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The PRESIDING OFFICER. Without objection, it is so ordered.
The agreement referred to is as follows:
Text Of Radio Trust I'atent Licknsb Agheemiptt
License agreement as of , 1927, by find between Radio Corporation o£ Americn, hereinafter termed Radio Corporation, General Electric Co., and Westinghouse Electric & Manufacturing Co., hereinafter termed licensors, and , a corporation of the State of
. , having nn office at , hereinafter termed licensee.
Whereas the licensors represent that they severally own and/or have the right to grant licenses under various United Slates letters patent useful In tuned radio-frequency receivers ns hereinafter defined; and
Whereas the licensee desires to make lawful use of some or all of the inventions covered by said letters patent of the United States, and to that end desires to acquire the licenses herein expressed;
Now, therefore, in consideration of the premises, the licenses granted herein by the licensors to the licensee, and the covenants herein contained. It Is agreed that:
1. Each of the licensors hereby grants under all of the United States letters patent useful in tuned radio-frequency receivers, as hereinafter defined in paragraph (d) of article 2, owned by it and/or with respect to which it has the right to grant licenses, during the term of this agreement or until It is sooner terminated as hereinafter provided for, and upon the terms and conditions hereinafter set forth, and solely and only to the extent and for the uses hereinafter specified and defined, a personal, indivisible, nontransferable, and nonexclusive license
to the licensee to manufacture at Its factory, located at , In
the State of , and not elsewhere without previous written permission obtained from the Radio Corporation, and to sell only for radio amateur reception, radio experimental reception, and radio broadcast reception throughout the United States and its Territories or dependencies tuned radio-frequency receivers, as hereinafter defined in paragraph (d) of article a, so manufactured by the licensee, except that no license is granted in this agreement under any letters patent with respect to which a licensor can grunt licenses only upon the payment of royalties.
It is specifically understood and agreed that no license Is herein or hereby granted or Is to be granted, and that nothing herein contained shall be construed ns extending or conveying a license, to manufacture, sell, or use so-called superheterodyne or superregenerative receivers or parts therefor.
Nothing herein contained shall be regarded as conferring upon the licensee, either expressly or by estoppel. Implication, or otherwise, a license to manufacture or sell apparatus except such as may be manufactured and sold by the licensee In accordance with the express provisions of this agreement. Nothing herein contained shall be construed as conveying any license expressly or by implication, estoppel, or otherwise under any patents of countries foreign to the United States.
2. (a) That the term "amateur reception," for the purpose of this agreement, means reception by one not a professional investigator who is more than a mere broadcast listener, and who evidences his Interest in the art of wireless telephony by study, Investigation, or experiment in the art.
(b) That the term "experimental reception," for the purpose of this agreement, means the use in a laboratory, college, school, or scientific society, or In professional investigations, but not in any case reception of messages, directly or indirectly for business purposes.
(c) That the term "broadcast reception," for the purpose of this agreement, is defined as follows: The reception from radio telephone broadcast stations of news, music, speeches, sermons, advertising, and entertainments, educational, and similar matter, or any of them, or combinations of any of them, for the purpose of exhibition, entertainment, or instruction.
(d) That the term "tuned radio frequency receiver," for the purposes of this agreement, is defined as follows: A complete radio receiver advertised as such and salable to the using public as such, which may include a cabinet, head set, loud speaker, battery eliminator, etc., and adapted to receive a modulated carrier wave embodying one or more Input circuits, tuned or capable of being tuned to substantial resonance witli the radio frequency of the carrier wave of the signal to be re
'eelveil, or coupled to a circuit or circuits so tuned or capable of being so tuned ; one or more devices for relaying or for amplifying such signals at the said radio frequency; one or more output circuits, tuned or capable of being tuned to substantial resonance with the radio frequency of the signal to be received, or coupled to a circuit or circuits so tuned or capable of being so tuned; a single detecting device for directly converting the signals, so received and so relayed or amplified, from said radio frequency into audio frequency signal currents; and, If employed, one or more devices with their associated circuits, for amplifying such audio frequency currents. In any event, the term "tuned radio frequency receiver" shall not, for the purpose of this agreement, include the so culled superheterodyne or superregenerative receiver or parts therefor.
3. The licensee hereby agrees to pay to the Radio Corporation a royalty of 7% per cent on the licensee's net selling price of the apparatus licensed under this agreement and sold by it during the continuance of this agreement, except that no royalty shall be paid on and no reports are required with reference to sales of apparatus purchased from or through the Radio Corporation. That for the purpose of this agreement all apparatus shall be considered as "sold" when tha apparatus has been billed out, or if not billed out, when it has beea delivered, shipped, or mailed.
4. The licensee further agrees to pay to the Radio Corporation during the time that this agreement shall remain in force a minimum royalty at the rate of $100,000 per annum. In case this agreement shall terminate at other than the end of a calendar year, the minimum royalty for such year shall be prorated to cover such part of such year as shall have elapsed when this agreement terminates.
5. The licensee within 30 days after and as of the 1st days of January, April, July, and October In each year, respectively (hereinafter referred to as "quarter days"), shall furnish the Radio Corporation with written statements, under oath, specifying exactly the total number of apparatus sold under this agreement by the licensee during the preceding quarter. Said statements shall show the licensee's net selling price with respect to all such apparatus, the date when each was sold, and the trade or brand name. The first of such statements shall be rendered not later than the fifteenth day after the quarter day next following the date of this agreement, as of such quarter day, and shall cover tlie period from the date of this agreement to said quarter day. The royalty prescribed herein shall be due and payable on the 30th days of January, April, July, and October of each year upon all such apparatus sold by the licensee during the preceding quarter, or. In the case of the first statement, the period covered thereby. Any amount required to bring the aggregate royalty payments made for any calendar year up to the amount of the minimum royalty payable for such year, as above provided, shall be due and payable on the 30th day of January of the next succeeding year. The licensee shall keep true, accurate, and separate books of account containing all the Information required to be given in the statements provided for in the preceding clause, and shall permit the Radio Corporation or its duly authorized agents or attorneys at any time during usual business hours to Inspect the same.
6. The licensee shall aflix to all apparatus manufactured and sold by the licensee under the terms of this agreement a license plate, reading: "LiceustMi only for radio amateur, experimental, and broadcast reception" and the word "patented," und giving the dates of the patents which are in the opinion of the Radio Corporation used in such apparatus. The licensee further agrees that any and all catalogues, circulars, or price lists, or general advertising of the licensee shall contain a statement to the effect that the apparatus so manufactured and sold by the licensee is "Licensed only for radio amateur, experimental, and broadcast reception."
7. In the event of the failure by the licensee at any time during the continuance iu force of this agreement to render any of the statements called for herein upon any of the prescribed dates, or to pay all the royalties required bercunder when due, or to comply with any of the other obligations of this agreement, it Is understood and agreed that should the licensee refuse or neglect so to do for 30 days after notification from the Radio Corporation by registered mall to the last-kuown place of business of the licensee, of the licensee's failure in any of these respects, this agreement shall cease and terminate, at the option of the licensor. 30 days after notice in writing by registered mall to that effect has been forwarded to the licensee, but no such cancellation shall release the licensee from any of the liabilities accruing to the licensor hereunder prior to the time such cancellation becomes effective. No failure on the part of the Radio Corporation to exercise Its right of cancellation hereunder for any one or more defaults or breaches of covenant shall be construed to prejudice Its right of cancellation for any subsequent default or breach of covenant. Bankruptcy of the licensee shall terminate this agreement, and the Radio Corporation shall also have the right to terminate It upon the insolvency of the licensee or the appointment of a receiver for Its property.
8. Neither this agreement or any of Its benefits shall be directly or Indirectly assigned, transferred, divided, or shared by the licensee with any person, firm, or corporation whatsoever without the written consent of the Radio Corporation, but this agreement shall inure to the benefit of the successor or assigns of the several licensors, but shall not Inure to the benefit of the successors, assijrns, or any legal representative _of the licensee without the consent of the Radio Corporation in writing having first been obtained.
!). Nothing herein contained shall be construed as conveying any licenses, expressly or by implication, estoppel, or otherwise, to manufacture, use, or sell vacuum tubes, except to use and sell the vacuum tubes purchased from the Radio Corporation as provided herein. The Radio Corporation hereby agrees to sell to the licensee and the licensee hereby agrees to purchase from the Radio Corporation the number, and only the number, of vacuum tubes to be used as parts of the circuits licensed hereunder and required to make initially operative the apparatus
under this agreement, such tubes to be sold by the Radio Cor Poratiou to the licensee at the terms and at the prices at which they af« then being sold by the Radio Corporation to other manufacturers °' radio sots buying In like quantities for the same purposes. But the sok of such tubes by the Radio Corporation to the licensee shall not « construed as granting any licenses except the right to sell such tubes Iot use In and to use them In the apparatus made and sold hereunder, '0. The licensors, or any of them, or the American Telephone & Tele S'aph Co., shall have the right to acquire for Itself or for any corporawon or corporations controlled by any of them through stock ownership of Bore than 50 per cent of its Issued stock one or more nonexclusive ! or licenses ou reasosable terms under any United States letters : owned by the licensee or under which it may have the right to gnat a license or licenses. The terms of such license or licenses shall B°t be less favorable to the licensed party or parties than any other similar license from the licensee, and such license or licenses shall In full force and effect during the continuance of this agreeIf tlie terms of such license or licenses can not be agreed upon, such terms shall be settled by arbitration pursuant to the arbitra "on lav? of the State of New York. The licensee may terminate such r1ght wltb respect to any licensor and/or its controlled corporations as flAove <loflned and with respect to any specified letters patent by serv1o& wri t ten notice upon any licensor that unless said licensor shall advise *Ae /Joensee in writing within six months of its intention to exercise *"/cJ rlgrht with respect to letters patent specified in said notice such figttt: shall terminate at the end of such six months' period.
11. mie licensee agrees to pay and the Radio Corporation agrees to Qccopt, as and for the damages which the licensors have sustained and the profits which the licensee has made by reason of the licensee's past Uwiiiu'm <• t urc, use, or sale of tuned radio frequency receivers, as herein defined:, of any of the letters patent licensed hereunder, the sum of
as liquidated damages therefor.
It is further agreed that such sum is now due and payable to the licensors of which is in hand paid, receipt of which Is acknowledged toy the licensors. The licensors, however, hereby agree that, so Ionj5 as the licensee complies with all of the terms and provisions of this ag£xre«inent, they will—except as hereinafter provided—postpone collection of the remainder of such liquidated damages until the 15th ^*y °*^ January, 1931. It is hereby agreed, however, that, in the meantime, tlie licensors shall credit to the remainder of the payment of such damages an amount equal to one-third of each payment of made by the licensee to the licensors on or prior to said 15th lay °*" January, 1931, until said damages are fully paid. '* is further agreed that the obligation of the licensors to postpone • r i of the remainder of such liquidated damages shall cease and '• - on said 15th day of January, 1931; and that. In the event clefault hereunder or of any breach of covenant by the licensee, event of the bankruptcy or Insolvency of the licensee or of the of a receiver for its property, the obligation of the licensors collection of such part of the liquidated damages as shall unpaid shall immediately cease and terminate, whether or not shall have then been canceled or terminated by the as provided for in this agreement; and, in any such event, of the licensors to credit to tlie payment of such liquiany portion of royalty payments then, or subsequently «, due shall also immediately cease and terminate. Further agreed that the licensee shall not be required to pay Yjpon such liquidated damages unless and until the obligation 1 > • • i-n-i.i.-i to postpone collection thereof shall cease and terminate provided.
it the term of this agreement shall be four and one-half years 1927, unless sooner terminated, as hereinbefore protermination of this agreement, either four and one-half its U^»*r'*:>in date or sooner, shall not release the licensee from any of
In J^-^* ^ea accruing prior to such termination.
l» e^e * ^fcess whereof the parties hereto have caused these presents to thflj. m ^"**ted by their proper officers thereunto duly authorized, and t oi.-jt<' seals to be hereunto affixed, the day and year first above
Radio Corporation Op America, By , Preeidcnt.
In consideration of the obligations contained in paragraph 10 of the foregoing agreement, the American. Telephone & Telegraph Co. Joins in and assents to the grant of the licenses hereinbefore granted by the licensors.
American Telephone & Telegraph Co.,
By , President.
JURY SYSTEM ENFORCEMENT OP PROHIBITION
Mr. TYDINGS. Sir. President, I ask unanimous consent to have Inserted In the Record two articles from the Baltimore Evening Sun of yesterday, one referring to the jury system and the other to the subject of prohibition.
The PRESIDING OFFICER (Mr. La Follette in the chair). Without objection, the articles will be printed in the Rtoobd.
The matter referred to is 'as follows:
By Gerald W. Johnson
Some of the jurors in the Sinclair case have admitted that they borame so utterly confused before the thing was over that they hardly knew what it was all about. This is not surprising, since the case was one of a certain complexity, and to be understood had to be studied with a concentration of which not everyone is capable.
In New York the other day Mrs. Knapp, admitting many of the facts as charged, nevertheless argued so cleverly that what she had done was not criminal that she succeeded in hanging the Jury. There was no great complexity about this case, but a powerful personality Impinging upon weaker ones swayed them irresistibly.
In Chicago a few weeks ago a Juryman voted stubbornly against a verdict for first-degree murder against bandits who killed a man when he interrupted them in the Job of robbing his safe. This Juryman stateil his belief that a man has the right to stage a hold-up If he can, and that when the Intruder refused to put up his hands and made as if to molest the burglar, shooting him became an act of sclf-defonse. This Juryman, regardless of his Intelligence quotient, Is evidently a moral imbecile who Is incapable of grasping an ethical point which Is as plain as a pikestaff to the normal man.
Well, what of it? Is the system of trial by Jury becoming hopeless? These three cases certainly reveal defects in it, and they seem to be very serious defects indeed. It is conceivable that here Is evidence that it is rotten to the core.
But is our American system, after all, the old system of the English common law? That provides for the trial of the accused by a Jury of his peers. Perhaps the Chicago Juryman is actually the peer of the bandits; but it Is preposterous to argue that the Sinclair Jurors were the peers of the accused Intellectually, whatever their relative moral rank may be. It is not likely, either, that the Jurors In the Knapp case were the peers of Mrs. Knapp, who is a politician—which is to say a practical psychologist—of exceptional attainments.
In the Sinclair case, Indeed, we have an unusual proof of this inadequacy of the Jury. Shortly before his acquittal on the criminal charge, Sinclair had been tried on essentially the same set of facts before Juiors who were at least his equals intellectually and morally, to wit, the Justices of the Supreme Court of the United States. They were not In doubt as to their understanding of the case, and their verdict was not that of the petit Jury.
The fact is that a man's peers are likely to be rougher on him than are his superiors. This Is well understood by veteran criminals. In Maryland, where the accused may elect to be tried by the court without the assistance of a Jury, It is exceptional for a man who has been in court on many petty charges to demand a Jury. He knows that he has a better chance with the Judge, who is socially and financially, as well as morally, his superior.
In England, once, a nobleman, charged with an offense for which an ordinary court would have given him a fine and possibly a short prison term made the mistake of demanding a Jury of his peers; that is to say, of members of the House of Lords. He got it, but he wished he hadn't asked for it, for the lords gave him 20 years.
There is much complaint that It is become practically impossible in America to do anything with rich, prominent, and able scoundrels. Perhaps one way of remedying the situation would be to have them tried by Juries who are really their peers. If Sinclair had been acquitted by a Jury of first-rate business men, men who have made national reputations for their astuteness, his reputation now would be better. Such a verdict would not have been open to the suspicion hat it was reached by men fumbling through mental obscurity, and therefore Just as likely to return an unjust as a just verdict.
Money enables a man on trial to employ better counsel than ordinarily represents the State, and astute counsel are able to secure ndless delays, and when they do go to trial to obscure the issue and obfuscate the Jury. But even without this advantage, if the prisoner s obviously an able and successful man, he possesses an advantage over a jury likely to include a large proportion of conscious failures. Envy of the rich may Influence some verdicts, but respect for and fear of a forceful man probably Influences a great many more.
But aside from these debatable factors It Is perfectly clear that there are certain discs which should be submitted only to specially selected panels. Consider the Sinclair case, for example; it was a criminal prosecution, to be sure, but it necessitated the consideration by the jury of some highly complicated business operations, difficult for well-trained business men to understand and quite beyond the comprehension of a jury drawn off the street. It Is really no wonder certain members of that Jury are now admitting that the whole thing was Incomprehensible to them.
Similarly in the Knapp case the offense with which the defendant was charged lay in the obscure borderland between official discretion and outright embezzlement. To decide on which side of the line It lies requires a nicety of judgment which the jury admittedly did not possess and it never reached a verdict.
So a jury which Is to reach a true verdict must be adequate, not only to the defendant but nlao to the intricacies of the case. Every man above the level of the Chicago juryman already mentioned is aware that murder, theft, and arson are crimes, and in such cases It Is simply n matter of proving the responsibility of the accused for the offense which has occurred. Such matters are usually within the comprehension of the first 12 men one meets, and as a Jury they arc able to return a verdict which ta likely to be just.
Kven so, a battery of high-priced criminal lawyers and n powerful personality in the accused may defeat Justice; but justice has at least a fighting chance. Add to such handicaps a case so Intricate that it is altogether beyond the comprehension of the Jury, and the cause of justice Is lost at the start It is a gamble then, with natural human sympathy stacking the cards In favor of the accused.
What, then, is to be done about It? Obviously, nothing unless and until we revise our notion that all men are equal before the law. All men are not equal anywhere, and money alone does not constitute the difference. A forceful, successful man has an Initial advantage over any Jury not composed of men at least as forceful and successful as he Is.
But one proof of a man's forcefulness and success In life is his ability to avoid Jury duty. In this he Is powerfully aided by the bar, for the lawyer who has any doubts about his case usually prefers to try It before a Jury whose minds he can mold. Therefore he eagerly assists strong men to avoid serving. He doesn't want them.
The recent failures of the Jury system are simply another phase of the protean question with which democracy wrestles Incessantly— namely, how the great mass of mediocre men is to control strong and unscrupulous individuals.
FANATICS BARRED WAT TO A REALLY DRY AMERICA
(The Rev. C. W. Tinsley, pastor of West View M. E. Church, writing in the Pittsburgh Press)
For years before 1020 the evils of drink in the United States were lessening, the i>er capita consumption was decreasing, drunkenness was more and more frowned upon as an inexcusable vice, and social custom was banishing the use of Intoxicants from reputable circles. Even extreme prohibitionists concede all this. The situation was not desperate, the patient wns convalescent and did not require this violent form of surgery. The people were finding ways to lessen the drink evil, alcohol was being banished from medical practice as useless, and a really "dry" America was on the way, and no doubt would have arrived In time under more local and popular "methods," even if Volsteadlsm had never been imposed upon the Nation.
It was not because there was no other or better way, but because an Intense, intolerant. Impatient minority sought a short cut to reform that this assault upon our Federal Constitution was made. Even granting that a majority did it—that does not make It either right or wise. Majorities have no right to impose upon the rest of the people their notions of social conduct when the thing prohibited does not "necessarily '• infringe upon the rights of others. American " citizens" should never be made "subjects" in matters of social habit and custom. Before 1920 we supposed that our Federal Constitution was full protection against such tyranny.
To-dny "force" has fascinated the minds of many church leaders— a sinister sign of the decadence of faith in spiritual forces. The spirit of the Ku-Klux Klnn has invaded certain groups of the Protestant Church. They act as if might could make things fight. They would compel men to conform to their notions respecting temperance, the Sabbath, etc.
That "state of mind" Is chiefly an Inheritance from Calvinism, which held to the ideal of a Biblically controlled society.
They say "(Jod's Word" can make the world right; so write His name in the Constitution, for this is a "Christian Nation." It's the same narrow spirit that caused the burning of the witch and the whipping of the Quaker. Christ inns should not give It any sanction.
It Is high time that all good citizens call a halt to the efforts of these sincere but utterly mistaken people in Iheir attempts to " regulate" everyliody.
This Is not a "Christian Nation" and never was. Genuine Americanism forbids any such false claim. If It were really "Christian" it would not try to compel total abstinence through "force."
Churches should not attempt to "dragoon the body, but to convince the soul," to use President Coolldge's apt phrase.
AGRICULTURAL DEPARTMENT APPROPRIATIONS
The PRESIDING OFFICER (Mr. La Follette in the chair) laid before the Senate the action of the House of Representatives receding from its disagreement to the amendment of the Senate No. 08 to House bill 11577, the Agricultural Department appropriation bill, and concurring therein; receding from its disagreement to certain amendments of the Senate to the said bill and agreeing thereto severally with an amendment, and also insisting upon its disagreement to the amendment of the Senate No. 100, which was read, as follows:
In The House Ok Rkpresentatives, U. S.,
Uav to, JM8.
Resolved, That the House recede from Its disagreement to the amendment of the Senate No. 98 to the bill (H. R. 11377) entitled "An act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1929, and for other purposes," and concur therein.
That the House recede from its disagreement to the amendment of the Senate No. 56, and agree to the same with an amendment as follows:
In lieu of the matter inserted by said amendment insert the following:
"Horticultural experiment station, Cheyenne, Wyo.: to enable the Secretary of Agriculture to carry into effect the provisions of the act entitled "An act providing for horticultural experiment and demonstration work in the serahirld or dry-land regions of the United States," approved March 19, 1928, including the erection of buildings and fences, the construction of irrigation facilities, the employment of persons, and for other necessary expenses, to be immediately available, $100,000: Provided, That the limitations in this act as to the cost of buildings shall not apply to this paragraph."
That the House recede from Its disagreement to the amendment of the Senate No. 59, and agree to the same with an amendment as follows:
In lieu of the sum Inserted by said amendment Insert "$4.380,436."
That the House recede from its disagreement to the amendment of the Senate No. 80, and agree to the same with nn amendment as follows:
In lieu of the sum Inserted by said amendment Insert "$650,000."
That the House recede from Its disagreement to the amendment of the Senate No. 84, and agree to the same with an amendment as follows:
In lieu of the sum inserted by said amendment insert the following: "$1,125,500: Pro-Tided, That the Secretary of Agriculture shall investigate and report to the next regular session of Congress as to the feasibility of a flve-year cooperative program, or a program extending over such term of years as to him shall seem most advisable for the purposes In view, for the eradication, suppression, or bringing under control of predatory animals within the United States, and the estimated cost thereof as compared to the present method."
That the House recede from its disagreement to the amendment of the Senate No. 85, and agree to the same with an amendment as follows:
In lieu of the sum inserted by said amendment insert "$1,165,000."
That the House recede from its disagreement to the amendment of the Senate No. 86, and agree to the same with an amendment as follows:
In lieu of the sum inserted by said amendment insert "$211,000."
That the House recede from its disagreement to the amendment of the Senate No. 99, and agree to the same with an amendment as follows:
In lieu of the matter Inserted by said amendment, insert the following:
"FLOOD RELIEF, VERMONT, NEW HAMPSHIRE, AND KENTUCKY
"For the relief of the following States as a contribution in aid from the United States, Induced by the extraordinary conditions of necessity and emergency resulting from the unusually serious financial loss to such States through the damage to or destruction of roads and bridges by the floods of 1927, imposing a public charge agiilnst the property of said States beyond their reasonable capacity to bear, and without acknowledgment of any liability nn the part of the United States In connection with the restoration of such local improvements, namely: Vermont, $2.654,000; New Hampshire. $653.300; Kentucky, $1,88!).9!»4; in all, $5.197,294, to be immediately available and to remain available until expended: Provided, That the sums hereby appropriated shall be expended by the State highway departments of the respective States with the approval of the Secretary of Agriculture fur the ivstorntion, including relocation, of roads and bridges so damaged or destroyed, in such manner as to give the largest measure of permanent relief, under rules and regulations to be prescribed by the Secretary of Agriculture: 1'rwMed further, Thut the auiouut herein appropriated fur each State shall be available when such State shall bare or make available a like •urn from State fuuds for the purposes contained herein."
That the House recede from its disagreement to the amendment of the Senate No. 102, and agree to the tame with an amendment as follows:
In lieu of the sum inserted by said amendment insert "$139,138,793.88."
That the House further insist on its disagreement to the amendment of the Senate No. 100.
Mr. McNARY. I move that the Senate agree to the amendments of the House to the amendments of the Senate numbered 56, 59, 80, 84, 85, 86, 99, and 102, and that the Senate recede from its amendment numbered 100.
The motion was agreed to.
The Senate, as in Committee of the Whole, resumed the consideration of the bill (H. R. 1) to reduce and equalize taxation, provide revenue, and for other purposes.
The PRESIDING OFFICER. The question is on the committee amendment on page 15.
Sir. SMOOT; Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The Secretary will call the roll.
The Chief Clerk called the roll, and the following Senators answered to their names:
The PRESIDING OFFICER. Eighty-five Senators having responded to their names, a quorum is present. Mothers' Day
Mr. SHEPPARD. Mr. President, I ask unanimous consent that to-morrow, at the beginning of the session, the senior Senator from West Virginia [Mr. Neely] be permitted to address the Senate on the subject of Mothers' Day.
The PRESIDING OFFICER (Mr. Lochee in the chair). Without objection, it is so ordered.
WATER POWER AND ELECTRIC TRUSTS
Mr. NORRTS. Mr. President, recently there was held in the city of \Vashington the annual meeting of the Chamber of Commerce of the United States. At that meeting a remarkable mldress was delivered by Mr. Edwin B. Parker, chairman of the board of the Chamber of Commerce of the United States. The address is quite lengthy and I hardly feel justified in having it printed in the Congressional Record in its entirety, but I can not permit the occasion to pass without calling the attention of the Senate and of the country to at least some very important extracts from that eloquent and logical address.
If the doctrines proclaimed in that address by Mr. Parker were lived up to by the business men of the United States, a large portion of whom, as far as money is concerned, he was addressing when he delivered his speech, many of the difficulties that confront society would disappear.
He said, for instance:
The times demand straight thinking and frank speaking. They demand thnt we consider the disturbing evidences of a business atavism, of a throwback to a day of unrestrained Individualism, a day of " the public be damned," when men of great business ability, with an eye (ingle to their own selfish interest and immediate returns, and without regard to the future, ruthlessly pursued their predatory lusts In a spirit of "after me the deluge!"
The recent conspicuous examples of individuals, prominent in big business, becoming Intoxicated with power and involved in transactions tainted with fraud and corruption, violating every principle of sound business conduct, holding themselves above the law, are not peculiar to this day nor to the profession of business. Every generation, every profession has its unfaithful members. But business, which has lately been defined as "the oldest of the arts and the newest »f the professions," must, in order to maintain its professional status and reap the unques
tioned advantages of group action, scrupulously discharge its group responsibilities.
Among these responsibilities Is to sec to it that the profession of business is purged of those pirates whose acts stigmatize and bring business generally Into disrepute. Such individuals, unmindful of their duties to the public, inevitably bring upon themselves and the entire Institution of business the thunderbolts of public wrath In terms of legislative and governmental regulation that hamper a legitimate freedom of Initiative. Ruthless and selfish initiative must be curbed In the public Interest and in the interest of legitimate business.
Mr. President, in tlic fo\v minutes that I have before 3 o'clock it will be impossible for me to read ns much of that flue address as I should like to. I ask, therefore, to include in my remarks at this point the marked passages in the address, which I send to the clerk's desk.
The PRESIDING OFFICER (Mr. La Follettk in the chair). Without objection, It is so ordered.
The matter referred to is as follows:
Business does not exist unto Itself alone. Business exists only by reason of what It does for others. It finds its opportuuitles to continue and to develop only in advancing the welfare and the happiness of all those from whom it buys, those to whom it sells, and those whom it employs. In the llnal analysis business deals with human welfare and human happiness. Its function is to find ways of promoting human welfare and of adding to the opportunities for human happiness. Without teamwork that function can not be successfully performed.
• • • « * • »
Just as nations will decline to recognize, as a member of the family of nations, a government committed to destroying the foundations of our civilization; just as the legal profession has taken measures for disciplining and disbarring the "shyster"; just us the medical profession purges itself of the unethical practitioner, so business will decline to recognize as a member of the profession of business, nnd trade associations will decline to receive into their ranks, or will expel, an Individual or an organization that willfully violates the fundamental principles upon which sound business rests, or that persists in ignoring the decencies of business intercourse, and besmattcrs all business with the slime of corruption or with tbe muck of unclean practices.
Shall the business community as a whole lose the ground that It has painstakingly and deservedly gained In order that a few—a very few In relation to the vast host engaged in American business—a few who hold themselves above the law, may crash through and demolish the canons of sound business practices? Those canons have been set up by organized business for its self-government not only for its own protection but as an assurance to the public that business may be trusted to formulate and enforce its own rules of fair play—Its rules of good sportsmanship—and to do and do thoroughly its own bousecleaning. If organized business Is content to sit supinely by and permit the ruthless few to undermine the sound foundation on which It rests, then, indeed, does business richly deserve that swift manifestations of public indignation that will surely be visited upon it.
Much has been said and written of late of the betrayal of public trusts by those in high places. All such must be dealt with by the courts and by the voters to whom they are accountable. I have neither the time nor the disposition to deal with them here. The present concern of business Is to cast the beam out of its own eye; to purge itself of those corrupters of public servants whose moral turpitude in making possible the betrayal of a public trust Is even greater than that of those whom they would debauch; and to put the ban of outlawry upon those who have a contempt for the public Interest, those who have a contempt for the Government that affords protection to them and to their property, and those who have a contempt for our institutions of justice. Organized business will have the courage and the sound judgment to cast out these defilers of the Institution of business, both In its own interest and in the interest of the public, which in turn will be quick to brand the offenders with the contempt which they richly deserve.
Leaving all public agents entirely out of the picture, and dealing solely with the shortcomings of Its own members, business is here concerned with purging its profession not only of the principal offenders but of those accessories, either before or after the fact, who, unmindful of the public interest involved and of their duties to the public, are guilty of a suppression of the truth which the public has a right to know.
It is the function of government to deal with crime. But there is a twilight zone between acts which are illegal and criminal on the one hand and acts which are simply unmoral on the other. Those whose conduct fulls within this zone, whose acts, while within the law, are repugnant to the public Interest, must be branded as social outlaws.
We are here concerned in awakening the seemingly dormant business consciences of many of the stockholders of corporations who. through nonaction, Implledly place the seal of their approval on the acts of their offending agents. All such owe it to themselves, to the profession of business, and to the Government publicly to repudiate those who misrepresent them. They can not accept the profits flowing from corruption and escape the moral stigma which inheres in such profits. Neither can they permit those who act for them to profit personally through corrupt corporate transactions or shield others who do. *******
This chamber Is committed to the principle that government should not enter the realm of business to undertake that which can be successfully performed In the public interest by private enterprise. This principle is politically and economically sound. We are here concerned In pointing out to business men everywhere that this principle Is in far less danger from the propaganda of radical agitators than from the members of the business profession who are faithless to their obligations, who break down public confidence, and who provoke Government regulation '.
Congressional investigations of particular business activities are sometimes bitterly denounced. Many congressional investigations are of the highest value to the public, including business. The demoralization to legitimate business that sometimes follows in their wake can be largely avoided by organized business doing its own investigating, and frankly and fully laying all pertinent facts pertaining to any business affected with a public Interest before the tribunal of public opinion. A business which can not stand this acid test is not entitled to prosper. The public, which Is entitled to know the facts, will be satisfied with nothing less. Organized business should Itself perform this task in Its own and in the public interest. Falling to do so, Congress should and will act.
"Slacking" did not end with the war. Every member of the profession of business who falls to observe the canons of decency and fair piny and good sportsmanship, or everyone who, living up to those canons himself, lacks the courage to speak out in condemnation against that minority which brings business into disrepute, la "slacking" in hlH duty—in his duty to himself, in his duty to business, and In his duty to the public. And organized business, If It is to continue to deserve public confidence, must brand such "slackers" business outlaws. *******
The machinery is at hand. Let us use it to the full.
Will not this chamber at this its sixteenth annual meeting repudiate those whose ruthless methods tend to discredit all business, and reaffirm its allegiance to those sound principles of conduct which beget confidence, upon which to endure all business must rest?
As members of this American federation of business, shall we not pledge ourselves to team play with every element of the community of which we are a part, and with our neighbors of other lands, to achieve an all-embracing prosperity, inclusive of all groups and all classes?
Shall we not dedicate anew our best efforts to the diligent pursuit of the greatest of all vocations—the business of right living—prcclalining to the world that he who would be great among us must become the servant of all?
Mr. NORRIS. I repent, if the doctrines Hint should control business as advocated by this able mnn had been In force, and the business world had adhered to the principles that he hns In III down, we would have had no Sinclair case; we would have hnd no Teapot Dome steal; we would have had no stealing of the public lands at Elk Hills, in California, by Mr. Doheny; it would have been unnecessary to have such a thing as a Daugherty investigation, or a Daugherty trial in New York City. Forbes and Fall and Miller would have been unable to sell the power that they had by virtue of holding public office, because there would have been no dishonest business men to buy them.
But while this speech was being made, an investigation of big business was going on before the Federal Trade Commission, and some wonderful disclosures were taking place there. I read a letter printed in the Washington Herald on May 9, written to J. 3. Davidson, president of the National Electric Light Association, by Mr. Charles Penrose, a brother of the late Senator Penrose.
I will omit the formal part of the letter, which I ask may be printed, but will read from the main part.
Dear Mr. Davidson: I greatly appreciate your sending me, received this morning, the editorial from Omaha Bee of January 2. It Is fine and very much to the point in the present situation. I shall see that copies get to fruitful spots In Pennsylvania.
Then he goes on to thank this man to whom he is writing for this editorial in the Omaha Bee, which he uses in the State of Pennsylvania, where they are trying to overthrow the advocates of public ownership of public utilities, particularly Governor Pinchot.
I ask that the balance of the letter, together with the comment under it made by the editor of the Herald, be printed at this point as a part of my remarks.
The PRESIDING OFFICER. Is there objection? There being no objection, the matter was ordered to be printed in the Recobd, as follows:
LOBBY TICKS "FBt'ITITUL SPOTS"
Philadelphia, January 4, 1926. J. E. Davidson, Esq.,
President National Electric Light Association,
Care ffeoraska Power Co., Omaha, Xebr.
Dear Mr. Davidson: I greatly appreciate your sending me, received this morning, the editorial from Omaha Bee of January 2. It is fine and very much to the point In the present situation. I shall sec thnt copies get to fruitful spots in Pennsylvania.
The deeper we go into it the greater appears the realization outside of Pennsylvania of the menace nationally of Plnchotlsm. In this morning's mail is a letter from Mr. Layman, president of Wagner Electric Corporation at St. Louis, from which I quote In his reference to the giant power situation:
"Some of us outside the State of Pennsylvania have come to look upon Governor Pincbot as a very great menace in public life. Political ambition seems to be his guiding motive, and it Is certainly leading him to dangerous lengths."
In the same mail Is a longhand letter written on New Year's Day from the president of Mississippi Power Co., Mr. Eaton. I am having it copied in order to attach hereto, as expressing the- same thought.
Unmistakable approval of what we are attempting to do to combat Plnchotisui is expressed in another letter, dated December 31, from one of the rice presidents of Bankers Trust Co., ot New York. Literally, I could cite scores of letters.
I know all of this will be of Interest to you at this time.
With warm regards.
Cc. to MaJ. J. S. S. Richardson, 1410 Widcner Building, Philadelphia, Pa.
Here is Exhibit 1260 in the Federal Trade Commission's current investigation of the power lobby and the so-called Power Trust.
It Is a letter from Charles Penrose, brother of the late Boles Penrose, Republican "boss" of Pennsylvania. Charles Peurose is thanking the president of the National Electric Light Association for sending him an Omaha editorial attacking Governor Pinchot's water-power plans.
Mr. Penrose will see that this editorial "gets to fruitful spots In Pennsylvania "; that is, he will see that it is published in Pennsylvania newspapers.
Penrose sends a copy of his letter to MaJ. J. S. S. Richardson, who until June of this year was director of the Pennsylvania Public Service Information Committee, the Pennsylvania State propaganda organization. From this job he was last June promoted to be publicity director of the national power lobby.
Very likely Richardson helped Penrose get the anti-Pinchot editorial "to fruitful spots." The present Trade Commission investigation has revealed a letter written to Richardson by the president of the New Jersey Gas Association, and reproduced in facsimile In this newspaper yesterday morning, giving the names of New Jersey newspapers to which Richardson was to send "some of the editorials which are furnished by your bureau."
Another letter to Richardson, disclosed by the Federal Trade Commission, Is one complimenting him on the publication of antl-Pinchot editorial material on the editorial page of the Philadelphia Public Ledger. C. R. Stull, of the investment department, American Gas Co.. wrote Richardson in August, 1925:
"I want to compliment you on getting this material together as 3'ou did, and further for your ability In have it appear in the Ledger in the form which this issue carried it."
Before holding the Jobs with the Pennsylvania and national power lobbies. Major Richardson was city editor of the Philadelphia Public Ledger.
Mr. NORRIS. There was offered in evidence before the Federal Trade Commission a vast amount of correspondence. It would be interesting, if we had the time, to read nil of the correspondence that has been taking place between the officials of the great Water Power and Electric Trusts. But here Is a letter dated January 22, 1025, offered in evidence, written on the letterhead of the Philadelphia Co., Pittsburgh, Pa. The letter is as follows:
[Exhibit No. 1102]
Philadelphia Co., PittnTmryh, Pa., January it, 19K. Mr. J. S. S. Richahdsox,
Director Pennsylvania Puolic Service Information Committee,
930 City Center Building, Philadelphia, Pa.
Dear MR. Ricuahdson: At the meeting to-day of the western Pennsylvania executive committee of the Pennsylvania Public Service Inforina