UNIVERSAL MOBILIZATION FOR WAR PURPOSES COMMITTEE OF MILITARY AFFAIRS, Tuesday, March 11, 1924. The committee met at 10 a. m., Hon John C. McKenzie (acting chairman) presiding. Mr. MCKENZIE. The business before the committee today is a hearing on the following bills and resolutions: House Joint Resolution 128, to promote peace and equalize the burdens and minify the profits of war; this bill was introduced by Mr. McSwain; H. R. 4841, a bill introduced by Mr. Johnson of South Dakota to provide further for the national security and defense; H. R. 194, introduced by Mr. French, a bill to provide for universal service as a part of the military forces of the United States, in event of national emergency, of citizens of the United States and the material resources of citizens, industrial organizations, and services over which Government control is necessary. This special date was set at the request of our colleague, Mr. MeSwain, and I will yield to Mr. McSwain to take charge of the hearing and to introduce the witnesses in the order in which he desires them to appear before the committee. (The resolution and bills referred to are as follows:) [H. J. Res. 128, 68th Cong., 1st sess.] JOINT RESOLUTION To promote peace and to equalize the burdens and to minify the profits of war Whereas it is the duty of Congress to require that the burdens and benefits of war shall be justly and fairly distributed; and Whereas it is the duty of all citizens to contribute to our Nation's success in war according to their several capacities and resources; and Whereas modern warfare rests increasingly upon scientific knowledge and industrial resources and must be carried on by the Nation as a whole and not merely by the young men in arms; and Whereas to take the profits out of war and to require equal service for all, and deny special profits to any, will be conducive to peace (which is our traditional policy); and Whereas we should employ the experience of raecent wars to work out and enact into law, while we are yet at peace, such provisions and policies to be pursued when the war shall come as shall empower the President immediately to mobilize all the resources of the country: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That a commission is hereby created to draft and report to the President of the United States, who in turn shall transmit the same, with or without his approval, to Congress not later han the first Monday in December 1924, proposed legislation to accomplish in fact the principles and policies expressed in this resolution. That said commission shall be bipartisan and nonpolitical and shall be composed of four members of the Military Affairs Committee of the House of Rep· 113666-35-29 447 resentatives and two members of the Military Affairs Committee of the Senate, the Secretary of War, the Secretary of the Navy, the Secretary of Commerce, and three other persons not holding official or governmental position whatever, and selected with a view to represent in a general sense the views of labor, industry, and capital, respectively. Within thirty days after the approval of this resolution the President shall appoint and announce the members of said commission and shall direct the same to meet in the city of Washington, District of Columbia, as soon thereafter as may be practicable, and shall supply from the War Department all necessary office and clerical assistance. When said commission shall meet it shall organize by electing one of its number as chairman, and another as vice chairman, and shall appoint a secretary and proceed to draft proposed legislation to accomplish the aims and purposes of this resolution; and such proposed legislation, with any comment upon same deemed desirable, shall be transmitted to the President not later than November 1, 1924, and the President shall direct that there shall be printed not exceeding five thousand copies thereof for the use of Congress. That the guiding principle to control the labors of said commission is that true preparedness demands our cal mand careful adoption in advance of another war of a nation-wide policy of service for all citizens to the end that while young men are laying down for their country the comforts and joys of home and family, their health, their strength and time, their blood, bodies, and life itself, others not required to make these greater sacrifices may be required to lay down equitably and fairly some of their material resources and wealth, to the great end that victory for the Nation's ideals may speedily come, and that after victory there be no need for any adjustment of compensation, and no mighty war debt piled up to say the strength of the producing activities of the people for scores of years. That no compensation shall be paid any member of said commission, and no expenses shall be incurred by them except the actual cost of maintenance and travel to the three members of the commission not already holding an official position. [H. R. 194, 68th Cong., 1st sess.] A BILL To provide for universal service as a part of the military forces of the United States, in event of national emergency, of citizens of the United States and the material resources of citizens, industrial organizations, and services over which Government control is necessary Be it enacted by the Senate and House of Representatives of the United States of American in Congress assembled, That in the event of national emergency declared by the Congress of the United States to exist the President of the United States may draft into service all citizens of the United States between the ages of twenty-one and forty-five, or such other limits as the President may fix, without exemption on account of industrial occupation; that the President of the United States is authorized to draft into service the material resources within the United States belonging to real or artificial persons, industrial organizations, and services over which Government control is necessary to the successful termination of such emergency, and such control shall be exercised by him through agencies than existing or which he may create for such purposes, and that the President is authorized to take such steps as may be necessary to stabilize prices of services and commodities declared to be essential, whether such services and commodities are required by the Government by the civilian population. [H, R. 4841, 68th Cong., 1st sess.] A BILL To provide further for the national security and defense Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, in the event of a national emergency declared by Congress to exist which in the judgment of the President demands the immediate increase of the Military Establishment, the President be, and he hereby is, authorized to draft into the service of the United States such members of the unorganized militia as he may deem necessary: Provided, That all persons drafted into service between the ages of twenty-one and thirty, or such other limits as the President may fix, shall be drafted without exemption on account of industrial occupation. 1 SEC. 2. That in case of war, or when the President shall judge the same to be imminent, he is authorized and it shall be his duty when, in his opinion, such emergency requires it (a) To determine, proclaim, and conscript the material resources, industrial organizations and services over which Government control is necessary to the successful termination of such emergency, and such control shall be exercised by him through agencies then existing or which he may create for such purposes; (b) To take such steps as may be necessary to stabilize prices of services and of all commodities declared to be essential, whether such services and commodities are required by the Government or by the civilian population. [H. R. 8111, 68th Cong., 1st sess.] A BILL To provide further for the national defense and make available, upon the declaration of war by Congress, means by which the plans for the mobilization of industry required by section 5a of the National Defense Act may be made effective Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act shall be known and cited as the "industrial mobilization act." SEC. 2. (a) That the term "person includes individuals, corporations, partnerships, firms, associations, company or organized manufacturing industry existing under or authorized by the laws of the United States, or any State, Territory, District or possession thereof, or of any foreign country. (b) The term "industrial facility includes individuals, corporations, partnerships, firms, associations, companies, or organized manufacturing industry existing under or authorized by the laws of the United States, or any State, Territory, District or possession thereof, or of any foreign country. (c) The term "munition" includes equipment, materials, supplies, arms, ammunition, parts of ammunition and anything required for, by or in connection, directly or indirectly, with the forces of the United States engaged in the prosecution of the war. TITLE I-WAR INDUSTRIES BOARD SEC. 3. To provide a Federal agency which will act as a clearing house for the war industry needs of the Government, determine the most effective way of meeting them and the best means and methods of increasing production of war munitions, including the creation or extension of industries demanded by the emergency, the sequence and relative urgency of the needs of the different governmental services, and consider price factors and, in the first instance, the industrial and labor aspects of the problems involved, and the general questions affecting the purchase of commodities in the event of a national emergency declared by Congress, the President is authorized, and it shall be his duty when in his opinion it becomes neecssary, to create a War Industries Board, the functions of which Board shall in general be— (a) The creation of new facilities and the disclosing, if necessary, the opening up of new or additional sources of supply; (b) The conversion of existing facilities, where necessary, to new uses; (c) The studious conservation of resources and facilities by scientific, commercial, and industrial economies; (d) Furnishing advice to the several purchasing agencies of the Government with regard to the price to be paid; (e) The determination, wherever necessary, of the priorities of production and of delivery and of the purpose of any given article to be made immediately accessible to the several purchasing agencies when the supply of that article is insufficient, either temporarily or permanently; and (f) To determine and proclaim the material resources, industrial organizations, and services over which Government control is necessary to the successful termination of such emergency, and to commandeer same for war purposes, and such control shall be exercised by the War Industries Board through agencies then existing or which may be created by the President for such purposes. SEC. 4. The War Industries Board shall consist of a chairman, in whom shall rest the ultimate decision of all questions except the determination of prices, and such members, to be appointed by the President of the United States, as he may deem necessary, each of whom shall have special knowledge of some industry, public utility, or the development of some natural resource or be otherwise especially qualified for the performance of the duties hereinbefore indicated: Provided, That all such other agencies as are herein or may here after be created for the control of industry in time of war shall function under the general supervision of the chairman of War Industries Board. SEC. 5. The chairman and each member of the Board shall act for the joint and several benefits of all the supply departments of the Government, and shall anticipate their respective needs with a view to affecting the feasible adjustment of such needs to the industry of the country as far in advance as possible, under rules and regulations adopted by the Board, in order that as definite an outlook and opportunity for planning as possible may be afforded the business men of the country. SEC. 6. The members of the War Industries Board shall receive such compensation as shall be provided by law and shall be allowed actual expenses when traveling on Government business, and shall have the authority to employ such assistants, subordinates, and office force, including such counsel as may from time to time be necessary. The compensation for such assistants, subordinates, clerical force, and counsel to be fixed by the Board with the approval of the President. No member of said Board, nor any other board created or to be created by this act, nor any officer, agent, or employee thereof shall have any interest, direct or indirect, as owner, part owner, or stockholder, or otherwise, in any person, firm, or corporation engaged in furnishing to the Government any material or supplies acquired in time of war. TITLE II. WAR TRADE BOARD SEC. 7. To assure the most effective utilization of our domestic resources in meeting the national and international demands for same and for this purpose to provide an executive administrative agency for the supervision and control of all our exports and imports, in the event of a national emergency declared by Congress, the President is authorized to establish a War Trade Board, the chairman of which shall serve without compensation except when traveling on Government business. SEC. 8. The War Trade Board herein authorized shall have power to: (a) Exercise control of all exports and imports, and for such purpose, to issue licenses under such terms and conditions as are not inconsistent with law, or refuse licenses for the exportation or importation of all articles except coin, bullion, or currency; (b) Take the necessary measures to insure the equitable distribution of imported commodities and their consumption in the most essential products; (c) Provide means for the conservation of ocean tonnage, for the transportation of necessities by import restrictions and priorities control of export shipments; (d) Make effective a policy of reciprocity with other countries whose exports and imports may be influenced by the war; (e) Provide for the conservation of domestic supplies through export restrictions and by obtaining the essential imports from foreign countries. SEC. 9. The War Trade Board is authorized to formulate the necessary rules and regulations subject to the approval of the President for carrying out the invent and purposes of this act, and to employ such assistants, subordinates, and office force including such counsel as may from time to time be necessary. The compensation for such assistants, and subordinates, clerical force, and counsel shall be fixed by the Board with the approval of the President. TITLE III. FOOD ADMINISTRATION SEC. 10. To insure the mose effective utilization of our national food supply, the President is authorized and empowered, whenever he shall deem it necessary, in the event of a national emergency declared by Congress, to create a Food Administration as an executive agency of the Federal Government and to appoint a Food Administrator, who shall serve without compensation, but who shall be allowed actual expenses when traveling on Government business. The Food Administrator shall be charged with the duty of assuring an adequate |