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WHAT THE WILSON
ADMINISTRATION LEFT
TO THE COUNTRY
Speech by Hon. William J. Graham,
in the House of Representatives,
May 18, 1922, extract from the Con
gressional Record—Free.
(Continued from last week)_
Under various Liberty loan acts
President Wilson was authorized to
purchase bonds from the countries en
gaged in war with our enemies, bear
ing the same interest, of the same
maturities and same conditions as the
bonds we issued and sold to our peo
ple. Under this authority President
Wilson dispensed to our allies and to
a flock of little nations whom he was
seeking to incubate immense sums,
which, with the interest accrued and
unpaid, now amount to more than $11,
000,000,000. The act authorized loans
to our allies. About $300,000,000 of
that money was loaned to countries
not in the war at all. One billion five
hundred million dollars of it was loan
ed by the Secretary of the Treasury
after the armistice, and when every
reasonable man will concede he had no
right to do so under the law.
Mr. Johnson of Mississippi. Does
that include the Liberian loan of $5,
000,000 ?
Mr. Graham of Illinois. No, it does
not; but the Liberian loan was like a
lot of other things left over by the
last administration. The faith of this
Government was pledged by the last
administration,.and when the present
administration came into power it had
either to refuse to keep the promises
that you fellows had made in the name
of the Government, or go through
with it.
Mr. Johnson of Mississippi. And
yet the gentleman voted for it a few
days ago.
$fr. Graham of Illinois. No; 1 did
not. I was not here. I have always
been a great believer in standing by
my promises if I make them myself,
and by them if my Government made
them. That is the way I felt during
the war, when I did not believe the
President was doing many things
right. Yet I went along with him.
Mr. Johnson of Mississippi. And
the gentleman’s party claimed all of
the time that that was an illegal au
thorization, and yet a few day ago it
voted the loan.
Mr. Graham of Illinois. The Repub
lican Party never breaks the faith of
the Nation when it is once peldged.
It was intended by the Liberty loan
acts that we should buy the bonds of
foreign nations. Instead, all that the
present administration found to show
for this vast sum were memoranda of
some diplomatic agents or officials.
Not only was this true, but there was
the general impression and belief ex
isting in every country to whom this
money had been advanced, induced no
doubt by the conduct and public utter
ances of President Wilson, that the
United States never intended to col
lect these amounts. The incoming ad
ministration and a Republican Con
gress has had, therefore, two things
to do: First, to overcome the erron
eous impression held by foreign coun
tries and convince them of the neces
sity of paying these debts; second, to
obtain from them the properly author
ized bonds to represent these debts.
Even after the almost inextricable
confusion that had been created by the
last administration in the matter,
when a bill was brought in by the
Ways and Means Committee to ap
point a commission and adjust these
debts, the Democrats of both House
and Senate opposed the project almost
IT11 *
I NEBRASKA' §
| I _ ^l_F7Y‘F9URTH Vtt_
1 LINCOLN. 'HERE THE BEST
||SEpT.3
<dj*\KSEM8LED
to a man.
In 1910, as a part of the machinery
for stimulating the building' of a mer
chant marine by act of Congress, the
Shipping Board was created- After
the declaration of war Congress, by
the urgent deficiency act of June 17.
1917, conferred vast additional
powers upon the President to re
quisition and build ships. This power,
by executive order dated July 11, 1917,
the President delegated to the Emer
gency Fleet Corporation. Thereafter
occurred the monstrous expenditures
of our shipping program. They cost
us $3,306,000,000. Contracts were
made with anyone and everyone who
said he could build a ship, or anything
for one, irrespective of price or
quality. There was no uniform plan
for these’ships adopted. No thought
was given to what use the ship might
be put after the war, no cancellation
clauses in the contracts, so that if the
war ended the work might stop. Five
hundred and eighty nine wooden ships
of 1,886,250 dead-weight tons were
huilt, costing approximately $375,000,
000, and which were absolutely worth
less. Thirty concrete and composition
ships costing about $27,000,000 more
were equally worthless. Two thous
and two hundred and eighty-eight
ships altogether were built and de
livered. Only about 450 of these were
delivered before the armistice, and all
the rest, or about 1,838, have been de
ISirofm-l finnn flin wnr wna rwov anrl flio
further necessity for them had disap
peared. Because of the contracts
which had no cancellation clauses and
the incessant pressure of the Demo
cratic administration, ship-building
went on feverishly until the present
administration came into power. One
thousand one hundred and eighty
ships were delivered in 1919 and 473
in 1920, the most shameful part of
which was that in 1919, 408 of these
were wooden ships, and in 1921, 61
were wooden ships, conceded by all to
be worthless.
When the present administration
came in on March 4, 1921, it tried to
take stock. It now finds about 5,000,
000 tons of steel ships which are sal
able for approximately $150,000,000
and estimated other assets of $190,
000,000. It finds claims pending
against the Government of $298,428,
845.69 which, if allowed in full, would
just about wipe out all our assets and
leave us nothing to show for our $3,
306,000,000 of the people’s money ex
pended. Countless millions had been
sunk in Hog Island and every other
mudhole in the country. To show the
sank incompetency of the preceding
administration, it has been found that
mortgages and other liens securing
the government for vast sums had not
been recorded and the liens were lost.
Liens for millions which should haye
been taken were not. Vast sums for
repairs and reconditioning were charg
ed against the corporation for things
which the slightest care mght have
prevented; ships had been sold without
a cent of deposit or a letter of se
curity; vast contracts, uncancellable,
for materials were found. To illus
trate, a contract to take 40,000,000
barrels of fuel oil a^year. The board
is involved in 50 concerns which are
in the hands of receivers. Three
thousand five hundred lawsuits in the
civil courts are pending and $62,739,
316.76 of claims in the Court of
Claims, and a business which is now
losing $4,000,000 a month.
Now, we have this wreck to salvage.
For 50 years the contingent liabilities
of this experiment will haunt us. We
have not only spent our three and one
third billions, but we must contrive
some method of subsidy to keep what
ships we have upon the sea. And in
this last attempt to get somethin?
constructive out of this insolvent busi
ness, we are meeting the almost un
divided opposition of the Democratii
minority in the Congress. ,
Mr. Andrews of Nebraska. Mr.
Chairman, will the gentleman yield?
Mr. Graham of Illinois. Yes.
Mr. Andrews of Nebraska. Did not
the Government make a contract with
Henry Ford to manufacture a large
number of Eagle boats?
Mr. Graham of Illinois. Yes.
Mr. Anderws of Nebraska. Were
any of them furnished and put into
service?
Mr. Graham of Illinois. I do not
know. I have seen some of them since.
1 doubt whether any of them were
actually in service before the arm
istice.
Mr. Andrews of Nebraska. I have
heard it stated that he made a profit
of $30,000,000 and that he donated
that back to the Government. Has
any such fund been turned in ?
Mr. Graham of Illinois. I do not
know as to that.
Mr. Cooper of Wisconsin. Mr,
Chairman, will the gentleman yield?
Mr. Graham of Illinois. Yes.
Mr. Cooper of Wisconsin. Does the
gentleman have any information as to
why a building 400 feet long and 200
feet wide, at Corliss, on the prairie 7
miles west of my city in Wisconsin
was filled as late as the fall of 1920
and the winter of 1921 with marine
engines stacked one above the other,
• 11,1 " luriJ" 11
the building fyll, and it about a thous
and miles from the sea or any place
where those engines could be used,
Mr. Graham of Illinois. That is
only typical of a lot of other things.
I was down in Charleston, S. C., while
our committee was doing its grinding
work in 1919 and 1920, and they were
then shipping stuff into that terminal,
a terminal that had been built at an
expense of $20,000,000, out of which
not a pound of produce had ever been
shipped or a soldier taken. Yet they
were shipping stuff there long after
the war was over.
And they were doing it all over the
country. I do not know why they did
it. I have not any conception, but it
appeared that the administration rep
resentatives were trying with all their
hearts to spend money and they did
spend it. Mow, just a word on the
Railroad Administration.
Prior to the World War no country
had a healthier railroad condition than
did the United States. Service was
speedy, rates for passenger and
freight carriage low, and the roads
were making fair returns upon capital
invested. In the two and one-dialf
years from the outbreak of the Euro
pean war until our own entrance into
that war this condition continued. In
the military appropriations bill of
August 29, 1916, a provision had been
inserted authorizing the President, in
ume oi war, 10 taxe possession and
control of any system of transporta
tion and to use the same as might be
needful or necessary in the emergency.
Immediately after the entrance of the
United States into the war with Ger
many various semi-civillian, semi
official boards were set up which be
gan to issue various and conflicting
priority shipment orders. So great
became the confusion and congestion
that the ports of the East, notably
New York, became blocked. The
judgment of those with most intimate
knowledge is that official inefficiency
is solely responsible for this condition.
President Willard, of the Baltimore &
Ohio Railroad, President Wilson’s ap
pointee as chairman of the Advisory
Commission of the Council of National
Defense, now openly charges this to
bo the fact. Then President Wilson,
by proclamation dated 'December 26,
1917, took over all the transportation
systems of the country absolutely. The <
administration was not content to issue
proper orders by which the activities
of the transportation systems of the
country could be coordinated under a
proper governmental bureau and
whereby they could be operated by
their private owners but took over
everything and started Government
operation of railroads. The one act,
with its natural consequences, has im
mensely added to our national indebt
edness and has entailed consequences
that are far-reaching and disastrous.
The Government operated the rail
roads until March 1, 1920. On Decem
ber 24, 1919, the President issued a
proclamation that 60 days thereafter,
to-wit: March 1, he would deliver back
the roads to private control. Having
involved the affairs of the railroads
in inextricable confusion, having per
mitted their rolling stock and equip
ment to deteriorate, having inflated
their pay roll and maintenance charges
by billions, having destroyed both the
credit and the morale of the roads, the
President without the slightest op
portunity for adequate preparation,
said t'o Congress and the country,
“Here’s the mess we have made; now
you clean it up.” In the two months
’•emaining a Republican Congress, try
ing to do the best it could with a hos
tile administration, hastily wrote and
oassed the transportation act of 1920.
During the 26 months of federal con
-d, the Congress, responding to the
gent and repeated requests of the
A"inistration, appropriated $1,750,
'O-.OOO from the Treasury for the rail
lads. In addition to this vast sum
for the six months’ guaranty period
under the transportation act, $700,
000,000 more will be required. In ad
dition, $200,000,000 will be required
to settle outstanding claims and $300,
000,000 more has been provided to
make loans to the railroads under the
transportation act. Thus we find a
total burden on the Treasury of $2,
950,000,000 caused by the utter folly
of the last administration in its rail
road program.
Nor is this all. Thousands of law
suits are pending in which the Govern
ment has a contingent liability. In
Minnesota alone 6,000 lawsuits origi
nated in one fire. Many of the equip
ment trusts and definitive obligations
we have taken run for 10 years yet.
We must maintain a railroad admin
istration for at least 10 years to come
and until its end, no one can tell what
our obligations are.,
i-Nor was mis me worst, ino sooner
were the roads under Government
control and operation than a system
atic course of exploitation began for
personal and party advantage. Wages
were raised When requested. The
total additional annual wage burden
caused by Government operation was
$1,765,000,000. The price of materials
and repairs wore boosted to the skies.
Executive orders were issued with
confusing frequency, almost all of
which tended to destroy discipline and
morale. Minimum wages were es
tablished for all branches of the ser
vice. A fair illustration of these or
ders was that of February 14, 1918,
when Mr. McAdoo ordered: “Mechan
ics applying for employment will not
be denied such employment for any
other cause than inability to perform
such work,” and by which order any
anarchist or I. W. W. who applied for
work which he could do, must be em
ployed. When the Government took
over the roads 80 per cent of the cars
were upon their own roads; when the
roads went back to their owners 80
per cent of the cars were on other
roads, from which they did not re
turn for long periods.
All this was done without any cor
responding increase in rates to com
pensate for such additional burdens.
Increased rates are not popular.
Finally, when the problem was turn
ed over to the Republican Party on
March 4, 1921, the' number of railroad
employees was largely increased, the
general efficiency of the roads decreas
ed, freight and passenger rates were
raised to a point where traffic could
not move, the credit of the roads was
weak, and the Government with a stag
gering weight of financial obligation.
Nothing can exceed the utter careless
ness of the railroad administration
during Government operation. Al
ready, on a partial audit of claims and
accounts, over $85,000,000 of errors
and overpayments have been discover
?d, which the Government is notv at
tempting to recover.
Today we have no more serious
problem than the question of the re
iuction of our railroad passenger and
freight rates. The problem was cre
ated by the absolute lack of wisdom
and horse sense characterizing the
Wilson administration handling of the
railroad question. Now they loudly
:ry for a reduction of rates and voci
ferously denouncing a Republican
Congress for inaction. I am reminded
pf the man who deliberately fouls his
water supply and then loudly abuses
the board of health because his family
jets typhoid fever.
Of our total debt, therefore, of ap
proximately $24,000,000,000, five
dghths of it is attributed to the fol
owing causes:
Probable waste in war
contracts . $7,250,000,000
Illegal loans to foreign
countries . 1,300,000,000
Shipping program . 3,300,000,000
3overnment operation of
railroads . 2,950,000,000
$14,800,000,000
Mr. Andrews of Nebraska. Will the
gentleman allow a question? How
on'g could we have run the Govern
ment without raising a dollar by tax
ition if we had all this wasted money
:o be used for that purpose ?
Mr. Graham of Illinois. If we had
he money that was wasted in this
war this country would be in excellent
Inancial condition.
Mr. Andrews of Nebraska. Could
lot we have run it for over two and
i half years?
Mr. Graham of Illinois. Yes. At
>ur present rate of expenditure under
his administration, if we had the
money absolutely wasted during and
since the war by the last administra
tion we could pay all the running ex
lenses of the Government for four
.■ears without a cent of taxation.
Mr. Johnson of Mississippi. Was
he gentleman opposed to loaning
money to the Allies to help carry on
he war?
Mr. Graham of Illinois. If the gen
tleman means did I vote for the
measure, I voted for the measure; and
I did not know whether it was wise
>r not. Nobody knew except the
President, and he was charged with
the responsibility. He asked for the
kinds and he used them, but we have
the right, however, if the gentleman
trom Mississippi will indulge me, to
say to you and your administration
low we shall hold you to a strict ac
counting for what you did.
Mr. Johnson of Mississppi. Will
he gentleman tell the Congress how
lis own administration during the
3panislpAmerican War acted in feed
ng the soldiers rotten meat and—
Mr. Graham of Illinois. I am not
roing into the Spanish-American War
ir any other war. I am bringing up
the issue of today, the issue you made
through your National Democratic
Committee and the other issues you
are making on the floor of the House,
[t is time the people learn to know the
truth, and when they do there will be
no doubt about their attitude.
Nothing that our people have suffer
ed as a result of the war has been more
ourdensome and oppressive than the
high cost of living. During the war
period, and since, and continuing to a
considerable extent today, prices of
the necessities of life have soared to
the skies. While high Iprices came
with war conditions, most of this stu
pendous increase is directly traceable
to the last administration and its
activities.
(Con- .r.ued next week.)
_MURE LOCAL MATTERS.
Fay Miles returned to his duties in
the printing department of the state
university.
George A. Miles went to Omaha this
morning where he will attend a meet
ing of the Nebraska Press associa
tion.
Miss Gladys Miles will go to Bla
den, Nebraska, tomorrow to assume
her duties as an instructor in the pub
lic schools.
NOTES FORM THE NORTHEAST
C. E. Downey, of O’Neill was in this
vicinity Friday.
Miss Lena Cole who is in the hospi
tal at Lynch, is reported improving.
This part of the county_vyas repre
sented at Page during Chautauqua
week.
We are informed there has been
some change in realestate recently in
this part of the county.
John J. O’Brien and family, of
Sioux City, were Saturday and Sunday
visitors at the Badgerow home.
Two threshing outfits are in the
neighborhood. We are informed the
yield of small grain is below normal.
Dry weather and prevailing south
winds have no doubt lowered the per
(Continued on Page 6.)
CHURCH DIRECTORY.
S. PAUL’S- CHURCH EPISCOPAL
Second Sunday of each month Holy
Communion at 8:30 a. m. Vespers
pers and sermon 7:30 p. m.
Fourth Sunday vespers and sermon
7:30 p. m.
Rev. W. A. Render, Pastor.
O’NEILL CONCERT BAND.
Meets for practice every Monday
night at American Legion hall at
8.00 o’click p. m. Also Friday at 8.
Jess G. Mills, President; Elmer E.
Davey, Librarian, E. D. Henry. Sec
retary-Treasurer.
Jess G. Mills, Leader.
PUBLIC LIBRARY HOURS.
The Public Library will be open
each day except Monday from this
time on until further notice:
Afternoons, 2:00 to 6:30.
Evenings, 7:00 to 0:00.
Sundays, 2:00 to 5:30 p. m.
MARY McLAUGHLIN, Librarian.
.Vrv /. J. •at.-'jSu. 4**-^
Royal Theater
The Coolest Place in Town
-FRIDAY & SATURDAY
DOUGLAS FAIRBANKS
—in—
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2-REEL COMEDY
BIG PARAMOUNT WEEK
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MILTON SILLS
—in—
“THE FAITH HEALER”
2-REEL COMEDY
— TUESDAY & WEDNESDAY —
THOMAS MUGON
—in—
“WHITE AND UNMARRIED”
TUESDAY — HURRICANE HUTCH
WEDNESDAY—COMEDY
-THURSDAY & FRIDAY
MAE MORRY AND
* DAVID POWELL
—in—
“RIGHT TO LOVE”
2-REEL COMEDY
Some one wants YOUR PHOTO
GRAPH. They have asked you for a
photo and many have sent you their
photo. Come to the Studio and we
will make a photo that you will be
pleased to send your friends.
—r—iiiiiimiiniiiiiiiiiiiiimiiiii———
O’Neill Photo Co.
O’Neill, Nebr.
Ak-Sar-Ben Fall Festival ,
SEPTEMBER 12-23 OMAHA
Nebraska Historical Pageant Harness and Running Races
89th Division Reunion Gorgeous Night Show |;
Grand Electrical Parade Agricultural Exhibits
REDUCED RATES ON ALL RAILROADS
" *
*——■1 " -i_\
Dodge Brothers
sedan
The car’s usefulness is admir
ably in keeping with its innate
goodness.
In summer it protects you from
heat; in winter it protects you
from cold. Day in and day out
it insures you against expensive
upkeep and repair costs.
#
Recent improvements have
greatly increased its sturdiness
and the trim beauty of its
body lines.
ARTHUR G. WYANT
O’NEILL, ‘.NEBRASKA
■*'