requesting the views and recommendations of the department thereon, I have the honor to state that the department adheres to its previous recommendations in this case, which are, in part, as follows:

"The department is in general opposed to special legislation for the benefit of an individual. It tends to create dissatisfaction and inefficiency in the service by establishing undesirable precedents which may be cited by others in endeavoring to secure like consideration or relief. The evidence in this case, however, would seem to warrant the belief that the disability existed in its primary stages at the time of the officer's resignation, that it originated in the line of duty, and that his separation from the service, precluding his being placed on the retired list, was brought about through no fault of his or of the department, his case being at the time under consideration to determine whether or not a rest and relief from official duties would effect a restoration to health.

"As Mr. Hamilton is now receiving a pension of $50 per month from the Government, it would appear that his case is receiving very liberal consideration, yet in view of all the circumstances, if the Congress should deem the case of sufficient merit to warrant the placing of this man on the retired list of the Navy by special enactment, the department will not interpose objection."

From a careful consideration of all the facts and circumstances bearing upon this case, the department does not find any reason to alter or amend its conclusions of December 23, 1918, given after a most careful examination of this case, as presented by a bill (H. R. 11385) for the relief of Albert Hamilton, which was before the Committee on Naval Affairs, House of Representatives, at that time.

Sincerely, yours,

66TH CONGRESS, }

SENATE.

REPORT

{No. 723.

CREDIT FOR RETIRED ARMY OFFICERS RECALLED TO ACTIVE DUTY.

JANUARY 26, 1921.—Ordered to be printed.

Mr. FLETCHER, from the Committee on Military Affairs, submitted the following

REPORT.

[To accompany S. 2637.]

The Committee on Military Affairs, to whom was referred the bill (S. 2637) to amend an act entitled "An act for making further and more effectual provision for the national defense, and for other purposes," approved June 3, 1916, having considered the same, report favorably thereon with the recommendation that the bill do pass with the following amendments:

Strike out the title of the bill and insert the following: "To amend an act entitled An act to amend an act entitled "An act for making further and more effectual provision for the national defense, and for other purposes," approved June 3, 1916, and to establish military justice.'

Strike out all after the enacting clause and insert the following: That the ninth paragraph of section 127a, entitled "An act to amend an act entitled 'An act for making further and more effectual provision for the national defense, and for other purposes,' approved June 3, 1916, and to establish military justice," be, and the same is hereby amended to read as follows:

"Hereafter any retired officer who has been or shall be detailed on active duty shall receive the rank, pay, and allowances of the grade, not above that of colonel, that he would have attained in due course of promotion if he had remained on the active list for a period beyond the date of his retirement equal to the total amount of time during which he has been detailed to active duty since retirement. Active duty, within the meaning of this paragraph, shall include service rendered by a retired officer in the service of the Philippine government under the direction of the War Department.”’

The amendment to the act of June 4, 1920, proposed by your committee affects but one retired officer of the Army, who rendered service for the Philippine government under the direction of the War Department and who can not be credited for this service under existing law. Your committee is of the opinion that officer is entitled to credit for this service and it is also the opinion of the War Department that the bill should be passed.

Under date of August 8, 1919, the Acting Secretary of War advised the committee of the attitude of the War Department toward this measure. His letter reads as follows:

I have received from you a copy of Senate bill 2637 with the request that you be informed of the War Department's views with regard thereto. The department approves this bill and recommends its passage.

66TH CONGRESS, 3d Session.

}

SENATE.

{

REPORT No. 724.

CLERICAL ASSISTANCE, ETC., FOR FEDERAL POWER COMMISSION.

JANUARY 26 (calendar day, JANUARY 27), 1921.—Ordered to be printed.

Mr. JONES of Washington, from the Committee on Commerce, submitted the following

REPORT.

[To accompany S. 4640.]

The Committee on Commerce, to whom was referred the bill (S. 4640) to amend section 2 of an act entitled "An act to create a Federal Power Commission; to provide for the improvement of navigation; the development of water power; the use of the public lands in relation thereto; and to repeal section 18 of the river and harbor appropriation act, approved August 8, 1917, and for other purposes, approved June 10, 1920, having considered the same, report it with amendments, and as amended recommend its passage.

On page 1 strike out all of line 3 after the word "of," all of lines 4, 5, 6, 7, and all of line 8 to and including the word "purposes,' and insert the words "the Federal water power act."

On page 2, line 5, after the word "authorized," insert a comma and the following: "Within the limits of appropriations made therefor by Congress.

On page 2, in lines 8 and 9, strike out the words "and as may be from time to time appropriated for by Congress.'

On page 2, at the end of line 13, strike out the period and insert in lieu thereof a semicolon and add the following:

And the restrictions on transfers from one executive department or independent establishment to another imposed by the acts of Congress approved June 22, 1906, and October 6, 1917, shall not apply to such transfers so made; and the commission may have such printing and binding done and purchase such equipment, supplies, law books, books of reference, periodicals, and directories as may from time to time be appropriated for by Congress.

Amend the title by striking out all after the words and figure "To amend section 2 of," in the first line, and inserting in lieu the following: "the Federal water power act, approved June 10, 1920.”

О

66TH CONGRESS, }

SENATE.

{

REPORT No. 725.

DISPOSITION OF SUGAR IMPORTED FROM ARGENTINA.

JANUARY 26 (calendar day, JANUARY 27), 1921.—Ordered to be printed.

Mr. WADSWORTH, from the Committee on Agriculture and Forestry, submitted the following

REPORT.

[To accompany S. J. Res. 238.]

The Committee on Agriculture and Forestry, to whom was referred the joint resolution (S. J. Res. 238) authorizing the President to require the United States Sugar Equalization Board to take over and dispose of 13,902 tons of sugar imported from the Argentine Republic, report favorably thereon with the recommendation that the resolution do pass without amendment.

This resolution grows out of the situation created last spring and summer by the exceedingly high price of sugar and the campaign by the Department of Justice to reduce the price of sugar. When sugar was selling at from 26 to 30 cents a pound at retail, the Department of Justice attempted to secure a large supply from the Argentine Republic, through the authorization and aid of the State Department. There were two difficulties: First, there was an embargo in the Argentine against the exportation of sugar; and, second, the Department of Justice needed the cooperation of private agencies to have the sugar purchased and distributed. The State Department secured a verbal promise from the Argentine Government officials to suspend the embargo, and then requested an American importing house, the American Trading Co., to proceed to the purchasing of the sugar, and an American commission house, B. H. Howells & Co., to act as distributing agents in this country.

After 13,902 tons of sugar had been purchased it was found that there was difficulty and delay in obtaining the lifting of the embargo, and no further sugar was purchased, although it was the original plan to buy a much larger quantity. The permit for exportation was not actually secured until more than two months from the date upon which the transaction was initiated. Part of the sugar was shipped to the United States immediately after lifting the embargo and was distributed under the direction of the Department of Justice by the American commission house, but due largely to the advertising given to the proposed importation by the Department of Justice, the price in the United States had in the meantime declined to a large extent. This fact had been called to the attention of the Department of Justice by the American importing house, and they had requested the department to authorize the selling of the sugar in the Argen

S R-66-3-vol 1-7

tine. But owing to advices from the State Department that it would be improper for the Government to sell the sugar in the Argentine after the United States Government had obtained a permit in its own name to export it from the Argentine, the Department of Justice refused to allow a resale by the American importing house.

As a result of all of these proceedings, which were initiated for the purpose of reducing the price of sugar in the United States (and which had that effect), the two American houses which entered into this transaction in good faith at the request of the Government departments and which were controlled by the Government in the entire transaction, found themselves with 8,902 tons of this sugar left on their hands in the United States and the Department of Justice unable to aid them in the disposition of it.

The matter has been presented to the Sugar Equalization Board and has been investigated by it. The representatives of the board have stated that the best method of disposing of the sugar remaining on hand is through the board. If this resolution is passed and the President directs such action, they will liquidate the entire transaction without profit or compensation of any kind to the private agencies who were the agents of the Government.

The Attorney General, the president of the Sugar Equalization Board, and the counsel of the board appeared before the committee, described the entire transaction, and stated that, in their judgment, it was the duty of the Government, through the Sugar Equalization Board, to take over the transaction, dispose of the sugar, and thus relieve its agents, the American Trading Co. and B. H. Howells Sons & Co. of an intolerable burden. The committee, having examined and verified the official correspondence relating to this matter, is convinced that justice demands the taking over of the entire transaction as authorized by this resolution. This correspondence is set forth in full, in order that it may be clearly shown that the concerns handled the transaction as agents of the United States and not for their own profit.

ATTESTATION OF ATTORNEY GENERAL.

DEPARTMENT OF JUSTICE, Washington, D. C., January 20, 1921.

Pursuant to section 882 of the Revised Statutes, I hereby certify that the annexed are true copies of the original letters on file in this department. In witness whereof I have hereunto set my hand and caused the seal of the Department of Justice to be affixed, on the day and year first above written. [SEAL.]

A. MITCHELL PALMER,

EXHIBIT No. 1.

Attorney General.

Mr. WALLACE D. FRANKLIN,

DEPARTMENT OF JUSTICE, Washington, D. C., May 11, 1920

Vice President American Trading Co., New York City. DEAR SIR: I was notified by State Department of the receipt of cable from the Argentine that upon proper presentation through official channels of the American Government that the Argentine would lift the embargo on present surpluses in that country now amounting to some 150,000 tons the American attaché, however, estimates the surplus at approximately 70,000 tons.

After talking this over with your representatives, Mr. Linn and Mr. Giddings, it was deemed advisable that your agent already on the ground should be advised