shall be five years. The commission shall elect a chairman and vice chairman from its members and three members to constitute a quorum. It may employ a secretary, treasurer, attorneys, and such other assistants and employees as it may deem necessary.

As to the ferries which the commission would be authorized to acquire, it is noted (sec. 6) that it shall not be required to maintain or operate any such ferry or ferries or to charge and collect tolls for the use of the same, but may in its discretion sell, abandon, or dismantle any ferry or ferries so acquired. If any such ferry is operated, tolls shall be charged and the proceeds of the tolls, as well as the proceeds of any sale or disposition of any such ferry or ferries, shall be used to pay the cost of maintaining, repairing, and operating the same, and any residue shall be paid into the sinking fund to be used for the retirement of bonds.

The department has some information with reference to the situation which this bill is designed to meet. It is proposed to set up a public commission which shall have broad authority to acquire any franchises now existing and bridge plans which have been prepared, and to build a bridge at or near the location proposed. The commission would also have authority to take over any ferry now operating.

Since it appears that very careful study has been made of all the conditions, the department indorses the general provisions of this measure as a means of securing a bridge which shall be operated on behalf of the public and, after sufficient revenues have been collected from the tolls to retire the outstanding obligations, the bridge is to become a free bridge and be turned over to the public authorities. The department questions, since a commission is to be appointed, lodging authority to make such appointments in the hands of the Chief of the Bureau of Public Roads. While not averse to the performance of any public service which might be rendered by the Chief of the Bureau of Public Roads or any other of the personnel of this department, it would appear to be better policy to name in the bill itself members of a commission to be intrusted with carrying out its provisions and to provide for their successors. In view of the efforts which have been made to secure a bridge under previous legislation at this point and the terms incorporated under which the revenues are directed toward the requirement that the bridge be operated as a free public utility the department recommends that favorable action be taken.

Sincerely,

R. W. DUNLAP, Acting Secretary.

Hon. Louis C. Cramton, who introduced this bill, has submitted the following information with respect to H. R. 11970, a similar bill:

Hon. JAMES S. PARKER,

WASHINGTON, D. C., May 15, 1930.

Chairman Committee on Interstate and Foreign Commerce,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: I have your letter of April 29, with reference to H. R. 11970, introduced by me proposing the creation of the Great Lakes Federal bridge commission for the construction of an international bridge across the St. Clair River between Port Huron, Mich., and Sarnia, Ontario. First answering your questions, I will say:

1. There is now a ferry in operation near the proposed location of the bridge upon which tolls are charged for crossing the river.

2. The people in the vicinity of the proposed bridge, including a large area in Michigan as well as a similar area in Canada, are very desirous of having a toll bridge constructed at this place, there being no possibility of securing the financing of a free bridge.

3. There is a very large and active public sentiment in favor of the construction of such a bridge.

4. The bridge is too large a proposition for the county or municipality to finance either in Canada or in Michigan. There is no authority for the State to finance the bridge at this time.

5. I do not see any possibility for the construction of a free bridge at that location for a long time to come.

Your committee has heretofore recommended and Congress has passed legislation for the erection of a private toll bridge at this point. The first act was that of April 24, 1928, authorizing the Port Huron-Sarnia-Point Edward International Bridge Co. to construct and operate such a bridge. A second act was passed March 2, 1929, authorizing Maynard D. Smith to construct and operate such a bridge, the latter act being amended June 14, 1929. Although great efforts have

been made to finance the undertaking under that legislation the promoters have not succeeded. A considerable amount of money has been expended in borings and in the preparation of plans as well as in the purchase of land for approaches and in options upon such lands, but in the depressed condition of the bond market, it has not been possible to float the necessary bond issue.

The bill now pending proposes in effect the creation of a public agency to construct this bridge in the interest of the public and as a part of the highway systems of the United States and Canada. The bill proposes the creation of the Great Lakes Federal Bridge Commission, which commission "shall have no capital stock or shares of interest or participation, and all revenues and receipts thereof shall be applied to the public purposes specified in this act. The members of the commission shall not be entitled to any compensation for their services."

This public agency is authorized to finance, construct, and operate the bridge, applying all its earning to retirement of the bond issue. When all of these financial obligations have been retired, the commission must turn the bridge over to the public as a free bridge and the commission ceases to exist. The elimination · of all profit from the construction and operation of the bridge so far as the commission is concerned permits 100 per cent of the net earnings to be applied to the retirement of the obligations. I am assured that if this bill is passed and this public agency is created, the building of the bridge can be safely financed and this greatly needed public convenience will be secured.

Let me explain further that this bridge would be a link in the northernmost transcontinental automobile tourist route in the United States. It would connect with paved highways stretching from the west across Michigan and lower Ontario either to lower Canada or to New York State and New England.

Necessary legislation is pending in the Dominion Parliament in Canada and I understand has been passed by the House of Commons in the last few days and favorable action by the upper house is anticipated.

I trust that the legislation may promptly receive favorable action by your committee. I am

71ST CONGRESS 2d Session

}

SENATE

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REPORT No. 950

FIXING PENALTIES FOR USE OF MAILS IN CONNECTION WITH FRAUDULENT DEVICES, ETC.

JUNE 17, 1930.-Ordered to be printed

Mr. ALLEN, from the Committee on Post Offices and Post Roads, submitted the following

REPORT

[To accompany S. 1446]

The Committee on Post Offices and Post Roads, to whom was. referred the bill (S. 1446) to amend section 213, act of March 4, 1909 (Criminal Code, title 18, sec. 336, U. S. C.), affixing penalties for use of mails in connection with fraudulent devices and lottery paraphernalia, having considered the same, report favorably thereon with amendments and recommend that as amended the bill do pass.

On page 2, line 3, strike out the word "unfair".

On page 2, line 9, after the word "thing" insert the words "or component parts thereof,".

On page 2, line 12, strike out the word "unfair".

On page 3, line 1, strike out the word "unfair".

As to these amendments, the committee thought best to strike out the word "unfair," believing the term so general that it might be oppressively interpreted.

This measure, which is similar to one which received the approval of the Senate during a previous Congress, would amend existing law so as to bar from the mails lottery paraphernalia and cheating gambling devices, along with the other lottery and fraud matter which now comes under the ban of the statute.

The changes sought to be made in section 213 of the act of March 4, 1909, are given in italics below. As amended by the present bill, that section would read as follows:

SEC. 213. No letter, package, postal card, or circular concerning any lottery, gift enterprise, or [similar] scheme of any kind offering prizes dependent in whole or in part upon lot or chance, or concerning any article, device, or thing so constructed as to have for its principal and primary use the risk of money or property by lot or chance, or concerning any dishonest, or cheating gambling article, device, or thing; and no lottery ticket or part thereof, or paper, certificate, or instrument

purporting to be or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or [similar] scheme of any kind offering prizes dependent in whole or in part upon lot or chance; and no article, device, or thing, or component parts thereof, so constructed as to have for its principal and primary use the risk of money or property by lot or chance, or matter relating thereto; and no dishonest, or cheating gambling article, device, or thing; and no check, draft, bill money, postal note, or money order for the purchase of any ticket or part thereof, or of any share or chance in any such lottery, gift enterprise, or scheme; and no newspaper, circular, pamphlet, or publication of any kind containing any advertisement of any lottery, gift enterprise, or scheme of any kind offering prizes dependent in whole or in part upon lot or chance, or containing any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes, or containing any advertisement of any article, device, or thing so constructed as to have for its principal and primary use the risk of money or property by lot or chance, or containing any advertisement of any dishonest, or cheating gambling article, device, or thing, shall be deposited in or carried by the mails of the United States or be delivered by any postmaster or letter carrier. Whoever shall knowingly deposit or cause to be deposited, or shall knowingly send or cause to be sent, anything to be conveyed or delivered by mail in violation of the provisions of this section, or shall knowingly deliver or cause to be delivered by mail anything herein forbidden to be carried by mail, shall be fined not more than $1,000 or imprisoned not more than two years, or both; and for any subsequent offense shall be imprisoned not more than five years. Any person violating any provision of this section may be tried and punished either in the district in which the unlawful matter or publication was mailed, or to which it was carried by mail for delivery according to the direction thereon, or in which it was caused to be delivered by mail to the person to whom it was addressed.

The Postmaster General has made a favorable report on the bill in a letter reading as follows:

Hon. LAWRENCE C. PHIPPS,

POST OFFICE DEPARTMENT, Washington, D. C., June 19, 1929.

Chairman Committee on Post Offices and Post Roads,

United States Senate.

MY DEAR SENATOR PHIPPS: With your letter of the 13th instant you transmit a copy of the bill (S. 1446) to amend section 213 of the act of March 4, 1909 (18 Ü. S. C., 336), and request my views thereon.

This bill would amend the present statute which declares unmailable all matter relating to lottery enterprises by also making unmailable any article, device, or thing designed for the conduct of a lottery, and any unfair, dishonest, or cheating gambling article, device, or thing, or matter relating thereto.

Proposed legislation similar to this has for a number of years past been submitted to this department for its views by committees of Congress, and favorable reports thereon have been made for the reason that the experience of the department shows that it would be to the interest of the public to have legislation barring lottery paraphernalia and cheating gambling devices from the mails, along with the other lottery and fraud matter that comes under the ban of existing law. I therefore advise that the proposed legislation has the approval of this department.

The bill as drawn appears to be in proper form for accomplishing the purposes desired, except that the phrase reading "or matter relating thereto" appearing in line 11 of page 2 is surplusage and should be omitted.

Sincerely yours,

WALTER F. BROWN,
Postmaster General.

In reference to the changes made by the committee Mr. Harold A. Davis, executive assistant to the Postmaster General, wrote Senator Sheppard, the author of the bill by direction of the Postmaster General as follows:

Hon. MORRIS SHEPPARD,

United States Senate.

POST OFFICE DEPARTMENT, Washington, D. C., May 27, 1980.

MY DEAR SENATOR SHEPPARD: Referring to your request at the hearing yesterday on bill S. 1446, to amend section 213 of the act of March 4, 1909 (18 U. S. C. 336), I beg to advise you that on June 19, 1929, the Postmaster General advised the chairman of the Senate Post Offices and Post Roads Committee that this proposed legislation has the approval of this department. I am inclosing a copy of the Postmaster General's letter in which is set forth the reason for this proposed legislation.

The addition in line 9, page 2, of the bill after the word "thing" of the words "or component parts thereof" and the elimination of the word "unfair" in line 1, page 3, are changes acceptable to this department. By direction of the Postmaster General. Yours very truly,

HAROLD A. DAVIS,

Executive Assistant to the Postmaster General.

At the hearing on this measure which was not taken down by a stenographer a representative of the Post Office Department was present, and gave expression to the concurrence of the department.

Mr. H. N. Pringle, assistant superintendent of the International Reform Federation, was also present at the hearing and spoke in behalf of the bill. He presented many interesting and informative facts in connection with the subject matter of the measure and it is deemed helpful now to present a summary of Mr. Pringle's remarks prepared by him after giving his testimony.

Summary of Mr. Pringle's remarks follows:

This bill, S. 1446, to amend section 213, act of March 4, 1909 (Criminal Code, title 18, sec. 336, U. S. C.), affixing penalties for use of mails in connection with gambling devices and lottery paraphernalia, will lift the standard of United States law toward the moral level of the statutes of the various States of the Union, all of which have outlawed gambling machines, implements, and devices. The bill does not apply to ordinary vending machines for stamps, confections, toilet articles, etc., which return an equal value for each play, and therefore do not involve the element of gambling.

As assistant superintendent of the International Reform Federation (206 Pennsylvania Avenue SE., Washington, D. C.) and in charge of its law-enforcement activities during the past 18 years, I have observed throughout the United States that the greatest obstacle to the enforcement of State antigambling laws by the duly constituted officials is the ceasless campaign of the great manufacturers of gambling mplements in Chicago and other cities, whose letters and alluring catalogs induce shopkeepers, billiard-room owners, hotel men, and others to install various gambling implements as great money makers.

Probably 95 per cent of the people operating gambling devices in our country have been induced to install these implements and violate the laws by the manufacturers' advertising and their traveling agents, or by local jobbers of confectionery and tobacco, whom these manufacturers have induced to combine crime and merchandising on a large scale. Agents or patrons of these great manufacturers of gambling implements often arrange with small groups of local gamblers to control the gambling of a city, through single ownership of scores or hundreds of slot gambling machines, leased to the operators on the basis of a 50-50 division of the "take." Almost invariably the controlling group try to corrupt some of the police for protection of the devices, and to exclude other racketeers by prompt seizure of their gambling devices.

If local officials are deaf to such proposals, the controlling group petitions a judge to issue an injunction restraining the officials from interfering with their alleged vending machines. Of course the judges hear only one side of the case, when they grant temporary injunctions, nearly all of which are dismissed a few weeks or months later.

I submit a partial list of 22 police departments thus enjoined and you will notice that the slot gambling machine interests secured injunctions against six Connecticut police departments in 1930. Some of the greatest political scandals in the