ROBINSON. Certainly. Mr. COPELAND. He asks me, Should nothing be done? Mr. ROBINSON. As I understood the Senator, he said

that the problem should be relegated to the States. Mr. COPELAND. I did not make the suggestion that we

should, by legislation, do that now as an amendment to the pending measure. I am in favor of voting all the money needed for human relief. That includes the $880,000,000, and another billion, if need be.

Mr. ROBINSON. By limiting the fund to direct-relief purposes? That is what I had not understood.

Mr. COPELAND. I do not think I would say that. Going back to the original language, or a substitute for it, this measure I think might well -be amended by reducing the amount by $2,000,000,000 or $3,000,000,000, so that the President would have in his hands $2,000,000,000 or $1,000,000,000, plus the direct-relief fund. Then if the President thought it wise he could carry on some of the activities suggested in the joint resolution.

Mr. ROBINSON. That is based on the theory that the measure carries more than is necessary?

Mr. COPELAND. The $4,000,000,000? Mr. ROBINSON. Yes.

Mr. COPELAND. Yes; I think that $4,000,000,000, so far as direct relief and unemployment relief are concerned, would be largely wasted.

Mr. ROBINSON. Why would the Senator be in favor of appropriating $2,000,000,000 for that purpose?

Mr. COPELAND.' I will leave it to the Senator to suggest the amount. My own preference would be to appropriate a billion eight hundred and eighty million, and give it to the President to spend as he saw fit.

Mr. ROBINSON. That would be not more than the amount necessary for destitution relief over a prolonged period?

Mr. COPELAND. I do not know. Mr. ROBINSON. One of the theories underlying the

measure is that, by supplying work, we diminish relief. One of the objects of the joint resolution is to take people off the relief rolls and put them on work rolls, so that they may earn at least their subsistence. Of course. if we provide no work, our relief rolls, instead of diminishing, will continue at least for some time as large as they now are.

Mr. COPELAND. Mr. President, the Senator did not hear the first part of my statement. I recited that in my State the milliners, and dressmakers, and manicurists, and clerks. and stenographers, and nurses, and needle workers, and garment workers, persons who cannot go into theEe various manual projects, because they are not suited for them, would not be taken care of by the measure. My argument is that there is little or nothing in the joint resolution which would give relief to the sort of unemployed in whom I am particularly interested.

Mr. ROBINSON. Why would they not come within the class expressly provided for, professional and clerical persons?

Mr. COPELAND. I may say to the Senator that the entire amount of money provided in this break-down for that group would not take care of the people in my city alone for a longer period than 18 months. There would be distress even if we gave every dollar of the fund to New York.

Mr. ROBINSON. I understand that the fund probably is inadequate for all the purposes which should be in mind, but, granting that it should prove inadequate, would it not be better to do this much than to do nothing?

Mr. TYDINGS. Mr. President, will the Senator yield? Mr. COPELAND. Does the Senator desire to speak now? Mr. TYDINGS. I wish to point out something to the Sen-

ator which is along the line of what he has been saying. Mr. COPELAND. Very well. Mr. TYDINGS. Let me point out to the Senator from New

York that what is really happening in anticipation of the passage of this joint resolution is that every community in the United States, whether it needs the money or not, whether there is unemployment there or not, has met and already agreed upon projects to cost away beyond anything they would consider in normal times.

For example, I have in mind one county in my State which has never gotten any Federal relief. One little town in that county has already approved projects totaling $103,000. Another county on the Eastern Shore of Maryland has applications in for $1,000,000 worth of projects, and that is an agricultural section of the State.

I am going to vote for straight relief, such as the Senator from New York has outlined he is going to vote for, for the simple reason that in many cases this money will not go to the communities which need relief; but every community will try to get its particular share of it, and relief will be beside the question. Already in every county and every city in every State in the Union the city council or the county commissioners have thought of what they can put in applications for in order to have ten, fift~n. twenty-five, or one hundred thousand dollars spent in the community, without the slightest regard to unemployment or whether or not the project has merit. I know that is the fact, as all Senators on this floor must know.

Twelve million or twenty million people are out of employment. I say it is a travesty to give this money to communities which can get along without it, and -to keep it from communities which must have it in order to live. That is particularly true of the larger cities of the country~New.

3458 CONGRESSIONAL RECORD-SENATE MARCH 12 York, Chicago, St. Louis, San Francisco, Boston, Baltimore. Pittsburgh. That is where these large wells of unemployment exist, where people are on the dole. This money that it is proposed to spend for soil erosion and for one thing and another is not going to reach into those large reservoirs of unemployment. It will result in a national scandal. We shall be ashamed of it.

We ought to provide adequately for those who are the victims of this depression until such time as we can formulate and promUlgate a plan which will carry this money to the people who ought to have it. I am not going to be a party to having relief money spent in communities which can get along without it, and keeping it from communities which must have it in order to live.

Mr. COPELAND. Mr. President, I desire to say a word for myself, if I may.

Mr. ADAMS. Mr. President, may I interrupt to add a word to what the Senator from Maryland has just said?

Mr. COPELAND. I yield. Mr. ADAMS. In the hearing before the committee, as the

Senator from New York recalls, the Secretary of the Interior stated that on the 28th of February 1934 he ceased receiving projects. He said that up to that time his Department had received a large number; that of those they had received up to that time they had some $2,000,000,000 of projects approved by State authorities, not approved by his Department, but he had $2,000,000,000 then available; that he had not taken in any projects since the 28th of February 1934. I understand that without any change ·in that authority, without any appropriation of additional funds, without any invitation of Congress, he now has over $14,000,000,000 of projects.

Mr. COPELAND. Mr. President, I should like to say in the same connection, adding to what the Senator from Maryland has said and what the Senator from Colorado has said, that I myself have heard persons in various communities say, "We are opposed to the spending of these millions of dollars, but we must get ours. Here is our chance. We have been wanting to do this, we have not had the money, but now the Treasury is open, and we must get ours." That is exactly what has happened.

Did the Senator from Colorado say the amount was $14,000,000,000?

Mr. ADAMS. That was a week ago. Mr. COPELAND. It may be $21,000,000,000 by now. The

attitude of these people is, "We must get ours"; that is all. I now wish to say a word in reply to what was just said

by the Senator from Arkansas [Mr. RoBINSONl. Mr. LONG. Mr. President, is not a million to a million

and a half dollars a month being spent for relief in the District of Columbia, where all this public employment is going on? Does the Senator know whether or not that is the fact?

Mr. COPELAND. I do not know. Mr. LONG. I do not know, and I may not be accurate

about the figures, but I have been given to understand that here in the District of Columbia, where people by the hundreds have had fo be employed to operate these new bureaus, nevertheless there is an unemployment relief which costs, for the dole, about a million to a million and a half dollars a month, and, even with that there are people living within a block or two of my office who do not have enough money to put electric lights in their houses. I am speaking now of conditions right here in the District of Columbia.

Mr. REYNOLDS. Mr. President, if the Senator from New York will permit me to add a word to what the Senator from Louisiana [Mr. LONG] has just said, I agree with him in what he has said. I have been informed that relief throughout the country has been costing the Federal Government about $58 a second, about $3,400 a minute, about $150,000,000 a month; and I am reliably informed, directing this statement to the Senator from Louisiana, that the amount of relief required for the District of Columbia in proportion. to the population of the citizens of the country has been about 15 to 20 percent larger than in any other city in the country of an equal population according to the

census, which is ascribable to the fact that people are flocking to the city of Washington, the capital of the country, from all over the United States. I believe that is what the Senator from Louisiana had in mind.

Mr. ROBINSON. I suppose literally hundreds of thousands of them have come here seeking employment.

Mr. REYNOLDS. That is true. Mr. LON~. Mr. President, I hardly think a person who

comes here is taken car.e of unless he has been here for a while. Do they take care of a man the day he gets here?

Mr. COPELAND. He has to be here a year. Mr. LONG. Yes; he has to be here a year, I understand. Mr. ROBINSON. I presume if he got in a position where

he could not take care of himself, some provision would have to be made to take care of him. Of course, that does not apply to a large number of people who have come here seeking positions, but many have come here who have been unable to secure employment, and after weeks or months they have found themselves stranded.

Mr. REYNOLDS. That is quite true, Mr. President. If I may be permitted, I should like to add a word.

Of course, we have an unusually large number of transi~nts here, and the District authorities have been caring for those unfortunates in the transient houses. It is not necessary for one to live here a year in order to obtain a residence so as to entitle him to be provided for. For that very reason, more funds are required for the District of Cotumbia than are required in other cities of the United States of an equal papulation.

Mr. COPELAND. Mr. President, I will now resume in my own right. I had no thought of speaking over 20 minutes. I wish to reply, however, to what the Senator from Arkansas has said. I may be utterly wrong, but I do not think it is good for the business recovery of America--

Mr. GORE. Mr. President, will the Senator yield to me? Mr. COPELAND. I yield to the Senator from Oklahoma. Mr. GORE. I wish to say one word with reference to

what the Senator from North Carolina [Mr. REYNOLDS] and the Senator from Louisiana [Mr. LONG] have said with regard to the District of Columbia. They say that the relief roll here is 15 percent larger than in any other similar community, and that notwithstanding the fact that a larger percentage of the population of the District is on the pay roll, perhaps, than in any similar community on the globe.

I do not assert or assume that the following case is typical, even in the District of Columbia; but I had a young man who is employed in my office go down to headquarters here where they were paying off the people who were on the relief roll. He let his whiskers grow out and put on his working clothes, so that he could go down and mix and mingle and find out what was passing through the minds of the recipients of relief and what they thought of this situation. He fell in with a group of young men 19, 20. 21 years of age; and he reports to me that the chief topic of their conversation was matching prison records, the hero seeming to be either the one who had been in prison the most often or who had lingered longest within prison walls. Also, among other interesting topics were the particular prisons where they had received the most cordial treatment and where they had fared the best.

To what extent, if at all, that is typical, I do not know. It may have been in part the bravado of youth. It may, however, shed at least one ray of light on some of the byproducts of this undiscriminating policy and the burdensthe disproportionate burdens-imposed upon the taxpayers of the United States and of my State by placing such characters on the pay roll, by quotaing them on the Public Treasury, here in the District of Columbia, here in the Nation's Capital. Not that this would make any difference with those who think that it is more blessed to spend than to savemore blessed to tax than to retrench.

Mr. COPELAND. Now, Mr. President, I desire to say a. word in reply to what the Senator from Oklahoma said.

I do not doubt that there are burglars and pickpockets and other underworld characters in the relief line. I should think th.ere would be many of th.em, because there is certainly

1935 CONGRESSIONAL RECORD-SENATE 3459 nothing now that they can get out of the homes of the socalled " well to do/' But I should not be willing to let the remarks of the Senator from Oklahoma give the impression that the majority of the people in bread lines are underworld characters. I happen to know persons of my own acquaintance who are in the relief line. If they are not in the publicrelief line they are in the private-relief line.

Senators do not realize how wide-spread is the unemployment and how great the distress of millions of our citizens. May I enlarge upon this subject for a moment? There is no group more seriously affected by the economic depression of today than youth. Young men and women who have just graduated from college, the boys and girls who have just graduated from high school-there is nothing for them to do. They hear about the money which we have given through the R. F. C .. which we have loaned to railroads and banks. They talk these things over. Just because they are povertystricken does not mean they have no sense. They talk about those things, and there is resentment--resentment, growing resentment--and I say for myself, as the conviction of my soul, that America is seriously menaced by what is taking place in this country today.

Now I leave that to come back to the Senator from ArkanE:as. Apparently the question of the Senator from Arkansas was intended to bring out from me how much I would be willing to reduce the amount carried by the measure and why. ·

·Who can controvert this statement: If a bank in Little Rock is called upon to take $100,000 of a Government offer of bonds, who can question that that means the Little Rock bank has $100,000 less left for local business purposes? I believe business is being retarded by what we are doing here, not alone because of the uncertainty which prevails, but because banks no longer function as banks. They no longer serve the public by lending money for legitimate business. I am not talking about big business. I am not talking about railroads and metropolitan banks. I am talking about the little merchant and the little manufacturer. Take it from me, Mr. President, they cannot borrow any money. Bankers say they take all the loans which off er which are worth-while loans, and probably that is the truth; but they do not consider them worth while if they are not loans of extraordinary type.

Bankers have had to be satisfied, and perhaps they have been satisfied, to take over Government securities, and to depend upon transactions involving those Government securities for their profits to maintain overhead and pay perhaps reduced dividends. But if there is the belief all the time on the part of the bankers of America that there will be a call now or next week or 6 months from now for money for new offerings or for refunding operations or for something of that sort, they are not going to operate as banks; they are not going to use the money to help the farmer and the manufacturer and the merchants of the community. They are going to save those funds to take up the Government offerings.

Under present conditions, why should ·they not take that position?

Mr. LA FOLLETTE. Mr. President--The PRESIDENT pro tempo re. Does the Senator from

New York yield to the Senator from Wisconsin? Mr. COPELAND. I yield. Mr. LA FOLLETTE. With the permission of the Senator

from New York I should like to revert briefiy to the suggestion advanced by the Senator from Oklahoma [Mr. GORE], that the people on relief are largely made up of ex-convicts.

Mr. GORE. Mr. President, I believe the Senator from Wisconsin, if he had heard what I said, would know that I did not say that the case I cited was typical, but was an instance which might shed some light and stimulate further inquiry as to who are receiving these benefits.

Mr. LA FOLLETTE. With the permission of the Senator from New York I want to answer to the best of my ability and with such information as I have at hand, the plain inference which I think has been left by the remarks of the Senator from Oklahoma that most of the people who are

receiving benefits under the relief act are mendicants, and he has now asked practically whether or not they are all exconvicts.

In May 1934 it was estimated that there were 3,485,000 experienced workers on the urban relief rolls of the United States. I hold in my hand a table which shows the distribution of those workers according to the years of experience they have had at their usual occupation, and also the length of time served with one employer.

Those who had an experience of less than 6 months numbered 383,000; those who had experience from 6 to 17 months, 383,000; those with 18 to 53 months' experience, 1,115,000; those with 54 to 173 months' experience, 1,220,000; those with 174 months or more, 279,000; not ascertainable, 105,000.

I also desire, with the further indulgence of the Senator from New York, to point out the remarkable situation with reference to steadiness of employment prior to the economic crisis so far as those who are employable and were upon the relief rolls last May are concerned. Those who had had less than 6 months with one employer numbered 174,000; those who had had 6 to 17 months with the same employer, 209,000; those who had had 18 to 53 months with one employer, 697,000; those who had had 54 to 173 months with one employer, 1,359,000; those with 174 months or more experience with one employer, 1,011,000; those not ascertainable, 35,000. In addition, there were 336,000 persons seeking work who had had no experience in private industry.

With the permission of the Senator from New York I should like to have these brief tables inserted in the RECORD at this point.

There being no objection, the tables were ordered to be printed in the RECORD, as follows:

FEBRUARY 19, 1935. MEMORANDUM

In May 1934 it is estimated that there were 3,485,000 experienced workers on the urban relief rolls of the United States. The following tables show the distribution of these workers according to the years of experience they have had at their usual occupations (table 1) and also the length of the longest job with one employer (table 2).

TABLE 1.-Years of experience at usual occupation of war'l&rs in the May 1934 urban relief population

Years of experience

Total workers __________ --------_------------------- __

Less than 6 months----------------------------------------6 to 17 months---------------------------------------------18 to 53 months--------------------------------------------54 to 173 months __________________________________________ _ 174 months or more------------------------ -- --------------N ot ascertainable ______ ------------------- _________ --------

Number of Percent d.is-workers tribution

3, 485, 000

383,000 383,000

1, 115, 000 1, 220, 000

279,000 105, 000

100

11 11 32 35 8 3

TABLE 2.-Length of longest job with one employer of experienced workers in the May 1934 urban relief population

Length of longest job with 1 employer

Total workers ____ -------------- _____ -----------------

Less than 6 months ___ -- ~ ----------------------------------6 to 17 months __ -------------------------------------------18 to 53 montbs __ ------------------------------------------54 to 173 months_------------------------------------------174 months or more_---------------------------------------Not ascertainable ___ ---------------------------------------

Number of Percent dis-workers tribution

3, 4.85,000

174.,000 209,000 697, ()()()

1, 359,000 1,011,000

35,()(1()

100

5 G

20 39 w 1

In addition, there were 336,000 persons seeking work but who had had no experience in private industry. (Federal Emergency Relief Administration, Division of Research, Statistics, and Finance Research Section.)

Mr. COPELAND. Mr. President, I thank the Senator for adding to the importance of this discussion. Along the line just mentioned by the Senator from Wisconsin let me quote again from the letter I have mentioned. I know that one swallow does not make a summer, but the young man who wrote me said:

Personally I have been unemployed for 3 years, with the exception of one or two engagements in audit work. I am a college graduate in law, and a fully qualified accountant, 41 years of age, married, and have two in the family. My ancestors are patri-

3460 CONGRESSIONAL RECORD-SENATE MARCH l~ ots, a.nd I myself am a veteran but have ta.ken no stand whatever on the soldiers' bonus and do not intend to do so, although I am down to my last $100.

This young man is lucky. He has $100 left. I do not like to go to my office in New York. It breaks

my heart to have the multitude of persons come in to see me to beg for work, work which I cannot give them, to beg for jobs which I cannot find. Those who have the best luck are those who ask for loans of small sums of money, which I have been glad to make within my means. ·

The cities of the country are just teeming and steaming and agitated beyond words, ready to do anything because they have no work. We come here with a measure which pretends to give money for great building projects, building prisons and hospitals, grade separations, and other activities which are of no use in the world to the kind of persons about whom I am telling the Senate.

No one of them could hold a job on such a project for 1 day. But they are human beings who have been self-respecting and self-supporting persons in the past. Now they cannot find a way to earn a living, and have to take relief. It is our duty to give the relief; but while we are giving them the relief to which they a.re entitled, if we seek at the same time to " prime the ptimp " some more-a pump which is dried up and broken apart, and which, in my judc,oment, cannot be primed by the expenditure of more millions of dollars-we are on the wrong track, as I see it. Yes; let us appropriate billions, if we need to do so, to keep these people fed and clothed; but when, in addition to that, we seek to take billions of dollars on the theory that by building these great projects we are going to increase the manufacture of cement and steel, and hope to stimulate normal business, as we have been trying to do for 2 years by the operation of the P. W. A., when we seek to spend four billions more in the same useless directions that we did before, I say, Senators, it is, in my opinion, the wrong course for us to take.

Mr. CONNALLY. Mr. President, will the Senator yield? The PRESIDENT pro tempore. Does the Senator from

New York yield to the Senator from Texas? Mr.

1COPELAND. I yield.

Mr. CONNALLY. I have been very much interested in the Senator's discussion. Do I understand him to .advocate direct relief only, and the striking from the joint resolution of all provisions for public works?

Mr. COPELAND. No; I do not. I propose materially to reduce the amount for so-called "work relief" and leave it to the President in his judgment to use it as he wishes. In the committee I pleaded with the Senator from Colorado [Mr. ADAMS] to make the sum two billion dollars instead of one, plus the $880,000,000. Finally, however, I have reached the conclusion that if we vote $1,000,000,001> for such work relief as the President chooses to employ, we shall be going just as far as we should go now. Congress is going to meet again. I assume this session will be going on for a good many months yet; but, in any event, there will be another session.

Mr. CONNAILY. I was anxious to know if the Senator desires to restrict the appropriation to direct relief. If so, that makes an issue here that we can determine; but he now says that he wants to have a billion dollars instead of $4,000,000,000 appropriated for public works, and the other sum for relief. Is that correct? If so, we would still be spending a billion dollars for the very things the Senator says are not any good.

Mr. COPELAND. I am willing to have the Members of the Senate who think we ought to spend money for some of these things that the Senator says I think are "not any good'', have a little money to spend, and a billion dollars seems to me enough for that experimentation.

Mr. CONNALLY. I am not trying to heckle the Senator. I really want to get his views as to what he advocates.

Mr. COPELAND. To be perfectly frank about it, I believe the President ought to have a sum of money which in his judgment he can use for work relief. ·

Mr. CONNALLY. If I recall last night's paper correctly, the Senator's own city got $1,600,000 last night in the way of an allotment. I do not say that to twit the Senator.

Mr. COPELAND. No; but I wish to reply to that, nevertheless. I do not care if New York gets the whole $4,000,-000,000; I am opposed to it just the same.

Mr. CONNALLY. I only suggested that because the Senator indicated that none 9f this money would go to give employment to the people in the cities about whom he is so much concerned. I know that there are now pending in the Public Works Administration a number of allocations one of them to dig a tunnel under the Hudson River as i recall, which doubtless is giving employment to the ~ople in the cities.

I think the people in the cities are entitled to the same consideration as the people in the country, and I want to see a measure passed that will relieve this situation everywhere as much as it can be relieved; but in the nature of things, the Government cannot undertake every activity. It cannot establish beauty ·parlors to relieve the unemployment in beauty parlors. It cannot start barber shops in order to help out the barbers. It must restrict its activities to the particular kinds of improvements that will give employment and yet have some permanent value to the public at large.

Mr. REYNOLDS. Mr. President, will the Senator permit me to interrupt him?

The PRESIDENT pro tempore. Does the Senator from New York yield to the Senator from North Carolina?

Mr. COPELAND. I do. Mr. REYNOLDS. I understand that if this · public-works

measure, carrying an appropriation of $4,000,000,000, shall be passed, approximately 50 percent of that amount will be expended in materials for construction work.

Mr. COPELAND. And therefore would give no relief in New York.

Mr. LONG. Mr. President, since the Senator has been interrupted, will he yield to me? I hesitate to ask him to yield again.

Mr. COPELAND. I am going to yield once more, I may say to the Senator f ram Louisiana. Then I am not going to yield to anybody, because I wish to conclude my remarks.

Mr. LONG. At this point I desire to say that if the program of the Senator from New York were carried out and we could put something in this joint resolution that would not make it necessary for people to plow up their gardens before they could get relief, that might extend the money to a point where it could be devoted to some of the purposes mentioned by the Senator from New York.

Mr. COPELAND. Mr. President, I have learned a lesson which I thought I had learned before. Next time I start out on a 20-minute speech I am going to make it in my own time, and not yield to anybody; but I am forced now, by what my friend from Texas [Mr. CONNALLY] said, to make an answer.

How can these milliners and dressmakers and manicurists and stenographers and nurses and female clerks get much good out of this tunnel we are going to build in New York?

Mr. CONNALLY. Those people, I thought the Senator indicated, could not be benefited by these public-works projects. They can be benefited, and no doubt will be benefited, by the direct-relief funds; and I specifically said that in order to relieve the beauty-parlor operatives and the barbers, the Government could not establish, all over the United State~. beauty parlors and barber shops. I thought anyone would conclude from that statement that the only relief they could get would be from direct relief.

I thank the Senator for permitting an interruption. I d~d not mean to come into collision with him.

Mr. COPELAND. The Senator's apology is accepted up to this point.

Mr. CONNALLY. I will absolve the Senator's city from any charge that I do not make as to others. I will say, however, that it is reported in many places that some-not all, but that some-of the relief recipients ride up to the relief stations in their automobiles to get their relief money. I do not know whether or not that is true.

Mr. REYNOLDS. Mr. President, is not that true in a great many sections of the country?

CONGRESSIONAL RECORD-SENATE 3461~

Mr. CONNALLY. I do not restrict it to New -York. I have heard it from many sections; and I assume that the persons to whom the Senator referred do not own automobiles, and would have to ride in the subway. . Mr. COPELAND. Mr. President, these people are suffering. Until we are willing to face this serious situation in the spirit that our obligations demand, we are not going to be able to keep our people in line !or the orderly government for which we stand . . How many times must I say that? I am going to say it when opportunity offers and the occasion seems to demand, because I want Senators to know that there are subversive influences at work in America which threaten our institutions. I do not care to enlarge upon the subject, because I do not wish to be sensational; but I want to say enough to impress Senators with the thought which I have, which is burned into my soul as a conviction.

Now, once more I turn to the Senator from Arkansas. I do not want to hamper the President of the United States. He is an honest, sincere man. He believes the plan proposed is a useful one and will accomplish what it is planned to do. If the joint resolution shall be enacted into law, as I assume it will be, I pray devoutly that it will succeed. But I cannot believe that it will succeed. I am willing to give the President a billion dollars to use for work relief at his discretion and to vote the $880,000,000 for direct relief, and I hope that that will be administered by Mr. Harry Hopkins. There is not a man in public life whom I admire more than I do that man-a sincere, honest, intelligent, alert gentleman, faithful to his duties and to his high calling.

I want to see the suffering people given the money they need to keep them from distress. At the same time I want some of the remaining funds of our country left, in order that they may be used by local banks to operate normal .business.

We are in such a situation-and every Senator here, if he has thought about it, recognizes the fact-that tomorrow or the next day or some day soon there will be presented to us the obligations of finally voting on the pending joint resolution. All effort to amend it will doubtless fail, and there will be given to each of us the responsibility of voting finally upon the measure. Each of us, assuming that the measure shall be left unchanged, will have to decide whether we are willing to take the hazards, are willing to take further chances with the financial structure of our country, are willing to face all the possibilities involved in the enactment of this measure, are willing to swallow it and say that, since there is no other way to get $880,000,000 for direct relief and such doubtful results as may come from the operation of the law as written, we will vote for it; or decide that we will vote against it.

What will Senators decide to do? What shall I decide? That is one of the most difficult problems that was ever presented to me.

If I am called upon finally to determine my course as regards this measure, a measure which I think is crowded and packed with wrong suggestions and harmful suggestions, a plan which, in my opinion, is dangerous to the financial structure of the United States, what will my duty be when that time comes? Must I close my eyes to what may happen to us on the financial side, and am I forced, because of my utter unwillingness not to give human relief where human relief is needed, to vote for the measure? What must be my decision? That is the question which each Senator must settle within the next day or two.

Mr. TYDINGS. Mr. President, may I ask the Senator whether he knows offhand what the State debt of New York now is, in round figures?

Mr. COPELAND. No; I am sorry I cannot answer the Senator's question.

Mr. TYDINGS. May I point out to the Senator that New York State's share of the national indebtedness, on a population basis only, is more than $3,000,000,000, and that in my own small :State of Maryland, where we have a State debt of $50,000,000, on a pure population basis our share of the national debt is $600,000,000, or one-fiftieth of the total, 2

percent of the whole? ._ In other words, the people of my State now have not only to pay the $50,000,000 of State debt, but $600,000,000, their share of the national debt, and with that kind of figures in front of us, I think we had better cut this appropriation down to where we can take care of those who are unemployed, and let public works wait until we are better able to pay for them.

Mr. GORE. Mr. President, the Senator from Maryland does not seem to accept the philosophy that a public debt is a public blessing.

Mr. COPELAND. Mr. President, I have concluded what I had to say.

ExHIBIT A MY DEAR SENATOR COPELAND: Out of loyalty and respect to you,

I am writing this letter to advise you of a meeting which I attended in New York last night.

This was an organization meeting of professional and whitecollar workers who are unemployed, and who feel they have been entirely forgotten by the administration, and I am inclined to agree with them. ·

Personally I have been unemployed for 3 years, with the exception of one or two engagements in audit work.

I am a college graduate in law and a fully qualified accountant, 41 years of age, married, and have two in family.

My ancestors were patriots and I myself am a veteran but have taken no stand whatever on the soldiers' bonus and do not intend to de so, although I am down to my last hundred dollars. ·

I was at the meeting last night and was instructed to obtain all the information I could re unemployed white-collar workers in every State in the Union.

New York, New Jersey, Perinsylvania and Connecticut were represented at the meeting.

Do you know that over 20,000 accountants are unemployed in the metropolitan area? - ·

Do you know that over 100,000 men and women clerks and stenographers have no work?

Do you know that 12,000 lawyers, doctors, engineers, and dentists are walking the streets?

While I know your hands are full, nevertheless, I personally feel that unless a great change comes about in the not far distant future, a. speakers' bureau will be organized and financed in every State to bring all the facts to light affecting these white-collar people, which may result in a HUEY LoNG in 1936.

I am sure you will agree that these people have been suffering long enough; they are not the class of people who ballyhoo at the least provocation; neither will they ask or accept charity or doles.

The seriousness of it all is that they see the national debt mounting, from which they have received no benefit, and for which they realize they will some day have to pay, retarding their rehabilitation.

They see that under Mr. Hoover the debt was only $9,000,000 and now is $30,000,000, with no benefit to them direct or otherwise.

In the community in which I live there are over 700 such people out of a job, good, clean,· American stock, who always suffer in silence. During 1934 there were more than 30 foreclosures here and since January 1, 1935, we have had five suicides here. Just yesterday my 12-year-old daughter told me of a brother and sister being sent home from school suffering from malnutrition, which we promptly remedied when we heard about it. I have personally guaranteed the electricity and gas for two families here, as it has been shut off for nonpayment. We had a report last night that the National Employment Exchange anrl other such agencies were picketed by Communists to make members of disappointed patrons of such agencies. These Communists do not make themselves known, but hang around the corridors and hallways of the various buildings in which these agencies are located. One of these men was approached by a Yale Ph. D.-think of it-and handed literature of a communistic nature, which unfortunately, he did not bring to the meeting, but which he stated he promptly destroyed in the man's presence. I think your colleagues should be acquainted of some of these facts. With best wishes, I am,

Respectfully and sincerely yours.

THE RICE INDUSTRY-AMENDMENT OF AGRICULTURAL ADJUSTMENT ACT

Mr. ROBINSON. Mr. President, I ask unanimous consent that at the conclusion of the routine morning business tomorrow the Senate shall proceed to the consideration of the bill CH. R. 5221) to amend the Agricultural Adjustment Act with respect to rice, and that if that bill shall be disposed of, the Senate, during the remainder of the morning hour, shall proceed to the consideration of unobjected bills on the calendar.

Mr. BORAH. Mr. President, I did not understand the bill to which the Senator made reference.

Mr. ROBINSON. I refer to House bill 5221, to amend the Agricultural Adjustment Act with respect to rice, a bill

3462 CONGRESSIONAL . RECORD~ENATE MARCH .12

which the producers of rice are anxious to have disposed of in the early future.

Mr. CLARK. Mr. President, is that the so-called " amendment " to the A. A. A. Act?

Mr. ROBINSON. No. The PRESIDENT p tempore. Is the e objection to the

request of the Sen or from Arka The Chair hears none, and the or will be entered.

WORK-RELIEF PROGRAM

The Sena resumed the consideration of the joint resolution CH. J. 117) making appropriations for relief purposes.

Mr. GLASS. Mr. President, may we have a vote ·on the pending amendment?

Mr. HASTINGS. I inquire of the Senator from Virginia whether the amendment before the Senate is that appearing on page 3?

Mr. GLASS. Yes. Mr. HASTINGS. That is what I desire to talk about. Mr. GLASS. Will the Senator let us take a vote on it

and then talk about it later? · Mr. HASTINGS. I should like to talk about it first. Mr. BORAH rose. Mr. HASTINGS. I yield to the Senator from Idaho. Mr. BORAH. Mr. President, I thought we were about to

vote on the pending amendment. After that shall have been done I shall offer an amendment. However, if the Senator is about to speak on the subject of the pending amendment, I will not offer my amendment at this time.

Mr. HASTINGS. Mr. President, before we vote on the pending amendment I should like the chairman of the committee to give some consideration to lines 5, 6, 7, and 8 on page 3 of the joint resolution.

After the address made yesterday by the distinguished Senator from Vermont [Mr. AUSTIN], I began to make some investigation to ascertain for myself whether or not there is as much difference as he believes there is between the present form of the joint resolution and its form before it was recommitted to the Committee on Appropriations. I got the distinct impression that it is intended by the joint resolution to give the President the right to use all this fund for relief purposes, if he cares to do so. The language used is-

Provicted, That except as to such part of the appropriation made herein as the President may deem necessary for continuing relief as authorized under the Federal Emergency Relief Act of 1933 as amended.

In talking with some members of the committee, I received the impression that that language is intended tQ continue the Federal Emergency Relief Act of 1933. I examined that act and found that it was approved on May 12, 1933, and that it distinctly provides what shall occur at the expiration of 2 years. I read the exact language:

The Federal Emergency Relief Admlnistration and the omce of Federal Emergency Relief Administrator shall cease to exist upon the expiration of 2 years after the date of enactment of this act, and the unexpended balance on such date of any funds made available under the provisions of thiS act shall be disposed of as the Congress may by law provide.

I have given some consideration to that subject. I do not believe the language which I first quoted from this amendment extends that act. I think it will be necessary to put · in some additional words if we desire to continue this relief. To continue the act itself would mean to give the President authority to transfer this whole amount so that it would come under the provisions of that act, and thereby destroy all the allocations or the supposed allocations made in the pending amendment. That is what might be done if the act itself were extended.

I do not know whether it was intended to do that, or whether it was not; but I am desirous, as I am sure all Senators are, that the Federal Emergency Relief Act of 1933 shall not be ended on May 12, because, assuming it to be practicable at all. it is certainly not possible within the next 2 months, or perhaps less than 2 months after this joint resolution shall be passed, to take all these people off the relief rolls and put them on work relief.

Mr. GLASS. Mr. President, I may say .to the Senator that we purposely did not desire to complicate this joint resolution with that question. I am perfectly confident that the Emergency Relief Act will be extended beyond May 12 next. However, we thought that was a question which could be decided separately ftom this joint resolution.

Mr. HASTINGS. I am sorry to know that that is true, because it enlarges the powers which the committee undertook to limit in some measure after the joint resolution had been recommitted. I was about to suggest that in line 7, page 3, if we should strike out the words "relief as" and substitute the words " direct relief " in the same manner as now authorized under the Federal Emergency Relief Act of 1933, as amended'.', it probably would not be necessary to extend that act. If, however, the chairman of the committee has considered that matter, and desires to have the joint resolution passed in its present form, and then to continue the Federal Emergency Relief Act of 1933 by some other act of the Congress, I shall not in any way attempt to interfere with that course.

That brings me to the suggestion made yesterday by the Senator from Vermont [Mr. AusTINJ, who at first was so greatly shocked that $4,880,000,000 was to be turned over to the President, contending that it was not constitutional, and then satisfied himself with these miserable amendments to the joint resolution, the first of which is perhaps the most dangerous .of all, the one of which I have just spoken.

Mr. LONG. Mr. President, will the Senator yield? Mr. HASTINGS. I yield. Mr. LONG. Does the Senator say he understands that

that language is what satisfied the Senator from Vermont? Mr. HASTINGS. The Senator from Vermont said that if

the joint resolution should not be materially changed he was likely to . vote .for it, and he discussed these amendments.

Mr. LONG. That is not the question I asked the Senator. Mr. HASTINGS. I will say to the Senator that that is

the only way in which I can answer the question. I cannot do anything more than call attention to what the Senator said.

Mr. LONG. The Senator may not want to answer my question, but I wish to state it again. Does the Senator understand that language to be what caused the Senator from Vermont to take that stand? That is not what I understood brought about that result.

Mr. HASTINGS. Mr. President, what I may say here with respect to this amendment will be largely in answer to the argument made by the Senator from Vermont.

The Senator from South Carolina [Mr. BYRNES], in answer to the Senator from Michigan [Mr. VANDENBERG], called attention to the fact that the President has said what he proposes to do with this money. He argued to the Senate that that ought to be reasonably satisfactory, particularly to those who have confidence in the judgment of the President. But it has always seemed to me that a Member of this body ought to be able to complain with reference to what the body itself is about to do without having some Senator say to him that it is because he has no faith in the President of the United States.

I disregard entirely who may be President of the United States or how much confidence we ought to have in his integrity and judgment. That is wholly beside the point. As the distinguished Senator from Vermont emphasized here yesterday, it is the business of the legislative body in appropriating money to know, with some good reason, and to have some fair intelligence as to what is to be done with the money. It is for that reason that I call attention to the first few lines of the amendment which permit the President to take thait whole sum and pass it over to the Federal Emergency Relief Administration p·rovided in the act of 1933, after it shall have been extended, and from that fund it may use money in direct relief or it may do all kinds of things that are authorized under that act.

It will be borne in mind by tlie Senate that this is not only a relief act, but it is a relief and work-relief act just a~ is the pending joint resolution. The sanctity of the particu-


lar amendment is that it is what is called a" break-down" of what the President must do witb this money.

Mr. GLASS. What the President may do with the money; not what he must do. There is nothing in the joint resolution that at all says what he must do.

Mr. HASTINGS. I know the Chairman of the Committee on Appropriations has that feeling about it. ~ ~hink:. ~he amendment is some improvement over the or1gmal Jomt resolution. I agree with the Senator from Vermont in that respect. . ,,

I am not greatly impressed with the word " miscellaneous included in the amendment. I am inclined to think, although I am by no means certain, that the word " miscellaneous " has relation to the words which precede it, and the particular projects which must be miscellaneous projects of a like character.

But to my mind that is wholly unimportant, because, as the distinguished Chairman of the Appropriations Committee has said, pretty nearly anything can be done under the measure. There are, however, some limitations. Under the previous measure I had in mind that the President might buy and operate a railroad; I had in mind that he might establish a newspaper in every congressional district in the country. I do not think either of those things could be done under the measure as it is now before us, although I am not quite certain. I should like to ask a question of those who are satisfied with the amendment. It is provided that some of the money" shall be available for the following classes of projects, and the amounts to be expended for each class shall not, except as hereinafter provided, exceed the respective amounts stated-namely, highways, roads, streets, and grade-crossing eliminations, $800,000,000." I invite attention to the fact that persons who are anxious that some of this money shall be used for these projects have absolutely no assurance that a single dollar of it will be used for any such purpose. In other words, where the $800,000,000 is set up there is nothing in the amendment itself which compels the President to spend a single dollar for that project. The same thing is true with respect to rehabilitation and relief in stricken agricultural areas, for which $500,000,000 is provided, and as to all the other projects set out.

In order that I might make a little more clear what might be done I have drafted a new resolution applying to roads. .It is not exaggerated, but I think it will demonstrate what may be the result under the amendment which is satisfactory to the Senator from Vermont:

Resolved, etc., That 1n order to provide work relief there ls hereby appropriated, out of any money in the Treasury not otherwise appropriated, and in the discretion and under the direction of the President, $800,000,000 to be used for highways, roads,

·streets, and grade-crossing elimination projects. The President shall not be required under this resolution to use any of said funds for said purposes. If, however, the President concludes to use said funds for said purpose, and in order that he may have additional funds for the same purpose, there is hereby appropriated an additional sum of $941,000,000.

The $941,000,000 I get by taking 20 percent of $4,705,000,-000, which I understand to be the amount as of today.

The President shall not be required to allocate any part of such fund to any particular State. He is hereby authorized to spend the whole of said sum in a single State or in any group of States wholly in his discretion. Nothing in this resolution shall prevent the President from spending any or all of said sum in the territories and possessions of the United States, exclusive of any State.

The President may, in h1s discretion, construct one or more highways extending from the Atlantic to the Pacific Oceans, and likewise may construct one or more highways from the northern portion of the United St».ies to the southern portion.

Prevailiilg wage provisions 1n the present law shall not apply to the projects constructed under this resolution, nor shall the President be compelled to buy local material, but may import it from abroad.

Mr. President, I should like to call attention to another item in this amendment. It consists of 1 word and 9 figures:

Housing, $450,000,000.

Assume that the Senate has before it a joint resolution appropriating $450,000,000 for work relief, for housing: I should like some Member of the Senate-the chairman of the

committee or some member of the committee, if he canto tell me what is to be done under such a provision as that. Does it mean that the President is to build houses? If so, what is to be done with the houses? Will the houses, after they are built, belong to the Government?

The provision is-- · Housing, $450,000,000.

I do not know what is to be done with the houses. Are people to be taken off the relief roll and put in the houses that are to be built with this $450,000,000?

I made a· little calculation as to how many houses could be built with this amount of money. When I get into these :figures somebody may think I have been talking with Dr. Townsend; but if these houses were built on 52-foot lots, and were put in a row, there would be 100 lots for each mile; and if a $2,000 house were built on each lot, we should have a cost of $200,000 for a mile of houses. Senators can make their own calculations as to the effect of that.

As I say, $200,000 would build a mile of houses on 52-foot lots at a cost of $2,000 for each house. If this amount of money were spent in that way, we should have a row of houses 2,250 miles long, with not very wide spaces between them; and if we should add to this fund the $941,000,000 resulting from taking 20 percent of the whole amount carried by the joint resolution, we should have enough money to build 6,9~5 miles of houses, twice as many as would reach from coast to coast of this country, enough to put houses on both sides of a highway reaching from the Atlantic coast to the Pacific coast. If we should calculate the highway fund provided in this amendment at $80,000 a mile, we should have enough money in it to build 10,000 miles of road; and, for all I know, it may be contemplated to build such a highway with houses on each side of it.

Is not the Senate entitled to know, however, what this housing fund is to be used for? Can it be intelligently described by using the word "housing"? We cannot even get an intelligent definition of "housing" by going to the dictionary. It might mean pretty nearly anything. I think the Senate is entitled to know what it means as used in this amendment, and I do not know how anybody can be satisfied to appropriate that sum of money without knowing what is to be done with the houses. Are they to be built and sold? Are they to be built and rented? Is the Government to control all these houses? Is the Government to give them away to people who need them?

I call the attention of the Senate to the fact that the Home Owners' Loan Act of 1933, which we passed in an effort to help the home owners, covers eight pages of printed matter and provides that an individual cannot be helped to a greater extent than $20,000; and for weeks the House of Representatives has been trying to increase the amount. Under that act money can be loaned to a home owner only to the extent of 80 percent of the appraised value of his home, and the act goes into great detail as to how these few millions of dollars are to be spent to help the home owners. Having passed that act in 1933, however, we are now asked, 2 years later, to support_ a joint resolution with $450,000,000 in it for what is described only by the one word" housing.''

I respectfully submit that the country is entitled to know and ·the Senate is entitled to know what is to be done with that money. I am entitled to know whether or not the Government is to come into my State and build houses. I am entitled to know whether or not the Government is to come into my State and build houses in competition with the contractors in my State. Every Senator here is entitled to have the same information.

I have not the slightest idea what is to be done with that housing money. No act passed by the Congress of the United States defines the word " housing " to mean something in particular.

The joint resolution appropriates $600,000,000 for the Civilian Conservation Corps. We know something about that. because we know tqat the Civilian Conservation Corps has been established; so when we appropriate $600,000,000 for it we have some definite idea as to what is to be done

3464 CONGRESSIONAL RECORD-SENATE . MARCH 12 with the money. When, however, we are asked to appropriate $450,000,000 with no more description of the purpose of the appropriation than the word "housing", I cannot understand how any Senator could be entirely satisfied with this amendment to the extent of being willing to vote for it when he was not willing heretofore to vote for the large sum carried by the joint resolution without having it broken down.

Does the Senator from Arkansas [Mr. ROBINSON] desire to have the Senate adjourn now for the day?

Mr. ROBINSON. Does the Senator from I?_elaware wish to continue his remarks?

Mr. HASTINGS. I do not desire to keep the Senate here. Mr. ROBINSON. Perhaps a vote cannot be taken to

night. Mr. GLASS. Mr. President, I should like to have the

Senate adjourn for the day unless the Senator desires to continue his remarks tonight.

Mr. LONG. Mr. President, I send to the desk an amendment I intend to propose to the pending joint resolution. I ask to have the amendment printed so that it may be read by Senators tomorrow morning. It is an amendment to the section under consideration.

There being no objection, the amendment was ordered to lie on the table, to be printed, and to be printed in the RECORD, as follows:

On line 17, page 3, strike out " $600,000,000 " and insert in lieu thereof "$300,000,000 ", and following the semicolon insert the following: "For colleges and universities, to be used to advance money to students in need of and desiring financial assistance so that such students may pay the costs and living expenses necessary for pursuing study at such colleges or universities, $300,000,000."

PUBLICITY OF INCOME-TAX RETURNS Mr. LA FOLLETTE. Mr. President, during the day I pre

sented an amendment which I intend to off er in the nature of a substitute for House bill 6359, relating to the repeal of the so-called "pink slip" provision of the income-tax law. A nwnber of Senators have indicated some interest in the amendment, and I, therefore, ask unanimous consent that it may be incorporated in the RECORD as a part of my remarks.

There being no objection, the proposed amendment was ordered to be printed in the REcoRD, as follows:

Strike out all after the enacting clause and insert in lieu thereof the following:

" That section 55 of the Revenue Act of 1934 is amended to read as follows:

"'SEC. 55. PubUcity of returns: "'(a) Returns made under this title upon which the tax has

been determined by the Commissioner shall constitute public records and shall be open to public examination and inspection under rules and regulations promulgated by the Secretary and approved by the President. . Whenever a return is open to the inspection of any person a certified copy thereof shall, upon request, be furnished to any person under rules and regulations prescribed by the Commissioner with the approval of the Secretary. The Commissioner may prescribe a reasonable fee for furnishing such copy.

"'(b) (1) The Secretary and any officer or employee of the Treasury Department, upon request from the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, or a select committee of the Senate or House specially authorized to investigate returns by a resolution of the Senate or House, or a joint committee so authorized by concurrent resolution, shall furnish such committee sitting in executive session with any data of any character contained in or shown by any return.

"'(2) Any such committee shall have the right, acting directly as a committee, or by or through such examiners or agents as it may designate or appoint, to inspect any or all of the returns at such times and in such manner as it may determine.

"'(3) Any relevant or useful information thus obtained may be submitted by the committee obtaining it to the Senate or the House, or to both the Senate and the House, as the case may be.

"'(c) The proper officers of any State may, upon the request of the Governor thereof, have access to the returns of any corporation, or to an abstract thereof showing the name and income of the corporation, at such times and in such manner as the Secretary may prescribe.

"'{d) All bona fide shareholders of record owning 1 percent or more of the outstanding stock of any corporation, shall, upon making request of the Commissioner, be allowed to examine the annual income returns of such corporation and of its subsidiaries. Any shareholder who pursuant to the provisions of this section is allowed to examine the return of any "corporation, and who makes .t.nown in any manner whatever not provided by la.w or permitted

by regulations the amount or source of income, profits, losses, expenditures, or any particular. thereof, set forth or disclosed 1n any such return, shall be guilty of a misdemeanor and be punished by a fine not exceeding $1,000 or by imprisonment not exceeding 1 year, or both.

" ' ( e) The Commissioner shall as soon as practicable in each year cause to be prepared and made available to public inspection in such manner as he may determine, in the office of the collector in each internal-revenue district and in such other places as be may determine, lists containing the name and the post-office address of each person making an income-tax return in such dlstrict.

" '(f) No person shall obtain, divulge, or circulate, or offer to obtain, divulge, or circulate for compensation any information derived from an income-tax return: Provided, That this subsection shall not be construed to prohibit publication by any newspaper of information derived from income-tax returns for purposes of argument nor to prohibit any public speaker from refen·ing to such information in any address. Any person violating any of the provisions of this subsection shall, upon conviction thereof, be punished by a fine of not less than $100 or more than $500, or by imprisonment for not less than 1 month or more than 6 months, or by both such fine and imprisonment.'"

A.mend the title so as to read: "A bill to amend section 55 of the Revenue Act of 1934 (relating to publicity of income-tax returns)."

PUBLIC-UTILITY HOLDING COMPANIES Mr. McKELLAR. Mr. President, my colleague the junior

Sena.tor from Tennessee [Mr. BACHMAN] and I have received many thousands of letters from Tennessee about the Wheeler antiholding company bill, most of the letters being from persons opposed to the bill.

The bill referred to consists of 140 pages, and contains a great many intricate proposals. My colleague and I have not had time to give it and the proposals therein contained proper attention, but shall do so at the very earliest opportunity, and give the opinions of our correspondents every attention.

We find it absolutely impossible, with our present office forces, to answer each one of the letters personally. We hope, therefore, that every one who has written ·upon this matter will take this statement as an acknowledgement of his or her letter, and will understand that we cannot make an immediate personal reply because of the unusual volume of these letters.

Mr. CLARK. Mr. President, I thank the Senator for making this statement. In the last week 15,000 letters on this subject have pow·ed in on me. I understand that each utility in my State has notified each of its employees that if he cannot get 40 letters sent to the Senators and Representatives from Missouri he will be discharged. 'The result has been that in my Sunday morning mail, usually very light, I received 6,000 letters of this character. I thank the Senator from Tennessee for calling attention to this matter for the RECORD.

Mr. McKELLAR. My colleague and I received so many letters from Tennessee that we were obliged, in justice to our office forces, not to reply to them personally.

Mr. BYRNES. Mr. President, I ask to have inserted in the RECORD a communication enclosed in a letter I have received, the communication being from the Associated Gas & Electric Co. to the security holders of the Associated Gas & Electric system, calling upon the owners of securities to write to Senators and Members of the House of Representatives.

I also ask to have inserted a circular letter which was presented to the employees of a holding company setting forth the objections to the bill to which the Senator from Tennessee has called attention, describing it as a demagogic attempt to destroy industry, and making a few comments about the bill.

It is as a result of these circular letters that the employees of the companies and the owners of securities are writing to the Members of the House and of the Senate, and I think we ought to put these letters in the RECORD.

The PRESIDENT pro tempore. Is there objection? There being no objection, the letters were ordered to be

printed in the RECORD, a.s follows: To the Security Holders of Associated Gas & Electric System:

The campaign of political persecution and abuse against the public-utility industry has culminated with the recent introduction into Congress of the so-called "Public Utility Act of 1935" (House bill 5423, Senate bill 1726). Tb.1.s legislation proposes to

1935 CONGRESSIONAL RECORD~.ENATE 3465

place public utillties under the power of three Federal commissions and expressly provides for the abolition of public-utility holding companies a.t the end of 5 years or earlier.

It ls doubtful 11 more drastic or vicious legislation was ever submitted to Congress. It goes far beyond regulation by Government. It means management by Government and destruction by Government.

The contribution of the holding company to the comfort and convenience of the American people has been equaled by few other institutions. Holding company operation throughout the country has meant unification, extension, and cheapening of the charge for electric service. The wiping out of holding companies can only mean the wiping out of investments owned by millions of their security holders and ~he end of the valuable assistance to operating companies and their consumers which holding companies have given in the past and will give in the future if they are not denied by law the right to exist.

While this company will do everything in its power which it properly may to defeat this bill, you can accomplish much more by direct action of your own. It is time you took such action. Furthermore, persons interested in other lines of business should also take heed and act likewise. No one can tell how long before some other line of industry will be singled out.

You cannot afford to permit the passage of this legislation. Your Senators and Representatives in Congress are listed on the reverse side of this letter. Write them that you pr0test against the destruction of holding companies, the wrecking of private investments, and the domination of the electrical industry by political agencies. Ask them what possible reason exists for such drastic and confiscatory legislation.

If convenient, we would appreciate your sending us copies of your letters and copies of the replies you receive. Prompt action on your part is necessary as hearings on these bills before congressional committees are now under way.

Very truly yours, AssOCIATED GAS & ELECTRIC Co.

OBJECTIONS TO PoBLIC-UTILITY HOLDING COMPANY BILL

A. MAJOR OBJECTIONS

1. It ls- a demagogic attempt to destr0y, in the publlc-utmty industry only, a form of organization which can continue in all other branches of activity, including railroad, industrial, mining, commercial, and social.

2. It contains many misstatements of fact and is dlfilcult to understand, except that it does leave clear a goal of complete destruction.

3. It permits Federal agencies to dictate and control in matters that are local and subject to State control.

4. It is unjust and discriminatory class legislation-today it is the public utilities; tomorrow it may be your neighbor's business.

5. It can only lead to one ultimate end, complete Federal domination and control, with the attendant bureaucratic evils and " pork barrel " waste.

B. OBJECTIONS BY HOLDING-COMPANY EMPLOYEE

Only one thing is obvious 11 the b111 is passed, he wm lose hiS job at any time between the date the bill passes and January 1, 1940.

C. OBJECTIONS BY OPERATING-COMPANY EMPLOYEE

1. Holding companies will hesitate to finance additions and improvements, with the result construction, maintenance, and distribution staffs must be reduced.

2. Purchases of materials and supplies will be curtailed, thereby affecting purchasing stores, and afH.Uated employees.

3. New business efforts and cooperative programs will be disrupted; financing these sales and cooperation with the dealers wm be uncertain; a number of the employees will no doubt lose their jobs.

4. As the holding companies lose their control, new interests will take charge of the individual operating units. General managers, department heads, and many others will no doubt be supplanted by men jriendly to the new interests. As these changes take place the other employees in all departments will in some manner be affected by the policies of the new interests.

5. While the period of grace is labeled 5 years, the process of disintegration and liqU1dat1on wm begin immediately, and every tradesman, shopkeeper, and local banker will be affected.

Mr. GLASS. I should like to inquire if any of the Senators have received letters advocating holding companies for banks?

Mr. CLARK. Mr. President, I will say to the Senator from Virginia that there have been just a few trickles of the deluge along that line. I have had a few letters on that subject.

Mr. GLASS. Advocating holding companies for banks? Mr. CLARK. Yes; I have had some from the States of

Minnesota and Iowa on that subject. Mr. GLASS. Advocating holding companies for banks? Mr. CLARK. Yes. Mr. GLASS. - Have they heard from Michigan? Mr. CLARK. I am not informed as to that.

EXECUTIVE SESSION

Mr. GLASS. I move that the Senate proceed to the consideration of executive business.

The motion was agreed to; and the Senate proceeded to the consideration of executive business.

EXECUTIVE MESSAGE REFERRED

The PRESIDENT pro tempore laid before the Senate a message from the President of the United States submitting the nomination of John M. Moore, of Kentucky, to be United States marshal, eastern district of Kentucky, to succeed James H. Hammons, term expired, which was referred to the Committee on the Judiciary.

EXECUTIVE REPORTS OF COMMITTEES

Mr. LOGAN, from the Committee on the Judiciary, reported favorably the nomination of Loomis E. Cranor, of Kentucky, to be United States marshal for the western district of Kentucky.

Mr. DIETERICH, from the Committee on the Judiciary, reported favorably the nomination of John J. Bare, of Michigan, to be United States marshal for the eastern district of Michigan.

Mr. McKELLAR, from the Committee on Post Offices and Post Roads, reported favorably the nominations of several postmasters.

Mr. TRAMMELL, from the Committee on Post Offices and Post Roads, reported favorably the nominations of several postmasters in the State of Florida.

He also, from the Committee on Naval Affairs, reported favorably the nominations of sundry officers in the Navy and in the Marine Corps.

The PRESIDENT pro tempore. The reports will be placed on the Executive Calendar.

If there be no further reports of committees, the calendar is in order.

THE JUDICIARY

The legislative clerk read the nomination of Edward G. Dunn to be United States attorney, northern district of Iowa. Iowa.

The PRESIDENT pro tempore. Without objection, the nomination is confirmed.

POSTMASTERS

The legislative clerk proceeded to read sundry nominations of postmasters.

Mr. McKELLAR. I ask that the nominations of postmasters be confirmed en bloc.

The PRESIDENT pro tempore. Without objection, the nominations of postmasters are confirmed en bloc.

That completes the calendar.

ADJOURNMENT

Mr. ROBINSON. As in legislative session, I II1ove ·that the Senate stand adjourned until 12 o'clock tomorrow.

The motion was agreed to; and (at 5 o'clock and 5 minutes p. mJ the Senate, in legislative session, adjourned until tomorrow, Wednesday, March 13, 1935, at 12 o'clock meridian.

NOMINATION Executive nomination received by the Senate March 12

(legislative day of Mar. 4), 1935

UNIT~ S.TATES MARSHAL

John M. Moore, of Kentucky, to be United States marshal, eastern district of Kentucky, to succeed James H. Hammons, term expired.

CONFIRMATIONS Executive nominations confirmed by the Senate March 12

<legislative day of Mar. 4), 1935 UNITED STATES ATTORNEY

Edward G. Dunn to be United States attorney, northern district of Iowa.

3466 _CONGRESSIONAL RECORD-HOUSE MARCH 12

POSTMASTERS HOUSE OF REPRESENTATIVES ARKANSAS

Horace L. Lay, Amity. Thomas S. Reynolds, Bradley. Lewis E. Smith, Cabot. Hazel N. Poe, England. Elmer Austin, Gravette. Leo D. Perdue, Louann. Cordelia R. Jackson, Marianna.

INDIANA

Floyd B. Faulkerson, Angola. Thomas R. Teegardin, Hamilton. Charles D. Manaugh, Hanover. Linda M. Peine, Oldenburg. James C. Rice, Spencer.

KENTUCKY

Laura V. Coleman, Anchorage. Hattie R. Tanner, Barlow. Jesse B. Pope, Brooksville. Milton T. Fullenwider, Shelbyville. Mary K. Diersing, Shively.

MICHIGAN

Henning R. Sjolander, Ishpeming.

NEBRASKA

Robert L. Isham, Chadron. OHIO

Ho-ward M. Whitehead, Alexandria., Raymond E. Fissel, Galena. Ray H. Strouse, McComb. Harold F. Sweeney, Russells Point. Thomas B. Gephart, Williamsport.

OKLAHOMA

C. Gleason Walker, Fairland. Marvin A. Peacock, Fletcher.

TENNESSEE

Robert K. Branscom, Coal Creek. Fred C. Lindsay, Greeneville. William R. Massey, Harriman. George R. McDade, Norris. Jean N. McGuire, Sweetwater.

TEXAS

Howard L. Smith, Alamo. Hugh B. Edens, Big Lake. John E. Morris, Borger. Robert H. Foster, Cooper. 'Clark A. Fortner, Crosby. Gladys J. Leary, Estelline. Daniel B. Shrader, Frisco. Curtis R. Blake, Frost. Aureil J. Wigley, Ingleside. SeLeta L. Dennis, Jacksboro. Richard Hubbard Lemmon, Jefferson. Robert L. Peebles, Lexington. Charley J. McCol1um, Lockney. John M. Green, Mount Enterprise. A. J. Gardner, Muleshoe. William 0. Haizlip, Nederland. Maude A. Price, Petrolia. Jack B. York, Pr..arr. Hobart Lytal, Quinlan. Edward A. Beckman, Sealy. Adlai C. Breustedt, Seguin. Jewell F. Cobb, Seminole. Robert A. Meuth, Skidmore. Tenie B. Colbert, Stamford. Nena M. Iiams, Sugar Land. Edgar H. McElroy, Waxahachie.

TUESDAY, MARCH 12, 1935 The House met at 11 o'clock a. m. Rev. James Shera Montgomery, D. D., offered the following

prayer:

Who shall ascend into the hill of the Lord? or who shall stand in His holy place?

He that hath clean hands, and a pure heart; who hath not lifted up his soul unto vanity, nor sworn deceitfully.

Almighty God, unto whom all hearts are open, all desire3 known, and from whom no secrets are hid, cleanse the thoughts of our hearts by the inspiration of Thy Holy Spirit, that we may perfectly love Thee, and worthily magnify Thy holy name. Through Jesus Christ our Lord. Amen.

The Journal of the proceedings of yesterday was read and approved.

MESSAGES FROM THE PRESIDENT

Sundry messages in writing from the President of the United States were communicated to the House by Mr. Latta, one of his secretaries.

FOG

Mr. STACK. Mr. Speaker, I would like permission to address the House for 1 minute on the fog, atmospheric and otherwise.

The SPEAKER. The gentleman from Pennsylvania asks unanimous consent to address the House for 1 minute. Is there objection?

There was no objection. Mr. STACK. Mr. Speaker and fellow colleagues of the

House, this morning coming to work I noticed that there was a bit of fog in the atmosphere, but tonight before the sun goes down the atmosphere will clear.

Last night I listened with admiration to that man of God from Michigan who wants to clear the political atmosphere. He reiterated a statement that he is still with Roosevelt and against his money advisers. I think we owe a vote of thanks to that man of God from Michigan, and if it is in order I so move you, Mr. Speaker.

Mr. BLANTON. I make the point of order, Mr. Speaker, that that is not in order.

Mr. STACK. Thank you, Mr. BLANTON. [Laughter.] HOME, SWEET HOME

Mr. SNYDER. Mr. Speaker, I ask unanimous consent to extend my own remarks in the RECORD on the duty of the Government on the Home Owners' Loan Corporation.

The SPEAKER. Is there objection? There was no objection. Mr. SNYDER. Mr. Speaker-

Home, home, sweet, sweet home; Be it ever so humble, There's no place like home.

The sentiment and force of these three lines has had much to do with shaping and molding the citizenship-building virtues of home life in our Nation during the last 100 years.

Two years ago when Congress became aware of the fact that multiplied thousands of home owners in the United States had lost, or were about to lose, their homes because of :financial distress, they immediately looked about to find ways and means by which the homes could be saved. After due consideration the Home Owners' Loan Corporation was set up.

It is needless for me to say here that it was a gigantic task for the Government to undertake. Naturally there would be many complicated angles in setting up such a large organization. It follows that there would be many avenues in which there would not be the efficiency desired. It is only natural that a certain percent would be selected for the various positions who would not be fully qualified to render full efficiency. This is true in old set-ups and organizations such as our banking institutions, civil service, and others. It would follow that in a new set-up there

,

1935 CONGRESSIONAL RECORD-HOUSE 3467

would be a greater percent of apparent inconsistencies than in an old established set-up or institution.

However, the great task confronting us as a nation at that time was, as far as possible, to save the little home owners and the farmers from losing their homes; to keep the sheriff from selling them out; to keep the mortgage holder from closing in on them and thus not only shatter their own ideals for the rest of their lives, but weaken the Nation's fundamental institution, " the home."

I myself, know personally of weaknesses in the execution of this measure but I also know that as a whole it was one of the great fundamental procedures of the Seventy-third Congress. It will go down in history as such.

By putting into force the Home Owners' Loan Corporation some 18 months ago, we have been able to save thousands, yes hundreds of thousands, of little homes, and by extending the time of this Corporation and making additional appropriations for the perpetuation of the same, we will save multiplied thousands more homes. The same could be said of the Farm Loan Act. We will save thousands of farms for the farmers who are being overtaxed just like little home owners have been for the last 10 or 15 years.

My contention has always been that we must give adequate protection to the little home owners, the farmers, the laborers, and the little business men. This act was designed to do that, and I am pleased to say that it has accomplished much in this direction, and by extending it we will continue to accomplish much more in the same direction.

In my own State of Pennsylvania I find, accordiug to data furnished me this morning from the main office of the Home Owners' Loan Corporation here in Washington the following activities or accomplishments under the Home Owners' Loan Act, since it went into operation some 18 months ago. They are as follows: 106,259 applications have been received in the State of Pennsylvania; 34,000 of that number withdrawn or held for further consideration; 72,105 net applications received; 30,596 applications pending in Pennsylvania; 10,837 pending before delivery to legal department; 10,837 pending after delivery to legal department; 41,509 loans allowed or closed in the State of Pennsylvania; and $120,-539,981, amount of money loaned for these loans in the State of Pennsylvania:

Mr. Speaker, in times like these a nation must always come to the assistance of the home owners. The strength of any people and in any nation since the beginning of time depends on the attitude of the mind of its people. Where a people own their own homes and farms we find an attitude that has greater citizenship-building and nation-building power than any other one avenue of procedure.

ADJUSTED-COMPENSATION CERTIFICATES

The SPEAKER. Under a previous order of the House, the gentleman from Mississippi [Mr. FORD] is recognized for 20 minutes.

Mr. FORD of Mississippi. Mr. Speaker, ever since the first adjusted-service compensation bill made its appearance on the fioor of this House in 1920 I have believed that the veterans of the World War should receive a cash adjustment for the services they rendered in defense of our country.

Adjusted-service compensation for the American soldier has been the victim of the bitterest, longest drawn out, and most powerful attack ever directed against any legislative measure. Yet, after 15 long years of relentless opposition from the big interests of the country, the idea still survives and stands a monument to the sense of justice of the masses of the people.

I am glad that the Members of Congress will soon have an opportunity to pass a measure that will pay the country's greatest war debt. Mr. Speaker, when I use the word" greatest ", I do not mean the largest in size but ref er to the one having the most justice and equity. Almost 18 years have passed since that day in April on which the Congress of the United States stood up and solemnly declared the existence of a state of war between America and Germany. I am glad to say that during those 18 years I have not forgotten how our brave boys left their homes and loved ones, endured the

LXXIX--219

hardships of camp and the weariness of drill and march. Neither have those boys forgotten the rough sea voyage, the insanitary and indescribable conditions of the trenches, and the nerve-wracking hours and days under the fire and the gas of the enemy. Those men were the choice selection of 100,000,000 Americans, and many of them walked into the jaws of death itself to save and defend America and its people. Those who were not under the actual fire of the enemy were subject to being called at any time.

The circumstances under which these young Americans went to war should be well known to everyone. They were not given the opportunity to enter into any voluntary contract as to the pay they should receive, and their wishes were never consulted. The mighty voice of the United States Government ordered them to perform military duty for $30 a month and such personal upkeep as might be provided for them. Out of that $30 a month $15 had to be sent to dependents and $6 was paid for insurance, leaving 90 percent of the soldiel'S with a net pay of $9 a month or 30 cents a day. It is commonplace, yet absolutely true, to say that without the soldier we would have been helpless and defenseless; and we all know that they sacrificed personal gain, health, happiness, and even life itself in order that our country might be protected. To that American soldier and to his loved ones the tragedy of war appeared in its most horrible form, yet the Government paymaster made him a 30-cent man and forced his family to live amidst skyrocketing prices on a miserable pittance of $15 a month. Upon investigation of the statistics, we find that this same paymaster, who allowed the soldier only 30 cents a day, was at the same time paying civilian employees high salaries for services performed by them in the perfect safety made secure by the valor of the United States :fighting man. A typical example of these high salaries is seen in the pay of workers who were employed by the Government for the construction of ships. Their basic wage was $12.50 a day. If they worked overtime their pay was increased. The minimum wage in private enterprise was very rarely under $4 a day and in many instances was far more than that, yet the soldier could not profit from such delightful wages. The enemy was not fighting on the basis of an s:.hour day, and some days the soldier would work for a full 24 hours without any increase in remuneration. Even before the close of the war our people began to see the injustice of the low salary being paid the service man, so Congress provided that he should be given $60 in additional pay when discharged from the service. Sixty dollars was hardly more than enough to pay for a suit of clothes to wear while looking for a job, but it had a very significant indication. The conscience of the country had awakened to the justice of the idea that the war veteran should have an adjustment in the amount of pay he had received for winning a terrible war, a war from which everybody but he and his family had secured their profits.

About this time we saw the wizards of high finance glean an idea from the sentiment in favor of the soldier. The railroads, having been under the operation of the Government during the war, by reason of contract, asked for compensation for injuries alleged to have been sustained as a result of Government operation. Unlike the soldier, these railroads drew up their own contract and made their own terms and agreement. Afterward when the profits were not as large as they had intended them to be under the terms of the contract there was no serious opposition when the Congress voted a billion dollars in cash as additional remuneration to the railroad corporations of our country.

Then came the war contractors who claimed injury because the war ceased when it did, so, in grand style, they were given a half billion dollars. These profiteers had been under coercion from no one and made theii own contracts, yet when they decided they had not made enough money they asked for more and they got it. The special committee of the Senate investigating the munitions industry has just recently brought to the attention of the American people some very surprising and shocking facts concerning the profits made by the war profiteers who exploited the Government in the sale of war materials. The committee

3468 CONGRESSIONAL RECORD-HOUSE MARCH 12 learned that during the 4 years immediately preceding the war the Hercules Powder Co. made an average yearly profit of $1,271,000 but during the war it made $7,430,000 annually. General Motors made $6,954,000 a year before and $21,700,000 a year during the war. Anaconda Copper increased its profit from $10,649,000 to $34,549,000 yearly. Bethlehem Steel for a similar period was able to clear $49,427,000 as compared to the pre-war $6,840,000 and at the same time Du Pont gained from $6,092,000 to $58,076,000.

In 1918 the Bethlehem Loading Co. made a profit of 362 percent on its investment in the shell-loading business. In 1917 Colt's Fire Arms made 64 percent, Savage Arms Corporation made 65 percent, and Western Cartridge Co., 35 percent. Thus it will be seen that the profiteers had their billions from the Government without any effort while the soldiers earned their meager 30 cents a day by long hours of hard work and the shedding of blood.

The civil-service employee, who had drawn around $2,500 a year while the soldiers were fighting for 30 cents a day, was on the inside of the Government council and quickly noticed the popularity of adjustments, so his demand for more compensation resulted in an allowance of another $600,000,000 from funds provided by the American taxpayer.

Mr. BLANTON. Will the gentleman yield? Mr. FORD of Mississippi. I yield. Mr. BLANTON. To be exact, there was one bonus of

$120 and two additional bonuses of $240 paid to all employees of the Government.

Mr. FORD of Mississippi. My good friend from Texas is correct and I thank the gentleman.

In the meantime the war veterans had received their 30 cents, their $60 extra allowance, and some experience the like of which had never before been witnessed in the history of warfare. They had been promised everything; yet they bad to come home on a stretcher to get anything.

It was argued that the richest country in the world could well afford to pay these gigantic sums for the purpose of seeing justice done to industry and to Government employees. Very little was said about the profiteer, but he got his anyway. Congress did not turn a deaf ear to the railroads, the war contractors, and the Government employees when they demanded more than $2,000,000,000 from the Treasury, but did ignore the request of the financially hampered, disease-ridden, blood-stained veterans that could be seen in every community, village, town, and city in the whole United States and who were the victims of a train of events set in motion through no agency of their own.

When the ability of the Government to pay was discussed some forgot that during the war the same Government had loaned $7,077,114,754 to the allied countries. It was not remembered that after the war had actually stopped our Government loaned the Allies an additional $3,273,324,324.70, of which $2,533,288,825.45 was in actual cash money. Today, my friends, $633,818,220.44 of that sum loaned to those we helped to win the war is past due and unpaid. This is true, although they used part of the money we loaned them for the payment of additional money to their soldiers.

When all the facts have been considered the question was everywhere asked, "Why can't the soldier be given a fair adjustment in the pay he received while fighting for us, and while all others were growing more ·rich?" It can truthfully be said that the moral sense of the country dictated the enactment of an equitable adjustment, but the financial leaders of the country, under the cloak of financial wisdom, always opposed the adjustment and threatened a serious deficit in the Treasury if the rights of the veteran should in any way be recognized.

Although the heart of the people was in sympathy with cash payment, opposing pressure was brought to bear from the big interests of the country, and the attempts for adjusted-service compensation were defeated in 1920 and in 1922 in the United States Congress.

Thus, it was that in 1924, 6 years after the armistice, the question was still unsettled and the cause was still delayed, lacking of realization.

In 1925 the same old artillery and the same old infantry that had thundered so fearfully against adjusted-service

compensation in 1920 and again in 1922 were brought forcefully into play, but despite the opposition a bill passed Congress over the determined veto of the President of the United States.

Mr. Speaker, the idea prompting the measure was one of the most praiseworthy in the history of American legislation, but there were at least two glaring faults in the law as finally enacted. The defects were: First, the refusal to pay in cash; and, second, the deduction of the original $60 payment from the credit given on the certificate. Our veterans were allowed an adjustment of $1 a day for home service and $1.25 a day for service overseas, after the deduction of the $60 original payment. I feel perfectly safe in saying that if I had been a Member of Congress in 1924 I would have voted and worked for cash payment, and I would have voted against the $60 deduction.

The country was enjoying prosperity, the war debt had been materially reduced, all others had been paid in cash, but the war veterans were given postdated checks. payable 27 years after the performance of the services they so sacrificingly rendered. The veteran who had received the least, who had done the most, and who needed the money the worst, was told to be patient for 20 years, at the end of which time he or his heirs would receive an adjustment. Our Government paid the war profiteer more profit, it wiped the slate clear of every obligation, while the doors of the Treasury were closed to the call of the man who had answered the call of his country.

With all these facts before you, no one can deny the justice of immediate cash payment of the adjusted-service certificates. There is no question of our ability to pay. It will cost no more to pay now than it will in 1945.

Mr. YOUNG. Will the gentleman yield? Mr. FORD of Mississippi. I will yield to the gentleman

from Ohio. Mr. YOUNG. I agree with the gentleman that in 1924

at the height of the Coolidge prosperity era our Government was in good financial condition and could readily have paid the ex-service men in cash at that time instead of by a postdated check. Is it not a fact that our Government at that time, at the height of the Coolidge prosperity, was in much better financial condition to pay our ex-service men regardless of need than at the present time?

Mr. FORD of Mississippi. I agree that the Government was in much better condition during the height of the Coolidge prosperity era to discharge its obligation to the veterans but because it did not see fit to make the payment at that time is certainly no good reason why we should now deny the payment of an obligation which is so justly due the World War veterans of our country.

The credit of the country is not yet exhausted. This side of Congress has already voted appropriations totaling several billions of dolars and if it can afford to do that I see no reason why it could not now vote to pay · cash for the obligations it owes to the veterans and which have been due since 1918.

Mr. YOUNG. One further question. A cash payment for all adjusted-compensation certificates would at the present time have our Government pay to approximately 750,000 veterans--

The SPEAKER. The time of the gentleman from Mississippi has expired.

Mr. YOUNG. Mr. Speaker, I ask unanimous consent that the time of the gentleman from Mississippi be extended for 5 minutes.

The SPEAKER. Is there objection? There was no objection. Mr. YOUNG. My question is this: Five hundred and ten

thousand veterans have not even borrowed on their adjusted-compensation certificates. In addition to that, if the adjusted-compensation certificates of these 510,000 veterans were paid in cash at the present time, it would entail a payment from the Public Treasury of approximately $500,000,000. Also, of our ex-service men there are many thousands who at the present time are paying income taxes to their Government. In view of all this, would not the gentleman be of opinion that it would be better first to

1935 CONGRESSIONAL RECORD-HOUSE 3469 exclude such ex-service men as I have referred to from the cash payment of the bonus and pay to the other ex-service men first?

Mr. FORD of Mississippi. Mr. Speaker, I do not agree with my friend from Ohio in saying that we should exclude anyone from the cash payment of their adjustedservice certificate. We did not exclude the railroad corporations, the war contractors, the war profiteers, and the Government employees from receiving their adjustments because they were not borrowing money nor because they might have been paying income taxes. We paid them in cash, and I think we should do likewise to all of the veterans.

Mr. Speaker, both justice and reason are in favor of immediate cash payment. The average war veteran is now a little past 40 years of age, and there is no doubt that he would make wise use of his money if it were paid him now. There is no doubt that the 50-percent loan made on the certificates in 1931 did a great deal toward remedying the depression, and complete payment, with the cancelation of interest on all previous loans, would be a great value at this time.

Mr. Speaker, the immediate cash payment of the adjustedservice certificate is not a gift, it is not a loan. it is not a dole. It is the payment of an honest obligation, now long since overdue. Payment will not only be beneficial to the soldier, but will help the whole country. The Government can afford to pay it; the people want it paid. [Applause.]

LEAVE OF ABSENCE

Mr. DINGELL. :Mr. Speaker, I rise at this time to announce the untimely death of Mary Anne Sadowski, the little daughter of our colleague the gentleman from Michigan [Mr. SADOWSKI], and ask unanimous consent that he be granted indefinite leave of absence during this period of bereavement.

The SPEAKER. Without objection, it will be so ordered. There was no objection.

SUBCOMMITTEE OF COMMITTEE ON LABOR-LEAVE TO SIT DURING SESSION OF THE HOUSE

Mr. CONNERY. Mr. Speaker, I ask unanimous consent that the subcommittee of the Committee ·on Labor be permitted to meet during the session of the House this afternoon.

The SPEAKER. Is there objection? There was no objection.

CALL OF THE HOUSE

Mr. BLANTON. Mr. Speaker, I make the point of order that there is no quorum present. I think the Members should be here to vote on the Wolcott $50,000 amendment.

The SPEAKER. The gentleman from Texas makes the point of order that there is no quorum present. The Chair will count. [After counting.] Two hundred Members present, not a quorum.

Mr. TAYLOR of Colorado. Mr. Speaker, I move a call of the PLOuse.

The motion was agreed to. The doors were closed. The Clerk called the roll, and the fallowing Members failed

to answer to their names: [Roll No. 25]

Allen DeRouen • Johnson, w:va. Mitchell, Ill. Bankhead Doutrich Kahn O'Malley Beam Drewry Kleberg Peyser Boehne Duncan Kopplemann Reece Brooks Gambrill Larrabee Sadowski Buckley, N. Y. Gasque Lewis, Md. Sandlin Carter Goldsborough McMillan Schaefer Claiborne Hobbs Maloney South Darden Jenkins, Ohio Meeks Treadway

The SPEAKER. Three hundred and ninety-five Members have answered to their names, a quorum.

Mr. TAYLOR of Colorado. M:r. Speaker, I move to dispense with further proceedings under the call.

The motion was agreed to. The doors were opened.

HOLDING COMPANIES (H. DOC. NO. 137)

The SPEAKER laid before the House the following message from the President of the United States. which was read, and,

with the accompanying papers, ref erred to the Committee on Interstate and Foreign Commerce and ordered printed:

To the Congress of the United States: I am transmitting to you herewith a report submitted to

me by the National Power Policy Committee. I named this committee last summer from among the departments of the Government concerned with power problems to make a series of reports to coordinate Government policy on such problems. This report I am submitting to you is the recommendation of the committee with respect to the treatment of holding companies in the public-utility field. It deserves the careful attention of every Member uf the Congress.

The so-called " public utility holding company bill " (title I of House bill 5423 and of Senate bill 1'125), which was drafted under the direction of congressional leaders, incorporates many of the recommendations of this report.

I have been watching with great interest the fight being waged against public utility holding company legislation. I have watched the use of investors' money to make the investor believe that the efforts of Government to protect him are designed to defraud him. I have seen much of the propaganda prepared against such legislation-even down to mimeographed sheets of instructions for propaganda to exploit the most far-fetched and fallacious fears. I have seen enough to be as unimpressed by it as I was by the similar effort to stir up the country against the securities exchange bill last spring. The Securities Exchange Act is now generally accepted as a constructive measure, and I feel confident that any fears now entertained in regard to proposed utility holding company legislation will prove as groundless as those last spring in the case of the Securities Exchange Act.

So much has been said through chain letters and circulars and by word of mouth that misrepresents the intent and purpose of a new law that it is important that the people of the country understand once and for all the actual facts of the case. Such a measure will not destroy legitimate business or wholesome and productive investment. It will not destroy a penny of actual value of those operating properties which holding companies now control and which holding company securities represent insofar as they have any value. On the contrary, it will surround the necessary reorganization of the holding company with safeguards which will in fact protect the investor.

We seek to establish the sound principle that the utility holding company, so long as it is permitted to continue, would not profit from dealings with subsidiaries and affiliates where there is no semblance of actual bargaining to get the best value and the best price. If a management company is equipped to offer a genuinely economic management service to the smaller operating utility companies, it ought not to own stock in the companies it manages, and its fees ought to be reasonable. The holding company should not be permitted to establish a sphere of influence from which independent engineering, construction, and other private enterprise is excluded by a none too benevolent private paternalism. If a management company is controlled by related operating companies, it should be organized on a truly mutual and cooperative basis and should be required to perform its services at actual cost demonstrably lower than the services can be obtained in a free and open market.

I We do not seek to prevent the legitimate diversification of investment in operating utility companies by legitimate investment companies. But the holding company in the past has confused the function of control and management with that of investment and in consequence has more frequently than not failed in both functions. Possibly some holding companies may be able to divest themselves of the control of their present subsidiaries and become investment trusts. But an investment company ceases to be an investment company when it embarks into business and management. Inve.stment judgment requires the judicial appraisal of other people's management.

The disappearance at the end of 5 years of those utility holding companies which cannot justify themselves as necessary for the functioning of the aperating utility companies of the country is an objective which congressional leaders

3470 CONGRESSIONAL RECORD-HOUSE MARCH 12 I have consulted deem essential to a realistic and farsighted treatment of the evils of public-utility holding companies. For practical reasons we should off er a chance of survival to those holding co111panies which can prove to the Securities and Exchange Commission that their existence is necessary for the achievement of the public ends which private utility companies are supposed to serve. For such companies, and during the interim period for other companies, the proposal for a comprehensive plan of public regulation and control is sound.

But where the utility holding company does not perform a demonstrably useful and necessary function in the operating industry and is used simply as a means of financial control, it is idle to talk of the continuation of holding companies on the assumption that regulation can protect the public against them. Regulation has small chance of ultimate success against the kind of concentrated wealth and economic power which holding companies have shown the ability to acquire in the utility field. No Government effort can be expected to carry out effective, continuous, and intricate regulation of t.he kind of private empires within the Nation which the holding company device has proved capable· of creating.

Except where it is absolutely necessary to the continued functioning of a geographically integrated operating utility system the utility holding company with its present powers must go. If we could remake our :financial history in the light of experience certainly we would have none of this holding-company business. It is a device which does not belong to our American traditions of law and business. It is only a comparatively late innovation. It dates definitely from the same unfortunate period which marked the beginnings of a host of other laxities in our corporate law which have brought us to our present disgraceful condition of competitive charter-mongering between our States. And it offers too well demonstrated temptation to and facility for abuse to be tolerated as a recognized business institution. That temptation and that facility are inherent in its very nature. It is a corporate invention which can give a few corporate insiders unwarranted and intolerable powers over other people's money. In its destruction of local control and its substitution of absentee management it has built up in the public utility field what has justly been called a system of private socialism which is inimical to the welfare of a free people.~ .

Most of us agree that we should take the control and the benefits of the essentially local operating utility industry out of a few :financial centers and give back that control and those benefits to the localities which produce the business and create the wealth. We can properly favor economically independent business, which stands on its own feet and diffuses power and responsibility among the many, and frowns upon those holding companies which through interlocking directorates and other devices have given tyrannical power and exclusive opportunity to a favored few. It is time to make an effort to reverse that process of the concentration of power which has made most American citizens, once traditionally independent owners of their own businesses, helplessly dependent for their daily bread upon the favor of

· a very few, who, by devices such as holding companies, have taken for themselves unwarranted economic power. I am against private socialism of concentrated private power as thoroughly as I am against government socialism. The one is equally as -dangerous as the other;· and destruction of private socialism is utterly essential to avoid governmental socialism.

FRANKLIN D. ROOSEVELT.

THE WHITE HOUSE, March 12, 1935.

[Applause.]

REPORT OF ALIEN PROPERTY CUSTODIAN (H. DOC. NO. 135)

The SPEAKER also laid before the House the following message from the President of the United Sta.tes, which was read, and, with the accompanying papers, referred to the Committee on Interstate and Foreign Commerce:

To the Congress of the United States: In accordance with the requirements of section 6 of the

Trading with the Enemy Act, I transmit herewith, for the

information · of the Congress, the final report of the Alien Property Custodian on proceedings had under the Trading with the Enemy Act.

FRANKLIN D. ROOSEVELT. Tm: WHITE HOUSE, March 12, 1935.

INTERNATIONAL TECHNICAL COMMITTEE, AERIAL LEGAL EXPERTS (H. DOC. NO. 136)

The SPEAKER ailso laid before the House the following message from the President of the United States, which was read, and, with the accompanying papers, referred to the Committee on Foreign Affairs, and ordered printed:

To the Congress of the United States: I commend to the favorable consideration of the Congress

the enclosed report from the Secretary of State to the end that Public Resolution 118, Seventy-first Congress, be amended so as to authorize an annual appropriation to pay the pro rata share of the United States in the expenses of the International Technical Committee of Aerial Legal Experts and to authorize an annual appropriation in the sum of $6,500, or so much thereof as may be necessary, for the expenses of participation by the Government of the United States in the meetings of the International Technical Committee of Aerial Legal Experts and/or of the commissions established by that committee.

FRANKLIN D. ROOSEVELT. THE WHITE HousE, March 12, 1935.

DEFICIENCY APPROPRIATION BILL

Mr. BUCHANAN, from the Committee on Appropriations, reported ·the bill <H. R. 6644; Rept. No. 376) making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1935, and prior fiscal years, to provide supplemental appropriations for the fiscal year ending June 30, 1935, and for other purposes, which was read a first and second time and, with the accompanying report, referred to the Committee of the Whole House on the state of the Union.

Mr. TABER. Mr. Speaker. I reserve all points of order. ADDITIONAL HOME-MORTGAGE RELIEF

Mr. STEAGALL. Mr. Speaker, I move that the House resolve itself into the Committee of the Whole House on the state of the Union for the further consideration of the bill <H. R. 6021) to provide additional home-mortgage relief, to amend the Federal Home Loan Bank Act, the Home Owners' Loan Act of 1933, and the National Housing Act, and for other purposes.

The motion was agreed to. Accordingly the House resolved itself into the Committee

of the Whole House on the state of the Union for the further consideration of the bill H. R. 6021, with Mr. CELLER in the chair.

The Clerk read the title of the bill. Mr. COCHRAN. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. COCHRAN. Am I correct in assuming that the order

'Of business is the teller vote on the pending amendment? The CHAIRMAN. The gentleman from North Carolina

[Mr. HANcocKJ de.manded tellers, but tellers have not yet been ordered. ·

Mr. COCHRAN. I ask unanimous consent, in view of the situation which confronts the House, a number of Members present now who were not present on Saturday last, that a member of the majority side and a member of the minority side of the Committee on Banking aad Currency be allowed 5 minutes each in which to explain the pending amendments. If this consent is not granted, any number of Members will be voting blind. The Committee is entitled to know the situation that confronts us, and my request is fair to both ·sides. The mere reading of the amendments and substitute will not enable Members to understand just what is proposed.

Mr. BLANTON. Reserving the right to object, they might both be on the same side of the question. Both sides of this question ought to be presented. The 10 minutes should be

1935 CONGRESSIONAL RECORD-_ HOUSE 3471 equally divided, 5 minutes for the amendment and 5 minutes its insurance fund of $200,000,000 in assisting small-home against it. owners throughout the country to secure credit with which

Mr. COCHRAN. I think the Committee will be fair in to make needed repairs to their homes. Your Ba.inking and the matter. Currency Committee was advised at the time this legislation

Mr. BLANTON. Oh, but it is a question of both sides was considered that there were practically twelve or thirteen having their own time. We want our rights. million homes in America owned by people of moderate

Mr. COCHRAN. I will amend my request, Mr. Chairman. means that needed repairs, and it was their opinion thait I request that the gentleman · frail). North Carolina [Mr. through this method relief would be afforded them t9 reHANcocKJ and the gentleman from Michigan [Mr. WoLCOTT 1 habilitate their properties and that this in turn would aid have 5 minutes each. enormously in stimulaiting the durable-goods industries and

Mr. TABER. Mr. Chairman, a point of order. putting men to work. . The CHAIRMAN. The gentleman will state it. It was essentially, however, a "better housing" propo~i-Mr. TABER. Under the rules of the House, the Committee tion, and no one ever dreamed that we would be faced with

having voted to close debate on this item, it is impossible for a proposition of this kind. My judgment is that if the Wolthe Committee, by unanimous consent, to wipe that out. cott amendment is adopted and my amendment is npt

The CHAIRMAN. The Conimittee can, by unanimous con- adopted, Congress is in effect making a "hand-out" to a sent, change that situation. The request made by the gen- few of the large institutions and installment financing comtleman from Missouri is for unanimous consent to do that. panies to further the sale of their products rather than to

Is there objection to the request of the gentleman from aid the small-home owner and the building trades through-Missourt [Mr. COCHRAN] that there be allowed 10 minutes- out the country. For instance, if one of these lending insti-5 minutes on each side of this question? tutions should make 10 loans of $50,000 each, amounting to

Mr. BLANTON. Five minutes each by the gentleman from $500,000, the Government would be responsible for $100,000 North Carolina [Mr. HANcocK] and the gentleman from of that amount and in case of nonpayment on the part of Michigan [Mr. WoLCOTT1. the borrower the insurance corporation would have to pay

The CHAIRMAN. Is there objection? over to the lending institution $100,000 in cold cash. I am Mr. SISSON. Reserving the right to object, I am sure the perfectly willing and anxious to see these institutions as

gentleman from Michigan [Mr. WOLCOTT], who made a very sisted, but I do not think that the Government should be fine statement on this, which, unfortunately, the House did called upon with taxpayers' money to assume 20 percent of not hear on Saturday, would prefer that the gentleman from the liability. Is there another lending institution in existNew York [Mr. O'CONNOR], who really led the debate on one ence which resorts to such liberal and generous practices? side, should occupy the 5 minutes. Would that be agreeable Will the Government take care of 20 percent of the loss to the gentleman from Michigan? which a home owner incurs when he faces pay day on his

Mr. WOLCO'IT. It is entirely agreeable. I think the mortgage loan to a Government agency? gentleman from New York [Mr. O'CONNOR] should use the We should remember that out of a potential billion dollars time allowed to me. of insurance, as provided in title I of the act, the Housing

Mr. COCHRAN. - Any arrangement, just so the situation is Administration has insured less than $40,000,000 in credits. explained, suits_ me. More than one-seventh of this amount has been insured to

Mr. BLANTON. That is satisfactory. But, Mr. Chair- take care of loans made through the National City Bank of man, if there are going to be a lot of questions that in them- New York, and practically all of this insurance has gone to selves constitute prolonged debate, I will object. protect loans made for the purchase of articles and materials

The CHAIRMAN. The Chair will again state the unani- · from 10 companies in the United States. Bear in mind also mous-consent request. The gentleman from Missouri [Mr. that these loans are supposed to be character loans and COCHRAN] asks unanimous consent that the gentleman from that no security will likely be required. Why should this North Carolina [Mr. HANcocK] have 5 minutes and the gen- special privilege be accorded to a selected few? It smacks of tleman from New York [Mr. O'CONNOR] have 5 minutes in favoritism, to my way of thinking. If my amendment, how-connection with this amendment. Is there objection? ever, pr.evails, the losses _ would be held to a minimum, the

There was no objection. benefits would be spread throughout the ~ountry and the The CHAIRMAN. The gentleman from North Carolina original spirit and purpose of the bill would probably be

f Mr. HANcocK] is recognized for 5 minutes. made effective. Mr. HANCOCK of North Carolina. Mr. Chairman, ladies The CHAIRMAN. The time of the gentleman from North

and gentleman of the Committee, on Saturday I think I ex- Carolina [Mr. HANCOCK] has expired. plained clearly the issue which now faces the House. The Mr. SISSON. Mr. Chairman, I ask unanimous consent amendment offered by the gentleman from Michigan [Mr. that the gentleman from North Carolina have 2 additional WOLCOTT] proposes to increase the amount of the credit or minutes. loans to be insured under title I of the Federal Housing Act The CHAIRMAN. Is there objection to the request of the from a $2,000 loan for home renovizing purposes to a $50,000 gentleman from New York? loan for improvements to commercial or industrial proper-ties. This section, together with his amendment, would There was no objection. maike any type of loan for most any kind of improvement Mr. SISSON. The gentleman will concede, I am sure, that to any kind of property eligible up to the amount of $50,000, the amendment offered by him to strike out this entire secprovided it came through an approved institution. The tion or the part of it relating to the renovizing of small faccommittee brought in a bill amending title I, which would tories, business places, and so forth, does not represent the permit these loans to be insured up to $25,000, which, in my action of the Committee on Banking and Currency. It is opinion, is an outright distortion of the true, original pur- the gentleman's own individual amendment? poses of the activities to be carried on under title I. Mr. HANCOCK of North Carolina. I will say to the gen-

Under the amendment which I haive offered the entire tleman from New York that the committee voted, if I resection 22 of the printed bill, or 25 of the amended bill, member correctly, 12 to 11 in favor of the Reilly amendwould be stricken out, with the result that title I of the ment, which reduced the amount from $50,000 to $25,000, as present Federal Housing Act would remain intact as now it now appears in the bill. written on the statute books. To further clarify the situa- Mr. SISSON. That is correct. The committee also voted tion so that the House may understand exactly the issue by a vote of 13 to 10 against the gentleman's motion to before it today, if we voted down the Wolcott amendment strike out this particular section. That is the purport of to my amendment, the question would then recur upon my the present amendment? motion to strike out the entire section. Please bear in mind Mr. HANCOCK of North Carolina. I think that is corthat if the Wolcott amendment is voted down and my rect. The vote was 13 to 10 against the amendment that I amendment is voted up, the original. language of title I re- am asking the House to adopt.. I am striving to make the mains intact and the Admonition could continue to use issue as clear as crystal. I hope I am doing it.

3472 CONGRESSIONAL RECORD-HOUSE MARCH 12 Mr. COCHRAN. If the House defeats the Wolcott amend

ment, and then def eats the amendment offered by the gentleman from North Carolina, the bill will remain $25,000 as reported by the committee? Is that correct?

Mr. HANCOCK of North Carolina. That is absolutely correct.

Mr. SISSON. Mr. Chairman, will the gentleman yield? Mr. HANCOCK of North Carolina. I yield. Mr. SISSON. If the amendment offered by the gentleman

from North Carolina [Mr. HANCOCK] prevails, the entire provision recommended by the Housing Administration goes out.

Mr. COCHRAN. But if the amendment is defeated, the committee's recommendation stands.

Mr. SISSON. The committee's recommendation, adopted by a 12-to-11 vote, stands; but not the Administration's recommendation.

[Here the gavel fell.] Mr. FITZPATRICK. Mr. Chairman, I ask unanimous

consent that the gentleman may proceed for 1 additional minute.

The CHAIRMAN. Is there objection to the request of the gentleman from New York? · There was no objection.

Mr. FITZPATRICK. Mr. Chairman, will the gentleman yield?

Mr. HANCOCK of North Carolina. I yield. · Mr. FITZPATRICK. Do I understand correctly that the Administration's recommendation is $50,000? .

Mr. HANCOCK of North Carolina. If the gentleman considers that ' the officials of the Housing Administration are authorized to speak for the Administration, that is correct.

Mr. FITZPATRICK. They recommended $50,000? · Mr. HANCOCK of North Carolina. They presented evidence and testimony to the committee in support of a $50,000 limitation.

Mr. FITZPATRICK. And the committee cut that down to $25,000.

Mr. BLANTON. Mr. Chairman, will the gentleman yield? Mr. HANCOCK of North Carolina. I yield. Mr. BLANTON. If ·the amendment of the gentleman

from Michigan [Mr. WOLCOTT] passes, then apartment houses in all the big cities can get $50,000 at a whack.

Mr. HANCOCK of North Carolina. Any industrial and commercial business.

Mr. BLANTON. And it will take up most of this money needed by the home owners of the country.

Mr. HANCOCK of North Carolina. That is my judgment. Mr. WOLCOTI'. Mr. Chairman, will the gentleman yield? Mr. HANCOCK of North Carolina. I yield. Mr. WOLCOTI'. I wish to correct an apparent misappre

hension in the minds of Members. We should not confuse the Home Owners' Loan Corporation with the Federal Housing Administration. Is it not true that there is no relationship whatsoever between the Home Owners' Loan Corporation funds and the Federal Housing Administration funds, and that none of this money comes out of any money which has been allotted to home owners under the Home Owners' Loan Corporation Act?

Mr. HANCOCK of North Carolina. That is a correct statement, the kind the gentleman usually makes. [Applause.]

[Here the gavel fell.] Mr. O'CONNOR. Mr. Chairman, I am glad the gentleman

from Michigan just made that explanation. This proposed amendment bas absolutely nothing to do with the Home Owners' Loan Act.

The gentleman from North Carolina had no hesitancy in voting to hand out $500,000,000 in addition, and directly, to the banks and other lending institutions. This amendment to the Federal Housing Act does not involve the use of any Government money. The money is loaned by the banking institutions, 12,700 of which have qualified by the administration.

The Federal Housing Administration proposed that in addition to loans up to $2,000 to alter and repair homes, and not in any way interfering with that provision, that the

money they had should be used also to the extent of insuring up to 20 percent loans made to repair apartment houses hospitals, and so forth-and every Member .here must have ~ hospital in his district-and also manufacturing and industrial establishments. Of the $200,000,000 allotted to the Federal Housing Administration, it has used only some $43,000,000 on loans up to $2,000 to improve individual homes. That provision as to individual homes is not touched by this proposal; that provision is separate and distinct from this proposal to insure loans on apartment houses, hospitals, and so forth. Fifty thousand dollars would not even touch repairs to any large apartment hotel in New York City. Every little town must have a manufacturing or industrial establishment; every little town must have a tenement of some kind; every little town must have a hospital to which this amendment would apply . . Heretofore these small buildings that were not individual homes, have not been able to qualify under any of the acts. This amendment would allow them to qualify. - It is estimated that there are available applications to the extent of $1,500,000 for these loans, if the banks take them all. Of this $1,500,000,000, at least $1,100,000,000 will go directly to labor, because in alterations and repairs at least 75 percent of the cost is represented by wages, instead of only about 50 percent, as is the case on P. W. A. projects.

Mr. CONNERY. Mr. Chairman, will the gentleman yield? Mr. O'CONNOR. I yield. Mr. CONNERY. And this is the only way in which the

small business man can borrow money to make repairs to his plant.

Mr. O'CONNOR. Yes; and it is estimated that when this work is done, four times that amount of work is created, because the man goes further than the loan made by his bank.

Mr. KRAMER. Mr. Chairman, will the gentleman yield? Mr. O'CONNOR. I yield. Mr. KRAMER. In my district there are five outlying

small towns such as the gentleman just referred to. Businesses in these small towns are not considered by the big banker as good risks, although the small-town business is just as much business as are the establishments in the big towns. Does this amendment apply to business men in the small towns?

Mr. O'CONNOR. Yes; it would. Now, Mr. Chairman, the real issue here is whether or

not the building-and-loan associations, which do not make loans for alterations and repairs or on apartment houses or small businesses, are going to control · this House. They have already taken out hundreds and hundreds -of millions of dollars and put it in their own coffers in exchange, not for their good mortgages but for the mortgages which were in default and which they have unloaded on the Government.

Mr. MAVERICK. Mr. Chairman, will the gentleman yield?

Mr. O'CONNOR. I yield. -Mr. MAVERICK. The adoption of this amendment would

benefit agricultural districts as well, because the spending of this money would lead to increased purchases of foodstuffs in the cities.

Mr. O'CONNOR. Certainly. I may say further, Mr. Chairman, that it is only a small

building or apartment house to which much altering or repairing could be done for $50,000. There are, however, many little tenement houses, cold-water tenements in which some people live. The Government bas not done anything for such homes, yet they are the homes of our families. Some of our people have lived in these tenements for 50 years. A loan, 20 percent of which ii? guaranteed by the Government would turn a cold-water railroad fiat into a livable place'; the owner could put in steam heat, he could put in toilets, he could put in bathtubs for the benefit of those who make such places their homes.

Mr. SABATH. Mr. Chairman, will the gentleman yield? Mr. O'CONNOR. I yield.

1935 CONGRESSIONAL RECORD-HOUSE 3473 Mr. SABA TH. As I understand, this money is to be loaned

by the banks and that only 20 percent of it is to be guaranteed by the Government.

Mr. O'CONNOR. Exactly. Mr. SABA TH. The money would be used for the repair

of these buildings. This will create employment as well as improve homes.

Mr. O'CONNOR. That is the main purpose of the provision. The money is available. The amount necessary for insuring repairs to individual homes will not be interfered with.

[Here the gavel fell.1 Mr. NICHOLS. Mr. Chairman, I ask unanimous consent

that the gentleman may proceed for 3 additional minutes. The CHAIRMAN. Is there objection to the request of the

gentleman from Oklahoma? There was no objection. Mr. NICHOLS. Will the gentleman yield? Mr. O'CONNOR. I yield to the distinguished gentleman

from Oklahoma, who so ably presided over the deliberations of the House on yesterday.

Mr. NICHOLS. After a loan is made of private money by the banks to a person making repairs, if 20 percent only of the money is paid back to the bank the Government's responsibility ceases?

Mr. O'CONNOR. No; that is not exactly correct. Mr. GOLDSBOROUGH. No. That is not correct. Mr. NICHOLS. Twenty percent is all that is guaranteed. Mr. O'CONNOR. Twenty percent of the loos, if and when

there is a loss. Mr. NICHOLS. Then if they paid back 80 percent, the

Government's responsibility ceases? Mr. O'CONNOR. Yes, and in addition to that the Gov

ernment does not guarantee each individual loan. The Government approves a lending institution and gives them a line of credit as it were, and guarantees all of their loans up to 20 percent, so the good loans may offset any bad ones. and the Government's risk is. that much less in the last analysis. · Mr. HEALEY. Will the gentleman yield?

Mr. O'CONNOR. I yield to the gentleman from Massachusetts.

Mr. HEALEY. The Government provides no part of the original loan?

Mr. O'CONNOR. No. The lending institutions use their own money.

Mr. HEALEY. In other words, the bank puts up all of the money?

Mr. O'CONNOR. Yes. Mr. HEALEY. The Government merely guarantees in

case of a loss 20 percent of the loss? Mr. O'CONNOR. Yes. Mr. MARCANTONIO. Will the gentleman yield? Mr. O'CONNOR. I yield to the gentleman from New

York. Mr. MARCANTONIO. Is not the figure of $25,000 which

has been set by the committee an arbitrary figure the result of compromise and entirely inadequate?

Mr. O'CONNOR. The difference between the $25,000 and $50,000, I am informed, would be $600,000,000 in loans. That is, the provision for $50,000 will provide $600,000,000 more in loans, 75 percent of which would go for wages. That is the real issue. In order 'to get out of the depression we have to put people to work, not merely take over the worthless mortgages of the lending institutions. [Applause.]

[Here the gavel fell.1 The CHAIRMAN. The question is on the amendment

offered by the gentleman from Michigan [Mr. WOLCOTT], and on that tellers have been demanded by the gentleman from North Carolina [Mr. HANCOCK].

Tellers were ordered, and the Chair appointed as tellers the gentleman from North Carolina [Mr. HANCOCK] and the gentleman from Michigan [Mr. WOLCOTT].

The question was taken; and the tellers report there were-ayes 200, noes 88.

So the amendment was agreed to.

Mr. RABAUT. Mr. Chairman, I offer an amendment, which I send to the desk.

The Clerk read as follows: Amendment offered by Mr. R.ABAUT: Page 13, line 24, after the

word "hospitals", insert "orphanages, colleges, schools."

Mr. RABAUT. Mr. Chairman, I ask unanimous consent to proceed for 5 minutes on the amendment just offered . .

The CHAffiMAN. Is there objection to the request of the gentleman from Michigan?

There was no objection. Mr. RABAUT. Mr. Chairman, it is with a sense of pride

that opportunity is afforded me to stand in the Well of this House and -ask that the provisions of the National Housing Act be extended to the orphanages, colleges, and schools of this Nation. It is distinctly the prerogative of Congress by its decisions to be the assistant to the Chief Executive of the Nation, and the present Executive at the other end of this avenue is the descendant in office of him who is revered as the Father of his Country.

The provisions of this amendment awaken the fatherly instincts of this body, for this amendment refers to those institutions having to do with the youth, the children, and the orphans of this land. I feel no great urge is necessary; I know the heart of this body; I know your ambition to be of service; I know your recognition of the justice of this amendment; and I have no fear about its passage. Moreover, this amendment will give employment to the building trades, so badly crippled, and so from its passage a twofold good will result. -

Mr. STEAGALL. Mr. Chairman. may I say there will be no opposition from the committee to the amendment just offered.

The CHAIRMAN. The question is on the amendment offered by the gentleman from Michigan. . The amendment was agreed to.

Mr. ELLENBOGEN. Mr. Chairman, I offer an amendment. which I send to the desk.

The Clerk read as follows: Amendment offered by Mr. ELLENBOGEN: Page 14, line 10, strike

out the words " such interest " and insert in lieu thereof the following: "a rate of interest which, inclttslve of all charges, does not exceed 6 percent per annum."

Mr. ELLENBOGEN. Mr. Chairman, I ask unanimous consent to proceed for 5 minutes.

The CHAIRMAN. Is there objection to the request of the gentleman from Pennsylvania?

Mr. STEAGALL. Mr. Chairman, reserving the right to object, debate on this amendment has been previously closed, and this morning debate has been reopened once. We have spent lots of time arguing over difierences that did not merit so much consideration. I object to reopening debate on this section at the present time.

Mr. ELLENBOGEN. Mr. Chairman, I ask unanimous con-sent to proceed for 2 minutes. ·

Mr. ANDREWS of New York. Mr. Chairman, I object. · The CHAIRMAN. The question is on the amendment offered by the gentleman from Pennsylvania [Mr. ELLENBOGEN].

Mr. KV ALE. Mr. Chairman, I ask unanimous consent that the amendment may be again reported.

The Clerk read the Ellenbogen amendment. The amendment was rejected. . The CHAIRMAN. The question is on the amendment

offered by the gentleman from North Carolina [Mr. HANcocKJ to strike out section 25.

The Clerk again read the Hancock amendment. Mr. SISSON. Mr. Chairman, I make the point of order

that the amendment of the gentleman from North Carolina has already been decided by the vote on the other amendment.

The CHAIRMAN. The Chair overrules the point of order. Mr. FITZPATRICK. Mr. Chairman, a parliamentary in

quiry. The CHAffiMAN. The gentleman will state it. Mr. FITZPATRICK. If the amendment offered by the

gentleman from North Carolina is carried, it will do away with the amendment which we just agreed to. ·

CONGRESSIONAL RECORD-HOUSE MARCH 12 Mr.-GOLDSBOROUGH. That is not a parliamentary in

quiry. Mr. McFARLANE. Mr. Chairman, I make the point of

order that is not a parliamentary inquiry. The CHAIRMAN. The· gentleman has not stated a par-

liamentary inquiry. Mr. CONNERY. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. CONNERY. · If a vote is taken now on this amend

ment and the amendment is agreed to, will it not do what the gentleman from New . York CMr. FITZPATRICK] has just stated?

The CHAIRMAN. It is not within the province of the Chair to construe the purport of amendments.

Mr. O'CONNOR. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. O'CONNOR. Mr. Chairman, I am not sure, but did I

hear the Chair state that this is a committee amendment? The CHAIRMAN. The Chair did not so state. Mr. BOYLAN. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. BOYLAN. Will the Chair kindly explain to the Com

mittee the effect of a vote on this amendment? The CHAIRMAN. It is not the purpose of the Chair or

the practice of the Chair to explain to the Membership the purpose or the meaning of amendments.

Mr. BOYLAN. Is it not the duty of the Chair to give the House some information about amendments?

Mr. BLOOM. Mr. Chairman, may we have the amendment again read?

The CHAffiMAN. Is there objection to the request of the gentleman from New York?

Mr. McFARLANE. Mr. Chairman, I object. The question was taken, and the amendment was rejected. The Clerk read as fallows:

. SEC. 27. Section 302 of the National Housing Act is amended to read as follows: ·

"SEC. 302. Each national mortgage association is authorized to issue and have outstanding at any time notes, bonds, debentures, or other such obligations in an aggregate amount not to exceed (1) 15 times the aggregate par value of its outstanding capital stock, and in no event to exceed (2) the current face value of mortgages held by It and insured under the provisions of title II of this act, plus the amount of its cash on hand and on deposit and the amount of its investments in bonds or obligations of, or guaranteed as to principal and interest by, the United States. No na.ti?nal mortgage association shall borrow money except through the issua~ce of such notes, bonds, debentures, or other obligations, except with the approval of the Administrator and under such rules and regulations as he shall prescribe."

Mr. SISSON. Mr. Chairman, I offer an amendment, which I send to the desk.

The Clerk read as follows: Amendment offered by Mr. SrssoN: On page 15, line 15, add as a

new section: "SEc. 28. The first sentence of section 2 of the National Housing

Act is amended by strlidng out the word " January " and inserting in lieu thereof the word "April."

Mr. SISSON. Mr. Chairman, this is simply a perfecting amendment. I can state the purpose of the amendment in 2 minutes and there ought not to be any controversy about it.

Under the provisions of section 2 of title I, the title which has just been under consideration on the recent amendment, title I expires on the 1st of January 1936. This is the end of the present calendar year. This is the emergency part of this act. This is at a time when the Congress is not in session.

This amendment simply proposes that this shall be continued for a period of 3 months, but it is still subject to the limitation that the President may terminate it at any earlier time. In other words, we may find at that time that we have put hundreds of thousands of men to work and not have used all of this authorization, and it may be deemed inadvisable to continue it. This will have to be left to the Congress to determine, and I cannot see any reason why the committee should not have accepted the amendment.

The CHAffiMAN. The question is on the amendment offered by the gentleman from New York [Mr. SISSON].

The amendment was agreed to. Mr. SAUTHOFF. Mr. Chairman, I offer an amendment.

The Clerk read as follows: Amendment offered by Mr. SAuTHOFF: Page 15, after the last

paragraph, add the following: "Whenever any loan or part thereof ·ma.de pursuant to the pro

v~sions of the Federal E:ome Loan Bank Act, the Home Owners' Loan Act, and the National Housing Act shall not have been paid or ~therwise discharged, there shall never be entered any judgment against any debtor for any sum beyond that realized from the property mortgaged or hypothecated for said loan and deficiency judgments against debtors for any sum beyond the amount realized from the sale of the property mortgaged are specifically prohibited."

Mr. STEAGALL. Mr. Chairman, I make a point of order against the amendment.

The CHAmMAN. Does the gentleman wish to be heard on the point of order?

Mr. SAUTHOFF. Yes, Mr. Chairman. The amendment which I introduced Saturday, prohibiting

deficiency judgments, was ruled out on the ground it was not applicable to the section to which it was offered. The amendment I am offering now differs from the amendment I offered the other day in this respect: It applies not only to the Home Owners' Loan Act but to the other governmental agencies contained in this act we are now having under discussion. In addition to this, it does not apply only to the final judgment, but also to any part of it which may be in default. In other words, what I am trying to do is to protect home owners after they have lost their homes and have not a thing left from having a deficiency judgment entered against them, which will be good for 20 years in the future and, secondly, that in the event that some future Congres~ sees fit to close out these agencies and to dispose of the assets to a private lending concern, it cannot hound a man for the rest of his life to collect what little is left from what he is earning on his job.

The CHAIRMAN. The amendment offered by the gentleman from Wisconsin proposes to amend a section of the Home Owners' Loan Corporation Act. The pending section of the bill to which the amendment is offered relates exclusively to section 302 of the National Housing Act and for that reason the Chair is of the opinion that the amendment is not germane. It is not offered at the proper time or place. Therefore the Chair sustains the point of order. ·

Mr. McFARLANE. Mr. Chairman, I offer the following amendment. · · The Clerk read as follows:

Page 15, after line 15, add a new section amending section 4 (d) of the Public Act 43, Seventy-third Congress, known as "H. R. 5240 ", as follows: . "In c~se foreclosures are prosecuted to conclusion the plaintiff shall not obtain any deficiency judgment for any sum still unpaid until all recourse has been exhausted against the collateral or mortgage securing the loan under the provisions of this act."

Mr. STEAGALL. Mr. Chairman, I make the point of order that that is not germane.

Mr. McFARLANE. This amendnient adds a new section to the bill, amending section 4. (d) of Public Act 43, Seventythird Congress, known as " H. R. 5240." It adds to section 4 (d) the provision just read by the Clerk, that prohibits a deficiency judgment being entered against the mortgagor after he has lost his home, as has been so well described by the gentleman from Wisconsin.

The CHAIRMAN. Does the gentleman from Alabama wish to discuss the point or order?

Mr. STEAGALL. I do not care to further discuss it. Mr. McFARLANE. It adds a new section to this act and

makes the amendment applicable to the proper section of the original Home Loan Act and for that reason, Mr. Chairman, I believe my amendment is germane.

The CHAIRMAN. The Chair is ready to rule. The amendment offered by the gentleman from Texas proposes to add a new section at the end of the bill relative to foreclosures under the original act of 1933. The original act refers to the subject matter contained in the amendment otiered by the gentleman from Texas, and therefore the Chair believes the amendment germane and overrules the point of order.

Mr. WOLCOTT. Will the gentleman yield? Mr. McFARLANE. I yield.

1935 CONGRESSIONAL RECORD-HOUSE 3475 Mr. WOLCOTI'. The amendment -of the gentleman

speaks of a default judgment. There is a tliff erence between a default judgment and a deficiency judgment.

Mr. McF ARLANE. The amendment says a " deficiency judgment." The Clerk read u default judgment", but that· was because the amendment was hurriedly prepared and the Clerk could not read the writing.

Mr. Chairman, this matter is very clear and needs no explanation. It is a question whether or not the individual home owner shall be confronted with a deficiency judgment after he has lost his home that will follow him for the next 20 years. I do not believe that the House wants to do that, and I know that it is not now nor has it ever been the intention of this administration through legislation of this kind to take away their homes from the unemployed, the distressed, and aged citizens of this country, who have been and are to be the beneficiaries of this legislation. This administration has been doing everything possible to reemploy our people, to restore their buying power, and while doing this to stop foreclosures and to keep our citizens, urban and rural, from losing their homes and farms. This amendment, if adopted and made a part of this law at this time, will prevent those lending under the provisions of this act from securing deficiency judgment against the home owner, should the home owner through unfortunate circumstances be unable to take care of his payments as required under this act. Should it become necessary for the agencies under this act to foreclose and take the mortgagor's homestead, certainly this Congress does not want to and it would be unfair and unjust to persecute the mortgagor further and hound him for the next 20 years by holding -over his head a deficiency judgment. I appeal to the Membership cf this House to adopt this amendment. I Applause.]

Mr. STEAGALL. Mr. Chairman, I think it would be well to call attention to the fact that we are not dealing alone with regulation of loans on homes by private finance institutions. The Home Owners~ Loan Corporation Act embodies a purpose on the part of the Government to come to the rescue of home owners who are in danger of having mortgages on their homes foreclosed.

We are advised by the people who have administered this law that only one foreclosure in the United States has been had out of nearly 1,000,000 loans. There is no purpose or thought of dealing harshly with borrowers on the part of the Home Owners' Loan Corporation. The whole intention is to save homes, to relieve distressed home owners, not to embarrass or injure them. The law represents an altruistic purpose, not an intention to oppress borrowers. This amendment would invite fraud UPQn the Government. It could easily arise in rare cases that a:r;i individual while having at one time been in danger of losing his home might, before maturity of the mortgage through fire or other cause, have a loss in value of the property conveyed, still such a borrower might be amply able to reimburse the Government from other resources. In such a case the amendment proposed would result in a fraud upon the Government. Not only would it result in fraud upon the Government but it would prevent the extension of aid to worthy applicants for aid from the Government. It would probably necessitate more conservative methods of appraisal and stricter business rules in extendfug loans. I hope the House will not adopt this amendment.

Mr. GIFFORD. Mr. Chairman, I have supported the chairman of this committee in practically everything relating to this legislation, but we are now discussing a new f eature in the way of an amendment, that of" deficiency judgments." It is a matter of great interest. Many States are oow struggling with that proposition and many others have legislated against it. Its effects have been called to my personal attention and I know whereof I speak, that in certain cases in my county, that property having a mortgage of about $7,500, assessed for about $10,000 or more,. with a valuation of about $12',000 would be bid in for not more than $2,000. Mortgagees -a!'e usually helpless in securing other bona fide bids to protect the owner of the property. Immediately a bill is sent from the-mort_ga.gee to the

mortgagor attempting to Yecover the entire dtlrerence between the $2,000 and the face of the mortgage plus all expenses. This is what a deficiency judgment means. Does not this illustration, which I vouch for as correct, convince you of the possible iniquities of it? No doubt at times it might work out to the disadvantage of the lender, but usually the lender on property is rather careful not to loan more money than the property might be worth, in case of a forced sale, and if this practice is to continue, to bid in at an auction sale as low a price as possible, sue for the entire balance plus all possible expenses, then any Government, State or National, must act to prevent it. [Applause.]

Mr. ELLENBOGEN. Mr. Chairman, will the gentleman yield?

Mr. GIFFORD. Yes. Mr. ELLENBOGEN. Is it not a fact that often the price

at which the property is obtained at a sheriff's sale includes only taxes and costs and nothing on account of principal?

Mr. GIFFORD. And what redress is there for the party who is being sued? He can go to court and try to show the court that the transaction should "shock the conscience of the court", which is, I think, the legal expression. However, in many cases you cannot shock the conscience of the court in construing the simple procedure of the law. One Member has told me about his own State in the attempt to bring about proper deficiency-judgment legislation by determination of the present value of the property at the time of the sale, and granting a deficiency judgment only for the difference between the real value at time of sale and the amount due on the mortgage. There is a very serious condition in large sections of our country in this matter of foreclosures and the long, harassing litigation over the judgments. We may not interfere with property rights in the States, but we can undoubtedly control our own corporation in this matter, and perhaps set a proper example to the States. Perhaps I do not often seem to support what might be considered radical propositions, but I am forced by experience to support this amendment. [Applause.]

Mr. CAVICCHIA. Mr. Chairman, I move to .strike out tlie last word. We are dealing with a very serious question. I have no doubt in my mind, as poor a lawyer as I am, that if you accept this amendment as it is written, the courts will declare it unconstitutional. State legislatures which have tried it have had the laws declared unconstitutional by their supreme courts. You are facing a problem here. You are trying to protect the property owner who has lost his home and everythlng that he had, and he will be faced with a deficiency judgment which will hang over his head for the next 20 years. Then we are apt to turn this body into a woman's sewing circle or a missionary society, throwing the cloak of protection by congressional action on the people who can very well afford to pay deficiency judgments,

· if we Tesort to it, and who will not pay if we pass this amendment.

Mr. GIFFORD. I suggest that we could not interfere with the property rights of the various States, but I thought we might do this with our own mortgages. Does the gentleman suggest that we cannot do that?

Mr. CAVICCHIA. I think if the amendment be reworded so that if anyone is sued on a -deficiency judgment, the person who is sued, the man who has lost his home, can, through real-estate experts, show what the real value of the property was when it was foreclosed, he might be protected; otherwise this is what will happen: A property worth $100,000 would be bid in by the mortgagee for $100. It is a legitimate bid in my State, if no one goes over that. It may be the mortgage being foreclosed is for $50,000, and the property may have a market value of $80,(}00 or $90,000.

The mortgagee can buy it in for $100 and sue for $49,900. We have had this happ in hundreds of cases. The State Legislature of New Jersey only permits .a deficiency judgment now where the mortgagee actually proves that the value of the property he bought at sheriff's sale was less than the amount due him on the mortgage.

Mr. DONDERO. Will the gentleman yield? Mr .. CAVICCHIA. I yield.

3476 CONGRESSIONAL RECORD-HOUSE MARCH 12

Mr. DONDERO. If we adopt this amendment, are we not liable to force out of consideration the moral risk of the borrower?

Mr. CAVICCHIA. The moral risk is a great part of this Home Owners' Loan Corporation Act, and if we adopt this amendment many· a worthy citizen will be refused a loan on his home when he comes to the regional office or the district office for a mortgage loan. I think we are handling a very dangerous proposition.

[Here the gavel fell.] The CHAIRMAN. The question is on the amendment

offered by the gentleman from Texas [Mr. McFARLANEl. The question was taken; and on. a division (demanded by

Mr. McFARLANE) there were-ayes 65, noes 99. So the amendment was rejected. Mr. McFARLANE. Mr. Chairman, I offer another amend

ment. The Clerk read as follows: Amendment offered by Mr. McFARLANE: Page 15, after line 15,

add a new section at the end of the bill, amending title I, section 2, Public, 479, of the Seventy-third Congress, by adding to the end of said section 2 the following:

" In case of foreclosure being prosecuted to conclusion, the plaintiff shall not obtain any deficiency judgment for any sum still unpaid, after all recourse has been exhausted against the collateral or mortgage securing the loan under the provisions of this act."

Mr. STEAGALL. Mr. Chairman, a point of order. I make the point of order that the amendment is not germane.

The CHAIRMAN. Does the gentleman from Texas [Mr. MCFARLANE] desire to be heard?

Mr. McFARLANE. Mr. Chairman, this is the same proposition. It is to amend seetion 2. This amendment, as shown on its face, is an amendment adding this provision to the end of section 2 of title I of Public, No. 479, of the Seventy-third Congress, the same being H. R. 9620.

The CHAIRMAN. That is, the gentleman offers an amendment to the National Housing Act?

Mr. McFARLANE. That is correct. The CHAIRMAN (Mr. CELLER). The point of order will

be overruled. Mr. McFARLANE. Mr. Chairman, I want to read this

-amendment. Let us have a free and frank discussion of it. In case of foreclosure being prosecuted to conclusion, the

plaintiff shall not obtain any deficiency judgment for any sum still unpaid after all recourse has been exhausted against the collateral or mortgage securing the loan, under the provisions of this act. ·

Now, Mr. Chairman, this amendment is attached to the proper section of the National Housing Act, and it is to that section what the previous amendment was to the Home Loan Act. In all fairness and in all candor, why should we persecute a ·man after we have taken his home from him? These loans are not made without adequat.q collateral and without adequate security when they are made. After the Government has secured a man's homestead, has secured his property, why should we hang a deft-

, ciency judgment over his head that will haunt him for 20 years, and take away from him even his . daily earnings? I do not think the Government wants to do that under these depressed conditions under which we live.

Mr. HANCOCK. of North Carolina. Will the gentleman yield?

Mr. McFARLANE. I yield. Mr. HANCOCK of North Carolina. ·noes the amend

ment that the gentleman proposes refer to loans made under title I of the Federal Housing Act?

Mr. McFARLANE. That is correct. Mr. HANCOCK of North Carolina. The gentleman ap

preciates the fact that the · House a few minutes ago voted to increase the amount under that section to $50,000?

Mr. McFARLANE. Yes. · • · Mr. HANCOCK of North Carolina. Does he believe the

institutions which are now eligible to borrow that amount . ought not be held to strict accountability when it comes to paying it back?

Mr. McFARLANE. I think that after they have all the information before them and they make these loans, i!

they are not made · on a sound business basis, the sooner we find it out the better off we will be.

Mr. HANCOCK of North Carolina. Will the gentleman yield for another question?

Mr. McFARLANE. I yield. Mr. HANCOCK of North Carolina. The gentleman ap

preciates the fact that most of the loans would be made to corporations?

Mr. McFARLANE. I do not know that that would be just exactly true. In fact, I think rather to the contrary. I think the larger number of the apartment houses, as well as the other loans that will come under this act, could properly come within the provisions of this amendment. I see no reason why they should not.

Mr. BROWN of Michigan. Will the gentleman yield? Mr. McFARLANE. I yield. Mr. BROWN of Michigan. The gentleman understands

that these loans are so-called "character loans" and it is not anticipated that collateral will be required under this title, so we must depend upon the character of the person who borrows the money. Certainly under those circumstances we should not be without the right to sue the man who borrowed the money.

Mr. McFARLANE. If the Government is going into the lending business on the recommendation of somebody's character, we had better stop that kind of proposition right now.

Mr. BROWN of Michigan. That is exactly what we have done in this bill. The losses have been very small.

Mr. McFARLANE. Yes; it may be true that character will be the principal basis for loans under recent amendments to this bill. However, if the Government is going to make any loans on character, I will say to the gentleman, frankly, we had better get out of the loaning business before we cause the Government to suffer tremendous losses.

Mr. BROWN of Michigan. We have already done it. Mr. CONNERY. Will the gentleman yield? Mr. McFARLANE. I yield. Mr. CONNERY. Speaking of character loans made in

the banking business, let me tell the gentleman that of their character loans they collect 99 percent; in other words, they get their money, their money is saved; but when they take collateral from the big boys, from big business, they are liable to lose 99 percent.

Mr. McFARLANE. Regardless of all the arguments that have been made here, Mr. Chairman, it is nothing but right and proper that the collateral or the mortgage that is taken by the Government should be sufficient, and they ought not to prosecute and persecute that party, whoever he may be, in the future. I think in all fairness we ought to permit these parties under these depressed conditions where they are struggling ta get by to save the very roof over their heads. If there is any justification for this legislation, it is that it is designed to help people about to lose their homes, or whose homes are dilapidated and need repair. Under these conditions, I think, frankly and candidly we ought, after they have secured the collateral or the mortgage and have foreclosed it, they should be willing to stop there.

[Here the gavel f ell.J Mr. HANCOCK of North Carolina. Mr. Chairman, I ask

unanimous consent that the gentleman may proceed for 3 additional minutes. ·

The CHAIRMAN. Is there objection to the request of, the gentleman from North Carolina?

There was no objection. Mr. HANCOCK of North Carolina. Mr. Chairman, will

the gentleman yield? Mr. McF ARLANE. I yield. Mr. HANCOCK of North Carolina. I want to say to my

friend, the gentleman from Texas, that I am personally pretty weak when it comes to a deficiency judgment against the home owner, but I want in fairness to the Federal Housing Administration to let the Membership of the House know that in response to certain questions which I propounded to Mr. Moffett and to Mr. Ferguson, they agreed it would not be the policy of the Federal Housing Administration to resort to deficiency judgments.

1935 CONGRESSIONAL RECORD-HOUSE 3477. Mr. McFARLANE. Then, in all fairness, why should not

we adopt amendments that point out proper limitations of law so they will know what the mileposts are, and so safeguard our citizens as well as the Government?

Mr. REILLY. Mr. Chairman, will the gentleman yield? Mr. McFARLANE. I yield. Mr. REILLY. Under character loans, the Government

has nothing to do with the foreclosing or taking back of the security; so the gentleman's amendment will be absolutely useless regarding the loans made for repairs and improvements.

Mr. KERR. Mr. Chairman, will the gentleman yield? Mr. McFARLANE. I yield. Mr. KERR. It may be interesting for the gent1eman to

know that many of the progressive States of this Nation today have passed statutes prohibiting the taking of deficiency judgments of the kind the gentleman has described.

Mr. McFARLANE. Answering the gentleman, I will say that my State has passed such a law; most of the States have. I cannot see any reason why we in Congress should not be a little more progressive and enact progressive legislation now and then.

Mr. CONNERY. Mr. Chairman, will the gentleman yield? Mr. McFARLANE. I yield. Mr. CONNERY. The gentleman speaks about writing

mileposts into the law. We have had trouble enough lots of times in getting them to put into effect what we have written into law, and it will not do a bit of harm to write these requirements into this law.

Mr. McFARLANE. It will &ave a lot of homes that otherwise would be sold over people's heads. If we permit these foreclosures and do not protect people we are going to have a lot of them on the street without shelter through foreclosures in after years. This could and should be prevented by these amendments.

Mr. SISSON. Mr. Chairman, I rise in opposition to the amendment.

Mr. Chairman, the taking of a deficiency judgment against the mortgagor, the owner of a home, has no more to do with the proposition advanced by the gentleman from Texas than have the flowers that bloom in the spring; they are not analogous at all. The Government, a.s has been said by the gentleman from Wisconsin [Mr. REILLY], does not take the judgments at all. There seems to be a total misunderstanding of the purpose and the method by which this act is carried out on the part of the gentleman from Texas. The lending is not done by the Government; there is no money furnished by the Government. This is an effort to get private capital ba~k into industry, the one objective we have been trying to accomplish; and we are trying to do it by making it sufficiently attractive under the emergency part of this plan, which is only a small part of it, by insuring a small portion of the loans made by private lending institutions.

The smaller loans are, to some extent, as has been said, character loans. Loans such as $50,000 will be made perhaps. to some corporation, to some small concern that is going to rehabilitate a factory and put men to work. Certainly the banks cannot be encouraged to make loans if the banks are going to be stopped from enforcing their judgments against whatever collateral they may have. So I ask the House to vote down the amendment. I am glad in this instance to concur with my brother, the gentleman from North Carolina [Mr. HANcocKJ, who has given a very sound reason for opposing the amendment.

Mr. STEAGALL: Mr. Chairman, it might be well to say that the insurance up to 20 percent of a loan does not cover individual loans.

It is insurance extended to lending institutions who make loans to the owners of commercial buildings, office buildings, apartment houses, or other buildings provided for in the bill, and the total amount of loans made by such institutions is insured by the Corporation to the extent of 20 percent, but there is no insurance of a particular loan. The Housing Corporation takes no security whatever, and there is no requirement that lending institutions making a loan either to home owners or to commercial-building owners shall take security. It is contemplated that the lending

institution will be the sole judge of the security. It is not expected that even the lending institution will take security. We have been told all along that these loans are to be made as character loans, whether to the home owner or to owners of commercial buildings.

It will be remembered that originally the insurance was confined to loans made for the improvement of homes and limited to the amount of $2,000. Under this bill we still limit loans made for the improvement of homes to $2,000, but by the vote of this Committee we have raised the amount of loans insurable to $50,000 if made to owners of office buildings and commercial and industrial structures. But they, too, are to be treated as character loans, and no security is required of the lending institution to whom the insurance is extended, nor is the lending institution required to take security upon such loans.

Mr. SISSON. Will the gentleman yield? Mr. STEAGALL. I yield to the gentleman from New

York. Mr. SISSON. I entirely agree with the chairman of the

committee; however, may I ask the chairman of the com·mittee to make it plain that security may or may not be required in the case of loans above $50,000.

Mr. STEAGALL. Let us be sure about that. The gentleman is correct as far as he goes, but the statement in itself may not convey the idea which he has in mind.

No security is required by the Housing Corporation of the institution whose loans are insured; nor is the institution required to take security. The Housing Administration secures 20 percent of the total loans of an eligible institution and the institution is supposed to lend upon the character of the individual home owner or the owner of the commerciaf or office building. There is no requirement of security. The lending institutions have a free hand. They might make a bad loan entailing a total loss, but such a loss would be absorbed by other good lon.ns. In other words, it would be possible for a loan that is a total loss to be covered by the insurance, because you insure the total amount of loans, and in some no losses would be incurred.

Mr. CONNERY. Will the gentleman yield? Mr. STEAGALL. I yield to the gentleman from Massa

chusetts. Mr. CONNERY. This is the same question I wanted to

propound to the gentleman the other day when he would not yield. The committee stated to me the other day that I had the wrong information when I said a man had to have an income of $10,000 in order to make a $2,000 loan. I may say to the chairman that I got this information from a gentleman who reiterates the statement, a Member of this House, the gentleman from New Mexico [Mr. DEMPSEY],

who was National Federal Housing Administrator for the State of New Mexico. He says they have to have an income of $10,000 to get a $2,000 loan.

Mr. GOLDSBOROUGH. That is ridiculous. Mr. STEAGALL. The gentleman refers to a regulation,

but it is one of which I have no knowledge. Mr. Chairman, I move that all debate on this section and

all amendments thereto do now close. The motion was agreed to. The CHAffiMAN. The question is on the amendment

ofi'ered by the gentleman from Texas [Mr. McFARLANEJ. The amendment was rejected. Mr. TERRY. Mr. Chairman, I offer an amendment, which

I send to the desk. The Clerk read as follows: Amendment offered by Mr. TERRY: Page 15, line 15, insert a new

section, as follows: " SEC. 28. Subsection ( c) of section 5 of Home Owners' Loan

Act of 1933 is amended by striking out the period at the end o! said subsection ( c) , and inserting in lieu thereof a colon, and adding thereafter the following: 'And provided further, That such association which ls converted from a State-chartered inst itution may continue to lend in the territory in which it loaned while operating under State charter.'"

Mr. STEAGALL. Mr. Chairman, I make the point of order that the amendment is not germane.

The CHAIRMAN. Does the gentleman from Arkansas desire to be heard?

'3478 CONGRESSIONAL RECORD-HOUSE MARCH 12 Mr. TERRY. Mr. Chairman, this is a separate section en

tirely. The section which I offer is an entirely new section, and is in order, it seems to me.

The CHAIRMAN. I may say to the gentleman from Arkansas that he might have offered this amendment when we were considering another portion of the bill, but this portion of the bill refers to the National Housing Act. The

- Chair, therefore, sustains the point of order of the gentleman from Alabama.

Mr. ELLENBOGEN. Mr. Chairman, I offer an amendment which I send to the desk.

The Clerk read as follows: Amendment by Mr. ELLENBOGEN: Page 15, after line 15, insert a.

new section, as follows: "SEC. 29. Any loan insured under the National Housing Act shall

bear interest at a rate not to exceed 6 percent per annum, inclusive of all charges."

Mr. ELLENBOGEN: Mr. Chairman, I ask unanimous consent to proceed for 3 minutes.

Mr. STEAGALL. Mr. Chairman, all debate has been closed.

The CHAIRMAN. The Chair will say to the gentleman from Alabama that his request covered section 27 and all amendments thereto.

Mr. STEAGALL. Mr. Chairman, a motion was made and carried, as I understood, closing debate on this section and all amendments thereto.

The CHAIRMAN. The gentleman from Pennsylvania [Mr. ELLENBOGEN] has offered an amendment adding a new section, and is entitled to recognition for 5 minutes.

Mr. STEAGALL. Mr. Chairman, may we have the amendment read?

The Clerk again read the Ellenbogen amendment .• Mr. SISSON. Mr. Chairman, I make the point of order

that this amendment, or one of similar purport, has already been passed upon by the Committee and rejected.

The CHAIRMAN. The gentleman's point of order comes too late. The gentleman from Pennsylvania has been recognized.

Mr. ELLENBOGEN. Mr. Chairman, I should like to explan to the members of the committee that, under the law as it is now constituted, the Government takes the chances on a loan. It insures all loans up to 20 percent, which, in effect, is nearly 100-percent insW'ance, because experience has shown that defaults and losses only total a small percentage of the loans made.

Mr. Chairman, at the present time the Housing Administrator has permitted interest charges up to 9.72 percent per annum, which means an interest rate of nearly 10 percent; and if there is a default in even one installment, 5 percent more is added. So that the interest charges on the small home owner who defaults on even one installment paYm.ent of a small loan is nearly 15 percent. You wlll find this information in the testimony of Mr. Moffet, page 88 of the hearings.

Mr. REILLY. Mr. Chairman, will the gentleman yield? Mr. ELLENBOGEN. I gladly yield to my distinguished .

colleague from Wisconsin. Mr. REILLY. Is not that rate of 9.72 percent the cheapest

money anyone can get for this type of loan in the United States?

Mr. ELLENBOGEN. I do not believe it is. I know of a bank that told a borrower that if he came into the bank without the Housing Administrator's being in on it, he could get the money at 6 percent.

Mr. REILLY. It is true he can go to the bank and get it, but for a corporation this is the cheapest rate going in this country today_

Mr. ELLENBOGEN. But the gentleman forgets that the . Government carries the risk without any charge and the

bank gets the profit. Six-percent profit is enough, when these banks pay only 2¥2 percent on savings accounts. I know of loans insured under the National Housing Act, where the charge is nearly 15 percent, or 14.72 percent to be exact.

Mr. DONDERO. Mr. Chairman, will the gentleman yield? Mr. ELLENBOGEN. I yield.

Mr. DONDERO. I am in sympathy with what the gentleman is trying to do, but would not the gentleman's point be covered by the usury laws of the various States?

Mr. ELLENBOGEN. No; it would not, because they are charging these rates in my State and we have a usury law providing for a rate of 6 percent.

Mr. Chairman, I yield back the balance of my time. Mr. STEAGALL. Mr. Chairman, I move that all debate on

this bill do now close. Mr. BOILEAU. Mr. Chairman, a parliamentary inquiry. The CHAIRMAN. The gentleman will state it. Mr. BOILEAU. In the event the motion of the gentleman

from Alabama prevails, would it then be in order to submit a motion to strike out the enacting clause?

The CHAIRMAN. It would be in order to offer such a motion.

Mr. BOILEAU. And debate would be permitted on the motion?

The CHAIRMAN. The rule provides for 5 minutes' debate for and 5 minutes' debate against such motion.

The question is on the motion of the gentleman from Alabama to close debate on the bill.

The motion was agreed to. The CHAIRMAN. The question is on the amendment of ..

fered by the gentleman from Pennsylvania [Mr. ELLENBOGEN]. The amendment was rejected. The CHAffiMAN. Under the rule the Committee rises. Accordingly the Committee rose; and the Speaker having

resumed the chair, Mr. CELLER, Chairman of the Committee of the Whole House on the state of the Union, reported that that Committee, having had under consideration the bill <H. R. 6021) to provide additional home-mortgage relief, to amend the Federal Home Loan Bank Act, the Home Owners' Loan Act of 1933, and the National Housing Act, and for other purposes, pursuant to House Resolution 150, had reported the same back to the House with sundry amendments adopted by the Committee.

The SPEAKER. Under the rule the previous question is ordered.

Is a separate vote demanded on any amendment? If not, the Chair will put them en gros.

The amendments were· agreed to. The bill was ordered to be engrossed, read a third time,

and was read the third time. Mr. ANDREWS of New York. Mr. Speaker, I offer a mo·

tion to recommit the bill. The SPEAKER. Is the gentleman opposed to the bill? Mr. ANDREWS of New York. I am, in its present form. The SPEAKER. The Clerk will report the motion to

recommit. The Clerk read as follows: Mr. ANDREWS of New York moves to recommit the blll (H. R.

6021) to the Committee on Banking and Currency with instructions to that committee to report the same forthwith with the following amendment:

On page 7, line 17, after the word " following ", insert as a new paragraph the following:

"In the appointment of agents · and the selection of employees for said Corporation and in the promotion of agents or employees, no partisan political test or qualification shall be permitted or given consideration, but all agents and employees shall be appointed, employed, or promoted solely upon the basis of merit and efficiency. Any member of the Board who Is found guilty of a violation of this provision by the President of the United States shall be removed from office by the President of the United States, and any agent or employee of the Corporation who is found guilty of a violation of this section by the Board shall be removed from office by said Board."

Mr. CONNERY. Mr. Speaker, a parliamentary inquiry. The SPEAKER. The gentleman will state it. Mr. CONNERY. If a gentleman offers a inotion to recom

mit and the motion is defeated, can the gentleman vo~ then for the bill?

The SPEAKER. That is a question for the gentleman himself to decide.

Mr. STEAGALL. Mr. Speaker, I move the previous question on the motion to recommit.

The previous question was ordered. The SPEAKER. The question is on the motion of the gen

tleman from New York to recommit the bill.

1935 CONGRESSIONAL RECORD-. HOUSE 3479 The question was taken; and on a division (demanded by

Mr. ANDREWS of New York) there were-ayes 52, noes 165. Mr. ANDREWS of New York. Mr. Speaker, I demand the

yeas and nays. The yeas and nays were ordered. The question was taken; and there were-yeas 109, nays

292, answered" present" 1, not voting 29, as follows: [Roll No. 26] YEAS-109

Allen Dirksen Kimball Rogers, Mass. Amlle Ditter Kinzer Sauthoff Andresen Dondero Knutson Schneider Andrew, Mass. Dunn, Pa. Kvale Seger Andrews, N. Y. Eaton Lambertson Short Arends Ekwall Lehlbach Snell Bacharach Engel Lemke Stefan Bacon Engle bright Lord Stewart Bla.ckney . Fenerty Lundeen Taber Boileau Fish McLean Taylor, Tenn. Bolton Focht McLeod Thomas Brewster Gearhart Maas Thurston Buckbee Gehrmann Mapes Tinkham Buckler, Minn. Gifford Marcantonio Tobey Burdick Gilchrist Marshall Turpin Burnham Goodwin Martin, Mass. Wadsworth Carlson Guyer Merritt, Conn. Welch Carter Gwynne Michener Wigglesworth Cavicchia Halleck Millard Wilson, Pa. Christianson Hancock, N. Y. Perkins Withrow Church Hartley Pittenger Wolcott Cole, N. Y. Hess Plumley · Wolfenden Collins Higgins, Conn. Powers Wolverton Cooper, Ohio Hoffman Ransley Woodruff Crawford Holmes Reed, ill. Young Crowther Hope Reed,N.Y. Culkin Hull Rich Darrow Kennedy. N. Y. Robsion, Ky.

NAYS-292 Adair Dies Hoeppel Norton Arnold Dietrich Hook O'Brien Ashbrook Dingell Houston O'Connell Ayers Disney Huddleston O'Connor Barden Dobbins Igoe O'Day Beiter Dockweiler Imhoff O'Leary Bell Dorsey Jacobsen Oliver Berlin Doughton Jenckes, Ind. O'Neal Biermann Doxey Johnson, Okla. Owen Binderup Drewry Johnson, Tex. Palmisano Bland Driscoll Jones Parks Blanton Driver Kee Parsons Bloom Duffey, Ohio Kelly Patman Boland Duffy, N. Y. Kennedy, Md. Patterson Boylan Duncan Kenney Patton Brennan Dunn.Miss. Kerr Pearson Brown, Ga. Eagle Kloeb Peterson, Fla. Brown, Mich. Eckert Kniffin Peterson, Ga. Brunner Edmiston Kocialkowskl Pettengill Buchanan Eicher Kramer Pfeifer Buck Ellenbogen Lambeth Polk Bulwinkle Evans Lamneck Quinn Burch Faddis Lanham Rabaut Caldwell Farley Larrabee Ramsay Cannon, Mo. Ferguson Lea, Calif. Ramspeck Cannon, Wis. Fernandez Lee, Okla. Randolph Carden Fiesinger Lesinski Rankin Carmichael Fitzpatrick Lewis, Colo. Reilly Carpenter Flannagan Lewis, Md. Richards Cartwright Fletcher Lloyd Richardson Cary Ford, Calif. Lucas Robertson Casey Ford, Miss. Luckey Robinson, Utah Castellow Frey Ludlow Rogers, N. H. Cell er Fuller McAndrews Rogers, Okla. Chandler Fulmer McClellan Romjue Chapman Gassaway McCormack Rudd Citron Gavagan McFarlane Russell Claiborne Gildea McGehee Ryan Clark, Idaho Gillette McGrath Saba th Clark, N. C. Gingery McGroarty Sanders, La. Cochran Goldsborough McKeough Sanders, Tex. Coffee Granfield McLaughlin Schaefer Colden Gray, Ind. McReynolds Schuetz Cole, Md. Gray, Pa. Mcswain Schulte Colmer Green Mahon Scott Connery Greenway Mansfield Scrugham Cooley Greenwood Martin, Colo. Sears Cooper, Tenn. Greever Mason Secrest Corning Gregory Massingale Shanley Costello Griswold Maverick Shannon Cox Haines May Sirovich Cravens Hamlin Mead Sisson Crosby Hancock, N. C. Merritt, N. Y. Smith, Conn. Cross, Tex. Harlan Miller Smith, Va. Crosser, Ohio Hart Mitchell, Tenn. Smith, Wash. Crowe Harter Monaghan Smith, W. Va. Cullen Healey Montague Snyder Cummings Hennings Montet Somers, N. Y. Daly Higgins, Mass. Moran South Dear Hildebrandt Moritz Spence Deen Hill, Ala. Mott Stack Delaney Hill, Knute Murdock Starnes Dempsey Hill, Samuel B. Nelson Steagall Dickstein Hobbs . Nichols - Stubbs . -

Sullivan Sutphin Sweeney Tarver Taylor, Colo. Taylor, S. C. Terry Thom Thomason

Bankhead Beam Brooks Buckley, N. Y. Darden DeRouen Dautrich Gambrill

Thompson Vinson, Ky. Tolan Wallgren Tonry Walter Truax Warren Turner Wearin Umstead Weaver Underwood Werner Utterback West Vinson, Ga. Whelchel

ANSWERED "PRESENT "-1 Boehne

NOT VOTING-29 Gasque McMillan Hollister Maloney Jenkins, Ohio Meeks Johnson, W. Va. Mitchell, ID. Kahn O'Malley· Keller Peyser Kleberg Pierce Kopplemann Rayburn

So the motion to recommit was lost. The following pairs were announced~ On the vote:

Mr. Hollister (for) with Mr. Boehne (against).

White Whittington Wilcox Willlams Wilson, La. Wood Woodrum Zimmerman Zioncheck

Reece Sadowski Sandlin Sumners, Tex. Treadway

Mr. Treadway (for) with Mr. Johnson of West Virginia (against). Mr. Jenkins of Ohio (for) with Mr. Brooks (against). Mr. Reece (for) With Mr. Darden (against). Mr. Dautrich (for) with Mr. Buckley of New York (against).

Until further notice: Mr. Bankhead With Mrs. Kahn. Mr. McMillan With Mr. Adair. Mr. DeRouen With Mr. Meeks. Mr. Gambrill with Mr. Mitchell of lliinols. Mr. Kleberg With Mr. Sandlin. Mr. Maloney With Mr. Kopplemann. Mr. Sumners of Texas with Mr. O'Malley. Mr. Beam with Mr. Sadowski. Mr. Gasque with Mr. Keller. Mr. Rayburn With Mr. Pierce.

The result of the vote · was announced as above recorded. The SPEAKER. The ques~ion is on the passage of the

bill. Mr. SNELL. And on that, Mr. Speaker, I ask for the yeas

and nays. The yeas and nays were ordered. The question was taken; and t:qere were-yeas 401, nays 2,

not voting 29, as follows: [Roll No. 271

YEAS-401 Adair Cary Disney Glllette Allen Casey Ditter Gingery Amlie Castellow Dobbins Goldsborough Andresen Cavicchia Dockweller Goodwin Andrew, Mass. Cell er Dondero Granfield Arends Chandler Dorsey Gray, Ind. Arnold Chapman Doughton Gray, Pa. Ashbrook Christianson Doxey Green Ayers Church Drewry Greenway Bacharach Citron Driscoll Greenwood Bacon Claiborne Driver Greever Barden Clark, Idaho Duffey, Ohio Gregory Beiter Clark, N. C. Duffy, N. Y. Griswold Bell COehra.n Duncan Guyer Berlin Coffee Dunn, Miss. Gwynne Biermann Colden Dunn, Pa. Haines Binderup Cole, Md. Eagle Halleck Blackney Cole, N. Y. Eaton Hamlin Bland Collins Eckert Hancock, N. C. Blanton Colmer Eicher Hancock, N. Y. Bloom Connery Ekwall Harlan Boehne Cooley Ellenbogen Hart Boileau Cooper, Ohio Engel Harter Boland Cooper, Tenn. Engle bright Hartley Bolton Corning Evans Healey Boylan Costello Faddis Hennings · Brennan Cox Farley Hess Brewster Cravens Fenerty Higgins, Conn. Brown, Ga. Crawford Ferguson Higgins, Mass. Brown, Mich. Crosby Fernandez Hildebrandt Brunner Cross, Tex. Fie singer Hill, Ala. Buchanan Crosser, Ohio Fish Hill, Knute Buck Crowe Fitzpatrick Hill, Samuel B. Buckbee Crowther Flannagan Hobbs Buckler, Minn. Culkin Fletcher Hoeppel Bulwlnkle Cullen Focht Hoffman Burch Cummings Ford, Calif. Holmes Burdick Daly Ford, Miss. Hook Burnham Darrow Frey Hope Caldwell Dear Fuller · Houston Cannon, Mo. Deen Fulmer Huddleston Cannon, Wis. Delaney Gassaway Hull Carden Dempsey Gavagan Igoe car Ison Dickstein Gearhart Imhoff Carmichael Dies Gehrmann Jacobsen Carpenter Dietrich Gliford Jenckes, Ind. Carter Dingell Gilchrist Johnson, Okla. Cartwright Dirk.sen Gildea Johnson, Tex.

3480 CONGRESSIONAL RECORD-HOUSE MARCH 12 Jones Kee Kelly Kennedy, Md. Kennedy, N. Y. Kenney -Kerr Kimball Kinzer Kloeb Kniffin Knutson Kocialkowski Kramer Kvale Lambertson Lambeth Lamneck Lanham Larrabee Lea, Cali!. Lee, Okla. Lehlbach Lemke Lesinski Lewis, Colo. Lloyd Lord

·Lucas Luckey Ludlow Lundeen McAndrews McClellan McCormack McFarlane McGehee McGrath McGroarty McKeough McLaughlin McLean McLeod McMillan McReynolds Mcswain Maas Mahon Mansfield Mapes Marcantonio Marshall Martin, Colo.

Bankhead Beam Brooks Buckley, N. Y. Darden DeRouen Doutrich Edmiston

Martin, Mass. Mason

· Massingale Maverick May

· Mead Merritt, N. Y. Michener Millard Miller Mitchell, Tenn. Monaghan Montague Montet Moran Moritz Mott Murdock Nelson Nichols Norton O'Brien O'Connell O'Connor O'Day O'Leary Oliver O'Neal Owen Palmisano Parks Parsons Patman Patterson Patton Pearson Perkins Peterson, Fla. Peterson, Ga. Pettengill Pfei!er . Pierce Pittenger Plumley Polk Powers Quinn Rabaut Ramsay Ramspeck Randolph Rankin Ransley

Reed, Ill. Reed, N. Y. Reilly R ich Richards Richardson Robertson Robinstm, Utah Robsion, Ky. Rogers, Mass. Rogers, N. H. Rogers, Okla. Romjue Rudd Russell Ryan Saba th Sanders, ·La. Sanders, Tex. Sauthoff Schaefer Schneider Schuetz Sch,ulte Scott Scrugha.m Sears Secrest Seger Shannon Short Sirovich Sisson · Smith, Conn. Smith, Va. Smith, Wash. Smith, W. Va. Snell Snyder Somers, N. Y. South Spence Stack Starnes Steagall Stefan Stewart Stubbs Sullivan Sumners, Tex. Sutphin Sweeney Taber

NAYS-2 Andrews, N. Y. Merritt, Conn.

NOT VOTING---29 Gambrill Gasque Hollister Jenkins, Ohio Johnson, W. Va. Kahn Keller

Kleberg Kopplemann Lewis, Md. Maloney Meeks Mitchell, ID. O'Malley

So the bill was passed. The following pairs were announced: Until further notice: Mr. Beam with Mr. Hollister.

Tarver . Taylor, Colo. Taylor, S. C. Taylor, Tenn. Terry Thom Thomas Thomason Thompson Thurston Tinkham Tobey Tolan Tonry Truax Turner Turpin Umstead Underwood Utterback Vinson, Ga. Vinson, Ky. Wadsworth Wallgren Walter .Warren Wearin Weaver Welch Werner West Whelchel White Whittington Wigglesworth Wilcox Williams Wilson, La. Wilson, Pa. Withrow Wolcott Wolfenden · Wolverton Wood Woodruff Woodrum

. Young Zimmerman Zloncheck

. The Speaker

Peyser Rayburn Reece Sadowski Sandlin Shanley Treadway

Mr. Johnson of West Virginia with Mr. Treadway. Mr. Brooks With Mr. Jenkins. Mr. Darden with Mr. Reece. Mr. Buckley with Mr. Doutrich. Mr. Bankhead with Mrs. Kahn. Mr. DeRouen with Mr. Meeks. Mr. Kleberg with Mr. Sandlin. Mr. Gambrlll with Mr. Mitchell of IDinols. Mr. Gasque with Mr. Keller. Mr. Maloney with Mr. Kopplemann. Mr. Rayburn with Mr. O'Malley. Mr. Lewis of Maryland with Mr. Edmiston. Mr. Sadowski with Mr. Peyser. Mr. Shanley with Mr. South.

Mr. MARSHALL. Mr. Speaker, my colleagues, Mr. HOLLISTER and Mr. JENKINS, are unavoidably detained. If here, they would have voted" aye."

Mr. SABATH. Mr. Speaker, my two colleagues, Mr. MITCHELL and Mr. BEAM, are unavoidably absent. If present, they would vote " aye."

Mr. DOBBINS. Mr. Speaker, my colleague Mr. MEEKS, is unavoidably detained, but if present would have voted" aye."

The result was announced as above recorded. The motion by Mr. STEAGALL to reconsider the vote whereby

the bill was passed was laid on the table. COTTON CONTROL ACT

Mr. DRIVER, from the Committee on Rules, submitted the following ~esolution, for printing under the r~e: ·

House Resoluqon 158 Resolved, That . immediately upon the adoption of this resolu

tion it shall be in order to move that the House resolve itself into the Committee of the Whole House on the state of the Union for consideration of H. R. 6424, "A bill to continue the Cotton Control Act, to exempt a limited quantity of cotton from the tax thereunder, to provide for the better administration of such act, and for other purposes." That after general debate, which shall be confined to the bill and shall continue not to exceed 2 hours, to be equally divided and controlled by the chairman and ranking minority member of the Committee on Agriculture, the bill shall be read for amendment under the 5-minute rule. At the conclusion of the reading of the bill for amendment the Committee shall rise and report the same to the House wtth such amendments as may have been adopted, and the previous q'4-estion shall be considered as ordered on the bill and amendments ther~to to final passage without interve~ing motion, except one motion to recommit, with or without mstructions.

The SPEAKER. The resolution is referred to the calendar and ordered printed.

PERSONAL EXPLANATION Mr. FULMER. Mr. Speaker, my colleague [Mr. GASQUE]

is unable to be present on account of illness. He asked me to state that if he were present he would vote " no " on the H. 0. L. C. bill just passed.

Mr. KELLER. Mr. Speaker, I was called out of the Chamber temporarily during the calling of the roll on the vote on the-H. 0. L. C. bill. I would like to be recorded as voting "yea."

The SPEAKER. The gentleman is too late to be recorded. Mr. KELLER. I was in the Hall when my name was called,

but did not hear it. I was called out for a moment, expecting to be back in time to record my vote. If I had been here, I would have voted" yea."

The SPEAKER. The Chair is of opinion that the gentleman's request to vote comes too late. The gentleman has made his record.

ADDITIONAL COPIES OF MESSAGE OF PRESIDENT ON HOLDING COMPANIES

Mr. LAMBETH. Mr. Speaker. I present the following privileged resolution from the Committee on Printing, which I send to the desk and ask to have read.

The Clerk read as follows: House Re~lution 159

Resolved, That 50,000 additional copies of the message of the President of the United States transmitting the report of the National Power Polley Committee with respect to public-utility holding companies be printed for the use of the House document room.

Mr. SNELL. Mr. Speaker, does the Chair hold that that is a privileged resolution?

The SPEAKER. The Chair thinks it is privileged. Mr. SNELL. Will the gentleman yield to me for a question

or two on that matt.er? Mr. LAMBETH. Yes. Mr. SNELL. Mr. Speaker. it seems to me that the one

thought most prominent in the first part of the President's message ref erred to was that the President himself is opposed to propaganda. I certainly got that impression when it was read from the desk. If there ever was a message delivered to the House of Representatives that is pure propaganda for a piece of legislation now before a committee of this House, it was the message of the President this afternoon referred to. I think that is the intent and purport of that message. If the President himself is opposed to that sort of thing, I do not think the message ought to be distributed broadcast among the people of the country for the purpose of getting the people to send requests in to the committee considering a special piece of legislation.

Mr. LAMBETH. Has the gentleman a question he desires to ask me?

Mr. SNELL. Why should the gentleman distribute propaganda when the President himself says that he is opposed to it?

Mr. LAMBETH. I do not think that question requh'es an answer. I move the previous question.

The previous question was ordered. The SPEAKER. The question is on agreeing to the reso

lution. The resolution was agreed to.

1935 CONGRESSIONAL RECORD-HOUSE 3481 FIRST DEFICIENCY APPROPRIATION BILL, FISCAL YEAR 1935

Mr. BUCHANAN. Mr. Speaker, I move that the House resolve itself into the Committee of the Whole House on the state of the Union for the consideration of the bill <H. R. 6644) making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1935, and prior fiscal years, to provide supplemental appropriations for the fiscal year ending June 30, 1935, and for other purposes. Pending that, I would inquire of the gentleman from New York [Mr. TABER] about agreeing upon a time for general debate.

Mr. TABER. We have requests that will aggregate a little better than 2 hours on this side. I think we ought to have 4 hours of general debate. There is a good deal of demand for time on this side.

Mr. BUCHANAN. That is a good deal of time on a deficiency bill when it is necessary to pass it right away.

Mr. TABER. We will be through with it tomorrow night. Not much time will be consumed under the 5-minute rule.

Mr. BUCHANAN. Do I understand, Mr. Speaker, that this bill has the right-of-way tomorrow?

The SPEAKER. It has. Mr. BUCHANAN. Then, Mr. Speaker, I ask unanimous

consent that general debate upon the bill be limited to 4 hours, to be equally divided between the gentleman from New York and myself.

The SPEAKER. Pending the motion to go into the Committee of the Whole, the gentleman from Texas asks unanimous consent that general debate upon the bill be limlted to 4 hours, one-half to be controlled by himself and one-half by the gentleman from New York [Mr. TABER]. Is there objection?

Mr. SABATH. Mr~ Speaker, I reserve the right to object. How long will it take to consider this bill under the 5-minute rule?

Mr. BUCHANAN. We will pass it tomorrow night. Mr. SABATH. Notwithstanding the 4 hours of general

debate? Mr. BUCHANAN. Yes. The SPEAKER. Is there objection? There was no objection. The SPEAKER. The question is on the motion of the gen

tleman from Texas to go into the Committee of the Whole House on the state of the Union.

The motion was agreed to. Accordingly, the House resolved itself into the Committee

of the Whole House on the state of the Union ior the consideration of the bill H. R. 6644, with Mr. COLE of Maryland in the chair.

The Clerk read the title of the bill. Mr. BUCHANAN. Mr. Chairman, I ask unanimous con-

sent that the first reading of the bill be dispensed with. The CHAIRMAN. Without objection, it is so ordered. 'l'b.ere was no objection. Mr. BUCHANAN. Mr. Chairman, I yield 5 minutes to the

gentleman from South Carolina [Mr. Fur.MERL Mr. FULMER. Mr. Chairman, I have asked for this time

to call to the attention of the Members an article carried in the Washington Herald this morning entitled "Cotton Falls $9.50 Per Bale, Bringing About a Loss of $136,000,000 in the Value of Cotton."

Later in the statement, "cotton prices regain to the extent of $80,000,000 '', showing a difference of $50,000,000 in speculation that went into the hands of the parties who brought about the wild speculation on the exchange in New York yesterday. They refer to the fact that this was brought about because of the reporting of a bill proposing to amend the .Bankhead cotton-control bill. I say to you. Mr. Chairman, that there is nothing in that bill that would interfere with the program that is now in effect or that will be put into effect this year. This was simply a ·rumor like many that are very often put out to the country to bring about lower prices at the expense of the Government, which is now holding several million bales of farmer cotton, and at the expense of the cotton farmers of this country. I say, Mr. Chairman, that in passing various bills here to regulate various well-organized groups and · corporations, for

instance, the security excbanges and holding companies, we ought to immediately report out and pass a bill that will take care of this wild speculation that is purely in the interest of those who have never produced a bale, or who have never even owned a bale of actual cotton.

In that transaction yesterday there was not a bale of cotton passed to .or from any of those who participated in this wild speculation, but simply the buying and selling of paper contracts, as stated, purely in the interest of speculators. It is a crime to permit these speculators to use a rumor containing no truth which brought about the depressing of the price of cotton 2 cents a pound, or $130,000,000 decline in value. Perhaps these same sellers became buyers, taking the long side, bringing values .back to $80,000,000, from the low. In other words, making profits going and coming.

Mr. ANDRESEN. Will the gentleman yield? Mr. FULMER. I yield. Mr. ANDRESEN. Is there anything to the argument that

the Department will stop making loans on cotton on July 1 at the prevailing price?

Mr. FULMER. In connection with this article it was said that no further loans would be made under the Bankhead bill to produce cotton. There is nothing in the bill that refers to loans in 1935.

Mr. ANDRESEN. Will the gentleman yield further along that line? As I understand it, the present loans of 12 cents a pound on cotton will mature on July 1. Has the gentleman any assurance that the Department will continue to make those loans at 12 cents a pound?

Mr. FULMER. I will say that I cannot speak for the Department, but certainly the Department or the Government will continue to carry that cotton rather than place same on the market and lose millions of dollars of taxpayers' money that is now invested in that cotton.

Mr. ANDRESEN. They certainly should. Mr. FULMER. It was simply a rumor. Mr. KVALE. Will the gentleman yield? Mr. FULMER. I yield. . Mr. KVALE. Bearing out the gentleman's assertion, is it

not also demonstrable that the wheat speculators were not idle yesterday and that they availed themselves of this opportunity by capitalizing upon the rumors that were bandied aboqt?

Mr. FULMER. Absolutely. Mr. KVALE. And does it not demonstrate the need for

legislation, which is in a formative stage now, to curb that sort of thing?

Mr. FULMER. Absolutely. I will say further that it is my belief that the enemy of the agricultural program was largely responsible. While the statement said it was hedge selling on the part of the mills of this country, I will say to you, if you will investigate the speculation on the New York Cotton Exchange yesterday, you will find, as stated, it was brought about by speculators and the enemies of the cotton program, which has for its purpose to bring about a fair price for farmers' cotton whereby they will have some purchasing power, which is necessary to help bring about national recovery.

Mr. SABA TH. Will the gentleman yield? Mr. FULMER. I yield. Mr. SABATH. The gentleman is familiar with the Jones

bill amending the control of speculation on the board of trade?

Mr. FULMER That bill is now pending, and we hope to get that bill reported at the earliest possible moment.

Mr. SABATH. Is it not the opinion of the gentleman that if that bill had been passed this gambling which took place yesterday and which takes place every day would not have been possible, and does not the gentleman think that such legislation is absolutely necessary in the interest of the country as well as of the farmers?

Mr. FULME.R. I will state to the gentleman that he is absolutely correct. . I have been promising for the past few years a bill that would tend to check this type of speculation and, I am sure~ would tend to increase or maintain a fair cotton price based

3-482 CONGRESSIONAL RECORD-.HOUSE MARCH 12 on actual supply and demand. In other words, would cut out speculation by those who are willing to sell short to ·almost any extent, knowing that even if they were called upon to deliver actual cotton they did not have to do so und~r the Cotton Futures Act as passed by the Congress some years ago.

My bill proposes to put the buyer on the same basis as the -seller. Under the Cotton Futures Act, at present if a buyer ·demands actual cotton, the seller has the right to deliver any one of the tenderable grades, which perhaps in every instance cannot be used by the buyer and, therefore, the seller is able to force a paper settlement. . My bill proposes to write into the contract at the time of purchase the actual grade of cotton to be delivered, on a 50-50 basis on the part of the buyer and seller' according to the grades as outlined in the various groups contained in my bill.

If my bill had been in operation prior to the wild speculation yesterday, cotton would never have declined around ·2 cents per pound because the seller would not have taken a chance on selling that which he did not have and that which :he had no special reason to believe he could go on the ·market and buy at a price that would take care of his sales. · In the first place, if the buyer had the privilege to demand the actual cotton, the seller would be more particular about ·having the actual cotton on hand. In the next place if he had to go on the market to buy this cotton so as to deliver, ·certainly it would create a demand and tend to increase the price, as previously stated.

I am glad that we ·have a President in the White House 'at this time who is very strong for protecting legitimate ·business, as well as putting out of busine8s money changers, 'speculators, and unfair and unsot:.nd business practices that are now being carried on by many of the well-organized and well-financed groups of the country, through holding com.:. panies or otherwise, which have been robbing the innocent public in the past out of millions of dollars.

Mr. BUCHANAN. Mr. Chairman, I yield 20 minutes to .the gentleman !rom Ohio [Mr. FlESINGERJ. : · Mr. FIESINGER. Mr. Chairman, I do not know but what I have to say may have some bearing upon what the gentle·man from South C~olina [Mr. FULMER] has just spoken about. ·

Mr. Chairman, nearly all the time since England went off gold there has been a considerable opinion in this country ·and abroad that the pri.Ildpal currencies of the world should be stabilized one to the others. The vocality of that opinion has. risen and fallen at times, but with . the recent action of 'sterling that opinion has again become unusually vocative, 'as witnessed by the fact that the responsible ministers of the gold-bloc countries are proposing another international meeting, and a considerable agitation in the public press in ·this country is to that end. The Treasury of the United States, however, has not spoken on these proposals, and so far as I have seen, the responsible governmental ministers ·of Great Britain, on the surface at least, are not immedihtely favorable, although it is my opinion that if the Treasury of the United States was to warm up, the British would be more than anxious to go along .. And I am not so sure but the recent action of the pound is but a play to get the Americans to see the light for stabilization. In other words, what we have -been reading in the public press of late may be a setting of the stage by the international bankers for stabilization, and if not that, it may be a trial balloon to see how the world reacts: -

I make bold to assert that the entrenched wealth and banking interests of .the world now want stabilization. for if they can get it on the present level of world prices, the producing classes of the world will be securely under their domination for the next generation. The yoke may be placed, but it will not stay, because it is my· prediction that the producing masses will rise up in -their might and smite their o·ppressors, and we are likely to see ser!ous social· disturbances. We all favor orderly processes, and I am only giving warning· of what I see to be inevitable, and, if this comes, it may destroy both classes, and then it wiirtake many years to emerge from its consequences.

Now, what .is the issue between these contending forces? The issue is not new but ever old. Producers wanting more and wealth wanting to give less. The producers of prime commodities, that is to say, the producers of the new wealth that comes from the earth and the water thereof demand a fairer share of the benefits therefrom as against old wealth in the shape of money and capital. . The age-old struggle has again become particularly acute because involved in it now is the question of which side is to assume the lion's share, if not all the remaining costs of the World War. If the producers of wealth are to escape an unjust portion of that obligation and we continue to operate under the capitalistic system, and I for one see no other that is even worth while trying, then the producers of prime wealth must have higher price levels. That brings me to a much-mooted question. Should price levels be raised, and if so, how? Some people say by mone,tary means-others say not. There is very eminent authority on both sides of this question. On the side that monetary policy be made to affect price levels and price levels be stabilized, permit me to quote from the remarks made by Sir Reginald McKenna, the eminent British banker, to the shareholders of the ~idland Ban)r on February 3, 1934.

Again, the critics of the policy of exercising control over the supply of money in accordance with trade requirements stigmatize the policy as artificial tampering with the value of the currency. They recognize that operations of the Bank of England are responsible for variation in the total quantity of money, and .they admit that the quantity of money is a governing factor in the price level; but so long as the operations are based upon the more or less accidental changes in the gold stock they regard them as natural, whereas such operations become artificial if deliberately directed .:with reference to th.e .price. level. It appears to me that the critics really mean no more by the term',' artificial" than that the conception of reasoned control of the price level is unfamiliar to them. When they become familiar with action by the Bank of_ England with a view to keeping the price level stable, they will call it natural. ·

There is -similar shrinking from recognition of the fact that inflation · is sometimes desirable. - The word inflation is in constant use as a term of reproach; but just as deflation may be good or bad according to the conditions at the time it is put into operation, so also with inflation. Not a voice has been heard in protest against the inflation we have experienced in the past 2 years. The fact that infiation has been undertaken quite deliberately on a large scale is simply ignored, and .the fact that this inflation has been the most . important -element in our trade recovery re-ceives no grateful recognition. .

It will be seen from the above, that the Bank of England has deliberately inflated price levels in terms of sterling and it is fair "to assume that the Bank of England is going· to stabilize the price level at some poi.ilt. What is that point? Action heretofore indicates the 1913 price level, which was before the war costs were entailed. Why do I say that? Because since England went off gold in 1931, she has maintained according to her board of trade wholesale conimodity price index, which is in terms of sterling, prices on the level of the year 1913. Taking the United States Bureau of Labor Statistics for all commodities with 1926 reckoned at -100, United States 1913 figures were 69.8 or a difference of 43.3 percent in favor of the 1926 price level. Taking the figures of the board of trade, Great Britain with 1913 as 100, their 1926 figure was 148.1; taking Great Britain figures with 1926 as 100, their ·figures for 1913 were 67.5. So you will see taking 1926 as 100, United States prices for 1913 were 69.8 and Great Britain 67 .5. Just a little higher percentage for Great Britain than · the ·United States. · Taking Great Britain figures with 1913 as 100, 1926 Great Britain figures were 148.1 and January 1935 was 105. United States prices, with 1913 as 1oo;were 143.3 in 1926 and 112.9 in January 1935. On the basis of 1926 for the United States, January 1935 our figure was 78.8 and Great Britain 70.9. This seems to indicate that the United States is struggling to -1926 as 100 and Great Britain to 1913 as 100.

England has held to that line of prices for about 4 years now, and therefore I deduct that that is the point where she may desire stabilization. And should she stabilize her prices at that point, the producing classes of new wealth of the world are going to pay the- lion's share of the costs of the war, if not the whole cost of the war. And it is going to be particularly hard on the producers of prime wealth in the United States, because they will not only have

1935 CONGRESSIONAL RECORD-HOUSE ~3483

to pay our · costs of · the war but the cost that England and . the other countries of Europe have saddled on us as a . result of their repudiation; I say to the Congress, if we allow this to eventuate, this depression has just started .and will continue for another generation at least, and I see in the horoscope serious social disturbances when our credit gives out, which it ·eventually will, because we cannot long continue a policy of huge borrowing to relieve unemployment. While England is pursuing an intelligent course to procure a price level in her own interest and im-. posing that price level in her own interests and saddling the costs of the war if she does on the producing classes of the world, the Congress of the United States is fooling around devising new ways and means of extending and .enlarging its pipe lines into the United States Trea.ury to draw off our priceless credit without compensating taxes,

··illu,sorily creating purchasing power by taking from one in. terest and giving to another, and regimenting producers of prime commodities so that our smpluses wlll not interfere with the march of progress of other lands with whom we are in competition.

Permit me to say I hold no grudge against England. I have said before in this House that the United States and England must stand together in friendly relationship in the interests of . the people and progress of the world, yet I have a suspicion that the entrenched financial interests of England are intent upon impressing their will upon the world. For confirmation of my arguments I want to quote from a book recently circulated in the United States entitled, "The Rise and Fall of the Gold· Standard'', written by the eminent British authority, Sir -Charles Morgan-Webb, pages 166 and 167:

The currency manifesto of 1933 does not contemplate a merely passive attitude until the point of equllibri~ on the price index suitable for stabilization shall be attained. An active policy to . reconcile the stability of exchange rates with a reasonable measure of stability of prices is immediately possible. Such a reconciliation can be effected at once between the countries of the Empire. Its achievement wlll be aided by the pursuit of a common policy of -raising price levels. The manifesto is most emphatic that no sta.bility of · exchanges can be satisfactorily achieved except on the basis of the pursuit of a common policy of raising price levels. In ·order that the new imperial currency policy may have a chance of success there must be no commitments to -other countries as regards the future management of sterling. Stability of the exchanges must be subordinate to a common policy of stabilization of prices. There must be no possibility of the new system of currency being wrecked in internecine conflicts of the nature of those which wrecked the gold standard between 1925 and 1931. No stabilization of the exchanges is to be effected with any cou_ntry except on the clear understanding that the imperial policy of price stabilization is accepted and will be adopted. · · · -

But provided that other countries are willing to adopt and operate a policy on similar lines, they will be welcomed into the group, and their inclusion would make possible the attai!1ffient and rµaintenance of exchange stability over a still wider area. Stability of ·exchange with sterling is to be regarded as a privilege and not as a right. It is to be an inducement . to all countries willing to cooperate with t:qe British ~pire in t.he restoration of world pros"perity. It is not to be permitted to countries whose currency policies are of such an intensely national character that they tend to wreck any international currency system with which they are associated. . The members of the sterling group of nations have been bitterly disappointed at the repeated declarations by responsible British statesmen of adherence to the gold standard. They cannot understand the typical British procedure by which momentus revolutions are effected.under cover of the pretense that nothing has been changed. They refused to believe "the great and notable change" proposed in the Macmillan Report because it associated with adherence to the gold standard. They refused to believe that the Ottawa Conference actually- set up a new working system of international currency for the same reason. But the British Empire Delegates Currency Manifesto of 1933, despite a similar handicap, made a different impression. It did not invite them to come· to a conference. It invited them to come into an actually working system of international currency, free from the disturbing influence of the franc and the dollar, a currency as. ;near as possible as the altered world conditions will permit, to the sterling standard under which they had flourished before the war.

While I realize that Sir Charles does not speak for the British Government or the Bank of England, yet my suspicions were aroused by the language he uses in the following particulars, and I have set forth the above quotation so YO!l ,may obsen~e the con~ext, _ to wit:

LXXIX--220 ·· -·- · ···- 1-

No stabilization of - the exchanges is to be effected. with any country except on the clear understanding that the imperial policy of price stab111zation is accepted and will be adopted . • • • Stability of exchange with sterling is to be regarded as a privilege and not a right. • • • It is not to be permitted to countries -whose currency policies are of such intense national character that they tend to wreck any international currency systems with which they are associated. • • • It invited them to come into an actually working system of international currency free from the disturbing influences of the franc and the dollar, a currency as near as possible as the altered world conditions will permit, to the sterling standard under which they had flourished before the war. ·

If that is dominant British thought, it means that while we are the greatest industrial and creditor Nation in the world, our dollar cannot enter the sacred precincts of the pound sterling except it come with its hat in its hand, a prayer upon its lips, a firm resolution to serve and not to dictate to its lord and master, the pound sterling.

If the Congress of the United States were alive to its responsibilities-yea, its sworn constitutional duty to coin money and regulate the value thereof and of foreign coin and regulate it in the interests of the 1926 price level not only for the United States but all the world-then the dollar would be in command and the yoke would be lifted from the producers of prinie commodities everywhere, and they would escape from an . unjust share of the burdens of the war. The United States will then ·escape the intolerable condition of economic vassalage and take its rightful place in the sunfirst in industry, dominant in commerce, and primary_ in banking and finance.

I offered a proposal to the Seventy-second and Seventythird Congresses in the form of H. R. 1577-Seventy-third Congress-to accomplish this result; and I invite again your attention and serious .consideration to that proposal to the .end that we may save while it is not yet too late the P1''1-ducing classes not only here but everywhere in the world and protect . the holders of wealth from their own folly . [Applause.] - ·

Mr. TABER. Mr. Chairman, I yield 15 minutes to the gentleman from New York [Mr. CmK!NJ.

Mr. CULKIN. Mr. Chairman, I have asked for this time today to discuss a subject which is very near to my.own heart and should be near to the heart of every Member of this body. The subject in question is the legislative integrity of this House.

The founding fathers, when they established this Government, created three distinct branches thereof, to wit, the legislative, the executive, and the judicial. Like all elemenfary things, that fact is now forgotten. The legislative branch underthe constitutional set-up was to make the laws, the Executive was to enforce them, and the · judicial branch of goveriunent was to interpret them. The country has witnessed, during the present session of Congress, not without earnest protest from the people, the self-abasement and surrender of the House of Representatives to the Executive and his associates. Never in the history of legislative government has so complete a surrender of a parliamentary body been brought about except by force of arms. Then, indeed, it was only temporary, and the representatives of the people, elected by them, in due course regained control over the lawmaking power of the nation and its purse strings ..

A typical example of this surrender is the pending works bill, as drawn and presented by the Presidential draftsman. It originally gave the Executive control over all the legislative functions of the Government and a blank check for $4,800,000,000. This bill, as presented to and reported by the committee, contained a provision that any person or corporation violating any rule, however informal or little known, thereafter promulgated by the Executive, was subject to imprisonment for 1 year or a fine of $2,000, or both. This measure, somewhat modified, was passed under a gag rule and by a substantial majority in this House.

Can the Members of the House who are familiar with our history believe that such procedure would have been possible in the days of Clay, Calhoun, Webster, and a host of other men who constituted the representatives of the people during the years that have passed?

3484 CONGRESSIONAL RECORD-HOUSE MARCH 12 Today, if by any chance the spirits of these illustrious Mr. CULKIN. The gentleman from Ohio is highly intelli-

dead are sentient and hover about this Chamber, they must gent, and I respect him for his intelligence; he must know indeed view with spiritual disgust the base surrender of that that was a camouflaged piece of legislation written by the House of Representatives to the "kitchen cabinet" who the former Speaker, now the distinguished Vice President, write the laws and then compel the House to pass them for the purpose of baiting the then President of the United under the Presidential lash. Nor can the Members of the States. House or its leadership alibi itself by the complaisant avowal I rise particularly today to call the attention of the House that we are in the midst of a depression as grim and terrible to one of the results of this delegation of power. I refer to as war. The fact is that the delegations of power to the the now abortive attempt of the administration to remove President heretofore made have been passed on to Ickes and Robert Moses from membership on the Triborough Bridge the like, who, while holding Congress in complete contempt, Commission, New York City. This commission is expending maladminister and waste the funds intrusted to them by $42,000,000 for the construction of this bridge through a this body. Congress when on its own was saving and highly Federal grant. The building of this bridge makes a physical efficient compared to the maladministrators who have fact of a dream that has possessed the hearts and minds of neither wit, wisdom, nor experience. the r6';idents of New York City for many years. The con-

What part has the experienced chairman of the Rivers struction of this bridge involves the coordination of parks and Harbors Committee [Mr. MANSFIELD] played. in the de- and avenues, and the mayor of New York placed on this· cisions on waterways? What part has the acting majority commission one Robert Moses, who, to my mind, is one of the leader, the gentleman from Colorado [Mr. TAYLOR] had in outstanding career men of the United States. 1Ie is the the allocation of funds for reclamation purposes? What park commissioner of New York City, where he has served part has the experience of the gentleman from Massachu- . with distinction and ability. His service as park commissetts [Mr. CONNERY] had in the writing of labor legisla- sioner of the city has been brilliant and he has created parks tion? To what extent has the Chairman of the Merchant and bathing pools without number in the congested sections Marine and Fisheries Committee [Mr. BLAND, of Virginia] of that metropolis. He has beautified the existing parks, and had in the framing of laws and policies with reference to his work bears the stamp of a vision and intelligence that is merchant marine? What part has the gentleman from extraordinary. Louisiana [Mr. WILSON] had in the framing of the policies But he sinned in two particulars. First, he was a devoted on flood control? Or the gentleman from New York [Mr. friend of former Governor Smith and served as his first SOMERS] on coinage, weights, and measures? Or the dis- lieutenant when Governor Smith reorganized the governtinguished gentleman from Alabama [Mr. STEAGALL] on the ment of New York and established the budget system in legislation on banking and currency? The Nation has edu- that State. Robert Moses was captivated by the personality cated these men and qualified them by their long service and political philosophy of Governor Smith. May I add and large experience for the posts of leadership on these that he followed the political fortunes of Governor Smith

-iSsues. The Presidential field marshals have ridden them to the bitter end and at Chicago was an outspoken advocate down one by one and usurped their functions. of Governor Smith's nomination for the Presidency. Have

The history of the House of Representatives is a record you watched the fate of those Democrats who followed the of achievement in the field of national development both political fortunes of Alfred E. Smith into the convention at material and cultural. Yesterday you might have stood Chicago? One by one they have been cut down and deagainst the world, now there is none so poor to do you strayed. No South American dictator was ever more ruthreverence. less in destroying his partisan opponents than has been the

present occupant of the White House, acting in conjunction Mr. KNUTSON. Mr. Chairman, will the gentleman yield? with Field Marshal Farley. Go over the facts in your minds Mr. CULKIN. I yield for a brief question. Mr. KNUTSON. r may say to the gentleman that the with reference to your own States and you will reach the

same conclusion that I have. situation that prevails in the House at the present time is Robert Moses sinned again when he ran for Governor of identically the same as the situation which prevailed in the New York State on the Republican ticket last fall. Millions House during the Sixty-fifth Congress. That Congress also of the people's money were poured into New York State to was known as a " rubber-stamp Congress " and was domi-nated by President Wilson. defeat him. In the election his spear knew no brother and

Mr. CULKIN. r thank the gentleman for his contribution. he campaigned perhaps too bitterly. Suffice it to say that Abject and submissive, you ignore your constitutional status he was outspokenly in opposition to the White House poli

as a great branch of the Government and are today a mere cies. That is recent history, and I will not burden you in debating society where shadow-boxing oratory takes the detail with the facts and circumstances of that campaign.

It is clear that he off ended the President and the Postplace of constructive deliberation and legislation. I have master General by reason of his ability to tell damning been proud of the record of the House in the past, today my truths in plain English. heart is filled with sorrow at its supineness. I am speaking And now the scene shifts to the White House. For on these unpleasant truths in the hope that your pride ·may be roused and that you may again function as the Constitution December 26, 1934, the President entered an Executive order

delegating to the Federal Emergency Administrator of Pub-provides. lie Works certain functions, in substance as follows:

Mr. HARLAN. Mr. Chairman, will the gentleman yield? First. At the Administrator's discretion, to sell and deliver Mr· CULKIN. I yield. all securities purchased under the suthority of section 203 of Mr. HARLAN. The gentleman a moment ago said he rose the Recovery Act.

to criticize the recent work-relief bill on the ground that second. To alter, amend, or waive any existing rules and to the jobs had not been specifically named and that this put prescribe any other rules which the Administrator might too much power in the hands of the Executive. About 2 deem necessary for the purpose of carrying out the Recovery years ago the Democratic House passed a work-relief bill in Act. which every item was designated and stipulated, yet the Of even date therewith, ere the ink on this first order had gentleman and his conferees on his side of the House voted dried, there was born in the Executive Office of the White against it. House a twin order. General Farley and Honest Harold

Mr. CULKIN. Mr. Chairman, I yielded for a question, not Ickes were the obstetricians in charge of this dual delivery. a speech. By the terms of this second order, duly christened" No. 129 ",

Mr. HARLAN. My question is what kind of bill the the city of New York was denied further funds for the Trigentleman wants, how the gentleman wants Congress to borough Bridge construction unless Robert Moses was refunction between these two systems; the gentleman objected moved from the commission. to both of them. {Here the gavel fell.]

Mr. CULKIN. If the gentleman was here then-- Mr. TABER. Mr. Chairman, I yield 7 additional minutes Mr. HARLAN. Yes; the gentleman was. to the gentleman from New York.

1935 _CONGRESSIONAL RECORD-HOUSE 3485 Mr. CULKIN. My observation of the public .service.is that

few public men are able to use power wisely and with tolerance. I wish to characterize the making of these two orders, the existence of which were not known until some 3 weeks after their issuance, as' an act of tyranny unexampled in the history of the Republic. The fact is that the Boston Tea Party was held for less offensive administration than this. It · is more than medieval, because even in the Middle Ages free cities possessed governmental autonomy which neither king nor prince could invade. The Members of the House know from their own experience that a municipality is a legislative creation, and that a city necessarily plays an important and necessary part in the development and safeguarding of human liberties. The part they have played in the American scheme of things has not always been commendable, but cities, great cities more particularly, have been characterized by a spirit of tolerance and have been a great factor in the development of culture in the field of music, painting, and literature. They have been confronted with the great problems of education, life and fire protection, sanitation, and water supply. A municipality, as the House knows, is a creature of the State legislature, responsible only to the State government when political corruption is shown or there is a failure to protect life and property.

New York City is imperial in population and wealth. It pays one-fifth of the taxes of the Nation, more than is paid by 30 whole States I could mention. - It is entitled to autonomy. Now we find the Central Government cold-bloodedly attempting to invad,e the power of this great . municipality and launching its thunder against a man who of all men is concededly the best-fitted public officer in his field in all America. I wish we might call back to life Webster, Clay, and Calhoun and hear their reactions to this outrageous extension of Federal powers.

Mr. KVALE. Mr. Chairman, will the gentleman yield? Mr. CULKIN. I yield.

· Mr. KV ALE. I hope the gentlerp.an will not forget to refer to the chief of the gentleman of whom he is speaking, who courageously kept him at his post of duty.

Mr. CULKIN. What the gentleman says is true. The distinguished mayor of New York, a former colleague here, is giving an able and brilliant administration of the affairs of the city of New York. In this situation he, of course, was between the devil and the deep blue sea, as the gentleman from Minnesota knows; but he conducted himself with his customary courage, and, while he is now feeling responsibility in large measure for the first t jme, Mayor LaGuardia retains his habitual courage; I do not think that has in any way diminished, I will say to the gentleman from Minnesota.

For the purpose of protecting what remains of the integrity of this body, I introduced a resolution March 6, which is as fallows:

Resolved, That the Administrator of the Public Works Administration be, and he is hereby, directed to furnish the House of Representatives the following information:

1. The official reason for the entry of Administrative Order No. 129, P. W. A., which in its terms automatically bars the Triborough Bridge Commission of New York City from the receipt of any further Federal funds unless one Robert Moses, now a member of said board, retires from said activity.

2. Under what warrant of law or Executive authority the Administrator of the P. W. A. is empowered t o destroy the home rule of a municipality and its right to select its own executives.

3. Whether or not he intends to withhold funds necessary for the prosecution of the Triborough Bridge improvement unless said Robert· Moses resigns from said authority.

· Yesterday the Secretary of the Interior, after weeks of wisecracking, stated that he did not intend to enforce order 129 for the reason that the same was not retroactive. For weeks Ickes told the newspapermen at numerous press conferences that the order would stand like Gibraltar and -that Moses would have to go off the triborough board. The people of the city of New York, through their vigorous protest, have carried the day. The President and his fugleman have yielded to the mass demands of the people of the city of New York. In the days to come I trust that the Executive will keep himself free from interference with the government of States and municipalities, who can best earry out their own destinies through absolute autonomy.

I congratulate the people of New -Vork City on the outcome of this attempted Executive interference. They have fought a brave fight and have won. [Applause.]

Mr. KNUTSON. Mr. Chairman, will the gentleman yield? Mr. CULKIN. I yield. Mr. KNUTSON. The administration's reversal in the

Moses matter is indicative of the possible outcome of the candidacy of the President for reelection.

Mr. CULKIN. I think that may be so. In other words, in the face of repeated statements, both inferentia.Uy from the White House and openly by" Honest Hairold ", as he is self-styled, that he would not abate this order or modify it, that it would stand like Gibraltar, he did, in fact, withdraw it. It has some significance at least as showing the fact that the people, when thoroughly roused, do rule.

Mr . .KNUTSON. They did not want to alienaite a couple of million votes.

Mr. CULKIN. No. Votes begin to play an obvious part in the Presidential plans.

Mr. TABER. Mr. Chairman, I yield 3 minutes to the gentleman from California [Mr. CARTER].

Mr. CARTER. · Mr. Chairman, as a Member of the House, may I say that there is one office in this Government that has rendered a most efficient service on behalf of the Government. I refer to the General Accounting Office, administered by Comptroller General Mccarl. I have read withconsiderable consternation in the press the last few days that certain attacks have been made on this Office which I fear will hinder and destroy the unusual and efiective administration of its work.

Mr. Chairman, may I say that I do not know Comptroller General Mccarl personally, but I do know his institution. I believe that he has saved vast sums of money for this Government, and I regret to see attempts made to interfere with the proper administration of that Office. [Applause.] I understand that, in the argument with the Nayy Department, perhaps it does not mean the saving of dollars and cents in this particular instance. As I understand the matter, the difficulty arises in regard to travel pay of certain retired officers. Of course, the Secretary of the Nayy could order them here and have them retired before their retirement date and the Government would have to pay their travel expenses to Washington. However, that is not the proposition. The proposition is whether we are going to permit a wedge to be driven in.

Mr. Chairman, it seems to me that every man connected with this Government, whether it be the Chief Executive, a Cabinet officer, a Member of Congress, or someone else, should stand for a fair, just, and equitable administration of the Comptroller General's Office. [Applause.] I think, further, that if he is not clothed with sufficient authority to administer that office under all conditions, the authority should be given to him so that all doubt would be removed. I know that we have all discussed the Comptroller General at various times when he turned us down on something, but I want to say that I have heard Members also say, " Well, he turned me down, but, of course, I know the Comptroller General is right." Therefore, Mr. Chairman, I think that the best · interests of the Government require that we should uphold him in the proper, efficient, and legal administration of his work. [Applause.]

[Here the gavel fell.] Mr. BUCHANAN. Mr. Chairman, I yield 15 minutes to

the gentleman from Ohio [Mr. YOUNG].

Mr. YOUNG. Mr. Chairman, my purpose is to advert to the right of freedom of speech and press and to defend civil liberties.

The Ohio Chamber of Commerce has forwarded a resolution to me, as have other Chambers of Commerce, advocating the enactment of alien and sedition laws an1 other measures which sound patriotic but which are bound to lead to grave abuses, oppressions, and persecutions.

I wrote the Chamber of Commerce: Your circular letter is the most untimely, unnecessary, and

foolish letter I have received in a long time. Your position is untenable, arbitrary, and rm-American, and

stamps you as being opposed to liberties guaranteed to our

I

3486 CONGRESSIONAL RECORD~HOUSE MARCH. 12 people. Evidently you claim a man has no right to be a Communist; that a man has no right to advocate any changes in our form of government. ·

It would be a good idea for you to read the Constitution of our c9untry, including the Bill of Rights, instead of urging acts which would bring our form of government " into contempt, scorn, contumely, or disrepute." · .

Every now and then we read in the newspapers of some "red" scare. The facts are the Communists polled only 102,000 votes in the entire country in 1932 and less than that in 1934. There are in all 48 States fewer than 25,000 Communists. At this time new laws are proposed to make it illegal to influence a soldier or sailor to advocate changes in our form of government. Do army and naval officers admit that they have failed to maintain discipline? Is it necessary for us to make a few more crimes in order to protect the fighting forces of our country? The record of 160 years of loyalty and patriotism refutes and repudiates such a suggestion. With worthy and industrious men and women unemployed and little children underfed, the Congress has more important work to do than to make a few more crimes because some ignorant, misguided agitators rant and rave against the Government. .

In line with this "scare" talk are the assertions of former Brig. Gen. Smedley Butler. I studied the complete testimony of Smedley Butler given at the executive sessions of the hearings on propaganda activities before a committee of the House of Representatives.

The committee suppressed a portion of this testimony as far as general publication was concerned for the reason, according to statements to me, that Butler's testimony involved reputable citizens of the highest standing, based on the merest and :flimsiest sort of hearsay evidence.

The accusations made by Butler and hinted at by him were unsupported by any credible evidence of any character. Butler claimed he was repeating statements made to him by Gerald C. Maguire. Butler said of Maguire, ·" Due to a wound in his head (Maguire's) he is a little flighty."

I am not a member of this committee. I have studied the complete unexpurgated testimony ·of Smedley Butler. It was really outrageous to spend taxpayers' money to permit this fellow to rant. He is a publicity hound and a faker. Butler's testimony was a fanciful phantasmagoric tale. It deserves no

- consideration whatever. There was not even a scintilla of evidence that he was asked to lead even a corporal's guard against the Government.

Our Government was born 1n a revolution. Look at the bottom of the Declaration of Independence and you will see a noble roll of radicals upon that inullortal scroll. Samuel Adams, John Hancock, Patrick Henry, George Washington were radicals in their time. Radicals have always been the beacon lights of. history. They come from high. They come from low. The greatest was born in a stable and crucified between two thieves.

Whenever a majority of our fellow citizens want to change our form of government, that government will be changed. That iS proper. As a schoolboy I was taught that the Constitution of our country was a divinely inspired instrument. I :fiiid if there were any divine instrumentalities in the framing of our Constitution, it was not ·of the choosing of the makers. Benjamin Franklin's motion that each day's session of the Constitutional Convention be opened with prayer did not receive even one supporting vote. When the Constitution was first announced there was an uproar from libertyloving patriots who had won the Revolutionary War. They forced the standpatters ·of that day to accept the Bill of Rights. The makers of our Constitution legislated for 13 orphan colonies, for a nation of frontier farmers and hunters, with a few merchants at the seaports. They did not legislate for all time. They did the work their times called for them to do. They did it well. In addition, they wisely provided the manner for changes to be made in the Constitution when the demands of new conditions made such changes advisable or necessary.

A man has as much right to be a Communist as a Republican or Democrat, and a Communist ought to have as much freedom as either. I say, however mistaken in his views a Communist might be, he should have an equal right to persuade others, as long as it is done peaceably.

These words came not from any dangerous radical or "parlor pink." They came from an eminent judge in New Jersey-Vice Chancellor John o. Bigelow.

We should be eternaUy vigilant again.st attempts to check the expression of opinions that we loathe.

The late Justice Oliver Wendell Holmes, of the Supreme Court of the United States, one of the very great men of our time, said that.

" Let the people know the truth ", said Abraham Lincoln, "and the country is safe." The Bill of Rights guarantees to us free speech, free press, and free assemblage. The right of free speech is the basis of all social and political progress. This fundamental right stands in jeopardy because of the foolish fear of agitators. It may be dangerous to permit certain opinions to be expressed. It is more dangerous to attempt to suppress the expression of such opinions. To attempt to prevent an explosion in a boiler by sitting on the safety valve is ·obviously futile and foolish. It invites disaster. Suppression is the seed of revolution. "No abuse of a free press", said George William Curtis, "can be so great as the evil of its suppression."

We ne·ed the safety valve of freedom of speech. We would do well to recognize that there are two his

toric methods of dealing with communism and radicalism. Patrick Henry said, "There is but one lamp by which my feet are guided and that is the lamp of experience." He said, " I know of no way to judge the future except by the past."

The method of Czarist Russia and Bourbon France was to crush. communism and radicalism. This failed miserably, resultmg only in a further spread of communism and radicalism.

The .other method is the method of enlightenment. Let us find what causes radicalism, discontent, and communism. Let us seek to end injustices, discriminations, and hardships by justice and reason in dealing with Communists, radicals, and in fact all of our people. Let us bring more of God's sunlight into the lives of men, women, and children. Let us make life broader and more worth while for all. Let us strive mightily to provide steady employment and economic security for all. Succeed in this and we shall put an end to any menace of Communists or communism. [Applause.]

The Christian ·religion owes Nero an immense debt of gratitude for the advertising he gave it by his persecution of the early Christians. Christianity might, in fact, have remained but an obscure Jewish sect had it not been for the persecutions of the early Christians by Nero.

Free speech and free press stimulate respect for opinions other than our own. "A decent respect for the opinions of mankind" is a necessary safeguard against the illusion that we are infallible. Oliver Cromwell warned members of Parliament:

I beseech you, gentlemen, by the mercies of Christ, to remember that it is possible for you to be mistaken.

Those who now seek to crush Communists by force are doing an evil. You cannot exterminate ideas with clubs; you only scatter them. Combat wrong opinions with right opinions; combat fallacies with facts. Thomas Jefferson said:

-Enor of opinion may be tolerated if reason is free to combat it.

Benjamin Franklin said: Abuses of freedom of speech ought to be suppressed, but to whom

dare we commit the care of doing it?

The history of attempts to combat radicali.Sm and communism with force and brutality, instead of by reason is a wearisome tale of monotonous failures. That we in the face of the failures of the Czars of Russia, the Bourbons of France, and the Kaisers of Germany, continue to repeat these m.: fated methods indicates amazing stupidity.

Public officials or private citizens who seek to suppress free speech are lawbreakers. Whether prominent as members of Chambers of Commerce or high in public office, individuals who seek to suppress freedom of speech are lawbreakers. They should be treated as such.

Those who disagree with and condemn the first amendment to the Constitution of the United States, written oii the


demand of men who won the Revolutionary War, have the right to agitate for its repeal through the regular and orderly method prescribed for making changes in the form of our Government.

The very first amendment to the Constitution of our country provides:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

This is the law of the land. Either obey it or change it in a lawful manner.

Strangely enough, those who are organizing a wave of hysteria and arrogantly unlawfully :flouting rights dear to all lovers of liberty pose as 100-percent Americans and patriots. Such chamber-of-commerce lawbreakers ignQre the ideals of America. They, most of all, need to be Americanized.

Over and above our Constitution and the statutes, ,and greater than all, is the supreme sovereignty of our people, with whom should rest the final decision of all great questions of national policy. All civil liberties must be safeguarded. Let us protect all the people all of the time in the exercise of all their rights. Do this, and eye hath not witnessed nor :finite mind conceived the future grandeur and glory of our country. [Applause.]

Mr. TABER. Mr. Chairman, I yield 23 minutes to tht: gentleman from Missouri [Mr. SHORT].

Mr. SHORT. Mr. Chairman, I enjoyed immensely the remarks of the gentleman from Ohio [Mr. YOUNG], who just preceded me, and I most heartily concur in his application of free speech. God forbid t~t the time should ever come when any American citizen is denied this constitutional right and privilege. I quite agree with the gentleman that persecution promotes propagation and that bayonets are bad instruments with which to combat ideas. The only way to overcome a bad philosophy of life is with a better philosophy, in the open forum of reason and in the court of conscience. Voltaire was right when he said, "I may disagree with everything you say, but I will die to give you the right to say it."

Mr. Chairman and members of the Committee, I regret that because of the limited time I cannot yield and will not yield this afternoon, at this late hour, until I have finished my remarks.

Two years ago this month Franklin D. Roosevelt was inaugurated President of the United States. In the campaign of 1932 we Republicans were told by our Democratic opponents that conditions could not be worse-that we needed a change. God knows we got it! No voter ever anticipated such a change as we now have. In an emotional moment the American people, by the most overwhelming majority ever given a party, elected the present administration. No President ever entered the White House with more solid and unanimous sentiment of the people back of him than did the present occupant. The Republicans of this Nation, in characteristic fashion, put what they thought to be the welfare of country above party, and graciously and willingly turned · over the reins of government to the proponents of the new deal. With one voice and a single purpose Franklin D. Roosevelt was acclaimed a Heaven-sent hero to lead us out of the wilderness. He was indeed a prince charming and a knight errant, who with his winsome smile, mellifluous voice, and entrancing personality won the plaudits of an excited populace. Many people felt that the millenium had come and that Utopia would immediately be set up on this earth. For many months no one felt free to criticize or question the policies of our President. Many of our most patriotic and intelligent citizens have gladly cooperated with the new administration, even though they have gone against their own best judgment. Franklin D. Roosevelt has had his own way; in both the last and present Congresses he has had an overwhelming majority in both the Senate and the House; the Members of Congress have carried out his every wish, and no one is responsible for the outcome of his po~icies ~xcept the President himself.

During this unparalleled economic crisis of our Nation, no one wishes to appear an obstructionist; but when a program so radically different from anything ever before undertaken and when issues so momentous and of such far-reaching effect threaten to undermine and destroy the very foundations upon which this Republic rests, every American who knows his history or has his country's welfare at heart is compelled to exercise his constitutional right and duty, and criticize the wisdom and feasibility of certain proposals which he is convinced are dangerous and inimical to human liberty. This is no time for destructive or hostile criticism, but it is high time for honest and intelligent criticism. This is not the hour to sling mud, but it is time to speak the truth.

This administration has betrayed not only the American people but the Democratic Party as well. Its history is one of disappointment; its record is one of failure. With the single exception of repeal of the eighteenth amendment, every promise in the 1932 Democratic platform has been broken, every pledge violated, and every traditional principle for which the party of Jefferson and Jackson stood has been rankly repudiated. Dismissing and forgetting the advisers of the old school and lovers of the Constitution, the President, immediately after his inauguration, surrounded himself with college professors and young theorists who scorned our American institutions, branded our farm of government a failure, and immediately began to set up a new deal which they could call" heaven on earth."

We were promised by the last Democratic national convention that our Budget would be annually balanced; that a sound currency would be maintained at all hazards; that governmental expenditures would be drastically reduced; that we would have a Tariff Commission free from executive interference; that Government would be taken out of private enterprise; and that extravagance would be eliminated by consolidating useless offices and departments and by abolishing bureaus. Much to the disillusionment of a hopeful and expectant American electorate, the diametrically opposite has happened. Instead of a single Budget, we now have two-both unbalanced; we have gone off the gold standard, debased our coinage, violated the sanctity of contract, repudiated Government obligations; we have increased our national debt by more than $10,000,000,000, given the President control over the Tariff Commission and the power to negotiate reciprocal tariff treaties with foreign countries without the consent or ratification of the United States Senate, placed the Government in all kinds of business in competition with its private citizens, and established so many bureaus that we have exhausted the alphabet.

Today there are 11,000,000 men out of work, more than 22,000,000 people on the dole, and by the end of next year our national debt will have reached $34,000,000,000. In the name of God and common sense, when and how will this huge indebtedness ever be paid? And what right have we to shift the expense of our present folly upon the backs of unborn generations? What will posterity think of its present-day ancestors when it is called upon to repay the enormous sums that we now wildly and extravagantly spend like drunken sailors? By the time all of these innumerable bureaus and alphabetical agencies, with their vast a.rmy of governmental employees, are taken care of, we will hear an SOS PDQ for the G. o. P.

I regret that lack of time will not allow me to discuss in detail the various planks in the la.st Democratic platform and the different alphabetical agencies in the most stupendous, goading, and self-perpetuating bureaucracy the world has ever known. Today I want to discuss brie:fiy only one outstanding new-deal measure.

The administration at first based its hope of recovery upon the N. R. A. From the very first many of us realized that America can neither parade nor ballyhoo herself back to prosperity. From the beginning many of us doubted the wisdom and feasibility of the N. R. A. We felt that the machinery it set up and the means which it employed were unwise, unsound, unworkable, and unconstitutional. However, we were loath to critieize, hoping against hope that the

3488 CONGRESSIONAL RECORD-HOUSE MARCH 12 scheme would work. and · were ready to give all honor and credit to its sponsors if it did work. We were more patient than Job. But the time has long since arrived and passed when, as honest and patriotic citizens in the defense of cherished liberties and for our future protection, we must openly and frankly express our opposition to a scheme so foolish, foreign, and contrary to the spirit and genius of the American people.

If selfishness could be eliminated from human nature. and if we could repeal the natural economic law of supply and demand, such an artificial and arbitrary agency as N. R. A. might possibly work; but unfortunately the whole thing is an idle and impotent dream. Human nature is still selfish, and on every corner are to be found cheaters and chiselers. To enforce the provisions of N. R. A. our whole populace would have to be turned into a police force, with an equal number of people imported to watch us. Only the Pollyanna optimist, who flees after fancy rather than fact and who follows the wish instead of reality, has faith in it. Under the provisions of the National Recovery Act our antitrust laws have been repealed, honest as well as cutthroat competition has been abolished, and giant monopolies have grown up among us. It can never work in a free country, and the -amazing thing is that anyone with any sense could ever have hoped it could work in a republic. Over 18 months ago I said:

In a country so vast and diversified as the United States, where the standard of living and the cost of labor vary so greatly, the attempt to force the members of a.ny business or industry to comply or conform to a single universal standard is sheer idiocy and impossible of accomplishment.

Yet N. R. A. attempts to place American business in a strait-jacket. The ill-considered and dictatorial rulings of many code authorities are more tyrannical and brutal than the tyranny and oppression of the Spanish Inquisition. This ruthlessness applies not to a special code but to practically all codes alike. The little hotel and restaurant owners and operators in my district are threatened with extinction, though the codes regulating these industries have been partially suspended; a leather-goods manufacturer under the N. R. A. has been marking up deficits; many private contractors have lost enormous sums of money; and automobile agencies have closed their doors. A spring-bed company was first placed under the furniture code, later it was placed under the bedding code, and is now also under an accessory code; this one firm is compelled to pay assessments to two code authorities, and though at first it was placed in the southern wage differential scale, it was later, in violation of a promise of code authorities, placed in the northern division.

Not only in my own district but in other parts of my State we have seen numerous examples of the arrogant and inhuman manner with which code authorities have turned thumbs down on an industry or segments of an industry which do not meet their august approval. The men's clothing code authority is a case in point. The gentlemen who rule this industry collect in taxes from the individual manufacturers. something like a half million dollars a year. At present this code authority bas a budget before N. R. A. for its approval which calls for $221,000 to carry the code authority from January 1 of this year to June 30. Some of the expenditures listed in the budget are very interesting; for example, the chief executive officer collects $12,500 in the period from January to June, or a neat $25,000 a year salary. Legal counsel collects $1,000 per month. Under the heading of "investigators", which probably covers the inspectors, spies, and stool pigeons, we find a sum of $42,264 alloted for 6 months. Clerical employees add another $55,000 to the 6-months' budget. The half-million dollars or more which this one code authority of a comparatively small industry garners to itself in the course of a year is obtained by the use or threatened use of the boycott, the blackjack of business.

Incidentally it is interesting to note that N. R. A. code authorities are costing the various business firms which are members of the code $41,000,000 annually, and the taxpayers an additional $11,000,000. These $52,000,000 per year, or

$1,000,000 per week, are naturally passed on to the consumers of the country, which helps explain the increase in the cost of living.

The code for the men's clothing industry, which we can assume was written by the proponents of the present code authority, contains provisions which enable the governing body to charge a fee for each Blue Eagle label in each garment produced and further provides that anyone who fails to pay this fee or failS to insert these Blue Eagle labels is in violation of the code. A particular clothing manufacturer in Missouri, a personal friend of mine, though complying with the wage and hour requirements of the N. R. A., was hounded, harassed, and punished for failing to insert the "blue buzzard" labels in his garments; his factory was temporarily closed, and many satisfied employees were thrown out of work. My friend was forced to make several ·1ong business trips, employ attorneys, and hire accountants, and only after going to this great expense and suffering this hun;iiliation and embarrassment did he succeed in reopening his factory.

In my State there was another small manufacturer of clothiD? who had operated for many years in a small way, employmg about 30 people. Under the code there were more different operations to perform in the manufacture of clothing than he had employees. He tried to comply with the code by raising wages and giving all his employees in turn a chance to earn the highest piece-work rates. Last September the Cossacks of the code authority descended upon his small shop and told him he was in arrears to his employees to the extent of $35.06 for a year's work. He believed that this was not the case, and his employees agreed with him. Nevertheless, a young upstart, just out of college, with the badge of authority pinned upon his vest and a card from his superiors in Washington, haled this good man before the code authority, threatened him with lightning, and ordered him to pay up. But this American citizen had extraordinary courage. Counsel advised him that although justice was on his side, it was useless to break his head against a stone wall. He persevered, however, and like my other friend, in addition to obtaining legal assistance, hired an accountant. The audit made by expert accountants showed that he was not in arrears $35.06, but had actually paid his employees $507 more than the code authority maximum requirements. Although these facts were brought out in December of last year, the code authority ·has apparently not yet decided whether it will quash the indictment or exile an American citizen to Siberia.

While there are some code authorities, no doubt, which are reputable and functioning for the interest of the entire industry, there are too many which are functioning for the interest of a part of the industry and which are doing their best to destroy or drive out the competitors of the favored groups. Not only do these code authorities exercise the legislative functions of Congress by handing down codes-often contradictory codes-to be carried out by the members of an industry but in case any code is violated, the code authority sits as a court, and after convicting its victim, takes off its judicial robe, picks up the ax, and becomes the executioner. These code authorities possess the power of imposing taxes, formerly held exclusively by the Congress of the United States, and now maintain interstate and national police forces with authority comparable to that of the Federal Government and enjoy judicial power which in their use savors more of a drumhead court martial than of legitimate legal procedure.

Thom.as Jefferson once said: "Th.at government is best which governs least!' What would Jefferson think of this country and of his party, when a small group of inexperienced, impractical, theoretical visionaries, sitting behind mahogany desks in Washington on swivel chairs, attempt to tell the American business man, small-town merchant, and large industrialist in the remotest corner of this great Republic just how each shall run his business, bow many men they shall hire, how many hours they shall work, what wage they shall pay, and how much ·the raw or finished product shall bring? These bureaucratic Lilliputians never had any business of their own, could never be elected aldermen on

1935 CONGRESSIONAL RECORD-HOUSE 3489 the smallest village council in Missouri, and the American people will never tolerate the dictatorial interference or submit to the browbeating methods of any bully, whether he be a hard-boiled army general or a cynical, sophisticated college professor. Today our country has been filled once more, as it was during the World War, with spies, snoopers, agents, investigators, and inspectors, piling upon the American people debts, codes, rules, and regulations, prying into every detail of their private lives. Sponsored and backed for the most part by big business, the whole tendency of N. R. A. has been to cripple initiative, legalize and encourage monopoly, preach and practice the nefarious business of boycott, raise prices for the consuming, laboring public, and squeeze the little businefs man out of existence.

Code authorities have operated in dark and devious ways, with the tacit consent, if not indeed the full approval, of N. R. A. There is one way to stop these evil practices, and that is by turning the pitiless spotlight of public attention upon them. These sinister things can survive only in darknefs and obscurity. Not until the New Jersey tailor was fined for charging 5 cents less than the code price for pressing a suit of clothes, not until the old-maid sisters in New York were forced to stop making dolls and go on the public dole, not until the small battery manufacturer in Pennsylvania was placed behind jail bars and assesfed a large fine, not until a restaurant proprietor in my own State was taken out of his place of business by angry competitors who beat him severely; not until innocent, law-abiding, honest American citizens have suffered these outrages has the Congress of the United States taken action.

Because of an aroused public sentiment, the United States Senate is now investigating N. R. A. In spite of these gross errors, rank wrongs, and brutal butcheries, this administration is asking that this infamous bureau be continued for 2 more years. To be sure, radical changes are recommended, but what the N. R. A. needs is not a surgeon but an undertaker. We have now reached the point where this dirty, dastardly, and diabolical despotism should be knocked in the head. However, this seems to be superfluous, since the founder of N. R. A. himself has admitted that it is as "extinct as the dodo" and "deader than a doornail." In spite of this frank and noble confession by General Johnson, who was by far the ablest man in the N. R. A., I am ready to admit that nothing in this world is wholly bad, not even the N. R. A.-though it would come nearer than anything else to disproving this statement. Whatever good has come from this costly and painful experiment should ba recognized and salvaged; we should have something for our enormous investment. But we already have existing agencies of Government, such as the Interstate Commerce Commission, the Department of Labor, and the Federal Trade Commission which can carry on whatever deserves to be perpetuated. The administration itself knows that N. R. A. is a rotten mess and a miserable failure, but it has not the honesty or courage to admit it.

Let this " blue buzzard ", which. never had a tail and consequently could not fly, whose pin feathers were plucked by Clarence Darrow and his commission, breathe its last on June 16 of this year. I am bitterly opposed to granting the N. R. A. any extension, and I do not believe in giving it even a decent burial. It was never more than a foul mixture of colossal stupidity, haughty insolence, meddlesome interference, and rapacious arrogance. It will go down in history as a dismal and egregious failure. Let us now put an end to these un-American practices, break the deadly shackles which now enslave American business. Complete and immediate abandonment of N. R. A. is one of the surest and quickest roads to recovery. [Applause.]

Mr. TABER. Mr. Chairman, I yield 10 minutes to the gentleman from Ohio [Mr. CooPERJ.

Mr. COOPER of Ohio. Mr. Chairman, today we were privileged to hear read a message from the President of the United States on holdlllg-company legislation which is now pending before Congress. As a member of the committee now considering this important legislation, I want

for just a few moments to discuss the bill and parts - of the President's message.

It seems to me this message was adroitly timed to come to the House today: Our committee has been holding hearings on this important bill for practically 3 weeks. It is one of the most important pieces of legislation that has ever come before an American Congress. It has already been admitted by some from the various departments of the Government who favor this legislation that it is probably too drastic in its present form and some changes should be made. But I repeat, Mr. Chairman, this message was adroitly timed. I noticed that the call bells rang at 10: 35 this morning. The House was · to go into session at 11 o'cloc'k. The regular time for call bells is 15 minutes before the House convenes, but today the bells rang 10 minutes ahead of time. Of course this was in order to get the membership of the House here to listen to the President's message. Then after we convened there was a quorum call, and it was a very opportune time for the reading of the President's message on the holding-company legislation.

Mr. Chairman, I want to read one or two things which the President mentioned in his message, and, as a member of the committee, I make this statement, because there are many things in the bill which, as it stands, I cannot approve.

The President states, "It deserves the careful attention of every Member of Congress." I agree with the President in that respect, as I said a moment ago, it is one of the most important measures the Congress has ever had to consider.

In the second place the President says: I have seen much of the propaganda prepared against such

legislation, even down to mimeographed sheets.

No doubt every Member of the House has received many letters opposing the passage of this legislation. I wiII not deny that some of it has been inspired, but I believe I can truthfully say on my honor as a Member of this Congress that not 10 percent of the letters I have received, which run into several thousand, against this legislation is in form letters. Most of them have been written by individuals, insurance companies, business houses, banks, and various kinds of industries. I have received letters from old people who have written them in longhand, and you could see that they were well up in years, for their hand tottered when they wrote the letter.

If these men and women who have invested their life savings in a utility as a protection for old age believe that the passage of this bill may destroy the securities which they have honestly bought, they have a perfect right to come· to the Congress and protest against the passage of such a measure.

But how about the p1·opaganda on the other side? n all depends on whose propaganda it is, whether it is wrong or not. Within 2 hours after the President delivered his message to the Congress, the Chairman of the Printing Committee in the House stood on this floor and presented a privileged resolution providing 50,000 copies of the President's message read here today, to be printed at public expeme and to be sent out all over the country. Now this is a. different kind of propaganda for Congressmen who favor the bill to send out under their franking privilege.

Then, again, I believe this administration ought to be the last in the world to talk about propaganda. If there is any administration in the history of this country that has had more propaganda in every form sent out to the country, I cannot recall it.

How about a few days ago, when it was commonly known and stated in every large newspaper in the country that the President, or at least his advisers and friends, held up the $4,880,000,000 public-works-relief bill in the Senate in order that they might create sentiment throughout the country and have propaganda sent to the Senators of the United States to try to get them to change their vote on the McCarran prevailing-wage amendment to the public-works relief bill?

3490 CONGRESSIONAL. RECORD-HOUSE MARCH 12 So I say it all depends on who sends out this propaganda corporation under the laws of the state of Delaware. It is

whether it is right or wrong. known as the "Electric Home and Farm Authority, Inc." Then, again, the President says: The persons who made the application for the above-named I have seen enough to be as impressed bY' it as I was by the holding-company corporation are Arthur E. Morgan, Har

similar effort to stir up the country against the securities-ex- court A. Morgan, David E. Lilienthal, all of them officials of change bill last spring. the Tennessee Valley Authority. The charter granted under

Yes; there was propaganda against the securities-exchange the laws of the State of Delaware to the Electric Farm and bill, but I want to remind the President that the securities- Home Authority-holding company-permits the Federal exchange bill, as we passed it in the House, was not the bill Government to engage in competition with private public that the President sent down to the Congress in the first utilities in the distribution and sale of electric power, electric instance and recommended its passage. The bill was modi- equipment and appliances; to loan money for the purchase fied by the Interstate and Foreign Commerce Committee of of electric equipment; to manufacture, buy, sell, deal in, and the House, which made it more acceptable to those who to engage in, conduct, and carry on the business of manu-opposed it_ in the beginning. facturing, buying, selling, and dealing in electrical appliances

Again, the President says: and equipment, and in goods, wares, and merchandise of The so-called "public-utility holding-company bill " • • • every class and description necessary or useful for the

which was drafted under the direction of congressional leaders- operations of the corporation. Who were the congressional leaders that were consulted I doubt if any charter was ever granted to a corporation

in the drafting of this bill? Who were they, I ask you? under the laws of the State of Delaware which is as broad The chairman of the committee, Mr. RAYBURN, of Texas, and far-reaching as that granted to the holding-company admitted in committee that he had nothing to do with the corporation known as the" Electric Home and Farm Authoractual drafting of the bill, that the bill was presented to ity, Inc.'', a subsidiary of the Federal Tennessee Valley Auhim, and he introduced it in Congress. Who were the con- thority, which does not come under the regulatory provisions gressional leaders that helped to draft this bill, I should like of the holding-company bill Why did the Authority go to to know? The members of the committee had nothing at Delaware to incorporate and get the charter? If it is proper all to do with the drafting of the measure. and right for the Federal Government to engage in these

Now, I hold no brief for some of these holding companies. activities in competition with private industry, why was it Some of the practices and abuses they have carried on are necessary to get a charter in the State of Delaware? indefensible and cannot be justified in our economic life, I repeat and state again as a member of the committee and I believe the Congress should take prompt action to stop that in now considering the holding-company legislation, I these abuses at the earliest possible moment, and, for one, 1 want to see legislation promptly enacted by Congrnss which urge legislation into this House that will stop these corrupt will correct some of the indefensible practices and abuses practices which have been carried on by some holding com- which have been carried out by some large utility-holding panies in the past. However, I am also much concerned companies. It is my duty also to do everything in my power about how far the bill is going to go and the effect it will to protect in every way possible legitimate business and inhave upon millions of innocent investors in public utilities. dustry, and the investments of millions of citizens who have

How far is it going to go? Is it going to destroy the money put their money into public utilities which may be destroyed that they have invested in these public utilities? by drastic regulation through an act of Congress.

I will tell you what I believe ought to be the right title of Mr. BUCHANAN. Mr. Chairman, I move that the Com-this bill in its present form-a bill to force public ownership mittee do now rise. of public utilities. The bill provides for dissolution of hold- The motion was agreed to. ing companies in 1940, and if the bill is passed in its present Accordingly the Committee rose; and the Speaker having form, there will be many of these smaller units which the resumed the chair, Mr. COLE of Maryland, Chairman of the holding companies have taken over and are now operating Committee of the Whole House on the state of the Union, rethat will not be able to stand on their own feet. Then what ported that that Committee had had under consideration the becomes of the stock that the American citizens have in- bill CH. R. 6644) making appropriations to supply deficiencies vested in these public utilities? They will be worthless, and in certain appropriations for the fiscal year ending June 30, public ownership will follow. 1935, and prior fiscal years, to provide supplemental appro-

This bill carries some of the most drastic regulations over priations for the fiscal year ending June 30, 1935, and for private capital ever written into a bill that any Congress other purposes, and had come to no resolution thereon. has had to consider. EXTENSION OF THE FEDERAL DEPOSIT INSURANCE CORPORATION TO

[Here the gavel fell.] PUERTO RICO Mr. TABER. Mr. Chairman, I yield the gentleman from Mr. IGLESIAS. Mr. Speaker, I ask unanimous consent to

Ohio 2 minutes more. extend my remarks in the RECORD by including a resolution Mr. COOPER of Ohio. And yet at the same time we are passed by the Legislature of Puerto Rico.

told we must have this drastic regulation. On the other The SPEAKER. Is there objection? hand, however, the regulation does not apply to public- There wa.s no objection. owned utilities. During the 2 years of the present admin- Mr. IGLESIAS. Mr. Speaker, under leave to extend my istration the Federal Government has invested $100,000,000 remarks in the RECORD, I include a resolution, unanimously of the public's money in the T. V. A., and it is understood approved by the Senate of Puerto Rico, with respect to H. R. there will probably be invested $500,000,000 in this and other 5357, a bill to provide for the sound, effective, and uninprojects. What for? To go into 'the generation, distribu- terrupted operation of the banking system, and for other tion, and sale of electric energy in competition with private purposes. industry without any regulation under the provisions of the I think that it will not be an indiscretion to preface my holding-company bill. They will have no taxes to pay. All remarks by stating that the President is in favor of extending of their mail matter can be sent out under the franking the provisions of this measure to Puerto Rico, as well as the privilege. In the construction of these industries they re- Director of the Division of Territories and Island Possessions ceive a rebate in rail rates on the material that is used in of the Department of the Interior and some of the members the construction of the dams, transmission lines, and so of the Committee on Banking and Currency with whom I forth. have communicated.

What chance has a private company to compete with such competition as this?

May I call the attention of the Congress to the fact that the Tennessee Valley Authority, in pursuance and in accordance with an Executive order of the President of the United States dated December 19, 1933, formed a holding-company

The necessity for giving the local banks of Puerto Rico the privilege of membership in this proposed insurance corpora .. tion is so obvious that it hardly requires comment.

The island has the National City Bank and the Chase National Bank, both of which may advertise that the deposits of any one individual or corporation up to a limit of $2,500

!935 CONGRESSIONAL RECORD-HOUSE 3491'

are insured, while the· smaller, purely local banks are denied that privilege.

This will constitute a discrimination of the most flagrant nature, and it cannot be the intention of Congress or the Insurance Corporation to do anything injurious to banks properly administered, servirig a community and in a financial condition which would warrant their entrance into the insurance fund. It would cause an injustice of granting guarantees to certain banks, while, at the· same time denying that right to banks located in Puerto Rico, which, by the way, form an integral part of the United States. Furthermore, the insular organic act establishes the theory of Congress that any law not inapplicable to Puerto Rico must be made extensive to Puerto Rico.

The representatives of the local banks of Puerto Rico are definitely of the opinion that, unless they are included to participate in the obligations and the rights of the abovestated bill, it will simply mean throwing the entire banking structure of the island into the hands of the large banks.

In conclusion, in submitting their personal opinions and suggestions, the banking representatives say that, if their local banking interest can obtain the Federal Deposit Insurance facilities, it would be for the best interest of the people of the island. For the foregoing, and other reasons, the Legislature of Puerto Rico unanimously approved the following resolution:

Hon. SANTIAGO IGLESIAS,

SENADO DE PuERTO RICO, March 6, 1935.

Resident Commissioner of Puerto Rico, Washington, D. C.

Sm: I have the honor to transmit herewith a certified copy of Senate Concurrent Resolution No. 5, entitled " Concurrent resolution to petition the Congress of the United States of America to make extensive to Puerto Rico the benefits of the act in regard to the insurance of deposits in banking institutions, and especially those derived from the activities of the Federal Deposit Insurance Corporation ", which was unanimously approved by the Senate of Puerto Rico on February 19, 1935, and by the house of representatives on March 5, 1935.

Very respectfully yours, ENRIQUE GONZALEZ MENA,

Secretary of the Senate.

I, Enrique Gonzalez Mena, Secretary of the Senate of Puerto Rico, do hereby certify:

That the following concurrent resolution was unanimously approved by the Senate of Puerto Rico on February 19, 1935, and by the house of representatives on March 5, 1935:

" Concurrent resolution to petition the Congress of the United States of America to make extensive to Puerto Rico the benefits of the act in regard to the insurance of deposits in banking institutions, and especially those derived from the activities of the Federal Deposit Insurance Corporation.

"Whereas it is unquestionable that the inclusion of Puerto Rico in the benefits of the Deposit Insurance Corporation created by virtue of amendments introduced into the Federal Reserve Act would considerably improve the condition of insular credit bound up in the local banks organized under the laws of Puerto Rico with Puerto Rican capital;

" Whereas, such inclusion of Puerto Rico in the benefits of said organization will place the local banks in circumstances similar to those of the national banks doing business in Puerto Rico, and will avoid unjust and unequal competition on the part of national banking institutions against those organized under the laws of Puerto Rico;

"Whereas insular credit requires that the native credit institutions organized with local capital, where numerous interests of the country are united, be placed on the same plane of action as the national banking institutions doing business in this island of Puerto Rico, and be protected in like manner by national legislation so that no new uneasiness may be caused in our economic structure, actually bankrupted by the economic depression through which we have been passing for the last few years;

"Whereas neither the previous act creating the Deposit Insurance Corporation nor the pending bills now under the consideration of the Congress of the United States, and especially the Steagall banking bill, H. R. 5357, include Puerto Rico, notwithstanding the fact that the benefits of the act are made extensive to the Territories of Hawaii and Alaska;

"Whereas it is urgently necessary that all said legislation include Puerto Rico, making its benefits extensive to the local credit institutions established, organized, and operating under the laws of Puerto Rico;

"Whereas by this resolution the Legislature of Puerto Rico expresses its desire, willingness, and wish that the benefits of the said Deposit Insurance Act be extended to Puerto Rico, and the credit corporations and institutions and banks organized under

the laws of this island and doing business in Puerto Rico, receive the benefits thereof; Now, therefore, be it

"Resolved by the Senate of Puerto Rico (the House of Representatives of Puerto Rico concurring):

"SECTION 1. That the Congress of the United States of Americai be petitioned, and it is hereby petitioned, to make extensive to Puerto Rico the benefits of the Deposit Insurance Act, and likewise to extend to our island all the activities of the Federal Deposit Insurance Corporation so that all credit institutions and banks organized under the laws of Puerto Rico may receive its benefits.

" SEc. 2. That as the said measure is also of prime importance for the guaranteeing of insular credit, the President of the United States of America is likewise petitioned to intervene and give his decided cooperation toward securing for this island all the benefits of the said act.

" SEC. 3. That a copy of this resolution be sent by air mall, immediately after its passage, to the President of the United States, to both Houses of Congress of the United States of America, to the Chief of the Division of Territories and Possessions of the Department of the Interior of the United States, and to the Resident Commissioner of Puerto Rico in Washington, requesting the latter to give his whole cooperation to the petition herein conta.ined; and that a copy be sent to the Governor of Puerto Rico, asking for his cooperation."

For transmittal · to the Resident Commissioner of Puerto Rico in Washington, I have hereunto set my hand and caused to be affixed the seal of the Senate of Puerto Rico on this 6th day of March 1935.

ENRIQUE GONZALEZ MENA, Secretary of the Senate.

Mr. SHANLEY. Mr. Speaker, I was unavoidably detained during the roll call on the passage of the Home Owners' Loan Corporation bill this afternuon. I ask unanimous consent to state that if I were here I would have voted "aye."

LEAVE OF ABSENCE By unanimous consent, leave of absence was granted as

follows: To Mr. TAYLOR of South Carolina, for several days, on

account of pressing business. To Mr. SADOWSKI, for an indefinite period, on account of

death in the family. To Mr. DARDEN, for 3 days, on account illness. To Mr. STEWART, for Thursday, March 14, to attend the

funeral at Ellendale, Del., of the late Mrs. Lena Reed Ander· son, a prominent Delawarean, who for many years served public officials of the Government faithfully in secretarial work, and was so serving at the time of her sudden death in the city of Washington.

ADJOURNMENT Mr. TAYLOR of Colorado. Mr. Speaker, I move that the

House do now adjourn. The motion was agreed to; accordingly (at 4 o'clock and

34 minutes p. m.) the House adjourned until tomorrow, Wednesday, March 13, 1935, at 12 o'clock noon.

COMMITTEE HEARINGS COMMITTEE ON THE MERCHANT MARINE AND FISHERIES

(Wednesday, Mar. 13, 10 a. m.) Hearings on various bills pertaining to safety of life at sea.

(Thursday, Mar. 14, 10 a. m.) Hearings on the bill (H. R. 4982) amending the Ship

Mortgage Act.

EXECUTIVE COMMUNICATIONS, ETC. 265. Under clause 2 of rule XXIV, a communication from

the President of the United States, transmitting a proposed amendment to the Budget for the fiscal year 1936 to reduce the estimate for the Navy Department for increase of the NavY; armor, armament, and ammunition, from $40,000,000 to $37,300,000 and make $1,000,000 thereof immediat.ely available (H. Doc. No. 138), was taken from the Speaker's table, refeued to the Committee on Appropriations, and ordered to be printed.

REPORTS OF COMMI'ITEES ON PUBLIC BILLS AND RESOLUTIONS

Under clause 2 of rule XIII, Mr. CITRON: Committee on the Judiciary. House Joint

Resolution 107. Joint resolution authorizing the President 9f the United States of America to proclaim October 11 of

3492 CONGRESSIONAL RECORD-HOUSE MARCH 12 each year General Pulaski's Memorial Day for the observance and commemoration of the death of Brig. Gen. Casimir Pulaski; ·with amendment <Rept. No. 378). Referred to the House Calendar.

REPORTS OF COMMITTEES ON PRIVATE BILLS AND RESOLUTIONS

Under clause 2 of rule XIII, Mr. ROGERS of New Hampshire: Committee on Military

Affairs. H. R . 3158. A bill to give proper recognition to the die·tinguished services of Col. William L. Keller; with amendment (Rept. No. 377). Referred to the Committee of the Whole House.

Mr. ANDREWS of New York: Committee on Military Affairs. H. R. 2528. A -bill for the relief of Andrew Amsbaugher; without amendment (Rept. No. 380). Referred to the Committee of the Whole House.

Mr. DORSEY: Committee on Military Affairs. H. R. 2532. A bill for the relief of Raymond A. Wolf; without amendment <Rept. No. 381). Referred to the Committee of the Whole House.

CHANGE OF REFERENCE Under clause 2 of rule XXII, the Committee on Military

Affairs was discharged from the consideration of the bill CH. R. 6576) to authorize the presentation of a Distinguished Flying Cross to Maj. Francis T. Evans, United States Marine Corps, and the same was referred to the Committee on Naval Affairs.

PUBLIC BILLS AND RESOLUTIONS Under clause 3 of rule XXII, public bills and resolutions

were introduced and severally referred as follows: By Mr. BUCHANAN: A bill CH. R. 6644) making appro

priations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1935, and prior fiscal years, to provide supplemental appropriations for the fiscal year ending June 30, 1935, and for other purposes; to the Committee on Appropriations.

By Mr. CARTER: A bill CH. R. 6645) to amend the act entitled "An act to provide for the construction of certain public buildings, and for other purposes", approved May 25, 1926; to the Committee on Public Buildings and Grounds.

By Mr. ELLENBOGEN: A bill CH. R. 664:6) to provide for levy and payment of income taxes in the District of Columbia, and for other purposes; to the Committee on the District of Columbia.

By Mr. GOODWIN: A bill <H. R. 6647) to amend section 6 of the Naval Appropriation Act approvect March 3, 1931, to regulate the distribution and promotion of commissioned officers of the line of the Navy, and for other purposes; to the Committee on Naval Affairs.

By Mr. HOEPPEL: A bill (H. R. 6648) to authorize the Secretary of War and the Secretary of the Navy to furnish a firing squad to fire the customary burial salute for retired Army, Navy, Marine Corps, and Coast Guard personnel; to the Committee on Military Affairs.

By Mr. KRAMER: A bill CH. R ; 6649) to apply the quota system to immigration from the Republic of Mexico and the Philippine Islands, and for other purposes; to the Committee on Immigration and Naturalization.

By Mr. McREYNOLDS: A bill (H. R. 6650) to provide for the issuance to veterans of negotiable bonds of the United States in payment of the amount of the adjusted-service credit of their certificates with interest at 4 percent per annum compounded annually; to the Committee on Ways and Means.

By Mr. WALLGREN: A bill CH. R. 6651) to provide funds for cooperation with the school board at Queets, Wash., in the construction of a public-school building to be available to Indian children of the village of Queets, J e:fierson County, Wash.; to the Committee on Indian Affairs.

By Mr. WALTER: A bill CH. R. 6652) to repeal amendment (46 Stat. 820) of the Judicial Code; to the Committee on the Judiciary.

By Mr. KOCIALKOWSKI: ·A bill (H. R. 6653) to protect American labor and to preserve an essential American in· dustry; to the Committee on Insular Affairs.

By Mr. LANHAM: A bill CH. R. 6654) to increase the White House police force, and for other purposes; to the Committee on Public Buildings and Grounds.

By Mr. ROGERS of Oklahoma (by departmental request): A bill (H. R. 6655) to create an Indian Claims Commission. to provide for the powers, duties, and functions thereof, and for other purposes; to the Committee on Indian Affairs.

By Mrs. NORTON: A bill CH. R. 6656) to authorize the Pennsylvania Railroad Co., by means of an overhead bridge, to cross New York Avenue NE., to extend, construct, maintain, and operate certain industrial sidetracks, and for other purposes; to the Committee on the District of Columbia.

By Mr. BLOOM: Joint resolution CH. J. Res. 210) for the participation of the United States in a universal and international exhibition at Brussels, Belgium, in 1935; to the Committee on Foreign Affairs.

By Mr. BRUNNER: Concurrent resolution <H. Con. Res. 17) directing that the proper officials of the Government of the United States insist upon the right of freedom of religious worship in Mexico; to the Committee on Foreign Affairs.

PRIVATE BILLS AND RESOLUTIONS Under clause 1 of rule XXII, private bills and resolutions

were introduced and severally referred as fallows: By Mr. AMLIE: A bill (H. R. 6657) for the relief of Irvin W.

Walsh; to the Committee on Military Affairs. By Mr. CROSS of Texas: A bill <H. R. 6658) for the relief

of Earl J. Thomas; to the Committee on Claims. By Mr. ENGLEBRIGHT: A bill CH. R. 6659) for the relief

of Edward R. Dathe; to the Committee on Naval Affairs. By Mr. CRAWFORD: A bill CH. R. 6660) for the relief of

Frank P. Church; to the Committee on Claims. By Mr. LEWIS of Colorado: A bill (H. R. 6661) for the

relief of Maj. Joseph H. Hickey; to the Committee on Claims. Also, a bill CH. R. 6662) for the relief of Ben Durham; to

the Committee on Military Affairs. Also, a bill CH. R. 6663) for the relief of William J. Hart;

to the Committee on Military Affairs. Also, a bill CH. R. 6664) granting a pension to Genevieve

Roy Shetterly; to the Committee on Invalid Pensions. Also, a bill CH. R. 6665) granting a pension to Catherine S.

Shean; to the Committee on Pensions. By Mr. O'NEAL: A bill <H. R. 6666) for the relief of the

legal representatives of Lyman Randall, J. E. Sarrazin, and James Williams; to the Committee on War Claims.

By Mr. PETERSON of Florida: A bill CH. R. 6667) for the relief of Thomas S. Devane; to the Committee on Claims.

By Mr. WHITE: A bill <H. R. 6668) for the relief of s. John Hegstad; to the Committee on Claims.

Also, a bill CH. R. 6669) for the relief of Mrs. Earl Poynor; to the Committee on Claims.

PETITIONS, ETC. Under clause 1 of rule XXII, petitions and papers were

laid on the Clerk's desk and ref erred as fallows: 3664. By Mr. BELL: Resolution of Diocesan Union of the

Holy Name Society, Kansas City Diocese, concerning the problems of the Catholic Church in Mexico at the present time; to the Committee on Foreign Affairs.

3665. By Mr. BLAND: Petition of seven citizens of Wan, Va., requesting that Congress pass a uniform Federal oldage-pension iaw that must be adopted by the States before any Federal aid or relief is available; to the Committee on Ways and Means.

3666. By Mr. BLOOM: Petition of the Common Council of the City of North Tonawanda, N. Y., urging the passage of the General Pulaski's Memorial Day resolution; to the Committee on the Judiciary.

3667. Also, petition of Captain Belvidere Brooks Post, No. 450, Inc., of the American Legion, urging the payment of the adjusted-service certificates; to the Committee on World War Veterans' Legislation.

1935 _CONGRESSIONAL. RECORD-HOUSE 3493

3668. Also, petition of the Assembly of the State of New York, urging the adoption of Senate bill 1130, to allevi_ate the hazards of old age, unemployment, illness, and dependency, to establish a Social Insurance Board in the Department of Labor, to raise revenue, and for other purposes; to the Committee on Ways and Means.

3669. Also, petition of the Assembly of the State of New York, urging the expeditious passage of the Rudd bill <H. R. 6) authorizing the Postmaster General to construct underground pneumatic tubes for the transmission of mail between the general post office in Brooklyn and the Floyd Bennett Field, Barron Island, Brooklyn, and the five postal stations lying parallel to Flat bush A venue between these two points, namely: Stations Times Plaza, B, Flatbush, ;Kensington, and Vanderbilt; the construction and operation of such underground pneumatic tubes woul_d be of great convenience to the people of Brooklyn and would greatly expedite the delivery and despatch of air mail in a borough of the city of New York in which are located some of the most enterprising industrial establishments in the United States; to the Committee on the Post Office and Post Roads.

3670. Also, petition of tlie Assembly of the State of New York favoring the enactment of necessary laws to . extend to the people of Puerto Rico complete and full local selfgovernment and to permit the people of Puerto Rico ta. elect their own Governor and other local officers, as the people of Puerto Rico as citizens of the United States of America have shown that they are capable and able to manage and conduct their own local government, and it is the traditional policy of our constitutional form of government to leave in the hands of community, State, or Territory all matters of local government; to' the Committee on Insular Affairs. , 3671. Also, petition · of the Town Hall Club, sponsored by the Women's International League for Peace and Freedom, urging the passage of the Wagner-Costigan bill which would make lynching a Federal offense for the reason that mob violence is a denial° of the principles of American democracy, a serious menace to international peace and a blot on American institutions; to the Committee on the · Judiciary.

3672. By Mr. BOYLAN: Resolution unanimously adopted at the regular monthly meeting of the Chamber of Commerce of the State of New York, ·referring to the Public Works bill, known as "Joint Resolution 117 ", and any measure authorizing public works shall provide, wherever practical, for the employment of existing contracting firms and corporation, in order that existing industrial agencies may be maintained, and that the ability to pay taxes to meet the large governmental expenditures under way may be safeguarded; to the Committee on Appropriations.

3673. Also, resolution unanimously adopted by the Asso· ciation of Master Painters and Decorators of the City of New York, in reference to the continuance of the National Recovery Administration; to the Committee on Appropria· tions.

3674. Also, resolution adopted by the National Association of Tobacco Distributors, Inc., New York City, in reference to the continuance of the National Recovery Administration; to the Committee on Appropriations.

3675. Also, letter from Philip H. Gladstone, of the Crowley Gladstone Corporation, and also members of the painting, paper hanging, and decorating division of the construction industry, of New York City, favoring the continuance of the National Recovery Administration; to the Committee on Appropriations.

3676. Also, memorial of St. Patrick's Holy Name Society, of Washington, with reference to conditions in Mexico; to the Committee on Foreign Affairs.

3677. By Mr. BUCKLER of Minnesota: Petition of A. P. Anderson, commander of the Veterans of Foreign Wars Post, and John T. McDonald, commander of the American Legion Post, both of Hawley, Minn., in behalf of the members of both organizations, mostly all citizens of Hawley and vicinity in Minnesota, urging the immediate cash payment of the soldiers' adjusted-service certificates; to the Committee on Ways and Means.

3678. Also, petition of M. T. Houghton, commander, and F. C. Anderson, adjutant, in behalf of the members of the

Victor Cornell Post, No. 17, of the Ainerican Legion, Department of Minnesota, of Pelican Rapids and vicinity in Minnesota, praying for the passage of the Vinson bill (H. R. 3896) to make the immediate cash payment of the soldiers' adjusted-service certificates; to the Committee on Ways and Means.

3679. By Mr. BURDICK: Memorial concerning the right of Congress to issue money and regulate the value thereof; to the Committee on Coinage, Weights, and Measures.

3680. By Mr. DORSEY: Resolution of the Slovak League of America, a national organization of Americans of Slovak ancestry, urging support of House bill 2827; to the Committee on Labor.

3681. l3Y Mr. EKWALL: Senate Joint Memorial No. 18 of the Thirty-eighth Legislative Assembly of the State of Oregon, petitioning Congress to make necessary appropriations available immediately to the United States Department of Agriculture, collaborating with the Oregon Agricultural Experiment Station, to combat and control prune thrips; to the Committee on Appropriations.

3682. By Mr. GOODWIN: Petition of Illinois Branch, Railway Mail Association, favoring the passage of House bill 5723; to the Committee on the Post Office and Post Roads.

3683. By Mr. HILDEBRANDT: Petition urging Congress to conscript capital by draft and to take over and operate arms and munitions plants in time of war; · to the Committee on Military Affairs . . 3684. By Mr. HOEPPEL: Petition of the Commission of the City of Alhambra, requesting the Congress to give fair, impartial, and thorough consideration to the Townsend oldage revolving pension plan; to the Committee on Ways and Means.

3685. By Mr. LAMBERTSON: Resolution of the Kansas House of Representatives <the · State senate- concurring therein), known as "House Concurrent Resolution No. 10 ", requesting enactment of the Costigan-Wagner antilynching bill; to the Committee on the Judiciary.

3686. By Mr. LESINSKI: Senate Concurrent Resolution 28 of the Legislature of the State of Michigan, petitioning the President and Congress of the United States -to

·authorize and appropriate sufficient moneys to built a Veterans' Administration hospital of 500-bed capacity in Michigan at a point which will be . the most accessible to the greatest number of veterans; to the Committee on World War Veterans' Legislation.

3687. Also resolution of the Detroit Fire Department Post, No. 1339, Veterans of Foreign Wars, petitioning the President of the United States and Congress to authorize and appropriate sufficient moneys to build a Veter-ans' Administration hospital of 500-bed capacity in the Detroit area; to the Committee on World War Veterans' Legislation.

3688. Also, petition of citizens and voters of Wayne County in the State of Michigan, urging Congress to enact into law promptly the Frazier-Lemke refinancing bill which provides for the refinancing of the -debts on American farms with payment by the farmer of 1 % percent per year on the principal and 1 % percent per year interest; to the Committee on Banking and Currency.-

3689. Also, Senate Concurrent Resolution 2, of the Legislature of the State of Michigan, memorializing President Franklin D. Roosevelt and the Congress of the United States for an immediate payment in cash of the full face value of the adjusted-compensation certificates held by World War veterans; to the Committee on Ways and Means.

3690. By Mr. McFARLANE: .. Petition of the Chamber of Commerce of Burkburnett, Tex., favoring the immediate payment of the adjusted-compensation certificates; to the Committee on Ways and Means.

3691. By Mr. LUNDEEN: Petition of Minnesota State Legislature, urging the elimination of the long-and-short· haul clause for the fourth section of the Interstate Commerce Act; to the Committee on Interstate and Foreign Commerce.

3692. Also, petition of City Council of Minneapolis, Minn., urging Congress fo pass ·the General Pulaski's Memorial Day resolution now pending in Congress; to the Committee on the Judici~.

3494 CONGRESSIONAL RECORH-HOUSE MARCH 12 3693. Also, petition df the Minnesota State Legislature,

urging the enactment of legislation which will place American agriculture on the basis of equality with other industries by providing an adequate system of credit, such as provided in the Frazier-Lemke farm refinancing bill; to the Committee on Agriculture.

3694. Also, petition of the Farmer-Labor County Central Committee of Anoka County, Minn., urging the enactment of the Townsend old-age revolving pension bill; to the Committee on Ways and Means.

3695. By Mr. O'CONNELL: Resolution requesting the Senators and Representatives from Rhode. Island in the Congress of the United States to use their best efforts to have repealed the new income-tax publicity provision; to the Committee on Ways and Means.

3696. By Mr. POLK: Petition signed by Richard E. Evans, president Golden Rule Lodge, No. 161, and chairman of the joint committee of five lodges, of the Amalgamated Association of Iron, Steel, and Tin Workers of North America, and 185 members thereof, urging enactment of legislation for a 30-hour week, social security, prevailing wage on work relief, labor representation on all code authorities, collective bargaining as outlined in section 7-A of the National Industrial Recovery Act, and empawering the National Labor Relations Board to demand employers' pay rolls and conduct elections of employees, etc.; to the Committee on Labor.

3697. By Mr. RUDD: Petition of the Slovak League of America, concerning the workers' unemployment and socialinsurance legislation; to the Committee on Labor.

3698. By Mr. ROGERS of Oklahoma: Petition of R. W. Rowell and numerous other citizens of Latta, S. C., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3699. Also, petition of W. C. Welsh and numerous other citizens of Jennings and Baton Rouge, La., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3700. Also, petition of S. Miles and numerous other citizens of Washington, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3701. Also, petition of Frank Boyd and numerous other citizens of Norwood, La., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3702. Also, petition of Monroe Allen and numerous other citizens of Minden, La., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3703. Also, petition of Harrison Beech and numerous other citizens of Gould, Grady, and Moscow, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-~ge pensions of $30 to $50 a month; to the Committee on Ways and Means.

3704. Also, petition of Paulo Martinez and numerous otJ;ier citizens of Gallina, N. Mex., favoring House bill 28M, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3705. Also, petition of D. J. Carroll and numerous other citizens of Simmons, Tex., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to . the Committee on Ways and Means.

3706. Also, petition of John L. Weldon and numerous other citizens of Tallassee, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3707. Also, petition of Alex Frazier and numerous other citizens of Fitzpatrick, Ensley, and Pratt City, Na., favoring House bill 2856, by Congressman WILL ROG~ the Pope

plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3708~ Also, petition of C. H. Hill and numerous other citi ... zens of Helena, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for dlrect Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3709. Also, petition of Alton Roberson and numerous other citizens of Alexandar City and Tallassee, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions· of $30 to $50 a. month; to the Committee on Ways and Means.

3710. Also, petition of B. M. Grissett and numerous other citizens of Range, Ala., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3711. Also, petition of Joseph McReynold and numerous othe1· citizens of White Hall, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3712. Also, petition of John Young and numerous other citizens of Courtland, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3713. Also, petition of D. W. Adams and numerous other citizens of Cadiz and Cobb, Ky., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3714. Also, petition of Calvin Cornell and numerous other citizens of Paducah, Ky., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for dh·ect Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3715. Also, petition of D. H. Huston and numerous other citizens of Pittsburg, Kans., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3716. Also, petition of Frank Childa and numerous other citizens of Waukegan, Ill., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3717. Also, petition of Charles Walls and numerous other citizens of Wilton, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Commit~ee on Ways and Means.

3718. Also, petition of E. J. Gray and numerous other citizens of Little Rock, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3719. Also, petition of T; H. Williams and numerous other citizens of Montrose, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3720. Also, petition of V. B. Smith and numerous other citizens of Tillar, Portland, and McGehee, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3721. Also, petition of Henry Adkins and numerous other citizens of Huttig and Lapile, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3722. Also, petition of Hiram Rowe and numerous other c,itizens of Hot Springs and Murfreesboro, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plain for direct Federal old-age pensions of $30 to ·$50 a month; to the Committee on Ways a.nd Means.


3723. Also, petition of W. A. Burnett and numerous other citizens of Portland and Watson, Ark., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3724. Also, petition of L. C. Mixon and numerous other citizens of Atlanta, Ga., favoring House bill 2856, by Congressman ' WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3725. Also, petition of Victor King and numerous other citizens of Columbus, Ga., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3726. Also, petit ion of A. V. Burton and numerous other citizens of Athens, Ga., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3727. Also, petition of Rev. J. K. Key and numerous other citizens of Atlanta, Ga., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3728. Also, petition of W.R. Thacker and numerous other citizens of Michie, Tenn., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3729. Also, petition of George Hauer and numerous other citizens of Chattanooga, Tenn., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3730. Also, petition of C. Gause and numerous other citizens of Henning and Ripley, Tenn., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3731. Also, petition of Wade Saunders and numerous other citizens of Kerrville, Tipton, and Lucy, Tenn., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; · to the Committee on Ways and Means. ·

3732. Also, . petition of R. M. Griffin and numerous other citizens of Middleton, Saulsbury, and Hickory Valley, Tenn., favoring House bill 2856, by Congressman WILL ROGERS, the. Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3733. Also, petition of Harvey Higgins and numerous other citizens of Whitwell, Tenn., favoring House bill . 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3734. Also, petition of Henry Wat.son and numerous other citizens of Huntsville, Tex., favoring House bill 2856, by Congressman WILL RocERs, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the · Committee on Ways and Means.

3735. Also, petition of John J. Kirchens and numerous other citizens of San Antonio, Tex., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3736. Also, petition of H. A. Reddoch and numerous other citizens of Troy, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3737. Also, petition of Hubert Walker and numerous other citizens of Patsburg, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3738. Also, petition of Isaac Shares and numerous other citizens of Marianna and Round Lake, Fla., favoring House bill 2856, by Congressman WILL ROGERS, the Pope r;lan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3739. Also, petition of Samuel Serrano and numerous other citizens of Canjilon, N. Mex., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3740. Also, petition of Martin Cordova and numerous other citizens of Truchas, N. Mex., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan ·for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3741. Also, petition of Will Cresel and numerous other citizens of Belsprings, Dublin, and New River, Va., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3742. Also, petition of George Pearece and numerous other citizens of Cerro Gordo, N. C., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3743. Also, petition of R. B. James and numerous other citizens of Prichard, Ala., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3744. Also, petition of Joseph Scott and numerous other citizens of Holly Bluff, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3745. Also, petition of E. C. Parker and numerous other citizens of Lyon and Lambert, Miss., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3746. Also, petition of T. F. Ellis and numerous other citizens of Pope, Byhalia, and Scooba, Miss., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3747. Also, petition of Arthur Coats and numerous other citizens of Lexington, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3748. Also, petition of Dewitt Allen and numerous other citizens of Doddsville and Shaw, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for diTect Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3749. Also, petition of Andrew L. Dunigan and numerous other citizens of Crystal Springs, Miss., favoring House bill 2356, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3750. Also, petition of J. D. Reeves and numerous other citizens of Kokomo, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3751. Also, petition of Wesley Beamon and numerous other citizens of Alligator, Symonds, and Heathman, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3752. Also, petition of James Collins and numerous other citizens of Skene, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and· Means.

3496. CONGRESSIONAL RECORD-HOUSE MARCH 12, 1935 3753. Also, petition of Hermon West and numerous other

citizens of Baldwyn, Nettleton, and Tupelo, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3754. Also, petition of Horace Thompson and numerous other citizens of Greenwood, Maxey, and Sidon, Miss., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3755. Also, petition of Samuel Hall and numerous other citizens of Washington, D. C., Maryland, and Virginia, favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3756. Also, petition of Jacob Jaegar and numerous other citizens of St. Louis, Mo., favoring House bill 2856, by . Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3757. Also, petition of Claud F. Atchley and numerous other citizens of Senath and Cardwell, Mo., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3758. Also, petition of 0. K. Delman and numerous other citizens of Tulsa, Okla., favoring House bill 2856, by Congressman WILL RoGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3759. Also, petition of 0. M. Kerr and numerous other citizens of Tulsa, Okla., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3760. Also, petition of W. M. Hughes and numerous other citizens of Tulsa, Okla., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal oldage pensions of $30 to $50 a month; to the Committee on Ways and Means.

3761. Also, petition of C. H. Philips and numerous other citizens of Molind and Cantonment, Fla., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3762. By Mr. SANDERS of Texas: Petition of Charles Fite and numerous other citizens of Long Branch, Tex., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3763. By Mr. SCOTT: Resolution of the Student Cabinet of the University of California Y. M. C. A., at Berkeley, Calif., favoring and urging the passage of the WagnerCostigan antilynching bill <S. 1978, 73d Cong., 2d sess.) now before Congress; to the Committee on the Judiciary.

3764. By Mr. SHANLEY: Petition of St. Patrick's Holy Name Committee, Washington, D. C.; to the Committee on Foreign Affairs.

3765. By Mr. SNYDER: Petition of Frank Williams, of Perryopolis, Pa., and other residents of Fayette County, Pa., urging the passage of an old-age pension law; to the Committee on Ways and Means.

3766. By Mr. TARVER: Petition of S. A. Morrison and numerous other citizens of Rome and Armuchee, Ga., favoring House bill 2856, by Congressman WILL ROGERS, the Pope plan for direct Federal old-age pensions of $30 to $50 a month; to the Committee on Ways and Means.

3767. By Mr. THOMASON: Petition of residents of El Paso, Tex., endorsing the Townsend plan of old-age-pension legislation; to the Committee on Ways and Means.

3768. Also, petition of residents of Midland County, Tex., endorsing the Townsend plan of old-age-pension legislation; to the Committee on Ways and Means.

3769. Also, petition of residents of Midland County, Tex., endorsing the Frazier-Lemke farm-refinance bill; to the Committee on the Judiciary.

3770. By Mr. TREADWAY: Resolutions adopted by the General Court of Massachusetts, memorializing Congress to authorize the immediate cash payment of adjusted-service certificates; to the Committee on Ways and Means.

3771. Also, resolution of Group No. 2254, Polish National Alliance of the United States of North America, East Whately, Mass., urging the designation of October 11 as General Pulaski's Memorial Day; to the Committee on the Judiciary.

3772. By Mr. TRUAX: Petition of Townsend Clubs of Lima, Ohio, by their president, A. ;J. Moke, urging their Congressmen to sign petition to get Townsend bill out of committee as they desire to have said bill acted upon and voted upon this session of Congress; to the Committee on Ways and Means.

3773. Also, petition of Ordine Figli D'Italia, Loggia Operaia No. 1129, Cleveland, Ohio, by their secretary, Louis Petrofes, urging favorable consideration of their security of the workers' bill (H. R. 2827) ; to the Committee on Labor.

3774. Also, petition of Oregon Township Workers Association, Local 2, Toledo, Ohio, by their secretary B. B. Muri, resolving that Congress adopt the amendment of the prevailing wage scale on all work-relief projects in the public-works relief bill because any attempt to pay less than the prevailing wages is diametrically opposed to the original plans of the new deal and is a cut lower than the wages paid under the Public Works Administration and Civil Works Administration; to the Committee on Labor.

3775. Also, petition of Lodge 25, C. S. P. T., Cleveland, Ohio, by their secretary, B. Schlesinger, demanding the enactment of a Federal system of genuine unemployment insurance as contained in the Lundeen bill <H. R. 2827), in order that their future and the future of all workers, farmers, professionals, and other unemployed and their dependents may be more secure; to the Committee on Labor.

3776. Also, petition of Lodge J. C. D., No. 21, Cleveland Ohio, by their secretary, B. Schlesinger, demanding the enactment of a Federal system of genuine unemployment insurance as contained in the Workers' Act <H. R. 2827) in order that their future and the future of all workers, farmers, professionals, and other unemployed and their dependents may be more secqre; to the Committee on Labor.

3777. Also, petition of C. E. Fortney and 63 other citizens of Defiance, Ohio, urging support of a bill obligating the Government of the United States to pay every citizen of said Government whose record is free of habitual criminality and who has attained the age of 60 years, a monthly pension of $200 until the end of his life upon the sole condition that he retire from all further business or profession for gain and agrees, under oath, to spend the entire amount of the pension within the confines of the United states during the current month in which it is received; to the Committee on Ways and Means.

3778. By Mr. WALTER: Petition of the General Assembly of Pennsylvania; to the Committee on Ways and Means.

3779. By Mr. WHITE: Memorial of the Idaho Legislature, urging the Congress of the United States to enact into law the Townsend old-age-pension revolving fund plan, a relief and recovery measure; to the Committee on Ways and Means.

3780. By Mr. WITHROW: Memorial of the Legislature of the State of Wisconsin, memorializing Congress to enact an adequate old-age-pension law; to the Committee on Ways and Means.

3781. By the SPEAKER: Petition of the Council Chamber of Rochester, Pa.; to the Committee on the Judiciary.

3782. By Mr. WERNER: Senate Concurrent Re~olution No. 10, of the State of South Dakota, memorializing Congress to conscript capital by draft, and to take over and operate arms and munitions plants in time of war; to the Committee on Military Affairs.

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