Senator WAGNER. This outlines the program? Mr. PATTON. Yes. Senator FLETCHER. Can you not put it in the record? Senator FLETCHER. But he has not gone into details. Mr. PATTON. May I add one thing? This can very readily be accomplished in this bill by a minor amendment to paragraph 6 of section 4 (a), I think it is the section which deals with the aeronautics branch and the Bureau of Lighthouses of the Department of Commerce, amending that section. Senator WAGNER. On what page of the bill? Mr. PATTON. On page 10 of the bill, the paragraph numbered 6.. Strike out the "and" in the second line; in the fourth line, after the words "Lighthouse Service," add "and for the engineering work of the Coast and Geodetic Survey," and change the amount. from $7,500,000 to $8,750,000. Senator FLETCHER. You say that would give employment to how many additional men? Mr. PATTON. That will give employment to from 900 to 1,000 men-not full year employment, but an average of about eight months apiece. Senator WAGNER. The virtue is that they can be put to work within a month? Mr. PATTON. They can be put to work promptly. Senator BARBOUR. You know just exactly what there is for them to do? Mr. PATTON. Yes. We have a program. Senator FLETCHER. Can you leave a copy of your letter for the record? Mr. PATTON. The original went to Senator Norbeck. I will be glad to leave that copy with you. Senator WAGNER. We want to get this in the record in some way.. You have not another copy? Mr. PATTON. No. That is the only copy I have. If you want that for the record, let me mail you another copy. Senator WAGNER. That will be fine. Senator BARBOUR. Mr. Chairman, I would like to say for the benefit of the committee, that it is not my intention to go into any discussion of my bill at this time. The Secretary of the Treasury is going to give a review from his point of view of the features of my bill shortly, either in writing or in person, and I think it would save time for the committee, and be more helpful to Senator Wagner, if I refrained from any general discussion until we have the benefit of those reactions. Senator WAGNER. I think you are right. Senator FLETCHER. If it is submitted in writing, we will have it available. (Mr. Patton submitted the following copy of a letter as requested by Senator Wagner:) Hon. PETER NORBECK, DEPARTMENT OF COMMERCE, Chairman Committee on Banking and Currency, United States Senate, Washington, D. C. MY DEAR SENATOR NORBECK: In his speech in explanation of the public works bill for the relied of unemployment, Senator Wagner urged that "the several deapartments of the Government come forward with constructive suggestions which will be of assistance in perfecting the bill." In the absence of the Secretary of Commerce, but with his approval, I suggest that of the total sum contemplated in that bill, $1,250,000 be made available to the Coast and Geodetic Survey. The Coast and Geodetic Survey is engaged on the gradual performance of certain continuing programs of engineering field work which have two principal purposes: (a) Safeguarding lives and property at sea and the orderly and economical movement of maritime commerce, and (b) Reducing the cost and assuring accuracy of many diverse engineering projects, including the topographic map of the United States, highway construction, irrigation and reclamation, flood control, maintenance and building railroads, power and pipe-line extensions. There is scarcely an extensive engineering enterprise throughout the United States to which this part of our work is not an important prequisite. In the orderly execution of these programs the survey is spending $3,023,933 during 1932. About 75 per cent of this sum is paid out directly in salaries and wages. For 1933 a reduction of $624,120 is imminent. This reduction means that field work must be discontinued, ships tied up, large volumes of surveying equipment stored here and there throughout the country, and labor discharged. The great burden of the reduction falls on people least able to bear it; the crews of our ships and the hands on our shore parties; men drawing generally from $80 to $125 per month. Hundreds of them throughout the United States will be deprived of work. These reductions are freezing a large capacity to aid unemployment. I am now suggesting that that capacity be thawed out and put to work. We will have reserve capacity in storage adequate to handle any increase up to about $1.250,000 above the proposed 1933 appropriation of $2,399,813. The following factors pertinent to such an increase deserve careful consideration: Seventy to eighty per cent of the money would be paid out to low-salaried labor. The money could be made to give work to approximately a thousand persons. This labor would be employed along both coasts and in half or more of the interior States. The work is urgently needed now. Within the past 10 days two States have offered to contribute funds in order that the proposed reduction need not compel discontinuances of certain work within their areas. The expenditures which would be made do not involve additional subsequent expenditures for operation or maintenance of results. There are no public buildings to be maintained, navigable channels to be periodically redredged, or roads to be kept in repair and after a few years rebuilt. There are no specifications to be written, contracts made, lands purchased, or other sources of delay. The program can be in full swing within a month or less after the money becomes available. The work accomplished will be in the nature of a permanent national investment and not merely a temporary expedient to relieve unemployment. It will prevent jeopardy to lives and property at sea which must otherwise result from the reductions now pending. It will make it possible to reduce the cost of Federal, State, and local engineering projects hereafter undertaken in every State in which our work is done. I think that the foregoing facts have escaped notice solely because the Coast and Geodetic Survey is a small service which does not loom up prominently in the huge and complex Federal structure. Our contribution to the present emergency must be correspondingly limited in size. Within that limit, however, I know of no Federal activity in which a larger percentage of the money spent would go directly to those in need, or in which the results accomplished would have relatively greater permanent value to the Nation. As a means of accomplishing this inclusion I suggest that paragraph (6) of section 4 (a) of the bill be amended as follows: (6) For expenditure by the Department of Commerce for air navigation facilities, including equipment; for the construction of lighthouses, vessels and other construction projects of the Lighthouse Service, and for the engineering work of the Coast and Geodetic Survey, Department of Commerce, heretofore authorized, $8,750,000. Respectfully yours, R. S. PATTON, Director. STATEMENT OF HON. JOSÉ L. PESQUERA, RESIDENT COMMISSIONER FROM PUERTO RICO Senator FLETCHER. Proceed, Mr. Commissioner, in your own way. Commissioner PESQUERA. The organic act of Puerto Rico, which is our constitution granted by the Congress of the United States in 1917, provides in section 9: That the statutory laws of the United States not locally inapplicable, except as hereinbefore or hereinafter otherwise provided, shall have the same force and effect in Puerto Rico as in the United States. It is the clear intent of this section that we may claim the benefits and are subject to all the burdens of all legislation unless, first, there is specific exemption in the organic act or, second, that the conditions in Puerto Rico do not permit the application of such laws. The one and one-half millions of American citizens residents of Puerto Rico believe that legislation specifically extending benefits to the States to the exclusion of Puerto Rico constitutes unfair discrimination against Puerto Rico, contrary to the spirit and purpose of the organic act; unless said legislation is based upon recognized economic differences which justify such distinction between the citizens of the island and of the mainland. Such discrimination is as illogical as to pass measures for the States of the United States "except New York, South Dakota, and Tennessee." We contend that common justice and fairness demands that all these measures designed to aid banks, industry, and agriculture, and unemployment, in the present emergency, be extended to Puerto Rico because not only is there no legal bar but the organic act affirmatively provides therefor, if not inapplicable. The economic conditions in Puerto Rico are not distinguishable from those in the mainland. They are distressingly bad, as they are here, and our people must look to Congress for relief, as have the people of the several States. These conditions have been described by Gov. James R. Beverley in his statement before the Senate Banking and Currency Committee, May 17, 1932, in support of S. 4671, providing for the extension of the Reconstruction Finance Corporation act for the benefit of the banks and the agricultural corporations. I refer you to his statement. No further explanation is required. The Governor of Puerto Rico represents the Executive authority of the United States. He is the administrative agent of the President, governing through the War Department and the Bureau of Insular Affairs. Governor Beverley has discharged his duty in pre executive superiors and to the Congress a frank sta conditions and in appealing earnestly for the inclusi Rico in all legislation framed to enable American citi. a winning fight against the unusual forces which t economic life. The Secretary of War and the Bureau of Insular Arairs have approved S. 4671. As resident commissioner I am the only legislative representative of the people of Puerto Rico. I indorse all the governor has said and earnestly second his appeal. We are not asking alms. We are only claiming our rights as we conceive them to be under the organic act. We are prepared to work out our problems if we are furnished the same instruments which are provided for other American citizens. Senator FLETCHER. Have you any specific recommendations as to public works, or anything of that sort in Puerto Rico? Commissioner PESQUERA. Yes. We have undertaken there several municipal works, and private works, which come under the provisions of this bill. Senator WAGNER. You referred to a bill that is pending before our committee now. Commissioner PESQUERA. Yes. Senator WAGNER. Did you want us to consider that separately, or have you in mind amending the bill upon which we are having a hearing now, introduced by me, so as to give you this added power? I am in sympathy with you. Commissioner PESQUERA. I merely want to suggest that this bill be amended by including a paragraph which would read more or less to this effect: Wherever the word "State" is used in this act, it shall be defined to include the Territory of Puerto Rico. That, of course, would not give us all the benefits of the bill, but it would make applicable to us those parts which are not inapplicable. Senator FLETCHER. That refers to section 2 of the bill? Commissioner PESQUERA. Yes. Senator FLETCHER. Section 2 refers to loans. Commissioner PESQUERA. Yes; section 2 would be the one we could avail ourselves of. Senator WAGNER. It would also refer to the provision as selfliquidating projects. Commissioner PESQUERA. The provision to make loans to municipalities, political subdivisions, and to private corporations to carry out the different works, and self-liquidating projects. Senator WAGNER. It would not refer to the public-works projects, because none of those are in Puerto Rico. Commissioner PESQUERA. No, sir. Section I would not be applicable, because, unfortunately, the law extending aid for public roads in the different States has not been extended to Puerto Rico. Senator WAGNER. I know that. Commissioner PESQUERA. Of course, we have always thought that it should have been extended. Senator FLETCHER. You mean to ask to have Puerto Rico included among the States for sharing in this $300,000,000 of aid for relief of the destitute and hungry-section 1? we Commissioner PESQUERA. Section 1 is inapplicable to us. Senator WAGNER. It is now, but did you want to be included in that? Commissioner PESQUERA. Yes. Senator WAGNER. That is what the Senator asked you. Commissioner PESQUERA. If it would be possible to so amend the bill, stating that Puerto Rico shall be included in all sections. Senator WAGNER. In other words, wherever the word "State" is used you want that to include Puerto Rico? Commissioner PESQUERA. The island of Puerto Rico. Senator FLETCHER. We are very much obliged to you, Mr. Commissioner. We will take that under consideration. Commissioner PESQUERA. Thank you very much. (Thereafter the secretary of the American Engineering Council submitted the following statement for the record:) Hon. PETER NORBECK, AMERICAN ENGINEERING COUNCIL, Chairman Committee on Banking and Currency, United States Senate, Washington, D. C. MY DEAR SENATOR NORBECK: American Engineering Council, representing 60,000 professional engineers, holds the following views that have a bearing upon Senate bill 4755. In addition to presenting these views, this statement contains references to specific sections of S. 4755. We submit this with the hope that it will be of aid to the members of the Committee on Banking and Currency. Council holds that the business of the Government should be controlled by the same principles which govern all other sound business, and earnestly recommends: 1. That all governmental budgets be promptly balanced-Federal, State, municipal, and all their subdivisions. These budgets should be balanced by a courageous and intelligent reduction of governmental expenditures. Taxes should be increased as a last resort when necessary to balance sound and economical budgets. 2. That the functions of the Reconstruction Finance Corporation be so broadened that, with proper safeguards, it may make credit more readily available to industry. 3. Council approves in principle a normal program of Federal, State, and municipal public works construction as an effective and immediate means of in creasing purchasing power, stimulating trade recovery and reviving employment. 4. Council recommends that no governmental public works be undertaken which would essentially be in competition with private business. We respectfully call your attention to the following specific phases of S. 4755: Page 4, section 2a, line 7, item 1, providing for loans to States, municipalities and other political subdivisions for public works. It is the general consensus of opinion of the members of the assembly of council that it is highly inadvisable for the Federal Government to make loans. to States, municipalities, and other political subdivisions for the purpose of financing their respective public works. Page 4, line 1, item 2, providing for loans to limited-dividend corporations. This is a sound provision and council is in favor of its adoption. Page 4, line 15, item 3, providing for loans to private corporations for construction of bridges, etc. This is likewise a sound provision, and council recommends its adoption. Page 5, line 16, section 2 (c), providing that all amounts received by corporations shall be used for retiring loans. This is a very necessary provision and we urgently recommend its adoption. Page 5, line 22, section 3, procedure to be followed by the Reconstruction Finance Corporation. We support in its entirety. Page 8, lines 6 to 8, section 4, providing minimum wage rates shall be stated in invitation for bids, etc. This is necessary and equitable and should be adopted. |