SENATE

FRIDAY, MAY 12, 1944

(Legislative day of Tuesday, May 9, 1944)

The Senate met at 12 o'clock meridian, on the expiration of the recess.

The Chaplain, Rev. Frederick Brown Harris, D. D., offered the following prayer:

God of all grace and glory, in these vernal days thrilling and throbbing with the loveliness of spring, we thank Thee for every sacrament of beauty of which our enraptured senses drink as we bend in wonder to the petaled cups held up by bushes aflame with Thee. May the glory of the earth be but a parable of the things that are excellent blooming in our risen lives.

To be saved from our savage foes without, we know, will be futile, unless Thou dost save us from ourselves. We confess our indifference and hardness of heart, our racial rancor and the bigotry which blinds us to brotherhood, the callous greed which seeks comfort or ease or gain at the cost of misery to others, our vanity of soul and pettiness of mind. Create in us clean hearts, O God, and renew a right spirit within us. Lead us out of the bondage of fear and hate into Thy new day when in a better order of human society pity and laughter shall return to the common ways of man and peaceeven Thy peace breathe its benediction upon our war-weary world. Thy holy name. Amen.

THE JOURNAL

We pray in

On request of Mr. BARKLEY, and by unanimous consent, the reading of the Journal of the proceedings of the calendar day Thursday, May 11, 1944, was dispensed with, and the Journal was approved.

MESSAGES FROM THE PRESIDENT—APPROVAL OF BILLS AND JOINT RESOLUTIONS

Messages in writing from the President of the United States were communicated to the Senate by Mr. Miller, one of his secretaries, and he announced that on May 11, 1944, the President had approved and signed the following acts and joint resolutions:

S. 156. An act relating to the status of retired judges;

S. 176. An act for the relief of Austin L. Tierney;

S. 698. An act to amend part II of Veterans Regulation No. 1 (a);

S. J. Res. 77. Joint resolution to establish a Board of Visitors for the United States Merchant Marine Academy; and

XC-276

S. J. Res. 112. Joint resolution authorizing and directing the Fish and Wildlife Service of the Department of the Interior to conduct a survey of the marine and fresh-water fishery resources of the United States, its Territories, and possessions.

CONDOLENCES ON DEATH OF HON. FRANK KNOX, LATE SECRETARY OF THE NAVY The VICE PRESIDENT laid before the Senate a resolution unanimously adopted by the special convention of the Union Republican Progressive Party at Santurce, P. R., extending condolences on the death of Hon. Frank Knox, late Secretary of the Navy, which was ordered to lie on the table.

REPORT OF OPERATIONS UNDER PROP

ERTY REQUISITIONING ACT

The VICE PRESIDENT laid before the Senate the following message from the President of the United States, which was read, and, with the accompanying report, referred to the Committee on Military Affairs:

To the Congress of the United States:

I transmit herewith for the information of the Congress a report of the War Production Board covering operations under the act of October 10, 1940, as amended, and the act of October 16, 1941, for the period from October 16, 1943, through April 15, 1944, with respect to the requisitioning and disposition of property required for national defense. FRANKLIN D. ROOSEVELT. THE WHITE HOUSE, May 12, 1944.

EXECUTIVE COMMUNICATIONS, ETC. The VICE PRESIDENT laid before the Senate the following letters, which were referred as indicated:

REPORT OF ATTORNEY GENERAL PURSUANT TO PUBLIC LAW No. 603, SEVENTY-SEVENTH CONGRESS

A letter from the Attorney General, transmitting, pursuant to section 12 of Public Law 603, Seventy-seventh Congress, approved June 11, 1942, the sixth report of the Attorney General covering the period from January 8, 1944, through May 6, 1944 (with an accompanying report); to the Committee on Banking and Currency. PERSONNEL, REQUIREMENTS, RECONSTRUCTION FINANCE CORPORATION

A letter from the Chairman of the Board of the Reconstruction Finance Corporation, transmitting, pursuant to law, estimate of personnel requirements for the Reconstruction Finance Corporation and its subsidiaries for the quarter ending June 30, 1944, and also submitting certain supplemental information requested by the Bureau of the Budget (with accompanying papers); to the Committee on Civil Service.

DISPOSITION OF EXECUTIVE PAPERS

A letter from the Archivist of the United States, transmitting, pursuant to law, lists of papers and documents on the files of the Departments of War (2), Navy (5), Agriculture (3), and Commerce (2); the Civil Service Commission, The National Archives, National Housing Agency (2), Office of Price Administration (2), and Federal Security Agency which are not needed in the conduct of business and have no permanent value or historical interest, and requesting action looking to their disposition (with accompany papers); to a Joint Select Committee on the Disposition of Papers in the Executive Departments.

The VICE PRESIDENT appointed Mr. BARKLEY and Mr. BREWSTER members of the committee on the part of the Senate.

PETITIONS AND MEMORIALS Petitions, etc., were laid before the Senate by the Vice President and referred as indicated:

A resolution adopted by the special convention of the Union Republican Progressive Party, at Santurce, P. R., expressing gratitude to the so-called Chavez subcommittee of the Senate which recently investigated economic and social conditions in Puerto Rico; to the Committee on Territories and Insular Affairs.

A resolution adopted by the special convention of the Union Republican Progressive Party, at Santurce, P. R., expressing gratitude to the so-called Bell subcommittee of the House of Representatives which recently investigated general conditions in Puerto Rico; to the Committee on Territories and Insular Affairs.

A resolution adopted by the special convention of the Union Republican Progressive Party, at Santurce, P. R., expressing gratitude to Senator LANGER for having introduced in the Senate a bill granting statehood to Puerto Rico; to the Committee on Territories and Insular Affairs.

FEEDING AND SLAUGHTERING OF CATTLE-RESOLUTION FROM ALLENTOWN,

PA.

Mr. DAVIS. Mr. President, on April 19, 1944, at a meeting called by the mayor and Council of the City of Allentown, Pa., in which a number of businessmen engaged in the feeding and slaughtering of cattle participated, there was adopted a petition in the form of a resolution. In their name I present the petition, requesting the Government take immediate steps to remedy the situation, either by making adjustments in ceiling prices, or by the payment of subsidies in order that these local enterprises may continue in business.

I ask that the letter signed by Brighton C. Diefenderfer, mayor of the city of Allentown, together with the resolution adopted at the meeting called by the mayor and the city council, be printed in 4369

the RECORD as part of my remarks and referred to the Committee on Banking and Currency.

There being no objection, the letter and resolution were referred to the Committee on Banking and Currency and ordered to be printed in the RECORD, as follows:

CITY OF ALLENTOWN, PA.,
May 8, 1944.

Senator JAMES J. DAVIS, Senate Office Building,

Washington, D. C.

MY DEAR SENATOR DAVIS: I am enclosing herewith a petition signed by a representative group of businessmen engaged in the feeding and slaughtering of cattle in the city of Allentown, Pa, and its vicinity, which petition is self-explanatory.

As stated in the petition, the signers request that the Government take immediate steps to remedy the situation, either by making adjustments in ceiling prices, or by the payment of subsidies, in order that these local enterprises may continue in business, and assure themselves of their fair share of the available civilian meat-supply business to the residents of their area.

May I therefore request that this petition be given your earnest consideration, in order that the conditions may be remedied in the interests of these small enterprises, and of the people of this locality. I am certain that it is not the intention of the Government to create regulations which may force a hardship on small enterprises in which the men engaged have invested their money, and by fair dealings with the people of the community have become a part of it.

Yours sincerely,

BRIGHTON C. DIEFENDERFER,

Mayor.

On April 19, 1944, at a meeting called by and before the mayor and Council of the City of Allentown, Pa., Winfield Clearwater, representing the chamber of commerce; Dr. Charles M. Dibbell, representing the Bureau of Health of Allentown, Pa., representatives of the cattle-breeding and slaughtering industry in Allentown, Pa., and nearby communities; Peter J. Carroll, area supervisor of the War Food Administration; and Donald Justus, meat-rationing officer of the Office of Price Administration, the following resolution was unanimously adopted by the signers hereto (Federal officials not voting):

"Whereas the livestock population on the ranges in the United States is greater than at any time in the history of the industry; and

"Whereas the number of these cattle being grain fed, to make them desirable for human consumption, is seriously diminished; and

"Whereas the amount of good edible beef available to civilians in this area is below their allotted share of civilian supply; and

"Whereas it is further apparent that the decreased civilian supply is due to the following causes:

"1. The ceiling price on finished (grainfed) cattle makes it uneconomical for feeders to continue in this business.

"2. The ceiling price on wholesale cuts produced and sold by the small slaughterers of cattle make it uneconomical for them to purchase such cattle as are available.

"3. In view of these circumstances, feeders and slaughterers of cattle must choose from: "(a) Going out of business.

"(b) Going into bankruptcy. "(c) Charging the cost of their operations and thus violating ceiling prices and facing criminal prosecution;

"Whereas inequitable Government regulations creating this situation are destroying two small business enterprises (feeding and slaughtering) which, throughout our history, have been honest and legitimate local industries; and

"Whereas the destruction of these business enterprises leads to the establishment of a monopoly: Now, therefore, be it

"Resolved, That the Government be requested to immediately affect such adjustments in ceiling prices, or in payment of subsidies, as will permit the legal perpetuation of these local enterprises and assure them of their fair share of the available civilian meat-s pply business to the residents of this area; and be it further

"Resolved, That a copy of this resolution be forwarded to James F. Byrnes, Director of War Mobilization; Fred II. Vinson, Director of Economic Stabilization; Marvin Jones, Food Administrator, War Food Administration; Chester Bowles, Administrator of Office of Price Administration; and to Congressman Charles Gerlach and Senators James J. Davis and Joseph F. Guffey." REPORTS ON DISPOSITION OF EXECUTIVE PAPERS

Mr. BARKLEY, from the Joint Select Committee on the Disposition of Executive Papers, to which were referred for examination and recommendation 2 lists of records transmitted to the Senate by the Archivist of the United States that appeared to have no permanent value or historical interest, submitted reports thereon pursuant to law.

BILLS INTRODUCED

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

By Mr. MURRAY (for himself and Mr.
HAYDEN):

S. 1912. A bill to insure the preservation of technical and economic records of domestic sources of ores of metals and minerals; to the Committee on Mines and Mining.

(M". MURRAY also (for himself, and as chairman of the Special Committee to Study Problems of American Small Business, and Mr. WHERRY) introduced Senate bill 1913, which was referred to the Committee on Banking and Currency, and appears under a separate heading.)

By Mr. GEORGE:

S. 1914 (by request): A bill to amend the Internal Revenue Code, the Narcotic Drugs Import and Export Act, as amended, and the Tariff Act of 1930, as amended, to classify a new synthetic drug, and for other purposes; to the Committee on Finance.

By Mr. O'MAHONEY:

S. 1915. A bill to authorize the undertaking of the initial stage of the comprehensive plan for the conservation, control, and use of the water resources of the Missouri River Basin; to the Committee on Irrigation and Reclamation.

By Mr. JOHNSON of Colorado:

S. 1916. A bill to amend the Mustering-Out Payment Act of 1944, so as to make its provisions eligible to those discharged or released from active service with a disability and to those who have subsequently been found to have a service-connected disability; to the Committee on Military Affairs. AMENDMENT OF SMALLER WAR PLANTS ACT-REPORT OF SPECIAL COMMITTEE TO STUDY PROBLEMS OF AMERICAN SMALL BUSINESS

nection therewith a report of that special committee.

Mr. President, the committee's report is a thorough statement of the considerations which led to the introduction of this bill and the small business policies defined in it. However, there are some additional remarks which I wish to make very briefly.

This measure is the outgrowth of an exhaustive study begun last July by a subcommittee of the Senate Small Business Committee, consisting of the Senator from Tennessee [Mr. STEWART], the Senator from Nebraska [Mr. WHERRY], and myself. Even at that time, cutbacks in war production, contract terminations, surplus property accumulations, and related developments were foreshadowing the urgent problems of reconversion and readjustment which have since become such a major concern to this session of the Congress.

The subcommittee, of course, was primarily interested in how these problems, which were daily becoming more urgent, would affect American small business enterprise. It was particularly concerned with what part the Smaller War Plants Corporation might play in assisting small business to deal with these problems of reconversion and post-war adjustment. The Corporation had been established solely to assist small manufacturers to convert to war production. The original act makes no provision for many new problems which have since arisen.

The following two paragraphs, quoted from the subcommittee's report filed September 18, 1943, indicate the basis upon which the full committee, after continuous study since that time, have arrived at the measure which I have introduced today:

In consequence of the failure to date to offset the effects of the war, the competitive position of small industry in the present and for the post-war period has unquestionably been impaired. In other words, the inadequacy of its participation in war production thus far, when added to the prewar handicaps under which it labored, have created the immediate necessity of recapturing the ground lost to larger industry and stabilizing the permanent relation of small business to our national economy, if free enterprise is to be preserved. Many small concerns fortunate enough to receive war contracts have been permitted to operate only on a one-shift basis, while their larger competitors were running at full capacity. They have been obliged to finance their own equipment and conversion to war production, again while their larger competitors were well financed with Government funds to construct plants and buy equipment. They have seen their personnel hired away and materials of production denied or diverted from them.

It is small wonder, therefore, that they now face the future with anxious uncertainty as the rising imminence of contract terminations threatens their already tenuous position and their larger competitors bid fair to emerge with all the advantages of a vastly expanded and Government-financed. plant capacity. These considerations suggest some of the complications which will beset the successful reconversion of American small business to peacetime enterprise in the trying days to come,