1955 CONGRESSIONAl -RECORD- HOUSE 1801 By Mr. KEOGH: By Mr. DAVIDSON: H. R. 4243. A bill for the relief of Bernard H. R. 4234. A bill to suspend for 1 year H. J. Res. 225. Joint resolution to provide Ellbogen; to the Committee on the Judi­ certain duties upon the importation of . for a more effective control of narcotic drugs, ciary. aluminum and aluminum alloys; to. the and for other purposes; to the-Committee on H. R. 4244. A bill for the relief of Vincenzo Committee on Ways and Means• Ways a·nd Means. . · · Micich; 'to the . Committee on the Judiciary. . By Mr. RAY (by request): By Mr. HOLIFIELD: H. R. 4235. A bill to amend . Public Law H. R. 4245; A bill for· the relief of Mrs. 2, 73d Congress, to provide care·for disabled MEMORIALS Esther Rodriguez de Uribe; to the Committee on the Judiciary. veterans having neuropsychiatric ailments; Under clause 4 of rule XXII meqlo­ to the Committee on Veterans' Affairs. 1 H. R. 4246. A bill for the relief of Morris By Mr. TOLLEFSON: rials were presented and referred as Plevin; to the Committee on the Judic~ary. H. R. 4236. A bill to amend the Social Se­ follows: By.Mr. JARMAN: curity Act to provide a direct Federal pension By the SPEAKER: Memorial of the Legis­ H. R. 4247. A bill. for the . relief of Mrs. of at least $100 per month to all American lature of the State of Oregon, memorializing Alphonsine Keller; to the Coinmittee on the citizens 65 years of age and over who have the President and the Congress of the United Judiciary. . been citizens 10- years or more, to be pro­ Stat~s requesting the appropriation of funds By Mr. KILDAY: rated according to the cost of living as on necessary to enable the Corps of Engineers H. R. 4248. A bill ~or the relief of Miguel January 3; 1953; to the Committee on·ways to complete the preliminary investigations Angel Guzman Nunez; to the Committee on and Means. · and planning for the John Day project, etc.; the Judiciary. By Mr. WHARTON: to the Committee on Appropriations. · By Mr. MciNTIRE: H . R. 4249. A bill for the relief of Orrin J. H. R. 4237. A bill to amend section 503 of Also, . ~emorial of the. Legislature of the State of Oregon, memorializing the Pre.sident Bishop; to the Co~mittee on the Judiciary. the Veterans' Readjustment Assistance Act By Mr. MAILLIARD' of 1952 to allow certain veterans to file and the Congress of the United States re- H. R. 4250. A bill for the relief of Leong claims for mustering-out payment prior to . questing that funds be made available to begin the planning and construction of the Man Faye; to the Committee on the Judi­ July 16, 1955; to the Committee on Vetera~s· ·ciary. Affairs. flood control facilities · needed at the Green Peter and Cougar projects, etc.; to the Com­ H. R. 4251. A bill for the relief of Lt. Col. By Mr. COON: mittee on Appropriations. Arthur J. Laib, Jr.; to the Committee on the H. J. Res. 221.' Joint resolution to designate Judiciary. the lake to be formed by the McNary lock By Mr. O'HARA of Illinois (by re- · and dam in the Columbia River, Oreg. and PRIVA~E BILLS AND RESOLUTIONS quest): · Wash., as Lake Aldrich; to the Committee H . R. 4252. A bill for the relief of Asher on Public Works. Under clause 1 of rule XXII, private Ezrachi; to the Committee "on the Judiciary• By Mr. CRETELLA: . bills and resolutions were introduced and By Mr. POAGE: H. J. Res. 222. Joint resolution authorizing severally referred as follows: H. R. 4253. A bill for the relief of Henry the creation of a Federal Memorial Commis­ By Mr. CARLYLE: M. Lednicky; to the Committee on the Judi- sion to consid,er and formulate plans for the H . R. 4238. A bill for the relief of Spiros ciary. · · construction in th~ city of Wasl:lington, D. C., Kaloniktis; to the Comll).ittee on the Judi- By Mr. REECE of Tennessee: of an appropriate permanent memoriaJ. to · ciary. . H . R. 4254. A bill for the relief .of the War­ . the memory _of th~ great Ita,lian naviga~or · H."R. 4239. A bill for the relief of Pavlos rensburg Foundry, Midway, Tenn.; to the . and discoverer of Amer~ca, Christopher Co­ Michael Campourelis; to the Committee oh Committee oJ;l' the Judiciary. · · lumbus; to the Committee on House Admin­ the Judiciary. By Mr. RODINO l . istration. By Mr. COUDERT: . H. R. 4255. ·A bill for the relief of Barnett By Mr. WHITTEN: H. R. 4240. A bill for the relief of Miss · Warner; to the Committee on the Judiciary. H. J. Res. 223. Joint resolution to restorp,· Susana Clara Magalona; ·to the Committee By Mr. TUMULTY: to the States. certain rights affected .by re­ on the Judiciary. · ' H. R. 4256. A bill for the relief of Dragutin . cent Supreme Court decisions; to the Com­ By Mr. CRETELLA: .. Krize Kurich; to the Committee on the Judi- mittee . on the Judiciary. H. R. 4241. A bill for the relief of Domenico . ciary. · By Mr. GENTRY: Giordano; to the Committee on the Judi- H. R. 4257. A bill for the relief of Sisters H. J. Res. 224. Joint resolution authorizing ciary. Bianca ·capasso, Caterina Giud,ice. G~usepp~ the President of the United States of Amer­ By Mr. DELANEY: Capone; to ~he Committee on the Judi,ciary. ica to proclaim the period August 21-27, 1955, H. R. 4242. A bill for the relief of Dr. By Mr. WHARTON: as American Law Student Week; to the Com- George Petkov; to the Committee on the H. R. 4258. A bill for the relief of Luigia . mi ttee on the Judiciary. Judiciary. Pelella; to the Committee on the Judiciary.

EXTENSIONS Of REMARKS

Report of Foreign Shipyards ate. I ask unanimous consent that the . tors and Congressmen in Vienna on August report be printed in the RECORD. 27 for the purpose of representing our coun­ try at_ the interparliamentary conference EXTENSION OF REMARKS There being no objection, the report held in that city until September 2. As a OF was ordered to be printed in the RECORD, result, we parted that evening after a final as follows _: conference in Paris, Senator PURTELL taking HON. JOHN W. BRICKER UNITED STATES SENATE, the train to Vienna and Mr. Webster and I OF OHIO COMMITTEE OF INTERSTATE .AND taking another train to Bremen. IN THE SENATE OF THE UNITED STATES FOREIGN COMMERCE, However, before we parted we mapped out December 30, 1954. our itinerary. Since I had to· be back in Friday, February 18,' 1955 Hon. JOHN W. BRICKER, the States by no later than September 8, Mr. BRICKER. Mr. President, there Chairman, Committee on Interstate 1954, we decided I should spend my entire and Foreign Commerce, United time in Germany; at Bremen, Hamburg, and was appointed last year a subcommittee States Senate, Washington, D. C. Bonn. We also agreed that when I left Ger­ on Interstate and Foreign Commerce for DEAR SENATOR BRICKER: You Will· recall many on or about September 1, 1954, Mr. the purpose of making an inspection in that by letter dated July 29, 1954, you au­ Webster would go on to Rome in order to ma.ny countries of Europe concerning thorized Senator WILLIAM A. PURTELL, our meet Senator PuRTELL when he arrived from shipping, shipyards, and. others matters subcommittee counsel, Mr. Webster, and -me Vienna on or about September 3, 1954. On of concern to the Committee on Inter­ to visit various European countries for the leaving Rome they planned to visit Genoa, state and Foreign Commerce. The Sen­ purpose of inspecting certain foreign ship­ Italy; Rotterdam, Holland; London, England; ator from Maryland [Mr. ·BuTLER] and yards and investigating other matters of Clyde, Scotland; and Dublin, Ireland. If all the Senator from Connecticut [Mr. PuR­ concern to this committee. Accordingly, I went well-as in fact it did-they intended ani writing you in behalf of our group to to return aboard the United States when it TELL] were appointed on the subcom- report on our European trip. sailed from Southampton on September 23, _mittee, and accompanying them wa_,s the On August 20, 1954, we sailed from New 1954. subcommittee counsel, Mr. Webster. York aboard the S. S. United States. Of course, I am very sorry that previous They made-a report to me as chair­ We arrived in LeHavre on August 25 and commitments would not permit me to revisit ma-n of the committee at that time, proceeded directly to Paris. · As you · know, the splendid shipyards in Holland and Italy, · which I th-ink contains very· valuable in­ Senator PURTELL had a previous commit­ or to see for the first time the world-famous formation for the Members of the Sen- . ment to meet various United States Sena- yards on ·the Clyde or· in Belfast. - However, 1802 .CONGRESSIONAL _RECORD- - HOUS_E r_ e_bryary 18. in view of the scope and importance of Ger­ Here, as ln certain other places visited by and a height of 52 meters. The other four man shipbuilding, I am not sorry that I re• ·Senator PuRTELL and Mr. Webster, we ·round · shipways in-Bremen are equipped with large frained from trying to visit yards in other . that the main concern which our :(oreign · luffing and slewing cranes. A large hall has countries. To the contrary, my only regret . competitors _have _ .aP<>ut the cargo-prefer- ~ been er~cted for welding sections. is that Ldid not have more time to spend~ ence bill is based on a misunderstp.nding, The shipbuilding capacity of the company Germany. 1. e., that the bill requires that at least 50 1s reported to be 'Qack to the prewar level, It seems to me that it would be burden­ percent of all United States exports and im­ · although only two-thirds of the former some to weigh down the body of this letter ports be carried on United States-flag ships. . space is occupied due to more efficient pro­ with a multitude of statistical information. Of course it does not, applying as it d,oes ,duction methods and layout. The company Therefore, while now and then I will allude ·only to cargoes in -which our Governme_nt OWJ1S several floating drydocks for repaJr to a statistic or two worth noting, I will in· has. an inte:t:est as o.wner, financier, or guar­ work. The largest has a lifting capacity of clude -most of that type of material in vari­ antor. It affects in no way those: transac.- . 16,000 tons; two smaller ones located- in ous accompanying enclosures. _tions which are commercial rather than gov­ the Bremen free-trade zone have lifting This-is not to say that I consider the en­ ernmental in nature. capacities of 1,500 to 2,000 tons. The con­ closures routine or meaningless. Indeed, .I As in other countries, we here observed a struction of the fourth floating drydock of have reason to believe that some of them, certain amount of anxiety that we would .12,000 tons lifting capacity is nearing com- especially those dealing with current costs of extend the cargo preference principle to cover pletion. The present equipment enables the building ships. in various European yards, commercial, as well as Government-owned or company to. construct vessels of the largest may prove to be of value to. the Maritime .financed cargoes. We did our best to dispel "known size, including -tankers, up to 60,000 Administration, the General Accounting Of­ 'these fears and I feel that in large measure (d. w. t.). The only limitation will be set fice, and the Appropriations . Committees. we succeeded. · . by the depth of water at the shipway which While I am not so naive as to believe that We also observed a certain amount of con- is 38 feet in Bremen. The output of tb.e Senator PURTELL and I, in the limited time at . cern lest other countries use our cargo-pref­ Bremen yard in 1954 was 6 vessels totaling our disposal, were able to turn up complete erence bill to justify them in discriminating 39,200 (gr. t.), the Bremerhaven yard pro­ answers to any or all of the intensely com­ ~gainst the ships of other nations by giving duced 16 units with a total of 24,800 plex questions involved in the determination their own vessels a monopoly of all exports (gr. t.)'. · of construction differential subsidies, I am and imports. We pointed out that the fact During our visit to the A. G. Weser Bremeh sure tha'j; some c;>f. the material we gathered that other nations might selfishly misinter­ yard . we found it very busy. . In relation to has not been made available to ow Govern- pret our bill was not sufficient reason for ' the state of physical condition it must have ment before. . us to repeal it; and on this score we heard been in at the end of the war, the yard After you have finished examining the en­ ·no persuasive rebuttal. · seems now to be in excellent shape. Many closures, with-your ·permission I will invite That afternoon (August 26) we visited the -new buildings already exist and others are the Maritime Adrpinistrator, the Comptroller A. G. Weser yard (Aktiengesellschaft Weser). under construction. These new structures General, and the House and Senate Appro­ There we were cordially received by Mi". facilitate the building or prefabrication of priations Committees to review and make H. W. Schl.iephake, vice president, who es­ many ship components which would 'other- appropriate use of them. In view of the fact corted us on a tour of the yard. Before . wise have to be constructed in the open, that much of this information was supplied mentioning a few of our observatiqns I .be­ perhaps on board ship and subject to the to us with the understanding that it would lieve it might be helpful if I set forth some impediments of weather. not be used in any way which might embar­ · general 'information concerning the A. G. Large tanker construction, for the account rass the supplier, I will request those who are Weser .Co .. and its yar~ in Bremen and Bre­ of various American owners and others, permitted to use it to do so discreetly. merhaven: · seemed to be the cause of much construe· On August 26, Mr, Webster and I arrived Prior to 1945, the A. G. Weser Co., with -tion activity. 1n Bremen, where we were met by Consul shipyards in Bremen and Bremerhaven, was I was pleased to see that in spite of all General Edward D. McLaughlin. That after­ . one of Germany's largest shipbuilding com­ the war damage, and in spite ·of the intensity noon we conferred -at his home with him and panies. However, it suffered a severe set­ · of effort ·to rebuild and improve their yard, the following people: Mr. Hermann Helms, ' back as a result of the war. The Bremen · the German workers have not lost thelr Jr., director of Hansa Line; Mr. Manfred von yard was almost 9ompletely dismantled and · sense . of huzp.or. For example, all that re­ Oheimb Hauenschild, direCtor of Nord­ delivered to .the Soviet Union as reparations. mains of o'ne building in the yard is a large deutsche Bank A. G.; Dr. Gustav Adolr'Theel, · However, buildings and foundations of shi~­ smokestack. On it_ is painted the German head of Bremen Institute for Shipping Re­ ways, which had not been destroyed by · equivalent of ''no smoking." search; Mr. Fred Riddle, Lykes Lines repre­ bombing, were left ~ntact so that an astound­ We also visited the offices of Captain sentative; Mr. William Amoss, Jr., Lykes ingly quick reconstruction was possible after Daehne, Director of the Bremen Port Au- Lines representative. . the company obtained permission to resume . thority. He showed us a magnificent mech­ Among the subjects we discussed in addi­ shipbuilding in the Bremen plant in April anized model of t~e port. From our discm;;­ tion to Germany's shipping and shipbuild­ 1951. The Bremerhaven shipyards were ndt sions with him and our personal observa­ ing industries were various experiences which - dismantled and could resume shipbuilding tions of the port itself it was plainly ap­ American companies such as Lykes have had in 1947. parent that Bremen has not only recon­ in serving Bremen. We also had an oppor­ Today the company again is 1 of the structed many of its facilities which were tunity to invite the views of these lead1ng 4 largest shipyards in Western Germany. damaged or destroyed during the war, but it Bremen shipping authorities on the so­ In shipbuilding capacity it probably ranks - is well on its way to making it a better and called 50-50 or cargo-preference bill (Public third or fourth (after Deutsche Werft, Ham­ busier l'ort t~a~ ev~r bef9re. In fact their Law 604). Dr. Theel, in particular, is ·a burg; Howaldtswerke, Hamburg;- and prob­ facilities for loading and unloading grain noted authority in such matters and au­ ably also behind Howaldtswerke, Kiel); in are as fine as any I have ever seen. thored the Bremen World Shipping Year­ number· of employees it may rank second or Of course in speaking or thinking of the book 1952-53. even first. Employment as of June 30, 1954: port of Bremen; it would be improper to Because Public Law 664 was so new-in , Bremen yards, total, 6,000, 2,600 thereof in leave the impression' that Bremen stands fact it was not signed by the President until shipbuilding; Bremerhaven yard. total, 3,230, separate and apart from Bremerhav~n. In­ August 26, 1954-it was to be expected that 2,970 thereof in shipbuilding. deed ·the ports of Bremen are a series of there would be a certain amount of mis­ The relatively high number of employees 5 ports, running from Bremerhaven (where· understanding concerning its provisions. as compared with shipbuilding capacity is ex­ :the Weser River joins_ the North Sea) up t~e However, I was gratified to note that these plained, by the fact that a considerable per­ Weser, past Bremen-Farge, Bremen-Blumen­ gentlemen recognized that the United States centage of labor force is engaged in machi~e thal, Bremen-Vegesack to Bremen.· The sis­ as a sovereign Nation cannot afford to rely construction work · (turbines, diesel ez;gines, , ter towns of Bremen and Bremerhaven make on foreign shipping to meet its ocean trans­ oil tanks and containers, coupling gear, etc.). up what some refer to as the "Free Hanseatic portation needs; and further, that our. coun­ Germany's largest and fastest prewar pas­ Town of Bremen." try must maintain a healthy, privately . senger liner, the -SS Bremen, vias built in A. On August 27, 1954, Mr. Webster and. I owned, and operated merchant marine. It . G. Weser's Bremen shipyards. -left Bremen and traveled to Hamburg where was also gratifying to discover that they The Bremerhaven shipyards, known as A. ·we were met by representatives of the United recognize that in order for us to maintain G. Weser, Werk Seebeck, specialize in fish­ States consulate in that city. Shortly after an adequate privately owned merchant ma­ . ing and whaling vessels, but they also con­ .arrival we C(_onferred with Dr. Roerhrike, Ioc3l rine we must to some extent subsidize it di:­ . struct passenger and freight vessels up to . representat~ve of the Germany Shipowners rectly, or indirectly, in order for us to be 16,000 deadweight tons. There are 2 ship­ Association. Thus we had an opportunity to somewhere near par with our low-labor-cost ways in BremerP,aven. ·discuss with 111m and members of the con­ foreign competitors. Nor did they take ex­ Due to the fact that shipyards and ma­ . sulate staff the cargo-preference bill. Our ception to the px:emise that it is only reason­ chine construc.tion . plants in Breme_n had "impressions were very much the same as able for a nation which must subsidize its · to be rebuilt completely after dismantling, -those we had received from similar discus- merchant marine to a substantial extent to the B:r;-emen shipyards 1;oday are reportedly sions in Bremen. require that at least 50 percent of the ocean · equipped with the most up-to-date installa­ · ·During our· altogether· too short weekend cargoes owned or financed by the govern­ tions. A large new shipway with travelling stay in Hamburg we made an exteil.sive tour ment of that country be carried in merchant ' cranes has recently been completed. It has of the harbor in the company of Mr: Widen­ vessels _fly~g its flag. . a len~th of 175 meters, widt]?. of 35 meters, .mann, chief of t~e ~a~~or . ConstnlCtion 0~- 1955

flee. We went into- the -areas of .the. p_ort ._ at their. home. . _Inde~d, among .the mo.st that effect was dellvet:ed to the _Bundestag covered by the following shipyards: pleasant and profitable experiences I had oil March- 11, 1954, by Dr. Fritz Schaeffer, : 1. Deutsche Werft . Aktiengesellschaft: abroad was the time I spent that afternoon Federal Finance Minister. · This yard has an annual output capacity of with the Conants. In view of the fact that ­ After conferring with Counsel General about 65,000 (gr. t.). It specializes· in the EDC had just been defeated in the French Cloyce K. Huston, and his assistant, Mr. Al­ construction of motor and turbine tanker . Assembly, it is understandable, I believe, fred Dennis in Genoa, and after making ar­ vessels, motor cargo vessels, and refrigerated that our discussion was not limited to mari­ rangements for Senator PURTELL to confer ships. time matters. Naturally, I was pessimistic with local shipping authorities, Mr. Webster 2. Howaltdswerke Aktiengesellschaft: This . and skeptical about the EDC developments. joined the Senator as the latter came yard has an annual output capacity of ap- _ However, after talking with Ambassador Co­ through Florence bound for Rome. Upon ar­ proximately 50,000 (gr. t.) and builds all nant, I felt I had a much better· under- . rival in Rome, Senator PURTELL and Mr. types of vessels. As in Bremen, we noticed standing of certain key issues and alterna­ Webster were met by representatives from a great deal of ocean-going tonnage, mainly tives. I came away from this meeting with· t?e American Embassy. They were disap­ of the tanker variety, under construction. immense confidence in the Ambassador's pointed to learn that Ambassador Luce Especially memorable was the 47,000 (dw. t.) . ~~m~~ . would not be in Rome during their visit. tanker, Ibn Saud, being built by Howaltds­ That evening Mr. Webster departed for However, they had the benefit of conferring werke Aktiengesellschaft for the Greek ship- Genoa, Italy, for the purpose of making ar­ with her immediate assistant, Minister Coun­ ping magnate, Onass1s. · rangements for various conferences and selor Elbridge Durbrow. In Hamburg, too, we were shown an excel­ meetings to be held in that city by Senator In Rome they conferred with Mr. John M. lent model of the por.t. Dr. Scholvin, of the ~URTELL and him when they returned from Kennedy _ (the Embassy's commercie.l at­ Rome. The next morning I boarded the Federal Ministry of Transportation, shipping ~ache), Mr. Thomas A. Lane (the Embassy's section, discussed with us the task of re­ :Ruhr-Paris express for Paris, and after less labor attache and chief of the MSA Labor building the port after the war and how it than a day in that beautiful city, I left for Division), Captain Ralph S. McDowell (Bu­ has progressed. Cherbourg where I boarded the SS. Queen reau of Ship's representative in charge of off­ Here, too, as in Bremen, it seems to me Mary. As you know, there were no American­ shore procurement) and Mr. Harry H. that this port is rapidly becoming better flag vessels wh,ose schedules JVOUld have per-· Phelan (the Embassy's minerals attache). and busier than ever before. In particular, mitted me to stay in Germany as long as I_ Their discussions covered matters such as I was impressed with the extensive number did and still be back in the United States offshore procurement, the labor situation, of new aockside cargo cranes. Whereas in by September 8, 1954. unemployment, costs, etc., relative to ship­ Bremen the semiportal type of crane has been In reflecting upon our altogether too short building and ship repair. used for many years, Hamburg, in recon­ visit to Germany, I believe that certain mari­ - On September 9, 1954, Senator PURTELL and structing its port, decided to employ the time matters are worthy of additional men­ full-portal type. I was informed that be­ Mr. Webster arrived in Genoa. That morn­ ~ion. I have not tried to set them forth in ing they visited the Ansaldo Shipyards in cause of the traffic handled through Ham­ any particular order, but just as they come burg, the port organization was compelled Genoa, where they conferred with Mr. Fred­ to mind. They are as follows: rico Lombardi, general manager of the en­ to extend the rail-track system on the water 1. In 1953 the German shipyards con­ tire Ansaldo Co., and l\[1'. Giuseppe Carnivale, side of the sheds which line the wharves; structed 66 vessels for foreign account. I and that this modification entailed an al­ general manager of Ansaldo's Genoa yard. was informed that this was 41 percent of They learned that this yard has 8 shipways, teration to the crane system. If semiportal their total construction and amounted to cranes had been installed they would have 2 of which are masonry and 6 of which are 299,500 (.gr. t.). movable. The yard's construction capacity had to have much larger spans than the full­ 2. The German merchant fleet, as of De­ was reported to be between 8 an~ 10 mer­ portal variety. I concluded ~hat Hamburg cember 31, 1953, was made up of 2,111 vessels seems to be proceeding on . the premise that chant ships of 9,000-10,000 d. w. t. While this with a total tonnage of 1,930,215 (gr. t.), an yard has employed approximately 6,000 it can expedite turn-around time of ships increase of 95 vessels of 411,815 (gr. t.) over by installing more lower-priced cranes workers, it was employing approximately the level at the close of 1952. 4,300 on September 1, 1954. Ansaldo is right­ rather than fewer of the more expensive 3. The German fleet at the close of 1953 type. fully proud of the fact that it constructed was a little less than one-half of its prewar Italy's newest luxury liner, t _he Cristojoro Of course the strict competitive rivalry be­ size of 4 million (gr. t.). tween Bremen and Hamburg is as intense Colombo, in its Genoa yard. · 4. The Gripsholm's sailing on February 2, That afternoon Senator PURTELL and Mr. • as ever. · Indeed it is understandable that 1954, from Bremen to New York under the the German officials, with whom we dis­ Webster attended a luncheon given by the colors of Norddeutscher Lloyd, and the inclu­ Genoa Propeller Club. In addition to having cussed maritime matters in both ports, ra­ ·sion of that line in the reorganized Conti­ diated pride in their respective cities.· an opportunity thus to meet most of the nental North Atlantic Westbound Freight Genoa shipping fraternity-particularly the On Monday morning, August 30, 1954, Mr. Conference are matters of international Webster and I left Hamburg and arrived in representatives of American shipping con­ interest and significance. cerns-Senator PURTELL took this occasion to Bonn that afternoon. We were met by Mr. 5. The total volume of cargo carried by Emerson M. Brown (Chief of the Transpor~ express our committee's most sincere and the German fleet (including cargo carried intense interest in merchant marine matters tation Section of the Office of Economic Af­ between foreign ports) in 1953· amounted to fairs, HICOG) and spent the remainder of of all sorts_and kinds, wherever they arise or 34,200,000 tons as compared to 28,100,000 tons exist. As we had in other places throughout that day and evening consulting with Mr. in 1952, an increase of about 22 percent. Brown, Mr. John W. Tuthill (Acting Direc­ Europe, he invited questions concerning the tor, OEA, HICOG), Mr. Wier Brown (Chief 6. Passenger traffic carried by the German part our Government plays in merchant of the 'Finance and Program Division, OEA, -merchant fleet in 1953 was negligible. Ger­ marine- affairs; and generally held himself HICOG, and U. s. Treasury representative), man freighter-passenger accommodations open to answer any questions concerning bur and Mrs. Charles H. Breecher (Acting Chief, were limited to between 6 and 12 passengers. maritime policies. He emphasized the fact Industrial Services Division, OEA, HICOG) .. However, German shipowners have started to that we as a nation are not interested in That evening we also had the honor of dining construct a new type of cpmbined passenger1 having the largest merchant marine in the and conversing with not only these gentle­ cargo vessel capable of carrying approxi­ world. He stressed, however, that we in~ men but also with Dr. Westrick, State Secre­ mately 86 passengers. tended to maintain a healthy privately tary of the Federal Ministry of Economics; - 7. German shipbuilding costs increased in owned merchant fleet of adequate size and and Dr. Bergmann, State Secretary of the 1953, due primarily to higher prices for steel strength to prevent a recurrence of the dis­ Federal Ministry for Transportation. I was plates and higher wages for German shipyard astrous state of unpreparedness in which we extremely pleased to have this opportunity · workers. found ourselves at the beginning of World to talk with Drs. Westrick and Bergmann 8. The main form of national subsidy or Wars I and II. for, as you probably know, the positions ·aid extended by Germany to encourage mer­ After lunch a prearranged meeting was ·which they hole: are similar to positions held chant vessel construction in that country is held where he and Mr. Webster conferred at by members of our President's Cabinet. I found in section 7D of the German income­ length in the American Consulate with the understand that Dr. Westrick plans to be in ta~ law. This section has enab,led German following people present: Mr. Basil A. Mc­ the United States in the near future and I shipowners to accelerate the depreciation of Lean, local representative of American Bureau am looking forward to the honor of a visit their vessels. More than that, it has author­ t>f Shipping; Mr. Harold Vinick, local repre­ from him. ized German taxpayers receiving excess sentative of Stevenson Lines; Mr. Max J. On August 31, -Mr. Webster and I con:­ income to deduct from their taxable income, Wolfson, local representative of Lykes Lines; ferred with Drs. Hubner and Schmid of the ·as operational expenses or business promo­ Mr. Alphonse Sasseville, local representative Shipbuilding Otfice of the Federal Ministry 'tion costs, sums of money which they have of American Export Lines; Mi-. William Shar­ of Economics. ,Although we had d~scussed granted or loaned without interest for the ron, local representative of American Presi­ elsewhere in our trip throughout Germany ·pro:r:_n.otion of shipbuilding. dent Lines; Vice Consul John H. Barber; the cost of vessel constructiqJ1, I was espe.:. · Although tl:lis income-tax provision has Consul General Cloyce K. Huston. ·cially- gratified--by our conference with these ·apparently done much to revive and promote This was a lengthy, rather comprehensive eminent German officials. German shipbuilding, I was informed that conference during which the representatives That- afternoon we h·ad the honor of .such tax privileges probably would be abol­ of American shipping aired freely many prob­ lunching with_Ambassador and_ ~s. Conant _ished effective 'JanuaFy 1, 1955._ _A speech. to lems which they knew would be of interest CI--114 1804 CONGRESSIONAL RECORD- .HOUSE Feb?"Uary 18 to Senator PURTELL. This meeting was re­ 3. On July 17, 1954, an Italian subsidy law, ture from Mr. Elvin Sibert (United States. vealing and moSt . worthwhile. . known as the Tambroni law became effective. consul general, Amsterdam), and Mr. Paul J. The next morning, Senator PURTELL and It is designed to encourage the building of Reveley (United St.ates consul gell.eral, Rot­ Mr. Webster went to the main office of the oceangoing tonnage in Italian yards. Its terdam). Ansaldo Co. where they conferred with Dr. benefits are extended to people of other coun­ On September 13, Senator PURTELL and Mr. Giuseppe Rosini, managing director of the tties, as well as to Italian nationals. Be­ Webster, accompanied by Consul General entire Ansaldo Co., and Mr. Federico Lom­ cause of its recent enactment, there is con­ Reveley, Mr. McCraine, and Mr. Abeille, bardi, whom they had met at the shipyard siderable doubt as to the details of how it visited the Rotterdam Drydock Co. (the the day before. After their conference, they will operate. Nonetheless, it is expected that Rotterdamsche Droogdock Mij) . In 1953, 593 visited the office of the Industrialists Asso­ the Tambroni law will encourage many peo­ vessels of 2,315,000 gross tons underwent re­ dation of the Province of Genoa. There ple who would have built ships in other pairs in this yard. Th~ flagship of the Hol­ they conferred with Mr. Alessandro Dufour, countries to place their orders in Italy. land-Amerika Lijn, the Nieuw Amsterdam, prominent Italian industrialist and Mr. ·An­ The Italian Government seems to believe was constructed in this yard, which is hoping tonio Cerruti, head of OARN, one of Ge­ that in the next 10 years Italy can modernize to construct a new passenger vessel for the noa's finest ship repair yards. During her merchant fleet, while at the same time Holland-Amerika Lijn at a cost roughly esti­ these meetings shipbuilding anc~ ship repair raising her gross tonnage from the present mated to be approximately 100 million guil­ pr"oblems were discussed. figure of 3 .7 million tons to· 5 million tons. 'ders. This yard is presently operating at On Friday, Senator·PuRTELL and Mr. Web­ This would be an increase of 1.5 million tons close to full employment, 5,000 workers being ster went to the home of Prof. Antonio Gior­ over that which she possessed before World ~m the job. . dano for the purpose of discuss~ng with him War II. This would require constructing 2.3 In their tour of the Rotterdam Drydock his views on our recent cargo-preference bill. million tons of shipbuilding for Italian ac­ Co.'s magnificerit yard they were accom­ He was recuperating from a recent illness. count in the next 10 years, or approximately panied by its director, Mr. Knape. Senator Members of the United States Consulate staff 230,000 tons per year. At present the capac­ PURTELL's brbad background in American had brought to their attention the fact that ity of all Italian shipyards is rated at 300,000 ·heavy industry and in the allied fields of Professor Giordano was in charge of the tons per year. · metallurgy and machine tooling was re­ Genoa·office of a well-known and influential Mr. Tambronl, the pre:::ent . Minister of marked on several times by Dutch ·officials. economic and financial newspaper published Merchant Marine, apparently hopes to at­ More than once they volunteered their ap-_ in Milan known as "24 Ore." He had recently tract a substantial amount of .foreign con­ preciation of his understanding of their written for that paper an article critical of tracts in order to keep the Italian yards at production processes and problems. our cargo-preference bill. Since "24 Ore" the necessary level of business activity. In · That afternoon, Senator PURTELL and Mr. is highly regarded and carefully read by many considering his approach to the problem, it Webster visited the C. Van der Giessen & thousands of Italians, it was Senator PuR­ should be noted that the Italian Government Sons yard near Rotterdam. This yard has TELL's desire to obtain a better understand­ controls 80 percent of Italy's shipbuilding 5 building berths capable of handling up to ing of the professor's point of. view and so industry and is saddled with 12 billion lire 32,000 deadweight tons. Its activities are afford ·him an opportunity to better appre­ per annum carrying and other charges. With limited to new construction, although occa­ ciate our point of view. this background, one can better understand sionally it has done some reconditioning Because Professor Giordano. ·had not re­ why Italy enacted the Tambroni subsidy law work. Since World War II some 30 vessels ceived a copy of the Commerce Department's (No. 522 of July 17, 1954). The Government have been delivered and another 15 are in the Maritime Subsidy Report, they left with him seems to have calculated that at 66 percent course of construction or on order. The 1 of the 2 copies which they thlm had in their of capacity Italian yards can revis·e their cost bulk of the yard's output consists of possession. In addition, -they ~assured - him factors . toward a set of lower unit rettl'rn medium-sized . cargo and passenger vessels: that should .he at any time desire. additional: figures which wilL not only make ·· the yards As with many of the other_ Dutch yards, it information about our maritime program, competitive with their foreign . counterparts has constructed vessels for owners in other we would give him what we had available. but will also absorb · the . Government's countries, including Argentina, Finland, They observed, as .we had in Germany, that b"Qrden. France, Norway,·Switzerland, and the United the main concern our foreign competitors The Tambtoni law is designeq to stimu­ States. . ·, _ · · have about tpe cargo·-preference bill stems late orders for· ship constructiqn and ship­ That evening at the home of Ambassador from some misunderstanding of its pro­ repair work within· a specific 'perfod of time; H. Freeman Matthews, Senator Purtell and visions and a· lack· of information as to the Sh1powners will ·be granted exemptions from Mr. Webster met the following peopre, many size merchant fleet which our Government custom's duties on imported raw materials _of whom hold positions of great in:fiuence in believes we must necessarily .maintain. Here, 'and finished and ' semifinished products used Dutch maritime affairs: · too, they found a certain amount of concern iii building and repairing ships. Exemption Dr. D. G. w~ Spitzen (Secretary-General, that other nations would use the cargo-pref­ from the Italian general sales tax on·internal Ministry of Transport and Waterways) . erence bill as an excuse to enact discrimi­ business transaction will be granted. As a . Dr. J. Q. Bas Backer (Director, Western natory maritime legislation. spur to speedy utilization of this program, Hemisphere Department, Ministry of Foreign To summarize certain of the more impor­ the subsidy will be decreased 10 percent each Affairs). tant c0nclusions reached by Senator PuRTELL year. · · Mr. W. L. de Vries (Director-General of as a result of his various meetings and dis­ Under the Tambronl law the subsidies will Shipping, Director.ate General of Shipping). cussions in Italy, the following: · be given directly to the shipyards, not to the Mr. E. A. Plate ·(Chief, Directorate Industry 1. As of September · 1, 1954, · ·generally :>hipowners. The law states that there is no ·and Wholesale Ministry of Economic Affairs). .speaking, · the Italian shipyards were facing limit to the amount of repair or building Mr. Th. van der Graaf (Secretary of Direc­ a serious crisis due to lack of ·work. They contracts which will be aided by its provi:.. torate .for Shipbuilding and Repairs). were working at approximately 30 percent of sions. Any unused subsidy funds set aside Mr. J. W. Hupkes (director of the Kon. Mij full capacity. The major shipbuilder, An­ by the Government in any particular year "De Schelde" N. V.). · saldo, is government-owned and · controlled. may be carried forward to succeeding years. ' Comdr. J. W. A. Langenberg (Kon. Mij . It is apparently true that material cost in 4. The effect of the McCarran Act U}:\O~ ·"De Schelde" N. V.). · · · · Italy is higher than ·in any other ·European seame:q. and therefore upon the, !taliai). mer­ Dr. P. van der Toorn (dire,ctor, Holland- · country. Some sources estimate that a Lib­ chant marine was the subject ·of frequent America Line) . ( . · · · · erty ship could be built in Great Britain for discussions held by Senator·PURTELL and Mr. Mr. s. van West (managing director, Dock approximately 30 to 35 percent less than in Webster while they were in·. Jtaly. Generally & Shipyard Co., "Wilton-Fijenoord"): ' rtaly. However, other sources estimate that .speaking, there _appears to be a great deal· of Mr. E. A. Vreede (secretary 'to Netherlands this difference· is ·less,- between '10 to· 27 per­ resentment by the Italians concernJng this Shipowners' Association). · - cent.- lea.ving aside subsidies in effect·and the .law. ·I am -attaching as enclosure H copies Mr. F. E. Straatemeier (United States new .. Italian - law ., ·hereinafter discussed. of 2 articles which appeared in -Italian pub­ Lines) . · · " ·- · " Some sources· estimate that at least one-half lications. in July and August 1954 dealing Mr. Peter van der Giessen (director N. V. c. of this difference .is ·due to .Italy's. higher .with the McCarran Act's seamen . visa provi­ v. c:l· Giessen ·& .Zonen's Shipyards). material cost, with the remainder ,. attribut­ siops. . - : · · ' , · . . . _ . Mr. A. Knape (director of the Rotterdam · able to higher labor post. _ Senator PURTELL and Mr. Webster left Drydock Co.). 2. One of the most disturbing things Genoa Friday evening, September 10, for Dr. D. A. Delprat (director Shipping co. brought to the attention of Senator PuRTELL Paris. Sunday morning they boarded the "Nederland"). and Mr. Webster was the large number of North Star Express and arrived at The Hague Mr. -J .- van Tilburg (deputy to Rotterdam Communist labor leaders-employed in Italian late that afternoon. They were met by Mr. burgomaster) . shipyards. The'.Communists apparently had Andrea G. Ronhovde (the Embassy's Deputy Mr. Frank ·c. Grismer (Director FOA Mis­ received little discouragement from manage­ Chief of Mission) , Mr. Howard R. Cottam sion). ment. Evidently it was the thought of some (the Embassy's Counsel for Economic Af­ _ Mr. Andreas G. Ronhovde (Deputy Chief segments of Italian management that this fairs), Mr. Thomas McCraine (maritime at­ of Mission) . · hands-off policy would insure labor.peace. tache for the American Embassy, in London), M~. _Howard R. Cottam (Counselor for Eco- Without elaborating in this report, ·suffice and Mr. Peter Apeille (maritime attache for nomic Affairs) ! · . to 'say that, the domination of labor unions the American Embassy in London). - , Mr. ·Elvin Sibert (consul general, Amster- by Communists in shipyards where offshore · . That evening during and after dinner at dam). · procurement orders have been placed did not the Cottam residence, they received a gen­ Mr. Paul J. Reveley (consul ~eneral, Rot­ pass unnoticed. eral briefing on the Dutch shipbuilding pic- terdam). 1955 CONGRESSIONAL ·RECORD- HOUSE 1805 Mr. Harold H. Rhodes (first secretary). 3. Some Problems of Administration (of Co.); its general manager, Mr. H. E. Gorick, Mr. Thomas McCraine (maritime attache, the Ideal Port), by B. Nagorski. C. B. E.; and its assistant manager, Mr. American Embassy, London). . 4. New Cargo Cranes at Hamburg, by Dr. R. G. Malloch Brown. These gentlemen were Mr. Peter Abellle (maritime attache, Amer­ Hans Neumann. deeply concerned about our cargo-preference ican Embassy, London) . That evening, Senator PuRTELL and Mr. bill. Senator PURTELL and Mr. Webster tried Mr. Robert A: Brand (second secretary). Webster left London and arrived in Glasgow to answer all of the questions raised by Mr. Robert Donhauser (Public Atiairs Of­ the next morning._ The_re they visited two these gentlemen. However, they were un­ fice). of the United Kingdom's finest and best­ able to answer to their own satisfaction one Commander M. B. Davis (assistant naval known shipyards, the Fairfield Shipbuilding or two of the matters raised by the repre­ attache). · & Engineering Co., Ltd., and John Brown & sentatives of the Chamber of Shipping and Mr. Oliver M, Marcy (second secretary). Co., Ltd. gave assurances that the Department of This reception provided Senator PURTELL At the Fairfield yard they conferred at Commerce would be asked to supply the in­ and Mr. Webster an excellent opportunity to some length with the managing director, formation desired. Steps have been taken discuss with these leaders in Dutch shipping Vice Adm. A. W. Langley-Cook, C. B., C. B. E., to secure this information and upon its our cargo preference bill, their ship construc­ D. S. 0., managing director, Fairfield Ship­ receipt it wlll be forwarded to Mr. Denholm. tion costs, their maritime labor situation, building & Engineering Co., Ltd. At the As Senator PURTELL discovered when he and other shipping problems. We under­ John Brown yard that afternoon they met was in Genoa discussing the matter with stand that this was the first Embassy gath­ and conferred with the following gentlemen: Professor Giordano, the representatives of· ering at which so many major Dutch shipping Mr. J. W. Begg, financial director; Mr. John the Chamber of Shipping had not been fur­ interests were in attendance. Rannie, shipyard director; Mr. J. H. John­ nished copies of the Commerce Department's As a result of their visit to Holland, brief ~ton, general manag~r. engine works; Mr. Maritime Subsidy Policy Report. Copies of as it was, Senator PURTELL and Mr. Webster A. N. Benson, secretary; Mr. J. B. Bucher, this important document have been for­ concluded: head of gas turbine department. . warded to Mr. Denholm. 1. From a competitive point of view, the Unfortunately, Sir James M. McNelll, . Senator PuRTELL reports that after visiting shipyards of Holland appear to be ready, K. C. V. 0., managing director of the John ~he British Isles he reached the following willing, and ' able to compete on at Brown yard whom they had hoped to meet, conclusions, among others: least an equal basis with the yards in any was absent. 1. Shipbuilding costs are now about 4 other European country. However, it should The Fairfield Shipbuilding & Engineering times as high in 1939 and approximately be noted that Holland has lost some business Co., Ltd., has six berths. It is capable of twice as high as in 1945-46. There are no to Germany and appears to consider' that constructing vessels up to 1,000 feet in signs of a reduction or even of stabilization; country its strongest European shipbuilding length. Over the years, it has excelled in the and increases in shipyard wages and steel rival. In view of the fact that the Tambroni production of warships, passenger and cargo prices further aggravate this proplem. Brit­ law is so new, it is conceivable that Italy vessels, tankers and ore carriers. John ain's budget in 1954 made some concessions :q1ight well establish itself as a strong com­ Brown & Co., Ltd.'s yard has seven berths to shipowners as to other industrialists by petitor for the position of shipbuilding su­ and is capable of constructing vessels ex­ the introduction of the 20-percent invest­ premacy presently held by Holland. ceeding 1,000 feet in length. Its annual out­ ment allowance. 2. The labor situation in Holland, in r_ela­ put capacity is approximately 90,000 tons. However, as in this country, the accrued tion to that in other European countries, Some of Britain's finest passenger vessels tax-free depreciation goes but a little way is very good. Labor strife is relatively rare; have been constructed in this yard, as well toward meeting replacement costs, and the the labor force apparently is receptive to as high-grade refrigerated cargo vessels, balance must come from borrowing or from improved productive processes; and Hol­ tankers, cross-channel steamers, and train profits, if any. British shipowners seem l.and's quantity of skilled and experienced ferries. agreed that the solution to their problem is shipbuilding labor is large. In this connec­ On Friday, September 17, Senator PuRTELL to revise the existing system of taxation, and tion, it should be noted that Dutch ship­ and Mr. Webster left Glasgow for Dublin. particularly the system of assessing depreci­ builders are somewhat concerned about the They arrived in the latter city Saturday ation allow:mces on the basis of or~gin,al cost difficulty of obtaining apprentices or train­ morning. That afternoon during lunch with without referring to higher replacement cost. ees. Their labor problem appears to be one Ambassador and Mrs. William Taft they not 2. Britain's merchant fleet, while not as of shortage rather than surplus. only discussed various maritime matters, but obsolete as this country's, is nonetheless The stability of the Dutch labor situation also many others in which the two countries composed of many· vessels of 20 years of age. is evidenced by the fact that apparently have mutual interests. The seamen visa 3. In an article appearing in .the Septem­ some yards are willing to enter into fixed­ provisions of the McCarran Act and our ber 13 issue of the Times, the :following price contracts if they can be completed cargo-preference bill were, of course, the sub­ statements seem pertinent and authoritativ.e: within 18 months. ject of extensive discussions between Sen­ "Although British shipowners are having 3. In addition to vessel construction and ator PURTELL, Ambassador Taft, and members to meet increasing competition from foreign repair, most of Holland's shipyards are ex­ of the Ambassador's staff. flags, including those of countries with 'arti­ tensively engaged in performing work for While Senator PURTELL was in Dublin ficial :fleets' either State-subsidized or fi­ other industries. Thus, these yards which he met and conferred with various high­ nanced by foreign nationals, and although are reported to be the best equipped in ranking members of the Irish Government, British shipbuilders now face severe compe­ Europe, are apparently using their ingenuity some of whom he had worked with at the tition from foreign shipyards-particularly and initiative in order to obtain maximum Interparliamentary Conferen-ce in Vienna. in Germany-some significant comparisons utilization of plant and facilities. I am attaching as enclosure K certain may· be made from the figures set forth in · On Tuesday, s ·eptember 14, Senator PUR­ material gathered by Senator PURTELL con­ Lloyd's Register shipbuilding returns. In TELL and Mr. Webster sailed from Holland cerning shipping and shipbuilding in Ire­ respect of the amounts of work under con­ for England. They arrived in London that land. It is, indeed, worthy of note that the struction in the United Kingdom and abroad evening. The next day they conferred with Harland & Wolf yard in Belfast, the largest at the end of June (the most recent date for Rear Actin. A. L. P. Mark-War~:l.law, R. N. (re­ shipyard in Ireland, has recently constructed which figures are available) it can be seen tired), (president of the executive commit­ the Southern Cross, a beautiful 20,000-ton that the British figure of 2,195,000 tons gross tee, International Cargb Handling Coordina­ liner. You might recall that this fine vessel represented 38 percent of the world total­ tion Association), Mr. Rex. B. Shepheard, was built for the Shaw Savill Line and was an increase of 3 percent over June last year. C. B. E. (director, the Shipbuilding Confer­ launched by the Queen last August. This Germany was still the leading foreign com­ ence), Mr. Winthrop G. Brown (deputy to vessel is somewhat unique among passenger petitor, with 12 percent of the total, followed the Minister for Economic Affairs, American vessels in that her boilers and engines are by the Netherlands, Sweden, France, the Embassy) and Mr. Thomas McCraine. installed aft. She is designed to carry 1,200 United States, Japan, and Italy, in that Among the matters they discussed were the passengers in tourist-class accommodations. order. International Cargo Handling Coordination She will carry no cargo on her four voyages "Tonnage under construction overseas Association Conference r€cently held in arourid the world each year. It is planned showed a substantial fall of 260,000 tons Naples, Italy; the McCarran Act's seamen that she will link Britain with South Africa, from the previous midsummer, compared visa provisions; the cargo preference bill; Australia, and New Zealand. with a rise of 72,000 in the United Kingdom and the state of shipbuilding in the United Senator PuRTELL and Mr. Webster returned during the same period. This divergence Kingdom. Rear Admiral Mark-Wardlaw to London on September 21. While there may be attributed to the fact that the world­ gave Senator PURTELL various publications they conferred with Ambassador Aldrich. wide decline in the placing o~ new orders relating to the Naples Conference. * • • I They also held a brief conference with Mr. has had a more immediate effect on foreign call your attention in particular to the fol­ J. Hancock, London representative for the yards, particularly those in Western Europe, lowing articles which appear in the attached Scuth Pacific Steamship Lines . . since they have a higher productive tempo­ copy of the Journal of Commerce, Interna­ Later that afternoon, accompanied by Mr. largely due to three-shift working-and a tional Cargo Handling Conference number, Thomas McCraine, they visited the offices smaller backlog of orders than most Brit­ published June 25, 1954: of the Chamber of Shipping of the United ish yards • • • 1. Some Iinpressions of the Naple_s Confer- Kingdom. There they conferred at length "While foreign shipyards are now bidding ence, by Charles Birchall. · with its president, Mr. J. c. Denholm, c. B. E. more keenly for new orders than at any time 2. A ·stevedore's Point of View, by G. Slr­ president; its vice president, Mr. A. I. Ander- . since the end of the war, some Elf them are taine. son: (chairman, Orient Steam Navigation helped substantially by various economic 1806, CONGRESSIONAL RECORD .:.....: HOUSE F.ebruary 18, devices. In France and Italy there are di· paper, the Columbus Ledger. He attended the questionnaire enlarging upon their 1·ect State subsidies, while in Western Ger· Emory University and the University of answers. many there are taxation reliefs and low rates Georgia. After service in France in World of interest on loans. In some of the Scan· War I, he returned to the newspaper busi· The population in my district is com­ dinavian countries and. in the Netherlands ness, coming to Wilmington in 1927 as presi· ,posed of about half rural and half urban there are long-term credit provisions backed dent and publisher of the Wilmington Morn· residents. Nearly all of the labor and by the State or by municipalities. British ing Star, later acquiring the Wilmington farm organizations are represented ·as shipbuilders enjoy no such artificial aids News. well as large and small business. There and their existence elsewhere makes com· Following years of undivided interest in are also 2 colleges and 2 universities. petitive pressure all the stronger. The ship· the development of his city and the Cape building conference has stated on behalf of Fear region, Gov. R. Gregg Cherry named It is not often that a Congressman can the industry as a whole that while it has Mr. Page to the chairmanship of the newly obtain a true picture of such an evenly never sought direct State assistance it looks created ports commission in 1945. Mr. Page divided district, but through the ques· to the Government of the day to create con· had long been a leading spokesman for the tionnaire method, I feel I have gained ditions in which private enterprise can development of better ports in North Caro­ the majority opinion of those I represent. fiourish. lina, and with the passing of time, my State The questionnaire and the results are "Since the war British shipbuilders have will realize even more the wisdom and cour· spent heavily on the modernization and re­ age that he possessed. as follows: ,. ·: !.;d l ' ·e_.,,.., :>'"''''.o\'!~~···<,..•.,1-.' equipment of their yards. Some of them His contribution to his fellowman was not QUESTIONNAIRE IN AN ENDEAVOR To LEARN THE are now as well-armed for the competitive limited to the newspaper and ports fields. VIEWS OF THE FOLKS BACK HOME struggle as their foreign rivals. But on the He devoted himself to progressive civic duty labor side of the industry the situation is in many areas. somewhat different. On the continent Once convinced that a cause was just, Mr. Yrs No longer hours, lower real wages and piece­ Page was never satisfied with anything ~ess work rates, shift working round the clock, than complete success-a clear-cut challenge Percent Percent and priceless heritage for his lineage and 1. Which is your choice on the farm and an absence of strict demarcation between program relative to price support various jobs are the general rule; and for­ associates. and crop control? eign shipbuilding employers· can· there­ He wrought well and left a lasting impress (a) 100-percent price support fore make the fullest possible use of their upon the annals of our generation. and rigid crop controL ___ 8 92 physical equipment." (b) Flexible price support and medium crop controL _____ 64 36 In closing, let me express for Senator ------:;;_ (c) No price support and no PuRTELL, Mr.. Webster, and myself our appre­ 30 70 ciation of the opportunity afforded us to 2. Should w~~~nco~~:Sl.tied-for-sociaf Results of McGregor Poll on National security be eligible for benefits at visit the various countries we did and par­ age 60? ___ _------______68 32 ticipate in the many interesting events Issues . 3. Realizing the need for a strong na- which I have discussed in this letter. We tional defense, which do you prefer? feel that as a result of our trip we have a (a) Extension of the present much better understanding of the views ·of EXTENSION OF REMARKS draft law __ ------57 43 our friends in the various European coun-: OF (ff) Universal military training_ 42 58 tries we visited. In addition, we believe •!. Do you believe that our present foreign policy program is proving that those with whom we discussed Amer­ HON. J. HARRY McGREGOR effective and promoting world ica's maritime policies have a better and OF OHIO peace?------_____ 05 45 more sympathetic appreciation of the m·any (If your answer is negative write serious problems we face in this field. IN THE HOUSE OF REPRESENTATIVES yow· own suggestions on the back of this questionnaire.) Sincerely yours, Friday, February 18, 1955 5. Do you favor continuation of: JOHN MARSHALL BUTLER, (a) Technical assistance to Chairman, ·senate Water Transporta­ Mr. McGREGOR. Mr. Speaker, under Europe?------75 25 tion Subcommittee. (b) Economic assistance to permission to extend my remarks, I Europe?------38 62 would like to place in the RECORD the (c) Military assistance to Europe?------53 47 ~ ------results of a questionnaire I sent to the 6. Do you favor continuation of: citizens in the 17th Ohio District. I am (a) Technir.al assistance · to Rinaldo Burrus Page, a Man Devoted to Asia?------76 24 proud to represent this district in the (b) Economic assistance to North Carolina Congress of the United States. The Asia?------46 Fit questions were concerned with major (c) Military assistance to Asia?_ 49 51 EXTENSION OF REMARKS national and international problems OF facing Congress today. Signature ------­ I regret I could not send a question· Street ------· HON. SAMUEL J. ERVIN, JR. naire to each of my constituents in the City and State ------­ OF NORTH CAROLINA district, but I believe the replies I have Occupation ------· IN THE SENATE OF THE UNITED STATES received are the opinions of a cross sec· tion of those I represent. Please fill out and return this question· Friday, February 18, 1955 naire to J. HARRY McGREGOR, Member of Con­ Question sheets were sent to almost gress, 1434 New House Office Building, Wash­ Mr. ERVIN. Mr. President, I have every occupational group: Republican ington 25, D. C. prepared a brief statement regarding the and Democratic committeemen and late Mr. Rinaldo Burrus Page, of Wil­ women, laborers, attorneys, housewives, Percentage distribution of replies to mington, N. C., and his valuable contri­ public office . holders and government questionnaire bution to his adopted State. I ask employees, salesmen, retired men and unanimous consent that it be printed women, ministers, college and high­ Yes No in the RECORD. school students, and their instructors. Question 1. Which is your choice on the There being no objection, the state­ Also included are those working in busi­ farm program relative to price support ment was ordered to be printed in the ness and industry, newspaper, radio and and crop control? RECORD, as follows: professional positions. (a) 100 percent price support and rigid crop control: RINALDO BURRUS PAGE, A MAN DEVOTED TO Blanks were mailed to individuals and Total replies------8 92 NORTH CAROLINA reproductions of the questionnaire were Attorneys ______18 82 Business, industry, and sales- On February 2, 1955, death marched into published in nearly all of the 20 daily men ______Farmers ______7 93 the ranks of North Carolina's most useful and weekly newspapers in my district. Housewives. ______11 89 citizenry and claimed a distinguished busi­ 2 98 A large percent of the completed Labor______-----______5 95 ness and civic leader, Mr. Rinaldo Burrus forms contained comments on the ques­ Ministers. ____ ------0 100 Page, publisher of the Star-News newspapers Newspaper and radio ______0 roo of Wilmington. tions which proves to me that the aver­ Occupation not given and or- He was the first chairman of the North age citizen is interested in the vital issues ganizations___ ------______15 85 Professionals ______"li 95 Carolina State Ports Authority and a Wil­ now before this legislative body and is Public office holders and Fed- lllington civic leader for 25 years. anxious to express his views on them. I 7 93 A native of Columbus, Ga., Mr. Page began n!f~~a~-~~~:'_~:'-~~:::::::::::: 15 85 am very pleased so many took the time Teachers _____ ------______his newspaper experience on his father's 6 94 to write and attach letters and notes to Students ___ ------______9 91 '1955 CONGRESSIONAL RECORD- HOUSE_ '1807 Percentage distribution of replies to Percentage distribution of replies to Percentage distribution of replies to questionnaire--continued questionnaire--continued questionnaire--continued

Yes No Yes No Yes No

Question 4.-Continued Question 6.-Co~ti~~~~·-~ q(;.;..~~~- ·~··· .:--- · Qu~tion I.-Continued _...... (b) Flexible price support and me­ Labor ___ -----•• -.--.-.--•• ---.-·------51 49 (c)- MilitaryTotal assistance replies ______to Asia? ._ dium crop control: 72 28 49 51 Ministers.Newspaper ___ and ------radio ______Attorneys ______Total replies.•• ------········-···-- 64 3 50 50 54 46 Attorneys. __ .... ______--- 58 42 Occupation not given and organiza- Business, industry, and sales- Business,men____ ----·industry ______and sales- _ tions_------51 49 men ___ ------45 55 52 48 Professionals _____ ------56 44 HousewivesFarmers ____ ------______------______38 62 Farmers ______------41 59 Public office holders and Federal 36 64 60 40 50 Housewives.--_------employees .• _------50 Labor------Ministers ______----: ..__ 35 65 Labor___ ------56 44 Retired. __ __------40 60 60 40 Ministers. __ ------75 25 Teachers._------68 32 Newspaper and radio ______43 57 Newspaper and radio ______57 43 Students_ ___ ------60 40 Occupation not given and Occupation not given and Question 5. Do you favor continuation of­ organizations. • ____ ------32 68 organizations------­ 60 40 (a) Technical assistance to Europe? Professionals_------__ 57 43 Professionals .•. ------­ 73 27 Total replies.------­ 75 25 Public office holders and Public office holders and Fed- Attorneys.--- __ ------­ 74 26 Federal employees ______53 47 eral employees ______56 44 Business, industry, and sales- Retired._.·------__ 47 53 Retired .•• ------33 67 men ... ------72 28 Teachers ___ ---_----______----- 54 46 Teachers _____ •• ---_.--_------72 28 Farmers ______------70 30 Students.------_ 58 42 Students. ___ . ____ ---.------83 17 Housewives------68 32 (c) No price support and no crop Labor------65 35 control? Ministers._---. __ ------83 17 Total replies ______Newspal)er and radio ______Attorneys ______30 70 57 43 38 62 Occupa~ion. not given and A Memorial to the Late E. B. Aldrich, of Business, industry and sales- orgamzattons ___ ------_ 67 33 men ___ ------47 53 Professionals_------­ 85 . 15 Pendleton, Oreg . Farmers ______------50 50 Public office holders and Fed- Housewives ______35 65 eral employees ______69 31 Labor------40 60 Retired. _------59 41 EXTENSION OF REMARKS Ministers .• _._------25 75 Teachers.----- __ ------______86 14 Newspaper and radio ______38 62 Students_------_------__ _ 81 19 OF Occupa~io~ not given and (b) Economic assistance to Europe?· orgamzat10ns .. _-----.----- _- 29 71 Total replies __ ------38 62 liON. SAM COON Professionals. _____ ------23 77 Attorneys ______------.-- ____ _ 38 62 Public office holders and Fed- Business, industry, and sales- OF OREGON eral employees. ______44 56 men .. ____ -----______31 69 Retired. __ ·----_.-_------37 63 Farmers ______------__ ----- 33 67 IN THE HOUSE OF REPRESENTATIVES Teachers ______. ______--- 25 75 Housewives.------44 56 Students ______-----• 12 88 Labor------35 65 Friday, February 18, 1955 Question 2. Should women quallfied for Ministers ______54 46 social security be eligible for benefits at Newspapers and radio ______43 57 Mr. COON. Mr. Speaker, on-April30, age 60? Occupation not given and or- 1953, I introduced a joint resolution en­ Total replies •• --·-·------·--- __ 68 32 39 61 Attorneys ___ ------______-_. ------49 51 35 65 titled, "To Designate the Lake To Be Business, industry, and salesmen ______60 40 . Pfo~~~~~;~~:~~======Public office holders and Fed- Formed by the McNary Lock and Dam in Farmers-----______----_ •• -----.------52 48 eral employees ______41 59 Housewives•••• _-- ____ ._._------63 37 Retired._------__ _ 32 68 the Columbia River, Oreg., and Wash., Labor___ ----·_-----___ ------__ ----•.• _ 78 22 •reachers ___ ------______52 48 as Lake Umatilla"; however this bill was Ministers ______------.------50 50 Students. ____ ----- __ __------38 62 Newspaper and radio ______100 0 (c) Military assistance to Europe? not acted upon. Today I am intro­ Occupation not given and organiza- 'l'otal replies._------53 47 ducing a bill asking that this body of tions._------__ ----- _____ . ___ _ 67 33 Attorneys __ ------______54 46 Professionals __ ------_____ .------53 47 Business, industry and sales- water be named Lake Aldrich as a me­ Public officeholders and Federal em- men __ ------48 52 morial to the late E. B. Aldrich, of Pen­ ployees ____ ---·-._------66 34 Farmers ______----______. __ 42 58 dleton, Oreg. This action is taken after Retired. __ ----____ ------·--- 62 38 Housewives. ______--. __ ---_-_- 30 70 Teachers ______••• ------75 25 58 a great deal of thought on my part. Labor_------Ministers. ______.: __ 42 Students. ______------79 21 61 39 The Umatilla Indians have been immor­ Question 3. Realizing the need for a strong Newspaper and radio ______43 57 national defE>nse, which do you prefE>r"? Occupation not given and or- talized in our State, as well they should (a) Extension of tbe present draft law: ganizations ______41 59 be, and it is unnecessary to name any­ Total replies. __ ------57 43 Professionals ______------57 43 Attorneys ______46 54 Public office holders and Fed- thing more for them in order to accom­ Business,men ______industry, and sales-. __ _ eral employees~------­ 48 52 plish this. The Umatilla Indians can 49 51 Retired __ ------43 57 never be forgotten in eastern Oregon. Farmers _____ ------____ ---- __ 50 50 'reachers. ______: ______40 Housewives ______Students. ______. ____ _ 60 Lahor. ______• __ • __ 56 41 65 35 The West is loaded with Indian 57 43 Question 6. Do you favor continuation of- names, practically every State has coun­ Ministers. __ ------_.------85 15 (a) 'l'echnical assistance to Asia? Newspaper and radio ______: 50 50 Total replies ______76 24 ties, lakes, and rivers named after the Occupation not given and or­ Attorneys ______------76 24 Indians but very few counties, lakes, or ganizations __.. ------­ 45 55 Business, industry, and sales- rivers are named after our pioneers. Professionals_-~ ------­ 56 « men.------__ ---- 75 25 Public office holders and Fed- Farmers ___ ------______------69 31 Those men and women who had the eral employees_._------­ 50 50 Housewives.------70 .30 fortitude to make this wilderness and Retired.---_.------.--- fi4 46 Labor_------65 35 Teachers •• ---._---_._--- ~-- __ _ 60 40 Ministers ______sagebrush country into one of the most Students ______•••• __ 85 15 55 45 Newspaper and radio ______i5 25 productive areas in the world. I think (b) Universal m'llitary training: Occupa~ion. not given and 42 5R orgamzat10ns .. __ ------. ___ _ it is high time that we publicly recog­ 'l'otalAttorneys replies.----- ______------_ 63 37 42 58 Professionals __ ------­ 80 20 nize these fine men and women who Business, industry, and sales- Public office holders and Fed- men ... __ ------.------47 53 eral employees ______69 31 made the West what it is today. R e tired ~ ______• ______Farmers ...••. __ • ______.--___ _ 32 68 54 46 The lake which I am asking be named LaborHousewives.------____ -----______38 62 Teachers __ ------______85 15 for Mr. Aldrich came into existence 50 50 Students. _____ ------82 18 Ministers_------11 89 (b) Economic assistance to Asia? largely because of his efforts. Ed Ald­ Newspaper and radio ______50 50 Total replies ______46 54 rich was untiring in his work for the Occupation not given and or- Attorneys ______------_ 40 60 ganizations .• - ~ ____ . ______44 56 Business, industry, and sales- civic welfare. He has left in the North­ Professionals_------____ _ 43 57 men __ ___ ------______42 58 west, monuments as great as the pyra­ Public office holders and Fed- Farmers ___ ------____ ---- __ 41 59 eral employees.------47 53 Housewives ______------44 56 mids. It was he who was head of the Retired. ___ ._------_ 54 46 Labor ___ ------44 56 organization that made the first survey 41 Ministers ______------•reachers_Students ___ ------______-_ 59 64 36 of the Columbia River for its potential 45 55 Newspaper and radio ______43 57 Question 4. Do you believe that our pres­ Occupation not given and powers. It was Ed Aldrich who went to ent foreign policy program is proving organizations ______44 56 Washington and lobbied a few hundred effective and promoting world peace? Professionals. ______44 56 •rota! replies._------____ ------55 thousand dollars for the first Army en­ A ttomeys .. ______- ___ - ____ .. __ ----- 45 Public office holders and 52 48 Federal employees ______59 41 gineers' survey. As a result of that sur­ Business, industry, and salesmen.••••. 55 45 Retired_.------40 60 Farmers.------•••• -- 39 61 Teachers. ______••• ______vey numerous locations were found along Housewives._ •• _••• ___ ••• _. __ •••• _•• __ Students. __ .; ______66 34 51 49 40 60 the river for damsites. The final result l808 CONGRESSIONAL -RHCORD- HOUSE February 18_ of that survey is Grand Coulee and Bon.. as I was, with the story of eftlclency whicq from irrigation. To those farmers in neville, and now McNary Dam. Ed \\fas is carried on page 885 of that weighty docu­ this area who were not equipped to irri.. ment. I note that mail volume is expected the man who turned the first spade in to increase another 3 percent in 1956 over gate their croplands, this drought meant these gigantic enterprises. the current year and this increased volume, the loss of an entire year's work, the Mr. .Aldrich was a stanch, energetic, ·like the increases which have preceded it, hardship and privation of at least a year and active Democrat ail of his life. I will be largely absorbed by the employees with no income, the necessity of deplet.. was born, have lived, and will always of the postal service. I don't think it is ing their investment and retirement sav­ be a Republican. Therefore it may ap­ at all unreasonable that these employees ings, and in some cases, complete failure. pear strange to some people that I would expect to be paid for their increased em­ To those farmers in the 615,000 acre area ci~mcy. That is a standard operating pro­ sponsor legislation to immortalize this cedure in private employment and might served by the Colorado-Big Thompson man's name. Politics has nothing to do well be adopted by our Federal Government. project, the drought of 1954 was a chal­ with it. Mr. Aldrich loved eastern Ore­ Last year in announcing the withholding lenge that could be met and beaten. gon just as I do, and no one man has of his approval of the postal and Federal Because this project water was available, done more for his community than he employees• salary increase, the President nearly normal farm production was at­ did during his lifetime. He and I may stated in effect that his action was pre_di­ tained by these users. Had the project have differed often as to what we ca'ted upon the fact that no postal-rate in­ crease was provided to pay for the salary water not been available, less than one­ thought was good for our people, but I increase and that the bill failed to contain half a crop would have been harvested; never doubted his sincerity, his loyalty provisions for a reclassification of postal and tr.anslated into _dollars and cents, to country, or his integrity, and I am positions. Insofar as a rate increase is con­ the value of this project water was $22 certain that he never doubted mine. I cerned, I believe that the question of proper million. believe that the vast majority of the salaries for the employees of the postal serv­ Weather Bureau officials predict the people who benefit from this lake, and ice is a matter entirely independent of postal record-breaking drought will continue the project which formed it, will sub­ rates and that there is no justification what­ ever for tying these two questions together. throughout 1955, but the· people within scribe wholeheartedly to the sentiments With respect to the need or desirability the area served by the Colorado-Big which I have expressed today, and will of a reclassification of postal positions, pos­ Thompson project know they will have be with me i~ .asking Congress to make tal employees with whom I am familiar and over 300,000 acre-feet of water, brought into law the bill which I am now intro­ who have an adequate knowledge Qf the from the other side of the Rocky Mowl­ ducing. problem have convinced me that 'the pro­ tains, available to meet their needs. posal of the Postmaster General as con­ tained in the bill H. R. 2987 is at least as SUCCESS AND FAILURE Postal Salary Increases unsatisfactory as the proposal of last year The rich agricultural lands served by and I cannot help but believe that the only the Colorado-Big Thompson project, an way a solid reclassification of postal posi­ area half as large as the State of Dela­ EXTENSION OF REMARKS tions can be arrived at is to refer this matter ware, slope eastward from the foothills OF to a joint committee composed of Members of both -the House and the Senate, with rep­ of the Rockies in the northeastern part resentatives of the Post Office Department of Colorado. Intensive irrigation de­ HON. EARL CHUDOF~ and the employee organizations. I am con­ velopment in this area during the half­ OF PENNSYLVANIA fident that such a committee would arrive century between 1860 and 1910 brought IN THE HOUSE OF REPRESENTATIVES at a solution which would do justice to the the inevitable over-appropriation of the public, the Post Office Department, and the Friday, February 18, 1955 available natural stream-flow, and employees. growth of these facilities reached a stale­ Mr. CHUDOFF. Mr. Speaker, under For these reasons, Mr. Chairman, I hope the committee will report the bill H. R. mate. The Colorado-Big Thompson leave to extend my remarks in the REc­ 1592 at an early date so that justice for postal project was initiated in 1938 to overcome ORD, I wish to include the following employees may no longer be delayed. the problem. . statement submitted by me to the House This project is one of the most complex Post Office and Civil Service Committee and spectacular the Bureau of Reclama­ in support of an adequate and realistic tion has ever undertaken. For many salary increase for postal workers: Value of Irrigation , years, the .14,000-foot granite barrier of Mr. Chairman and ladies and gentlemen the Continental Divide presented an in­ of the committee, I greatly appreciate this surmountable obstacle to the dream of opportunity of presenting my views on pend­ EXTENSION OF REMARKS tapping the water-wealthy headwaters ing legislation to provide much-needed and OF region of the Colorado River, which lay well-merited increases for employees in the only a few miles to the westward. Amer­ field service of the Post Oftlce Department. HON. A. L. MILLER ican ingenuity and energy went to work. I had the pleasure last year of support­ OF NEBRASKA ing increases which, while admitted small, The Divide was pierced by a tunnel 13.1 would have given at least some measure of IN THE HOUSE OF REPRESENTATIVES miles long, more than 9 feet in diameter, relief to these employees and I regret that Friday, February 18, 1955 and sloping gradually from west to east this legislation was given a pocket veto by in order to carry the diverted water by the President. Mr. MILLER of Nebraska. Mr. gravity flow from West Slope to East I hope that this committee, after consid­ Speaker, under -leave to revise and ex­ Slope. eration of the bills before you, will find it tend my remarks, I am calling to your After emerging from the east portal possible to report the bill H. R. 1592, by attention the value of irrigation to the of the tunnel, th~ diverted waters drop Congressman MoRRisoN, of Louisiana, and I future growth of our country. nearly 3,000 feet down the mountain hope that action will be taken promptly so Last year a drought much worse than that, in the event a further veto results, the slopes, spinning the turbines of hydro .. Congress may have the opportunity to over­ that which caused the Dust Bowl in the electric plants on their way into 2 ma­ ride such veto. thirties parched the lands of Colorado jor storage reservoirs to be held until I am sure I don't have to remind the mem­ and surrounding areas. Soil moisture needed on the farmlands below, and bers of this committee that it has been content had shrunk to approximately sending out 179,000 kilowatts of criti­ almost 4 long years since postal employees 15 percent of normal; precipitation aver­ cally needed electric power to large areas have received a salary increase. As I recall aged about 50 percent of normal; natural it, the last increase granted was effective in Colorado, Nebraska, Wyoming, and July 1, 1951, and we now lack only 4 months runoff from the usually abundant snow­ Kansas. of the co_mplete 4 years during which time pack in the mountains dwindled to 40 · Although the project was not yet com­ postal employees have received no increases percent of normal, and the streams fed pleted in 1954, the major portion of con­ whatsoever, while the salaries of those in thereby became trickles. Crop failures struction had been finished when the private industry have been increased twice and financial ruin seemed inevitable, and irrigation season began. The system and in some cases three times during ·the prayers for rainfall went unanswered. was ready to serve some 400,000 of the same period. Northern Colorado is normally a rich, I am sure I don't have to remind this 615,000 acres which ultimately will be committee that postal employees generally fertile, and productive agriculture basin. served when construction is completed have earned an increase at this time. All Its economy and well-being depend al­ in 1956. Total cost of the finished proj­ of us that have had the opportunity to most entirely upon agricultural crops, ect will be $159.8 million. look at the budget for the fiscal year ending which, in turn, depend upon the water Unlike flood-control projects of the June 30, 1956, must have been impressed, supply from natural precipitation and Corps ·of Engineers an'd public works 1955. tONGRESSiONAL RECORD- HOUSE 1809 projects of other departments of the trol, stream-pollution abatement, recrea .. postal service pay. Such an increase is Government, irrigation and recrama­ tion, and fish and wildlife propagation. overdue not only in justice to the postal tion projects pay back the· major share The cost of these nonreimbursables is employees but also for the sake of long­ of their costs with revenues realized more than compensated by the addi­ range economy in the handling of mail. from the sale of water and hydroelectric tional Federal tax revenue created by Postal employees need a salary in­ power. In 1954 alone, sale of power from reclamation. Based on a sample study crease to give them as much real income the Colorado-Big Thompson project of 15 selected reclamation projects, in­ as they received prior to World War II. brought in a gross revenue of $2.8 mil­ dividual income taxes paid directly by Since 1939 such factors as the increased lion, and it is quite safe to assume that irrigation farmers and by persons di­ cost of living, higher income taxes, and this annual income will increase yearly rectly affected by the project were esti­ larger deductions for retirement have as the project is completed and the mated at $800 million. Corporation and combined to reduce the purchasing pow­ functions expand. excise-tax revenues collected from the er of many classes of postal workers. In FAU.URE AVERTED same area total nearly $500 million. spite of a series of pay increases, the This storage water meant the differ­ Cost of these projects totaled $269 mil­ most recent of which took effect in July ence between success and failure to these lion. In other words, Federal taxes col­ 1951, the average postal worker's take­ Colorado farmers. What might have lected have exceeded the Federal invest­ home pay today buys less than it did 15 been in 1954 without project water at ment in irrigation features in these proj­ years ago. This is especially true for hand can best be appraised by com.par­ ects by about five times. supervisors and other employees in the ing what did happen with the effects of Now let us take a look at irrigation higher-income brackets. the worst previous drought year in the and reclamation expenditures from the In the past decade and a half the pay same area, 1934. In most respects, 1954 standpoint of their justification in our of the largest groups of postal workers presented greater handicaps to success­ budget. Many billions of dollars have has tended to increase less rapidly than ful crop production than did the 1934 been spent for flood control, harbors and the pay of production workers in private season, and estimates based on 1934 docks, and agricultw·e conservation pay­ industry. A year ago the Postmaster losses provide a conservative· view of ments. This money is not returned to General submitted to the Committee on what might have happened in 1954. the Federal Government. I have no Post Office and Civil Service information In 1934 crop yields totaled approxi­ arguments against these projects, for I indicating that between 1939 and 1953 mately $19 million. feel they are an essential part in build­ the average weekly earnings of all full­ In 1954 crop yields from lands irri­ ing a greater America for ourselves and and part-time unskilled and skilled gated under the project totaled $41 our posterity. workers in manufacturing industries­ million. However, the comparison should be up to and including lead foremen-rose Translating this $22 million differen­ drawn so that all will know that the at a considerably faster rate than the tial into terms of buying power, mul­ biggest share of money appropriated for earnings of regular clerks and letter car­ tiplied by the number of similar irri­ irrigation and reclamation projects is riers. In addition, it is generally agreed gation projects sprinkled throughout the returned to the Federal Treasury. that the salaries of executive-level em­ 17 reclamation States, and the impact The Corps of Engineers has spent, ployees in the pos~al service have lagged upon our ·national ·economy is terrific. since its inception, more than $7.245 behind the salaries of top-management , Practically all manufacturing, trade, and billion on water-conservation and flood­ staffs in private enterprise. ·transportation involves agricultural control projects-nearly 4 times the total To the extent that differences between commodities; an irrigation water short­ spent on irrigation and reclamation. postal salaries and pay in private in­ age ·affects the entire economy. Money spent by the Corps of Engineers dustry result from the fact that Federal is nonreimbursable. Government employees cannot apply cer­ BENEFITS UNLIMITED Total Federal investment in irrigation tain economic pressures-for example, Irrigation has contributed directly to and reclamation projects is about $2.2 strikes-available to workers in private the building of cities, to the development billion. It should not be forgotten, how­ industry, Congress has a special obliga­ of fertile acres, to the homes of more ever, that local citizens have been active tion to view generously the postal work­ than 35 million Americans who supply partners-paying partners-in each of ers' needs. nearly half of the entire Nation's demand the projects, and repayment contracts Adequate postal service pay . contrib­ for choice .vegetables and truck crops; are negotiated before work on the project utes to long-range economy in the han­ to the development of a $40 billion an­ is started. dling of mail through attracting better nual retail market, averaging $1,139 per Reclamation is paying its own way. employees, reducing turnover, and im­ capita-retail sales for the Nation during The crops produced on these projects proving the efficiency of people on the the same year averaged $1,023 per per­ add very little to our present surpluses. job. Little question exists as to the son-and to the development of a new We never seem to have enough vege­ value of increased pay in the recruitment outlet for the products manufactured in tables and fresh fruit to meet our diet and retention of qualified staff. Al­ our bustling industrial areas of the requirements. These products, together though salary constitutes only one of sev­ East. with alfalfa and sugarbeets, essential to eral factors affecting whether or not a What has this new market, this new the livestock industries, are the principal person takes a job, the Nation cannot development, this growth of our dynamic irrigated farm crops. They are not on reasonably expect good workers to ac­ country cost the American taxpayer? the surplus list. cept or remain in positions in the Post Money spent by the Department of De­ Our investment in irrigation and Office if they can earn more money or fense during the month of January reclamation has paid special dividends. have more opportunity for advancement would pay for all reclamation since it We should continue to invest in this field in similar employment outside the Gov­ was started in 1902. as long as there are feasible projects to ernment. When postal salaries fall too Money spent to finance our foreign aid be developed. low, the Post Office must employ less program for 6 months would pay for all efficient workers and devote excessive reclamation since it was started in 1902. time .and energy to the training of re­ On the other hand, money spent placements. on reclamation during :fiscal year 1953 Need for Postal Service Pay Increase While we hav~ yet to develop methods would have financed the Department of for measuring wi.th precision the effects Defense less than 3 days, or the foreign EXTENSION OF REMARKS of pay-levels on the efficiency of workers assistance program or the Veterans' OF who remain on the job, commonsense Administration less than a month. suggests that services to the public will Actually, the cost to the Federal Gov­ HON. DANIEL J. FLOOD suffer when postal workers must secure ernment is negligible. Money appropri­ OF PENNSYLVANIA additional part-time employment, put ated for power aspects of the projects is IN THE HOUSE OF REPRESENTATIVES their wives to work, or borrow excessively paid back to the Treasury with interest. to meet their normal living expenses. Money appropriated for irrigation as­ Friday, February 18, 1955 It is worth noting that of 800,000 postal pects is paid back without interest. The Mr. FLOOD. Mr. Speaker, I am and civil service employees surveyed by only outlay from the Treasury is for non­ grateful for the opportunity to testify the executive council of the American reimbursable features, that ~s. flood con- on behalf of the proposed increase in Federation of Labor last year, about half 1810 CONGRESSIONAL RECORD - _HOUSE February 18.

had outside jobs; am~ about 40 percent panic prevented the raising of the money had set in after. the Civil War continued, of those who were married had wives 'needed to get the second $25,000 install­ dropping to 30 in 1868. Fraser, differ­ who worked. · ment from the State. ing with the trustees on policy, resigned. Last year Congress approved an ad­ . The first students who arrived on Fraser's innovations in starting justment in the salaries of postal em­ February 16, 1859, found only one wing courses in technical subjects as well as ployees, but the form of the adjustment of the school building completed. Liv­ in agricultural science and in abandon­ failed to satisfy the President of the ing conditions at first were crude: light­ ing the requirement of student labor on United States. This year no barrier ing was by lard-oil lamps and construc­ the farm were dropped by his successor, must stand in the way of the needed tion shacks converted into dining halls Thomas Henry Burrowes. increase in pay. were cold and drafty. Burrowes, making fun of the "parade There were few books in the library of the long list of 'ologies,' 'anomies,' and and apparatus for instruction in science 'ographies' which grace some cata­ was negligible. Stuqents worked 3 hours logs," restored the emphasis on agri­ Pennsylvania State University, at State daily on the school farm and at such culture and turned his .students out to College, Pa., Will Observe Its lOOth tasks as clearing stones from the campus work the farm as provided for in the and making the main building livable. Birthday on February 22, 1955 college's charter. , Pugh an·ived to assume the duties of A popular State figure and for years president 9 months after the school term a lep.der in the . establishment of the EXTENSION OF REMARKS opened. A native Pennsylvanian, he had common-school system, Burrowes suc­ OF conducted a boys' academy before de­ ceeded in checking the enrollment de­ HON. JAMES E. VANZANDT ciding to go to Germany to study. At cline and in winning friends for the col­ the time he was chosen to head the lege. He talked up the college in OF PENNSYLVANIA school he was in England where he had speeches over the State and instituted IN THE HOUSE OF REPRESENTATIVES spent 2 years in agricultural research. a Harvest Home which in its second year Friday, February 18, 1955 Wholly dedicated to the idea of educa­ in 1870 attracted more than 2,000 per­ cation of the founders of the school, sons to the campus. Mr. VANZANDT. Mr. Speaker, Tues­ Pugh worked without stint to put theory day, February 22, will be an important into practice, to win support from over · After Burrowes' de~th in 1871, the day in the history of the Pennsylvania the State, and to get money from the trustees brought in James Calder, of State University when the centennial of General Assembly. Hillsdale College in Michigan, as the new the Nation's 11th largest university will In spite of the disruptions of the Civil president. He remained 9 years. be observed. War, Pugh graduated his first class of 11 In his first year Calder secured the Established under an act of the Gen­ students in 1861, won an appropriation permission of the trustees to open the eral Assembly in 1855, the Pennsylvania from the General Assembly and com­ doors of the college to both sexes with­ State University this year celebrates its pleted the main building in 1863, and out distinction as to qualifications or centennial with a program emphasizing secured for the school recognition as the privileges, and six women attended its services to the Commonwealth during land-grant college of Pennsylvania un­ classes in 1872. 100 years of educational advancement. der provisions of the Morrill Act signed Calder's administration also saw a The movement for establishing the in­ by President Lincoln in 1862. change in name from the Agricultural stitution, first called the Farmers High Pugh and the school's trustees were College of Pennsylvania to the Pennsyl­ School of Pennsylvania, was started by backers of Representative JuSTIN S. vania State College, enlargement of the farm leaders who realized that progress MoRRILL in his efforts to get Congress to board of trustees to include represent­ in agriculture involved the application pass his bill, and in anticipation of suc­ atives of the alumni and of: the State's of scientific methods as well as labor and cess changed the name of the Farmers manufacturing industries, -and amend­ fertilizer. High School to the Agricultural College ment of the charter to drop the student­ Thus they planned a school that would of Pennsylvania early in 1862. labor rule. give instruction in the sciences bearing Weakened by overwork, worries and an A growing emphasis on classical stud- on agriculture and that would operate an injury suffered in an accident, Pugh died . ies and neglect of the scientific, agri­ experimental farm on which the students in 1864. The next 20 years were to be a cultural, and mechanical arts. studied led would do all the labor. period of drift and disillusionment dur­ to growing criticism that the college had At the time the project for combining ing which the college had five presidents lost sight of the goals of the founders practical and theoretical education was who put into effect different programs in and was not living up to the Morrill a startlingly new concept. Dr. Evan futile attempts to stabilize the institution Act. Pugh, the school's first president, ·de­ so precariously started in 1855. Calder resigned to be succeeded by J o­ scribed it in his inaugural address: The problem was developing a pro­ seph Shortlidge, head of a boys' school We are here for the avowed purpose of gram that combined practical and theo­ at Concordville. Shortlidge did not get trying an experiment which has never been retical training. Since this goal of edu­ along with the trustees, his faculty, or successfully performed in any country in cation was almost entirely new, there students and resigned after 9 months. the world. were no models to go by. Pugh's early Not since the school's beginnings had Four years after the Governor signed description of the school as an experi­ the fortunes of the school been at such the charter, the school opened its doors ment was too true. A lot of experi­ a low ebb, Gov. Robert E. Pattison him­ to 69 students.in an incompleted building menting had to be done before a success­ self remarking that- rising from the fields of Centre County. ful formula could be evolved. The past history of the State agricultural Those 4 years had been marked by dis­ Pugh was followed as president by Wil­ college is not such as to induce the belief couraging setbacks. The trustees had liam H. Allen, head of Girard College. that· any practical good has or ever Will contracted for a 5-story building costing. Allen fought off before the legislature come from it. $55,000 to accommodate 400 students. efforts of other State schools to be In addition to a State appropriation named land-grant beneficiaries and ob­ But though no one realized it at the of $25,000, they had in cash $10,000 re­ tained permission for an $80,000 loan time the college was at a turning point. ceived from the Pennsylvania State Agri­ for the college to pay its debts. The trustees chose as the new president cultural Society, $10,000 raised by Centre Allen left to his faculty the job o.f George W. Atherton, head of the political County residents, and $5,000 willed by a working out an instructional program $Cience department at Rutgers Univer­ Philadelphia benefactor. The school was that, to comply with the Morrill Act, sity. He was to head the institution for located on 200 acres donated by James should include training in the "mechanic 24 years of steady growth. . Irvin of Bellefonte. arts.'' But discouraged by the school's Against a proposal of the governor The legislature promised an additional prospects, he resigned in 1866 and re­ that the college's faculty be cut in half $25,000 if the trustees could raise a turned to Girard College. and that the course of study be made matching sum by subscription through­ His Successor was John Fraser, who exclusively- agricultural, Atherton was out the State. had headed the faculty committee work-· able to persuade the trustees that the The building was costing more than ·ing on the reorganization of the cur­ school's future depended upon develop­ expected and crop failures and a money riculum. ne enrollment decline that in!?i a pr<,>gr~In: i~ the mechanic arts. -.- .,.- 1955 CONGRESSIONAL RECORD- HOUSE 181f Within a few years the wisdo·m of his by 17,000 alumni and friends of the col-­ Reporting on the campus plant in 1954. program was seen. The college's enroll­ lege. Eisenhower said that the buildings were ment picked up, reaching 244 in 1892. In Besides the building program, the valued at $66 million, and that 58 per­ 1887 Atherton won a $100,000 appropria­ Thomas administration saw the estab­ cent, or $38 million, was new construc­ tion from the legislature for new build­ lishment of a graduate school and a tion since 1946. seventy percent of the ings and by 1892 the State had spent school of education, a reorganization of new construction was accomplished $305,500 for new buildings and $102,000 the school of agriculture and the forma­ without the use of tax money. for equipment. · tion of a school of chemistry and physics For many years there had been a A few years later, in 1896, fulfillment from the former school of natural growing sentiment that since the Penn­ of the goals of the founders and of the science. When Thomas resigned in sylvania State College was a university Land-Grant Act was seen in the reorgan­ 1925, the college's enrollment had reach­ in size and in the broad scope of its work ization of the college into 7 schools­ ed 3,854 students. the word "college" in the name should School of Agriculture, School of Natural The new president, Dr. Ralph Dorn be replaced by the word "university." Science, School of Mathematics and Hetzel of the University of New Hamp­ This was accomplished in the fall of Physics, School of Engineering, School shire, headed the institution during the 1953. of Mines, School of Language and Liter­ boom days of the late 1920's, the depres­ Under Dr. Eisenhower, the onetime ature, and School of History, Political sion of the 1930's and the war and post­ Farmers' High School of Pennsylvania Science and Philosophy. war readjustments of the 1940's. enters its second century as the Pennsyl­ A college spirit was also developing. Two large-scale building programs vania State University-the 11th largest School colors were chosen in 1887 and took place during the Hetzel adminis­ institution of higher learning in the Na­ a school song in 1901, the first inter­ tration and a third was planned when tion. collegiate football game was played in he died in 1947. The first received its In its 100-year span the institution 1887, a yearbook was begun in 1889, a impetus from President Thomas' drive has .awarded 53,000 degrees, beginning student handbook appeared in 1895 and for funds. When it ended in 1932, the with 11 granted in 1861. The institu­ a weeldy student newspaper was started college had spent about $5,500,000 for tion now grants about 3,000 annually. in 1904. buildings. The second, from 1937 to It has seen its student body increase Toward the close of Atherton's admin­ 1939, involved the expenditure of about from 119 to 14,000 and its faculty from istration trustee Charles W. Schwab $5 million by the general State author­ 4 to 1,400. Its research program has donated money for an auditorium and ity. grown from a few dollars spent on trustee Andrew Carnegie money for a The depression was a difficult period nursery stock to one costing about $6 library building. Other new buildings because of cuts in appropriations for million annually. Through its exten­ at this time included a men's dormitory, maintenance and teaching, and World sion program, its instruction is now given a dairy building and a main agricultura1 War II meant a greater tax on Hetzel's on a campus that may be considered building. administrative and leadership powers. statewide. When Atherton died in 1906, the presi­ Adopting a year-round schedule, the The untried experiment of the found­ dent of the board of trustees, former college trained thousands of soldiers, ers of the institution in 1855 is now Gov. James Addams Beaver was chosen sailors, marines and aviators in special acclaimed a resounding success, as evi­ acting president. Beaver saw the en­ programs requested by the military denced by the following accomplish­ rollment grow within 16 months from services; put in special courses for train­ ments of which Penn State is proud: 800 to 1,151. Beaver turned over the ing women for work in industry; gave The first use of the practicum method administration of the college in 1906 to instruction to more than 140,000 civilian of instruction on a wide scale, 1866. Dr. Edwin Erie Sparks, University of workers in extension classes held over The first soil fertility experimental Chicago historian. the State; and carried on extensive re­ plots in the United States, 1881. The No advocate of the ivory-tower theory search to meet the needs of the war only prior fertility plots were in of education, Sparks embarked on a pro­ effort. Rothampstead, England. gram of enlarging the college's services At the war's end the college was faced The first correspondence instruction to make them statewide. His oft­ with a stack of 22,853 applications for in agriculture. Chautauqua home read­ repeated slogan was: "Let us carry the admission to classes, most of them com­ ing courses begun in 1892. Formal cor­ college to the people." ing from veterans. respondence courses begun 1898. He fought for funds for setting up an The need was met by utilizing every The first organized extension instruc­ extension division, getting his first ap­ useful nook and cranny for class and tion in mining in the United States 1893- propriation for this purpose in 1913. laboratory space, by using war-surplus 94. First mining bulletin published Though a strong supporter of the col­ materials for emergency dormitories and January 1, 1894. lege's practical education program in classrooms, and by overloading profes­ World's first respiration calorimeter agriculture, engineering, and technol­ sors with classes and students. for domestic animals, 1902. Prior ones ogy, Sparks urged more courses in the These devices were those adopted by were adapted for use with human beings liberal arts. As a result of his efforts, all colleges and universities to handle only. the present School of Liberal Arts was swollen enrollments, but Penn State de­ The first college forestry building in formed in 1909. veloped another that received nation­ the United States-Fergie's woodshed. The steady progress of the college wide attention. 1906. educationally was disrupted by the This device was that of enrolling first­ The first formal training program in entrance of the United States in World and second-year students at Penn State industrial engineering, 1908. War I. It made major contributions to centers, at the State teachers colleges, the war effort, training 1,500 Army and and at private schools in order to make The first establishment of student Navy trainees in the Students' Army space available on the campus for up­ gardens as regular practicum training Training Corps, in addition to regular perclassmen studying professional and 1909. students enrolled in military science techn"ical subjects. Twenty-two schools The first mineral industries experi­ and tactics; turning over laboratories cooperated with Penn State in this pro­ ment station, 1919. and scientific equipment to wartime re­ gram. The first organized curriculum in fuel search; and dedicating other resources After Hetzel's death in 1947, James technology, 1931. of the college to boosting civilian morale. Milholland, president of the board of The first institute of local government His health broken by his own war trustees, served as acting head of the in the United States, 1935. efforts Sparks resigned in 1920. His suc­ college until the election of Dr. Milton The first organized curriculums in me­ cessor, Dr. John Martin Thomas, of S. Eisenhower as president in 1950. teorology, mineral economics, mineral Middlebury College in Vermont, launch­ Milholland started the long-range preparation engineering, 1946. ed an immediate program for more building program that was designed to The first climatometer for studies in buildings desperately needed because of meet the college's needs for the enroll­ dehumidification, 1948. the cessation of construction during the ment increases predicted for the post­ The first department of biochemistry war. war period. This was a $10 million pro­ accredited by American Chemical Soci­ In a 2-year drive for building funds, gram to be carried on under the general ety's committee. on professional training, the college secured $1,727,272 in pledges State authority. April 26, 1950. 1812 CONGRESSIONAL RECORD-· HOUSE - The first establishment of a foreign that issues in this field can be alleged upon, and the Italian Government and the training center by an American institu­ to have acquired partisan overtones does American mission accepted his appoint-· tion for industrial education, Formosa, · not contribute to the building of unity ment-in fact, eagerly approved it. Mr. W in our Nation at this critical time. I further reports that his loyalty and security June 1, 1953. check came through. At the final moment The first conference of insurance buy­ have engaged in lengthy correspondence· when Mr. w was all prepared to leave, h ad ers held on a university campus~ 1953. regarding the question of partisanship obtained a passport and doctor's certificate, Pioneer work in chemical engineering. in FOA without bringing the matter to he was not appointed. He was informed that A course in industrial chemistry was the attention of the ·congress. Only be- all the clearances necessary ·could not be taught in 1890. cause of the complete failure of the FOA obtained but was given no indication of Pioneer work in safe-dr iving instruc­ to provide a satisfactory reply, do I now which clearance was withheld. feel compelled to make the situation I have suggested to hhn that perhaps an- tion. The first driver-training course known. other candidate with equal or higher qualifi­ for high-school students was taught in cations may have been selected for the post- the State College High School in 1933. As a member of the International tion and that this might have accounted for The first training course for teachers of Operations Subcommittee of the Govern- the last-minute decision by the Foreign Op­ safe driving was offered during the sum­ ment Operations Committee last year, erations Administration. However, Mr. w mer session of 1936. numerous allegations of systematic pa- insists that he was the only candidate for Pioneer conference of dentists and tronage clearances in the Foreign Opera- the job at the time, which was proven by the · t t' b t t fact that no one was appointed to fill the oral surgeons, March 15-17, 1943, which t ions A d minis ra Ion were rough o position for several months after he was led · to the founding of tlie American· my attention. As a result, I introduced turned down. Academy of Cleft-Palate Prothesis, April an amendment to the Mutual Security Mr. w has submitted to me a statement 4, 1943, wnich in turn became the 4-meri­ Act. prohibiting the application of politi- of all his allegations regarding the facts of can Association for Cleft-Palate Reba-_ cal tests or criteria in the filling of non- this case, and they go much further than I bilitation. policy positions in FOA. While my have done in this letter. However, the prin-. Only mineral· industries art gallery in amendment barely failed in the House, cipal assertion he makes is that the sole rea­ the world, established 1930. a similarly worded amendment intro- son he was not appointed to the technical duced by Senator HUMPHREY carried in assistance project was the fact that he is a Only mineral industries museum in member of the Democratic.Party. Pennsylvania, established 1930., the Senate and through conference and I am a very firm supporter of the technical Only university in the world offering is now a part ·of Public Law 665, 83d cooperation and foreign-aid programs and courses in Pennsylvania German lan­ Congress, 2d se~sion~ believe they constitute one of our really posi- guage, culture and folklore, 1946. At about the same time as I introduced tive answers to . Communist propaganda. I Only institution in Pennsylvania giv­ my amendment, I wrote to the Director believe that the technical assistance program ing work in home economics leading to of FOA about a fellow New Jerseyite who is an outstanding example of America's free the Ph.D. degree. · had come to me and had called to my world leadership. It therefore disturbs me greatly that members of my party are appar­ Only institution in Pennsylvania giv­ attention an example of what he felt was ~ntly discriminated against in appoint- ing work in hotel administration. unwise and unjust personnel practice in ments to nonpolitical technical assistance · Only home economics resear ch ·ce11ter FOA. I . quote my letter to the Director. projects. ' It ·is my -recollection that under in Pennsylvania. Incidentally, I · have deleted the gentle_. the previous Democratic administration, the Largest enrollment in home economics man's name for obvious reasons: first two Administrators of ECA were mem- in the State, at both undergraduate and I am writing you with respect to a fellow bers of the Republican Party. It i-s my un- graduate levels. . · derstanding that every Administrator from New Jerseyite, Mr. W., who was formerly in Mr. Hoffman to Mr. Harriman has conducted Largest enrollment of nonhome eco­ the employ of the Foreign Operations Ad-:- h nomics majors in any land-grant insti­ ministration. Mr. W. has business connec- t e technical assistance program free of par- tisan considerations in the appointment of tution in the United States. tions in my district an_d was in to see me personnel. I am absolutely convinced that World's largest water tunnel-Garfield with respect to a -private matter. During this is the correct policy, not only because Thomas Memorial Water Tunnel, test the course of ou;r conversation he relayed a technical assistance should not be a partisan chamber 14 feet long, .4 feet in diameter; story to me which sounds fantastic. It is program but also because it seems to me to as follows: · dedicated October 7, 1949. ·. On December 12, 1952, Mr. W., left for The be the most efficient way to obtain'top quali- Largest engineering, science, and fied personnel. If Mr. W's statement that management defense and war training Hague, Netherlands, as a $50-a-day con- systematic political tests are now conducted sultant for the Foreign Operations Admin- as part of· personnel practice in the Foreign programs, 1940-45-155,000 enrolled. · istration. The original arrangement was for Operations Administration, I believe we in One of the largest university film li­ 3 weeks' work as marketing consultant to the the congress should ·know about this fact. braries in the East, established 1941. Dutch Government. At the conclusion of the Such a practice would, of course, cut there- Largest flower test gardens in the 3 weeks, Mr. W.'s appointment was extended cruiting potential for technical assistance United States; first -approved by All­ for a 3-month period, ending ,April 1, 1953. projects in half and would, therefore, make America Selections Committee for test­ At the end of this period the appointment for less efficient operation of the Adminis­ ing of new flower varieties before they was renewed for 2 more .months, to June 1, tration. 1953; and then there was a ~hird extension go on the market, spring 1941. · to July 1, 1953. At the conclusion of this I do not believ~ Mr. W desires the position A low-temperature laboratory second time, Mr. W. returned to the United States. mentioned above · any longer. This letter, only to that of the United States Bureau I understand that during his stay in the therefore,' is no ~ about his personal situation of Standards. Netherlands Mr. W. worked 6 days. a week ' b·ut r~~her about t~e general p·ractic~s of and many more than 8 hours a day in his your agency. · efforts to help the Dutch in. improving their You will · note that this letter stated marketing techniqpes. I -am enclosing . Forei~ Qperations Administr~t~OJ:i _ mimeographed copies .of the letters of .com- that in this case"all necessary clearances mendation received from a few Dutch organi- ':had been obtained for Mr. W's appOint­ EXTENSION OF REMARKS zations which would -indicate that Mr. W.'s ment, but that for unspecified reasons - OF - stay in the Netherlands was highly sue- he was not appointed to a technical as- cessful. . sistance job which had no political as­ HON. HARRISON A~ WILLIAMS, JR. . Mr. W reports that sometime during July pec.ts. In response to the letter quoted he was approached by an official of the For- OF- NEW JERSEY eign Operations Administration and asked ·above I received a letter from the For­ JN TH]l: HOUSE OF REPRESENTATIVES to take a job as marketing consultapt to eign Operations Administration which Friday, February.18, 1955· the Italian Government. He was personally indirectly implied that Mr. W. was not Mr: WILLIAMS of ·New Jersey. Mr. interviewed by a staff member of the Rome appointed because the position for which Speaker, I would like to call the atten­ mission who requested that the appointment he had applied ·had been abolished. 1 tion of the Congress to a matter which be made immediately. During the course of have strong reason to belfeve that was waiting for this appointment, which to Mr. W not th~ fact and that while the position -I believe has extremely important rami­ appeared to be assured, he took the highly fications. responsible step of attending a · language was not filled, recruitment for it contin­ Being a firm believer in a bipartisan school at his own expense to learn Italian. ued for many months after Mr. W. had foreign policy, I . regret that the situation The contract between him and the Italian been turned down. The question I raise I describe below has arisen. The fact Government was prepared; salary was agreed is this: If Mr. · \V's ·allegation· that he ,· 1955_ CONGRESSIONAL RECORD- HOUSE 1813 was not appointed because he is a Demo­ The implications of this exchange of Lincoln's Philosophy Lives On crat is not true, why did the Adminis­ correspondence are that if there were tration find it necessary to deviate from applications of political tests prior to the fact in replying to me and to· assert a passage of the amendment I sponsored EXTENSION OF REMARKS position which has not been and prob­ with Senator HUMPHREY last year, this OF ably cannot be ~ubstantiated? practice still continues, since no steps I answered the letter I received from have been taken to implement the no­ HON.THOMASH.KUCHEL FOA and I quote my reply of August 5 political-tests amendment. I submit OF CALIFORNIA below: that political tests were applied to ap­ IN THE SENATE OF THE UNITED STATES Thank you for your letter of August 3. I pointments before the passage of the Friday, February 18, 1955 must say I was somewhat disturbed by the amendment and that they have con­ fact that my" letter of July 6 remained un­ tinued to be applied. Evidence of this,. Mr. KUCHEL. Mr. President, I ask answered and unacknowledged for almost a in addition to the above-cited case of unanimous consent to have printed in month. Mr. W.-which, from the material the RECORD an address which I delivered . Apparently there is some mis_interpreta­ I have at hand, appears to be clear­ at the Lincoln Day luncheon in Los An­ tion as to the questions I raised in my cut-is the report by the Republican geles, Calif., on February 10, 1955. letter.. I specifically said that Mr. W. National Committee quoted in the Con­ There being no objection, the address was no longer interested in the position and, gressional _Quarterly of February 11 on was ordered to be printed in the RECORD, therefore, my question was whether or not as follows: his allegations were true. As you recall, page 132: he alleged that in technical assistance proj­ The largest number of placements (by LINCOLN'S PHILOSOPHY LIVES ON ~cts a systematic political patronage ar­ the Republican National Committee) have Across otir country this week, people are rangement prevailed in FOA. My question been made in the FOA ( 79) • meeting to commemorate the birthday of was, am I supporting a program which sys­ Abraham Lincoln, martyred American pres­ tematically discriminates against people who In a 6-month period, 79 people have ident who saved our Nation and emanci..: are identified as Democrats in obtaining po­ been-placed in the FOA by the Republi­ pated a race. His era in history was one of sitions of nonpolicy levels as well as on can National Committee. The fact that trouble and tribulation. But it was also one purely technical jobs under the technical a program exists to apply-political tests which beckoned to him to provide an un­ assistance program? to nonpolicy jobs is a· violation of the selfish and devoted leadership to a high cause, and he provided it to the benefit of I did not receive a reply to the above amendment I sponsored. The additional his country in full measure. His was a mar­ letter. On December 28, 1954, I again fact that the FOA has been the most lu­ tyrdom of sacrifice to the cause of freedom. wrote to the Foreign Operations Ad­ crative source· of patronage positions is Abraham Lincoln's words come hurtling ministration on this problem,· as fol­ further evidence · that laws are being down the years: "With firmness in the right lows: violated in spirit, if not in letter. as God ·gives us to see the right, let us strive I intend to present this material to on to finish the work we are in • • • to do As you undoubtedly recall, Senator HuM­ all which may achieve and cherish a lasting PHREY and I sponsored an amendment to the the Committee on Foreign Affairs and peace among ourselves and with all nations." Mutual Security Act of last year which made have merely submitted the record here, Mr. Chairman, our work remains unfin­ the provisions of section 1005 of the Foreign since I feel that the answers I have re­ ished, and our goal remains the same : peace Service Act applicable to the overseas per­ ceived from the FOA have, through their among ourselves and peace with all nations. sonnel practices of the Foreign Operations deviousness, been insulting not only to The burden of those labors is 'being borne Administration. This amendment carried me but to the Congress. today by a patient, devoted Christian leader, and is now part of Public Law 665; section During my recent trip abroad I gath­ dedicated, as Mr. Lincoln was, to peace at 527, subsection C (1). home-and throughout the world. With deep Would yo-u please advise me of the ad­ ered a great deal of information which religious conviction, with humility, and ministrative action you have taken to as­ shows that the continuation of this pa­ with native commonsense, President Dwight sure the implementation of this legal re­ tronage practice in FOA is having a se­ Eisenhower is presently engaged in arming quirement of your personnel practices. I rious impact not only on the morale of America morally, strengthening her economi­ would appreciate copies of any amendments overseas personnel but on the ability to cally and militarily, conducting her foreign or additions to manual orders which may recruit technical experts for service over­ policy skillfully and firmly, all in the for­ have ensued or administrative memoranda seas-a job which is very difficult even ward march toward the attainment of the to operating personnel which assure the selfsame goal which our Civil War Presi­ implementation of this amendment. under the best of circumstances. dent set for our Nation. I have discussed this matter with Senator In the near future the Congress will be Many significant changes have been HUBERT HUMPHREY, and he is also· vitally considering the continuation and, ac­ wrought in the past 2 years by our Govern­ interested in the question and would ap­ cording to recent statements, the expan­ ment in the conduct and direction of our national affairs. preciate a copy of your response to me on sion of vital economic and technical as­ I believe, and I have often said, that the this matter. sistance programs. I feel strongly that people of our country want clean, strong, I received the following response from such programs are imperative to t:he honest, American Government. Republicans the FOA, under date of January 12, 1955: United States position in the free world want it. Democrats want it. So do our in­ and to the preservation of freedom and dependent citizens. I can give you the as­ In response to your inquiry as to what surance, though I know you do not need it, administrative action this agency has taken democracy in the face of the widespread that that is exactly what President Eisen­ as a result of the application of section 1005 and unabating Soviet imperialist men­ hower and his administration are giving to of the Foreign Service Act to our overseas ace. all of us. personnel practices, we are pleased to ·in­ But to be successful our economic aid The record of these last 2 years is studded form you that we have not found it neces­ with examples of bipartisan approval of and technical assistance programs must presidential recommendations. This is true sary to take any spe9ific action by way of be administered with wisdom, courage, amendment or addition to existing manual both in the domestic field and in foreign orders. imagination, and -complete integrity. policy. It is a record which, I believe, will continue in the future. Section 1005 _of tne Foreign Service Act Congressional action can make success possible but only the best type of admin­ On some legislation of singular interest to provides in part that in the hiring of per­ California, I am always proud to remember ~onnel for overseas assignments "no polit­ istration will make it probable. And yet, that when the roll of Senators was called on ical test shall be required and none shall be as of this very moment there is within passage, Democrats joined Republicans in ,taken into consideration." Since it is the the FOA an office whose function it is approving our State's request, and we tri­ practice of this agency to select applicants to place Republican political nominees umphed over scattering but vigorous partisan for overseas employment purely on the basis and to apply political tests and criteria opposition. of professional qualifications, subject, of to all proposed appointments and nomi­ Aa a Senator from California, as well as course, to necessary security clearances, it a Senator of the United States, I am grateful has been felt that specific administrative nations. Such a breach of faith with the for this chance to summarize and highlight implementation of the prohibition in section Congress certainly failS .to ensure the a variety of actions that will further our 1005 against political discrimination was not kind of administration which is abso­ progress and brighten our promising future. required. Our key 'enipioyment personnel, to In the past year alone, Congress enacted lutely. essential the continuing success laws that protected the interests of our cot­ on the other hand, are fully-conversant with of ·our foreign aid programs and should ton farmers, whose crop now is California's the provisions of this section. no longer ·be tolerated. leading agricultural commodity; it cushioned 1814 CONGRESSIONAL RECORO.:.:.. HOUSE February 18. the impact on seriously congested schools in Executive ·has sttpplied the idealism and the phasis, but here- again we can be thankful scores of our communities where thousands intelligence to bring to more of our people a · for the e:l.{perienced counsel which the Chief of additional families were drawn by reason rising standard of living in this country of Executive can give as a military man. His of Federal activities and programs. It has free men and free government. recommendations include, among others, an contributed toward the solution of our con­ The cloud on the horizon is the world emphasis on modern airpower and new weap­ tinually pressing water problem, undeniably situation. ons, the· elimination of duplication and over­ a rnatter of greatest concern to our expand­ With the most painful and heartfelt re­ staffing, the acceleration of a program for· ing economy and development; and it has gret, the American people are aware that our own continental defense, and the build­ facilitated our commerce through improve­ there are those in the world who oppose free­ up of a military reserve. Incidentally, they ment of ports along the whole stretch of dom and who have been measurably suc­ include increases in compensation for service our coastline. cessful in stamping it out in great areas. personnel. When I tell you that only 15 As a sample of what has been done to Human slavery, in its most cruel form, is percent of the Regular Air Force personnel safeguard our lands and help us utilize our practiced today as a Government policy by are expected to reenlist when their present resources, let me cite part of the record of those countries chained down by Red com­ terms expire, I underline the importance of the 83d Congress: · munism. Their current activities, placed in increasing the attractiveness of peacetime Increased funds were appropriated to speed the background of their self-proclaimed de­ military service. the pace of :flood prevention projects in Los sires, are cause for sober concern by free Meanwhile, in existence or on the draw­ Angeles, the northern section of the bay_ America and by the free world. And it is to ing boards are weapons so appallingly de­ region, and in the lower Sacramento Valley. this question that I desire now to direct your structive as to chill one's imagination. In­ Dams were authorized to bring about attention. · ternational ballistic missiles-euphemisti­ greater use of waters in several widespread Basically, the American people today and cally termed IBM-will, we are told, travel areas of our State, for the benefit of farmers their Government concern themselves with across oceans at unthinkable speed, ad­ and city dwellers alike. the security of our Nation and an honorable dressed to targets thousands of miles away, Construction of additional distribution peace in our world. Perhaps ·never before with considerable precision and accuracy. systems was made possible, to carry benefits have they turned as soberly to the contem­ And while the science of destruction con-· of the Central Valley project to more farm plation of our Nation's needs to preserve tinues its deadly progress among the free areas in the central valleys of our State. freedom, as they have today. countries of the world, there is no question· The outlook for the future is encouraging. We live our lives in a whole new era. that international communism, with the Recognition of the continuing problem of Solving the problems of freedom in that era brains it has from varying sources at lts· our schools will be made in the present­ depends upon our acceptance and under­ disposal, likewise makes progress in this Congress and hearings on the rna tter are standing of the new energies which men of same field. now in progress in Washington. Progress will science have brought forth in our time. The Recently, the former Chairman of the be made in our water and power problems. needs of the American people in securing Joint Atomic Energy Committee said: In line with the recommendations of our their freedom must be, and have been, set in "Today, atomic and hydrogen bombs exist· Governor, I have introduced legislation for this background. · in growing numbers on both sides of the Iron the multiple-purpose Trinity-San Luis proj­ Several months ago I listened to Admiral Curtain. Today-not next year, or the year ect in northern California. Also, in conjunc­ Carney in Vallejo suggest that the Ameri­ after, but today-the Soviets have both the tion with colleagues in both Chambers, I can Navy is on its way to complete atomic bombs and the planes needed to launch a have proposed Federal assistance for the so­ power for its propulsion. Thus, since 1789, devastating nuclear attack against the cities called Tri-Dam project in San Joaquin and we have passed successively through periods of North America." a bill to assist the people of Ventura County of sailing ships, and steam ships, and diesel in efforts to satisfy their acute water de­ Listen to Winston Churchill as he com­ ships, to at_omically-propelled vessels. Our ments on current history: mands. gallant air force is expanding almost daily, As a member of the Public Works Commit­ and piston planes give way to jet-powered "Mankind has never been in this position tee I look forward to playing an active part aircraft. Whereas at the outbreak of the before. Without having improved appreci­ in shaping legislation to carry out a com­ Korean war the United States Air Force had ably in virtue or enjoying wiser guidance, it prehensive long-range highway program. but 42 effective wings out of a projected 70, has got into its hands for the first time the This measure will enable the Federal, State, it has today 121 effective wings out of a tools by which it can unfailingly accomplish and local governments to tackle the neg­ projected 137, a goal which will be attained its own extermination. That is the point in lected problem of expanding and moderniz­ before too many months have passed, with human destinies to which all the glories and ing roads of all types so our highway net­ the approval by the Congress to recom­ toils of men have at last led them. They' work may better meet demands of our high­ mendations of the administration. Our would do well to pause and ponder upon ly mobile population. airmen have long since penetrated the sonic their new 1·esponsibilities. Death stands at The Federal Government, at long last, has barrier, and one of their experimental planes attention, obedient, expectant, ready to become an ally in the fight against a menace has :flown 1650 miles per hour, and how serve, ready to shear away the people en which endangers an increasing · number of much faster is the Defense Department's masse; ready, if called on, to pulverize, with­ communities, air pollution. Just this month secret. An American airman has :flown to an out hope of repair, what is left of civiliza­ President Eisenhower again acknowledged altitude in excess of 85,000 feet, and again tion. He awaits only the word of command. that the complex problem of checking and, it is a secret how much further up he may He awaits it from a frail, bewildered being, we hope, ultimately eliminating smog, re­ have gone. The United States Army and long his victim, now-for one occasion only­ quires positive participation by national the Marine Corps likewise have entered upon his master." agencies. They will make a tremendous con­ a modern atomic posture of readiness and There you have a glimpse of the back­ tribution chiefly in the field of scientific mobility, testifying, without equivocation, ground in which nations of the world may research and should speed the efforts already to our determination to safeguard American decide upon the course to follow in dealing under way in various metropolitan areas. I · security. with one another. And it is against that shall endeavor to broaden the program of Every citizen of this country and his fam­ background that the American people must Federal assistance in this field, and I feel ily may give eternal thanks that the Com­ determine the course of their own policy as hopeful that aid will be forthcoming to clean mander in Chief of our defense forces is an respects our neighbors. Our Government is up the atmosphere in the cities and towns unselfish and enlightened leader devotedly seriously concerned with such a question, of California and across the Nation. dedicated to peace in the world, partly by and the Senate, and the House of Represen­ Production and employment are increas­ reason of his own experiences over an al­ tatives as well, have sat in judgment upon ing on a broad front. President Eisenhower most entire lifetime as a skilled professional phases of it these past several weeks. has prophesied that, within a decade, our soldier. On January 24, President Eisenhower sent current annual production level of three In his state of the Union message to the to the Senate and the House a message in hundred and sixty billion dollars will in-. Congress early in January, the ·President of which he reiterated that this country's basic crease to five hundred billion or more, ex­ the United States again stated that our na-· goal is safeguarding the security of the. pressed in dollars of the same purchasing tional goals continue to be a just and endur-: United States by establishing and preserving power. ing peace, and a realistic worldwide limita­ a just and honorable peace. He then de­ In the first 2 years of the present adminis­ tion of the implements of war. "We main­ scribed, in considerable detail, the serious tration, Federal appropriations have been tain powerful military forces," he said, "Be­ and darkening situation in the Straits of reduced, Federal personal income taxes and cause there is no present alternative-they Formosa. Suffice to say here, since 1945 the excise taxes were cut, the excess-profits tax are forces designed for deterrent and defen­ islands of Formosa and the Pescadores have was repealed, governmental controls on oosi­ sive purposes, able to strike back with de­ been occupied by the Republic of China, a ness were abolished, and 1954 was one of the structive power in response to any attack." loyal ally of the American people. Com­ best years, economically, in our history. The defense plans of the United States have munist China, which incidentally still in­ We've made magnificent strides in the field been under the personal direction of_ the carcerates innocent American citizens, an­ of human rights and equal dignity among President after his own long and contempla­ aounced its determination to invade anc\ our people in a fashion that would make tive study. His recommendations for our conquer these islands and bring them Abe Lincoln proud of us. In this free re­ country's defense will, I prophesy, be given under the aegis of Red Chinese communism. public of ours, the brotherhood of man be­ the same bipartisan congressional approval The President emphasized the importance to comes an increasingly accepted ·standard of in 1956 as they were these last 2 years. There the American people that these islands re­ decency, and the leadership of our Chief are a few orofessional disagreements on em- main in friendly hands·. He requested the 1955 CONGRESSIONAL RECORD- HOUSE Congress to adopt a resolution authorizing the parties will be regarded by each• signa. I addressed the convention, assembled him to employ our Armed Forces as he might tory nation as dangerous to its own peace deem necessary to secure and protect these ' and safety. In such contingency the par· in Convention Hall at Atlantic City, N.J., islands against armed attack. ties agree to meet the common danger in on the subject of The Challenge to Public What, my fellow citizens, is the lmpor· accordance with their constitutional proc· Power, reviewing the efforts undertaken tance to the American people of Formosa eases. They also agree to consult on meas· during the past 2 years by the present and the Pescadores? In the words of the ures for their common defense whenever the administration to eliminate or destroy President of the United States, those islands, territory or integrity or political independ­ the public power program in the United in unfriendly hands "would seriously dislo· ence of any of the'm is threatened other States. I had the honor of being intro­ cate the existing, even if unstable, balance, than by armed attack, which might endan· duced by my old friend, Lee Wooden, of of moral, economic, and military forces upon ger the peace of the area. Thus it is indi­ which the peace of the Pacific depends. cated to communism that its techniques of Jewell, in Clatsop County, Oreg., the It would create a breach in the island chain internal subversion would be dealt with ef­ president of the Rural Electric Coopera­ of the western Pacific that constitutes, for fectively. If communism fails to understand tive Association in our own State. the United States and other free nations, anything but force and might, then com­ Mr. President, I ask unanimous con­ the geographic backbone of their security munism is forewarned that retribution lies sent that my address to the delegates structure in that ocean. With that, the in store for it for breaching the peace in attending the National Rural Electric Joint Chiefs of Staff of the United States the future. Cooperative Association be printed in the agree." This is the foreign policy of the Govern­ I want to recall the words of another great ment of the United States. We have now RECORD. American citizen who was a guest of the added a mutual defense treaty with Nation­ There being no objection, the address people of Los Angeles a very few days ago. alist China. The SEATO treaty in Southeast was ordered to be printed in the RECORD Speaking to the 82d Congress on his trium· Asia balances our NATO treaty of mutual as follows: ' phant return to our couJltry, Gen. Douglas security in Europe. It is a policy based THE CHALLENGE TO PuBLIC PoWER MacArthur described the Pacific Ocean as a upon coming into firm agreement of those vast moat to protect the United States as who, like ourselves, love freedom. It is (Address by Senator RICHARD L. NEUBERGER, long as we held it. He spoke of a chain designed to deter Communist aggression and of Oregon) of islands in the Pacific which constituted the onslaught of Communist slavery. It is One of the great moments of my career for Americans a protective shield. It was an enlightened policy of our own self-in­ was to stan$1 with George William Norris, his powerfully-stated conviction that a terest consistent with our goal of freedom the father of public power in America, when breach in that littoral defense line by an un­ and of peace. There are some in California he saw Bonneville Dam for the first time. friendly power would make vulnerable each and some in the Nation who, for varying He watched the Columbia River surging in­ remaining segment of it. And then he said, purposes, oppose this policy. They are a exorably through the Cascade Mountain "Under no circumstances must Formosa fall vociferous minority and they are wrong. Range, before it thundered over the spillway under Communist control. Such an even­ For my part, my friends, I shall continue of the long, low dam. tuality would at once threaten the freedom to support that policy as it is carried out "I don't think you people in the North· of the Philippines and the loss of Japan and by the President of the United States. west realize what a marvelous resource you might well force our western frontier back When Abraham Lincoln was about to be­ have in this wonderful river," said Uncle to the coasts of California, Oregon, and come President of the United States in 1861, George. "Is there any other bounty which "fN ashington.'' and as he was traveling en route to Wash­ produces so much good for mankind and yet In the considered judgment of such Amer· ington, he made a statement to 'the Ameri­ never diminishes in quantity?" lean patriots who are qualified to speak, can people which I repeat as I conclude: George Norris is gone now, and the public Communist occupation of Formosa and the "If the people shall be lost, it is little to power program which he helped to build Pescadores would seriously endanger the se­ any one man • • • but a great deal to the confronts a major crisis. Yet many times I curity of the people of the United States • • • millions of people who inhabit these have thought of what he $aid. What other and would undermine the cause of peace. United States, and their posterity in all com­ resource can light farms, turn factory wheels The resolution was debated in the House ing time. It is your business to rise up and and operate businesses and, at the same of Representatives and it passed almost preserve the Union and liberty for your­ time, continue in as great an abundance unanimously with only three Members op­ selves, and not for me. I appeal to you as ever before? posing it. It was debated at considerable again to constantly bear in mind, that not The lighting up of rural America was born · length in the Senate. All manner of amend­ with politicians, not with presidents, not of the same forces that started major ments were offered to delimit or restrict the with otnceseekers, but with you is the multipurpose projects. The first real elec· President's responsibility. I listened to question: Shall the Union and shall the tric co-op came into being under TVA. To· those Senators who advocated restrictive liberties of this country be preserved to the day about 300 of the 1,000 REA's receive all amendments or who advocated, indeed, no latest generations?" or part of their power supply from Federal resolution at all. I listened also to the dis. Mr. Lincoln answered history in the power projects. Truly, rural families have tinguished Democratic Senator WALTER F. affirmative. So must we. a tremendous stake in future resource poli­ GEoRGE, chairman of the Foreign Relations cies, not only because of potential power Committee, who urged the adoption of the supply but because of the great i~pact of resolution exactly as the President had rec­ TVA and Bonneville on the rates of private. ommended it. On the basis of all the back­ power companies. ground and of the Senate debate, I say to The Challenge to Public Power When Bonneville and TVA were started, it the people of my State of California, there was like dropping a pebble into a pond of was only one course in my judgment to high-power-company rates. The effect of an pursue in the cause of American security EXTENSION OF REMARKS abundant, low-cost power supply was imme­ and peace in the world. That was to uphold OF diate and far-reaching. The public-power the recommendation of the President of the yardstick was felt in ever-widening circles, United States. And the Senate did uphold HON. RICHARD L. NEUBERGER forcing down the padded rates in adjacent the President's recommendati'on, and did so OF OREGON areas. overwhelmingly. For 20 years, the United States Govern· Th;us, for all the world to see, the Presi­ IN THE SENATE OF THE UNITED STATES ment promoted a program to make the dent of the United States and the Congress, Friday, February 18, 1955 rivers of America. the servants of the people. representing the American people, have taken I use the term advisedly. I live in a State an unequivocal position. It is a position in Mr. NEUBERGER. Mr. President, on where only 27 percent of our farms had line with our basic foreign policy and com­ February 16, 1955, it was my privilege to electricity in 1933. By 1952, this figure had pletely in consonance with our American address the annual meeting of one of soared to 98 percent. It is practically im­ goal. the most useful groups in our Nation­ possible to measure this gain other than in That action was followed a few days later the National Rural Electric Cooperative terms of increased creature comforts, greater by overwhelming ratification in the Senate purchasing power, a higher standard of liv­ of the Southeast Asia collective defense Association. This is the organization ing. These are the only proper measure· treaty. By that commitment the United which has done so much to bring the ments. States, together with Australia, New Zea· blessings of electricity, with an attend­ Mrs. Neuberger's mother, Ethel Kelty land, Great Britain, France, the Philippines, ant higher standard of living, to hun­ Brown, is one of the farm women who had Pakistan, and Thailand, combined to create dreds of thousands of farm families in no electricity until the programs were begun a protective network of mutual defense, to rural America. which symbolize the work of the National promote security and to strengthen the Other Members of Congress, of both Rural Electric Cooperative Association. fabric of peace in Southeast Asia and the Mother Brown has told me what it was like Southwest Pacific. This treaty is designed great political parties, who spoke to this to live on a farm without power. It meant to deter aggression, which means Commu­ highly successful meeting were the Sen­ no refrigeration for the food which was nist aggression, in that area of the world ator from North Dakota [Mr. LANGER], cooked. It meant doing that cooking on a by warning potential a~gressors that an open the Senator from Tennessee [Mr. GoRE], wood stove, with· the women splitting kin­ armed attack upon the tenitory of any of and Representative H. R. GRoss, of Iowa. dling while the men were at their chores. 1816 CONGRESSIONAL RECORD-. . HOUSE February 18 It meant hand-washing farm clothes­ 4. So--called wheeling agreements 'with 1n different guise. ana other settings. Yet al­ which get excruciatingly dirty--:on a cor• utility corporations have given them control most half ~ century ago, Theodore Roose­ rugated washboard. It meant carrying a of the power supply in many areas. ·velt and his illustrious Chief Forester, Gif­ Coleman lantern from room to room at night 5. Attacks upon the public-power prefer­ ford Pinchot, confronted a Hells Canyon when children were sick. ence clause have imperiled the electric sup­ pl'Oblem of theit; own. -1 ply of rural electric co-ops and other non­ POWER CHANGES FARM LIFE Utility companies were grabbing off power profit systems. sites on the mountain rivers of the west. Electricity on the farm has changed all . 6. A nationwide barrage of propaganda, Although the Nation had recently set aside this. The vast majority of the farms of our some of it stemming from the Wh~te House the forest reserves, no legislation existed for country have power today because of the and executive departments •. has sought to the specific protection of these hydroelectric Federal power program, because of the indict such undertakings as the Tennessee power sites. Let Pinchot describe what hap­ Rural Electric Administration, because of Valley Authority and Bonneville as "creeping pened, in his autobiography Breaking New the watchful vigilance and persistent cru­ socialism." Ground: sading of groups like the National Electric 7. A so-called partnership with private "A certain number of forest-ranger sta­ Cooperative Association. And all this ben­ utilities has been proposed, whereby these tions were applied for ·which were needed less efit has occurred without diminishing the companies would. monopolize the revenue for rangers than to give the Government a natural resources of America. The late J. and energy at Fed·eral power p~ojects. temporary hold on some power site and pre­ D. Ross, first administrator of Bonneville, I emphasize the partnership because it vent the power octopus from sucking it in. used to call that dam "an oil well which will r.epresents today the spearhead of the current • • • Some of these ranger stations we de· never run dry, a coal mine that will never attack upon public power. The word "part­ liberately located -on water power sites, in thin out. • • •" nership" peppers the President's budget mes­ order to insure some forin of government Although I am only (sic) 42 years old, I sag.e. It is an appealing word. Yet what control. • • •" come before you today as a man who has .kind of a partnership is it? It is a partner· Contrast this action by Teddy Roosevelt seen the public power program revolve in a ship in which the Government relinquishes and Gifford Pinchot with the shameful re­ full cycle in my region, the Pacific North­ to private monopolies the powerhouses at linquishment of Hells Canyon by the present west. Federal dams, while the Government con­ masters of the American Government. I witnessed the program begin a little more tinues to finance the nonreimbursable fea­ Roosevelt and Pinchot contrived extra-legal than 20 years ago. It was a bipartisan pro­ tures, such as fish ladders, floodgates, and machinery to save these power resources for gram-a program advanced by. far-sighted navigation locks. future generations. They relied upon a sub· men in both major political parties. By THE MONOPOLY PARTNERSHIP i;erfuge. This national ;:tdmin~stration re· every possible standard, it was a success. We had a partnership in operation. It fuses to use the mach.inery long ago created As you know, electricity was brought to the wasn't this kind of partnership. It was a for the purpose-it seeks to hasten the aban­ farms, and at rates which the farmer could legitimate partnership between the Govern­ donment of Hells Canyon, John Day, Green afford. Industrial payrolls came next, and ment and its citizens. Clyde T. Ellis, your Peter, and other sites. this meant a steady market in town for the executive manager, described this partner­ Nor can this be called ln any sense of the farmer's crops. Although the Pacific North­ ship in a masterful address which he deliv· word a partisan issue. Theodore Roosevelt west has historically lagged behind the rest ered a year ago last month at your 1954 con­ and Pinchot were lifelong Republicans. The of the Nation in manufacturing, its expan­ vention in Miami. Mr. Ellis referred numer­ program which this administration has jet· sion led the land during the first decade ous times to the Federal-local partnership, tisoned was, in. many of its concepts, a pro­ that Bonneville power was available. Be­ under which kilowatts were being sold at low gram originated by Republicans of the past­ tween 1939 and 1948, the national increase cost to whatever distributing agency the resi­ Roosevelt, Pinchot, Hiram Johnson, Norris, in manufacturing employment was 284 per­ dents of a particular area preferred. ~orah, McNary, and many others. In my cent but in the States of Oregon and Wash­ It might be a municipal system as in Seat· ow:r;t State, I am a Democrat, but thousands ington it was 329 percent. Furthermore, this tie. It might be a private power company of Republicans, on farms and in the cities program has been ·generously paying for it­ as in Portland. It might be a public utility ~ssured me that they were loyal to a publicly self. Indeed, the annual reports of the In­ district as in Clark County, Wash. It might motivated program of resource development terior Department actually admit that the be a rural electric co-op as in Benton and that had its roots within their own party. Columbia River power program is far ahead Lincoln Counties, Oreg. These various meth­ Under this administration, engineering of the amortization schedule in repayments ods of distribution represented the demo­ and scientific knowledge have been bent to to the Government. cratically chosen preference of the men and political whims. The 308 report of the And auxiliary benefits of incalculable women living in that part of our Nation. United States Army Corps of Engineers is value were occurring simultaneously. In They made the choice without interference the master plan for development of the 1933, the year Bonneville Dam was started, by politicians in either the State capital or Columbia River Basin. Surely if the Army a mere 85,000 tons of cargo moved upstream the National Capital, and then the Federal ever errs, it is on the conservative and cau­ into the reaches of the upper Columbia River. power system made available energy from the tious side. But the 308 report recommends In 1953, the · tonnage was 1,375,000. This dams constructed on key river networks. without reservation the erection of a high was merely a bonus from the power pr·o­ This was a bona fide partnership, as Clyde multipurpose Federal dam in Hells Canyon. gram. And what are we to say of the thou­ Ellis made clear. But what is proposed to­ Yet this national administration assures sands of irrigated homesteads now being day as partnership is no partnership at all. us that the 308 report is wrong at Hells Can­ wrested from the arid upland desert near It is monopoly and special privilege. For at yon. Of course, the 308 report, according to Grand Coulee, homesteads where ex-GI's and least 50 years, a private stranglehold will be the administration, is right at Libby Dam their families are making a new start in given legal sanctity at a great power site, and up along the Canadian border, where the life? there will be nothing that the men and prospects for construction are so clouded by I stress these benefits that have taken place women in that area can do about it, through international disputes that no private power in my own part of the country because I can half a century of time. company covets the site. So, here, the ad­ be a little more poignant, a little more We are told the abandonment of public ministration is willing to promote a Federal dramatic, a little more specific about it. power is necessary in the name of Ameri­ dam. How can the same engineers, with These things I have seen with my own eyes. canism. Yet the preference clause, which the same transits and the same diamond I was at Grand Coulee when the world's big­ safeguards the power supply of our rural drills, be wrong on the Snake River and right gest dam was started. I saw the first water electric co-ops, goes all the way back to the on the Kootenai River? It is as if a patient gurgling through canals amidst the sage­ administration of Theodore Roosevelt and told his doctor that the doctor was fight brush and tumbleweed. I saw the first trans­ the Reclamation Act of 1906. I refuse to about one lung, but wrong about the other. mission lines stretching out across the waste­ believe that the man who led the Rough INTERIOR POLICIES THREATEN REA'S land like a steel-legged centipede. Riders up San Juan Hill was a creeping So­ cialist. The inclusion of the preference One of the serious blows suffered by REA's CALCULATED SCHEME STOPS PROGRAM clause in the Bonneville Act was principally under the new policies was abrogation of This was a program dedicated to the wel­ the work of Senator Charles L. McNary, of 40-year contracts between the Interior De­ fare of the United States, yet you of the Oregon. Does the present administration partment and cooperatives in the southwest. NRECA know what has happened to that want to accuse of socialism the man who was As a result, the REA's were threatened with program. In 1953, the present national ad­ Republican minority floor leader in the the bankruptcy or high rates, or loss of their. x:ninistration stopped it-deliberately, cal­ United States Senate for well over a decade? independence. As you know, the original culatingly, grimly. In the barrage of propaganda being fired destruction of the continuing fund vital to these contracts was put through by a former The onslaught has occurred on many at the people over the l!ells Canyon ques­ Senator from Oregon. I assure you the new fronts: tion, these overtones of patriotism again Senator from Oregon will do everything in 1. Appropriations have been reduced for appear. Is it patriotic to abandon the great· his power to undo the damage. agencies devoted to the wider use of low-cost est hydroelectric site left on our continent to the absentee-dominated corporation, Other corrective measures are also neces­ power. sary, especially against the conspiracy to 2. Key waterpower sites, like Hells Canyon, which will tap only a segment o! the avaiJ­ able kilowatts? rewrite the formula for allocating power have been pledged by the administration to costs to make the price of ·Federal power as private power companies for piecemeal, high­ PLAYBACK OF HISTORY high as pr-ivate power. cost development. Historians ten·us that no issues are really ·I cite these things to indicate how politics 3. New Federal starts have been choked off. new. They all have arisen -'?ce!~~:=p_:rhaps __ and _ greed are intruding into p1·ograms 1955 CONGRESSIONAL RECORD-· 1-IOUSE 1817 which, until the last year or so, were· decided ton, Idaho, and that country. We shouldn't agencies were enlisted to support the power by the needs of the American people and not ask for power to be subsidized by the people company. The pattern included such offi­ by the selfish desires of 1 or 2 utility corpo- in New England." cial statements as that of the then secre­ rations. · Now if anyone should realize that this is a tary of the Federal Power Commission. This ATTACK BY STEALTH plain and outright misrepresentation, it gentleman said a dam at Grand Coulee-and As you are well aware, REA funds have should be Secretary McKay. In the first I quote-"would involve an excessive initial been cut but not abolished by Congress. place, his own annual report for 1953 de­ investment", which, he said, it was "ex­ You have been successful in maintaining clares (at p. 326) that "the repayment (on tremely doubtful could be secured for the reasonably adequate loan funds and serv­ Bonneville) is substantially in excess of purpose from any resource." This official ices during the past 2 years. But this was scheduled requirements." As a former Gov­ went on to say of Grand Coulee that the to be expected. It was forecast at your first ernor of Oregon and as a resident of the FPC license to the power company would be annual convention by the late George W . Northwest, the Secretary ought to know that granted only for a period of 50 years. "If Norris. He said: "The attack upon REA will . the great Government power projects on the at the end of that time or even before, it not be an open assault. The attack will be Columbia River are returning to the Treas­ should become evident that the high dam by stealth and treachery because REA is too ury not only the original investment in would be a desirable step, the net investment popular to be attacked openly." hydroelectric facilities, but also interest and of the Kettle Falls development could read­ I don't own a crystal ball, ·but occult operating costs. ily be absorbed by the Grand Coulee devel­ powers are not needed to predict that the Consider the repayment record on the opment." And, he added, "further inves­ Hoover Commission will probably recom­ Bonneville Dam project alone. The Govern­ tigation of this plan does not seem to be mend that REA-as you now know it-be ment has invested $128,549,822 in construc­ necessary." abolished. Out of respect for your political tion costs and operating expenses for Bonne­ It was not until June 23, 1936, that the potency, . they will try to put forth some ville Dam. Although its full span of gen­ FPC issued an order formally denying the plausible substitute like a Federal. REA cor­ erators -have been in operation only 11 years, Kettle Falls dam permit-nearly 14 years poration forced to borrow money from bank­ the project has .put $48,825,959 into Federal after Washington Water Power made its first ers at high-interest rates, and run by a coffers from sale of power. In fact, the move to block Grand Coulee construction. board of directors and not by the Congress, whole Bonneville system-marketing the I detail this background only for purposes which is now REA's board of directors. output of all Federal dams on the Colum­ of comparing some of the developments in bia-has collected gross income of $340,- the Grand Coulee and Hells Canyon fights. THAT FEDERAL POWER MONOPOLY 565,589 through the sale of kilowatts. On June 9, 1947, the Army Corps of Engineers For nearly 2 years, the administration has Yet these fiscal fa.cts are not known today announced a public hearing would be held on defended its abandonment of the Federal throughout the Nation. The other day I plans for development of the Middle Snake power program by contending that the Na­ engaged in a brief and friendly debate on River. These plans included Hells Canyon tion was in dire peril of being suffocated by the floor of the Senate with Senator NoRRIS Dam, which was a key part of its famous a Federal power monopoly. CoTTON, a fine Republican Senator from New 308 Report on Columbia River development. Secretary McKay has uttered this warning Hampshire. He was of the opinion that our Thirteen days later, the Idaho Power Co. on many occasions. At McNary Dam on dams in the Northwest are a drain on the applied to the Federal Power Commission for September 23, 1954, the President himself taxpayers of his State. In other words, the a preliminary permit for a new run-of-the­ warned against Federal operation of "a propaganda put out by Mr. McKay and others river dam at Oxbow site, some 35 miles up­ gigantic, overwhelming nationwide power has taken root. Senator CoTTON does not stream from the Hells Canyon site. Grant­ monopoly." realize that the Columbia River projects ac­ ing of the Oxbow license would forever bar On November 4, 1954, Budget Director tually, in the long run, will be an ultimate construction of Hells Canyon Dam, but Rowland R. Hughes warned against com­ source of financial profit to the Federal Gov­ would preserve the barony which. the Idaho mitting the country to "a policy of establish­ ernment. And I know he is not aware of the Power Co. holds in Idaho. ing a nationwide power monopoly." innumerable products manufactured in New Since the Oxbow application. was filed, the Yet this entire argument was refuted by England-products like alarm clocks, lee battle has raged on. We have seen spokes­ the President in his state of the Union mes­ boxes, stoves, washing machines, and shoes-­ men for Government agencies and company­ sage of January 6, 1955, when he flatly de­ which have· been purchased because thou­ front groups pressured to back the com­ clared to the Congress that "Federal hydro­ sands of rural folks in the Northwest have pany scheme, just as in the days of Grand electric developments supply but a small a higher standard of living and increased Coulee. Hells Canyon Dam and the whole fraction of the Nation's power needs." purchasing power through the abundant and plan. for full development of the Columbia On this occasion, the President definitely low-cost electricity made available to them Basin was hit hardest by action of Secretary asserted the true facts. Only about 13 per­ on their farms. of the Interior Douglas McKay in withdraw­ cent of the energy used in the Nation is gen­ THE BETRAYAL AT HELLS CANYON ing his Department's opposition to the erated by the Federal Government. Approx­ Oxbow license. . imately 6 percent spins off the turbines of The adage that history repeats itself was As recently as last spring we, in Oregon, municipal systems, and the remaining 81 never more dramatically brought home to heard the Secretary repeat that the Federal percent from private utility corporations. me than when I was asked a year ago to budget was too precarious to start new dams. What is monopoly-13 percent, or 81 per­ review a book detailing the fight to build He was especially insistent about expendi­ cent? Grand Coulee Dam, called Hail Columbia. tures for Hells Canyon Dam, although when Yet for months the American people were This book, written by George Sundborg, a campaigning in the Colorado River Basin he told solemnly by their highest government · former Northwest newspaperman, impressed never mentioned this fiscal situation. In officials that they couldn't have any more me with the deadly parallel between the Oregon, it was like listening to a hollow dams like Grand Coulee, Shasta, and Bonne­ fight for Grand Coulee and our present day echo from the corridors of history-shades ville because of the imminent dangers of a struggle for Hells Canyon Dam. of that former FPC secretary who said Grand Federal power monopoly. Mr. Sundberg could not have had the Hells Coulee involved "excessive initial invest­ Wasn't it Bernard M. Baruch who said Canyon case in mind when he wrote the book ment." that every man had a right to be wrong as because he started the work before the Hells McKay never mentioned that, although to his opinions but that no man had a right Canyon struggle commenced. Grand Coulee has had its full quota of gen­ to be wrong as to his facts? But the situations are such close parallels erators in operation only since 1951, it has they might have been poured from the same SUBSIDIZED POWER; ANOTHER MYTH paid into the Federal Treasury over $51 mold-like the Gold Dust twins that used to million toward retiring an eventual power Ever since the present national adminis­ adorn the soap flake boxes. debt of $221 million. tration went into office, a conscious and de­ Kettle Falls was a place on the Columbia liberate effort has taken place to convince tuver about 117 miles upstream from the POWER-COMPANY SLOGANS REVIVED the people of America that the energy gener­ proposed Grand Coulee damsite. In Mareh The parallel between Hells Canyon and ated at Federal hydroelectric projects does of 1921-just after the appropriation had Grand Coulee is significant. It shows that not pay for itself. These projects are por­ been secured to core-drill the Coulee site­ the situations and the arguments are not trayed as vast drains on our national Treas­ the Washington Water Power Company be­ new. The ideas espoused by the Interior ury. gan to show interest in Kettle Falls as a site Secretary on Hells Canyon were merely re­ For example, Secretary of the Interior Mc­ for development. On June 20, 1921, a con­ vived from the Grand Coulee fight. It would Kay appeared on the CBS Capitol Cloak Room tract for exploratory drilling on the Grand appear that the public-opinion formers TV program October 23, 1953. This colloquy Coulee site was awarded. Ten days later, thumbed back through their book of tricks took place between him and Mr. Bill Costello, Washington Water Power filed an applica­ and slogans to pick out the present-day one of the CBS panel: tion with the Federal Power Commission to arguments. Mr. CosTELLo. "Well, it's your philosophy, construct a dam at Kettle Falls. The Kettle But what if the arguments used by McKay then, that the citizen generally should not Falls dam, located in the proposed Coulee and other administration spokesmen had pay the cost of keeping power rates low but reservoir pool, would have lopped off a hun­ prevailed in the embryo days of Grand that the individual consumer should pay the dred feet from the height of Grand Coulee­ Coulee? What would have happened to the actual cost of producing that power." with consequent reduction of a million energy which activated the Hanford works Secretary McKAY. "That's right. I don't horsepower in the big dam's power output. and made plutonium available for our knock­ think it's right to subsidize power out in my A long public debate ensued in which out punch in World War II? Where would country-for instance in Oregon, Washing- spokesmen for a number of Federal and State the power have come from for the aluminum 1818 ·coNGRESSIONAL. RECORfi:!..: 'liOUSE Feb.ruary 18_ to make 50,000 planes a year for our Nation's proaches, and he wonders what new mes­ philosophy, a, philosophy suited for our times defense? , How would we have started to sage he can bring his audience. and the Nation's manifold problems of the wrest from the desert 15,000 farmsteads for In this latter mood, back in Washington a day. ex-GI's and others in the Coulee region? few days ago, and thinking of Abraham Lin­ As modern Republicans, we believe with Fortunately, the views of those who ridi­ coln, whom we honor tonight, 90 years after Lincoln that "the dogmas of the quiet past culed Grand Coulee as a "white· elephant" his death, my eyes fell on a newspaper clip­ are inadequate to the stormy present. And, did not prevail. As a result, America has ping I keep below the glass on my desk. It's as our case is new, so .must we think and act been a better and more secure place in which a prayer which James Reston of the New anew." to live. There were men of vision, integrity, York Times reprinted in his column some And President Eisenhower, while holding and courage-men like George Norris, of Ne­ months ago. Let me read it to you: fast to the fundamentals of our American braska, and Tim O'Sullivan, from the plateau "God give us men! A time like this demands system of government which our opponents of eastern washington-who were willing to Strong minds, great heart, true faith, and sometimes forgot and still forget, is thinking carry on in the face of ridicule, deception, ready hands; and acting anew as we come to grips with the and pressure. To prevent the warmed-over Men whom the lust of office does not kill; sometimes bewilderingly complex problems arguments of the 1920's from being used Men whom the spoils of office cannot buy; we face. against the public-power program today, we Men who possess opinions and a will; It is ·significant that our President has so must keep alive their traditions of battle. Men who have honor; men who will not lie; often quoted Lincoln's famous statement on They knew not the meaning of surrender. Men who can stand before a demagogue the nature of government: nor did they compromise Y/hen faced with And damn his treacherous flatteries with- "The legitimate object of government is discouragement. to do for a community of people whatever out winking; they need to have done, but cannot do at all, Many of you may feel that the picture of Tall men, sun-crowned, who live above the the moment is bleak. But you should feel · fog or cannot so well do, for themselves, in their optimistic and proud. You have been in the separate and individual capacities. In all In public duty and in private thinking. that the people can individually do as well front Jines, blunting the attack. You have God, give us men. Amen." been hurt in some areas but not beyond for themselves, government ought not to recovery._ As I read those lines again one night last interfere." It is a far road from a damsite on a tribu­ week, they gave me one part of the message And Dwight Eisenhower has added to that tary to the Columbia where Norris stood that I want to bring to you tonight: statement his own-one which I venture to day long ago, with the fine spray drifting into The Republican Party can be eternally suggest will one day become as famous: his face. The prophecy and admonition proud that in two times of crisis in the his­ "In an those things which deal with peo­ which Norris gave applies today, as it did tory of our Nation it gave America two Pres­ ple, be liberal, be human. In all those things then. He said: "We will come some day, idents of the stature of Abraham Lincoln which deal with the people's money or their perhaps within our lifetime, to the great and Dwight D. Eisenhower. economy or their form of government, be electric age. • • • Since Adam and Eve were Both men, in truth, of "strong minds, great conservative-and don't be afraid to use the driven from the Garden of Eden, there has hearts, true faith, and ready hands." Both word." never been discovered an element in nature above the fog in public duty and in private Together, those statements form the cen­ with so many possibilities of usefulness and thinking. tral core of the p:Qilosophy of our modern pleasure as electricity. We ought to guard There have been other great Republican Republican Party-a party which is alive and with jealous care the concentration of water­ Presidents. The name of Teddy Roosevelt, to sympathetic to the human needs of the peo­ power in the hands of any combination ·of mention only one, comes automatically to ple, and a party which, unlike our opponents men." mind. But between Lincoln and none of our at times, is aware of the dangers to the peo­ This is Norris' challenge to us. He is gone. other great Presidents, including the Oyster ple's freedom which lie in overly paternal­ We are here. Can we fail this man-and the Bay Roosevelt, have there been such similar­ istic, centralized government. hosts like him-who fought for public power ities as exist between the Great Emancipa­ It is a philosophy of progressive modera­ when it was considered -a lost cause, when tor and Dwight Eisenhower. _t;ion, as the President has called it, or of the movement was in infancy? The illus­ Many parallels between Lincoln and Eisen­ moderate progressiveness as others name it. trious Jefferson said, "Each generation must hower could be pointed out. I will mention Whatever it be named, it is a philosop~y make its own fight for liberty." Because but a few. which strikes a responsive chord in the Norris and his contemporaries won their bat­ First, most obviously, are the times of na­ minds and aspirations of the American peo­ tle, we cannot rest content. Our own Arma­ tional crises in which each bore the burdens ple, who find a steady advance along the geddon lies ahead. of office. Lincoln, in his day, was confronted middle of the road to our future more sen­ The outcome is in our own hands. with a nation half slave and half free; Eisen­ sible and more attractive than frenetic zig­ hower, today, struggles with the many grave zaggings from left to right and vice versa. problems created by a world half slave and The Republican Party has come a long half free. way in improving its political philosophy Outstanding, next, are their similar great since I first voted for Charles Evans Hughes Lincoln, Eisenhower, and a Republican qualities as spirit-ual leaders of the American in New Haven in 1916. It has profited by its Philosophy for Our Times people, leaders with a reverent faith in God own mistakes. It has profited by the mis­ and in the Divine inspiration which gives life takes of its political opponents. And, under to the great documents of our history, the the leadership of President Eisenhower, it EXTENSION OF REMARKS Declaration of Independence, the Constitu­ . reflects the best understanding of the real OF tion and the Bill of Rights. Both men came obligations and duties of government that at times in our history when there was need we have yet seen in the history of the HON. PRESCOTT BUSH for the fiame of that faith to burn brighter. United States. OF CONNECTICUT And then there is their leadership in stat­ Our philosophy recognizes that in this ing the philosophy of the Republican Party IN THE SENATE-OF THE UNITED STATES complex industrial civilization of modern to which we give our allegiance. times, the problems of governnrent are more Friday, February 18, 1955 Political conditions in our times, as in complicated and more comprehensive than Lincoln's day, envelop the political battle in they have ever been before. Mr. BUSH. Mr. President, I ask a thick smog. Differences between our major parties are blurred. Factions mark splits We recognize that there has grown to be unanimous consent to have printed in a greater degree of interdependence among the RECORD a Lincoln Day address which within each party. Slogans and labels today our people than ever before. I delivered last Saturday night at Glas­ are used much as they were in Lincoln's time to create differences where none exist, or to We recognize that the security and happi­ tonbury, Conn. cover up the real differences which honest ness of the American home is the most im­ There being no objection, the address reason and discussion would expose. portant basic _asset in American economic, was ordered to be printed in the RECORD, Facing similar conditions in his time, Lin­ political, and social life. as follows: coln did something about them which we are . We recognize that the happiness and se­ only now beginning to understand. He cut curity o~ those homes depends upon jobs. LINCOLN, EISENHOWER, AND A REPUBLICAN It depends upon opportunities and incen­ PHILOSOPHY FOR OUR TIMES beneath the party battle to eternal truths. He stated principles, defined differences, and tives to work. (By United States Senator PRESCOTT BUSH) clarified issues. No one can read the famous We recognize that there can be no pros­ In every public speaker's life there come Lincoln-Douglas debates or the Lincoln cam~ perity in the truest sense unless there are two reactions after he receives an invitation paign speeches without being impressed with jobs· available for all who are willing and to address a meeting such as this. First, his patient determination to draw the line able to work. there is the- warm, happy glow when the in­ ·between the emerging Republican Party and So, with these basic facts in mind, the vitation arrives, and he feels that after all his D~ocratic opponents. Eisenhower administration has undertaken, this time someone is still interested in what The same thing is being done today by in the past 2 years, to unleash the forces he has to say. Later, unhappily,· comes the President Eisenhower. A careful reader of which will create this indispensable situa­ descent to the depths, as the time by which his state papers and public utterances will tion. It has adopted a policy of incentives, he must prepare his remarks inexorably ap- find within them a growing body of political rather than a punitive attitude, toward labor, 1955. CONGRESSIONAL RECOR:P- HOVSE 1819 capital, and management. It has passed leg.. United Nations Commission on lnterna• World Trade and Employment" in November islation designed to loosen up the savings of 1945. The foreword to this publication of the people and put them into constructive tional Commodity Trade read as follows: job-creating enterprises. It has been un.. "Developed by a technical staff within the ashamed to state the doctrine that just as Government of the United States in prepara­ labor is worthy of its hire, so are the savings EXTENSION OF REMARKS tion for an International Conference on of the people. OF Trade and Employment and presented for In matters of taxation, it has adopted an consideration by the peoples of the world." incent ive rather than a punitive attitude. HON. THOMAS E. MARTIN The thesis of this document was that And in dealing with private business, it has international trade was kept sm-all by four adopted a helpful and understanding atti­ OF IOWA factors: tude rather than one of punitive vindictive­ IN THE SENATE OF THE UNITED STATES (1) Restrictions imposed by Governments, ners. And taken all in all, these attitudes and Friday, February 18, 1955 1. e., tariffs and quotas. policies have resulted in more jobs-more (2) Excessive price fluctuations in the jobs than we have ever had before in any Mr. MARTIN of Iowa. Mr. President, markets for primary commodities. peacetime period in American history. on February 11 I had the honor of ad­ (3) Restrictions imposed by private com­ But that is not all. Our policies have bines and cartels. created a situation and an environment dressing the Executives Club of Chicago. This is an exceptionally fine group, and ( 4) Irregularity and the fear of irregularity which gives tremendous confidence for the in production and employment. future. No one could read the President's I was more than pleased to have the op­ Economic Report of January 19, 1955, with­ This State Department document pro­ portunity to speak to them. I ask unani­ posed the formation of an International out being inspired with confidence for the mous consent to have printed in the future. We recognize our Government's ob­ Trade Organization to make recommenda­ ligation to serve the basic human needs of RECORD the remarks I made plus the full tions for the removal of the impediments to our people; to encourage and promote per­ documentation of the speech. expanding world trade enumerated previ­ sonal and family security, and we point the There being no objection, the address ously and to implement such recommenda­ way to accomplishment of those ends by was ordered to be printed in. the REcORD, tions. en.!ouragement and stimulation of jobmak­ as follows: The Economic and Social Council of the United Nations, at its first session early in ing private enterprise. Last month a new United Nations Com­ I have referred to factional splits within 1946, adopted a resolution to call an Inter­ mission, known as the Commission on Inter­ national Conference on Trade and Employ­ the 2 major parties today. I sometimes national Commodity Trade convened in New think that we Republicans worry so much ment as suggested in the United States York. Our Government took a momentous proposals. The council also established a about our own differences of opinion that we step in December of 1954 when the Honor­ blind ourselves to the very serious cleavages preparatory committee to prepare an agenda which drive apart the Democrats. From ob- able Nat King, Acting United States Repre­ and a draft charter for consideration by the . servation in the Senate, I can assure you sentative in the United Nations Economic conference. This preparatory committee that those cleavages exist, although I must and Social Council released the following held its first meeting in London in the fall reluctantly confess that the Democrats, per­ statement: • of 1946. Subsequent meetings were held in haps smarter politicians than we, gloss them "At the last session of the Council I stated New York and Geneva. over as much as possible. And when the that my delegation hoped to be able to an­ The international conference, to consider chips are ·down, their party discipline takes nounce at this session whether my Govern­ the charter, convened at Habana, Cuba, on command. · ment would participate in the Commission November 21, 1947, and remained in session Nevertheless, we can't blink the fact that on International Commodity Trade. In this unti.l March 24, 1948. The document which there are divisions in our Republican Party, connection I am now authorized to make the emerged from these deliberations is now differences which are particularly apparent following statement: familiarly known as the Habana Charter. It in the Senate. There has been encourag­ "'The United States Government is not was submitted to the Congress in April 1949, ing progress in the early days of the 84th now prepared to participate in the work of and was strongly supported by President Congress towards increasing the unity among the Commission on International Commod­ Truman and the then Secretary of State, Republican S:mators. I hope that progress ity Trade. It wishes for the present to keep Dean Acheson. will continue. in close contact with the Commission's work The House Committee on Foreign Affairs And to my Republican friends in Con- as it develops in the hope that it might be conducted extensive hearings on this agree­ . necticut, I say that we are in need of greater able to be of possible assistance. The United ment in April and May 1950. No report was unity-greater unity and a spirit of con­ States Government will be prepared to re­ ever made by the committee. The State De­ fidence. The shock and disappointment of examine the question of its eventual par­ partment announced in December of 1950 losing the Governorship in the most recent ticipation after the Commission's terms of that it would not ask the 82d Congress, election has caused some to doubt and reference and its scope of activities have been which convened in 1951, to again consider despair. There 'are some, .I regret to say, defined'." agreeing to United States membership in who fail to realize that in Dwight D. Eisen­ I wish to commend the Secretary of State the proposed International Trade Organiza- hower and the record we are making under and his associates for this action. I regard tion. · his leadership the Republican Party has its it as the first step in reversing some of the. Although the basic concepts for the char­ greatest asset since the days of Lincoln. unfortunate economic trends within the ter had originated in our own Government, Let us look to the future instead of the United Nations which were originally pro­ it is quite clear that the Congress never past. And our future as a party is bright. moted by our own Government. accepted the document which emerged from I see an overwhelming victory ahead for us Our present able delegation to the Eco­ this series of meetings under United Na­ in 1956. I see that victory because the nomic and Social Council, headed by the tions auspices. In fact, the State Depart­ record we are making will be unbeatable­ Honorable Preston Hotchkis, has had to de­ ment, by its announcement in December of the record both in national affairs and in vote a great deal or· its efforts to combat 1950, clearly showed that it realized the the zealous attention to the interests of proposals which originated in our own State futility of asking the Congress to consider Connecticut which is being given by your Department many years ago. This is un­ this subject again. entire Republican delegation in the Congress. ·fortunate as the Iron Curtain countries are I shall now show how the four restrictive The President ha1;1 the trust of the Ameri­ presented with an opportunity to sow dis­ factors enumerated in the United States can people. I confidently expect that he sension among the free nations when it be­ proposals were incorporated into the char­ will run again. In his messages to the 84th comes necessary for us to cast votes in oppo­ ter. Congress, he has outlined a program and sition to proposals sponsbred by friendly The first obstacle to the expansion of expressed a philosophy which we, as modern countries in the United Nations. Yet, if we world trade outlined in the State Depart­ Republicans, embrace and in which we can are to remain true to our own economic phil­ ment's proposals was the restriction on trade take pride. It is a program and a philosophy osophy, we can take no other course. Our imposed by governments including tariffs, for our times, reflecting the hopes and aspira­ sins of the past have now returned to haunt quotas, and exchange controls. Chapter IV tions of a great majority of the American us. of the Habana Charter entitled "Commer­ people. · This Commission on International Com­ cial Policy" dealt with procedures to reduce The enactment of the program for the 84th modity Trade is 1 of 2 groups established by tariffs and to extend the most-favored-nation Congress-and I believe most of it will be treatment in trade agreements. It also cov­ adopted, although not without heel-dragging the Economic and Social Council whose ·ered quantitative restrictions and currency ·and querulous quibbling by our opponents­ activities can have a very profound effect controls. will add luster to the record made by the upon our economy. The other is the Ad Chapter VI of the Habana Charter 83d. Hoc Committee on Restrictive Business Prac­ was entitled ·"Intergovernmental Commod­ So look ahead. tices. I now intend to trace the establish­ ity Agreements." This chapter recom­ Cast off the chains of fear and doubt. Be ment of these groups to concepts originally ·mended the use of such agreements to elim­ proud of our party and its great leader who ·formulated by our own Government. ·inate excessive price fluctuations in the will surely restore it to the ·hearts and Our State Department published a docu­ markets for primary commodities and im­ affections of ·the American people. ment entitled "Proposals for Expansion of plemented the State Department proposal CI--115 1820 CONGRESSIONAL RECORD ...::.:HolJSE February 18 dealing with this subject. The preamble to ing our foreign trade which is the objective process · of development, in order to ensure this chapter stated, and I quote: that we are all seeking. that the prices of primary commodities re­ "The members recognize that the condi· The Economic and Social Council pro­ main in an adequate, just and equitable tions under which some primary commod­ ceeded to implement another of the United relation to the prices of capital goods and ities are produced, exchanged and consumed States proposals without even waiting for other manufactured articles so as to permit are such that international trade in these the convening of the Habana Conference. the more satisfactory formation of domestic commodities may be affected by special diffi­ This was the proposal which dealt with ex­ savings in the countries in the process of culties such as the tendency toward per· cessive price fluctuations in the markets for development and to fac111tate the establish­ sistent disequilibrium between production primary commodities. ment of just wage levels for the working and consumption, the accumulation of bur­ This United Nations group, at its fourth population of these countries with a view densome stocks and pronounced fluctuations session, recommended, and I quote from the to reducing the existing disparity between in prices. These special difficulties may resolution: their standards of living and those in the have serious adverse effects on the interests "That, pending the establishment of the highly industrialized countries; of producers and consumers, as well as wide­ International Trade Organization, members " (b) Their governments should refrain, spread repercussions jeopardizing the gen· of the United Nations adopt as a general unless unavoidably required by .national se­ eral policy of economic expansion. The guide in intergovernmental consultation or curity in times of war and without prejudice members recognize that such difficulties may, action with respect to commodity problems to technological research and progress, from at times, necessitate special treatment of the the principles laid down in chapter VI as a encouraging the production of any synthetic international trade in such commodities whole, 1. e.,·the chapter on intergovernmental or substitute materials that unnecessarily through intergovernmental agreement." commodity arrangements • • •; and affect the international demand for natural Chapter V of the Habana Charter was en­ "Requests the Secretary-General to ap­ primary commodities; titled "Restrictive Business Practices." It point an Interim Coordinating Committee "(c) Their governments should intensify provided for procedures to eliminate the re­ for International Commodity Arrangements their efforts to reduce restrictions on imports strictions imposed by private combines and to keep informed of and to facilitate by of primary commodities." cartels in the original United States propos­ appropriate means such intergovernmental It is quite obvious, from what I have just als. In effect it proposed ap. international consultation or action with respect to com­ read that the purpose of this resolution was antitrust law. modity problems." to establish fixed, rigid international parity Chapter II of the Habana Charter was The Interim Coordinating Committee for prices for all of the world's materials which entitled "Employment and Economic Activ­ International Commodity Agreements was could only be supported by heavy outlays ities." This chapter dealt with the irregu­ not sanctioned by the Congress. The in· on the part of the United States. It is also larity and the fear of irregularity in pro­ terim referred to in the title for this organ­ apparent that this resolution was aimed at duction and employment and, again imple­ ization was presumably the time interval discouraging the development of synthetic mented the State Department's proposals between the formation of this group and products, particularly synthetic rubber and dealing with this subject: the ratification of the charter for the Inter­ synthetic fibers within the United States. The proponents of these proposals did not national Trade Organization. The interim '!'his provision directly affects our national wait for the nations of the world to ratify has continued through 1954, although the security. I know that none of us wish to the charter for the International Trade Or­ United States decision not to join the ITO again struggle with the problem of providing ganization. Steps were taken during the was made known in 1950. This organiza­ rubber from distant sources which con­ third session of the Preparatory Committee tion which was established at Geneva, has fronted us in World War II. for the Habana Conference which met in now been supplanted by this permanent new Representatives from Australia, Belgium, Geneva in the spring of 1947 to implement Commission on International Commodity Canada, China, France, the Union of South some of these proposals. Trade, which met in New York last month. Africa, and the United Kingdom opposed This Preparatory Committee sponsored While some may feel that this action is un­ this resolution as too general in scope and negotiations for the reduction of tariffs and important, as we were not bound by any open to dangerous interpretations. The conducted discussions which led to the Gen­ decisions made· by this interim committee, 1952 yearbook of the United Nations sum­ eral Agreement on Tariffs and Trade fa­ in the opinion of the President's Materials marized the objections voiced by these miliarly known as GATT. Although these Policy Commission, popularly known as the countries. Among them were: tariff negotiations were sponsored by the Paley Commission, this is not the case. Page "(1) That a system of international parity Preparatory Committee for the Habana Con­ 87, volume I, of its report, which was issued prices such as that implied in the draft ference to implement one chapter of the in 1952, contained the following statement: could not be instituted unless foreign trade proposed charter and were finally incorpo­ "The United States has not ratified the were controlled by the state; (2) that such rated in the General Agreement on Tariffs treaty, but under a resolution the United a system would make the economic struc­ and Trade, the countries concerned estab­ Nations Economic and Social Council is ture more rigid and would not be conducive lished a separate organization, which is not bound with other nations to recognize chap­ to increased productivity; (3) that there an operating unit of the United Nations, to ter VI as a general guide." were no objective criteria for determining an carry on this work. Other succeeding ses­ This clearly indicates that, even though adequate, just, and equitable relationship sions were conducted at Annecy, France, and Congress refused to give its assent to United between prices of primary commodities and Torquay, England. States participation in the International those of capital and other manufactured The GATT organization differs from the ·Trade Organization, the Paley Commission goods; and (4) that it would be better to other groups which trace their origin to the believed we were bound to accept these con­ deal with the problem through individual original State Department proposals. In the cepts. I shall now read from page 90 of the commodity agreements as the need arose. first place, of the Iron Curtain countries, Paley report: "They also objected to the recommenda• only Czechoslovakia which became a signa­ "By resolution of the United Nations Eco­ tion that governments should not encour­ tory to the GATT before she went behind nomic and Social Council, a review of chap­ age the manufacture of synthetic or sub· the Iron CUrtain is a member. The activi­ ter VI of the Habana Charter is called for stitute materials. Such action, they held, ties of GATT, by its very nature, are directed some time in 1952. This code serves as a would h,arm the interests of both under­ at the removal of trade barriers and not to general guide for efforts of the free nations developed and industrialized countries; it the imposition of new controls and restric· to stabilize materials markets." would also stand in the way of progress, tions. Now let us review together the develop­ from which all, in the long run, would There was much criticism in the Congress ments which took place starting in the Gen­ benefit. The latter point was also made by of the GATT because many of us felt that eral Assembly late in 1952 which culminated the representatives of Cuba, Ecuador, and no authority had been granted by the Con­ in our decision not to participate in this Peru." gress through the Trade Agreements Act to new Commission on International Commod· After considerable debate within the Gen­ .enter into any such negotiations. The ity Trade. eral Assembly and the adoption of several Eisenhower administration has scrupulously In November of 1952 the Argentine Gov­ amendments, the Argentine resolution was followed the practice of submitting agree­ ernment presented a resolution of far-reach­ put to a vote. It was approved on Novem­ ments to the Congress so that the Congress ing significance to the seventh session of the ber 29, 1952, with 29 countries voting in and the executive can work together as in· General Assembly, which was then meeting favor of it, 16 opposing it, and 9 abstaining. dependent and coordinate branches of our in New York. This resolution was a new im­ I am happy to say that our Government was Government. plementation of the original proposals of our among the 16 countries opposed to the adop:.. The provisions of the General Agreement State Department whieh had been embodied tion of this resolution. The amended reso­ on Tariffs and Trade currently are being re­ in chapter VI of the rejected Habana Char­ lution contained the following provision negotiated at Geneva. The President has ter. I shall now read the operative part of which was not a part of the original Argen­ assured us that they will be submitted to the this draft resolution. It provided that the tine draft resolution: Congress for our consideration. For the :first General Assembly should recommend to "Recommends that governments should time an opportunity will be afforded for member states-and I quote--that- cooperate in establishing multilateral inter­ this agreement to receive consideration on " (a) Whenever governments adopt meas­ national arrangements relating to primary its merits by the Senate of the United States. ures affecting the prices of primary commod­ commodities for the purpose of- I am confident that the Congress and the ities entering international trade, they " (a) InsurinJ the stability of the prices President working together in this way can should duly consider the effect of such meas­ of the said commodities in keeping with a come up with a workable solution to expand- ures on the terms of tr~de of countries in the reasonable, fair, and equitable relationship 1-955 CONGRESSIONAL RECORD- HOUSE 1821 between these prices and those of capital what the experts propose, We must all real­ energy which might well be spent in more goods and other manufactured articles; and ize, in discussing these proposals that .repre­ useful activities to detailed examination of a "(b) Safeguarding the continuity of the sentatives of the Iron Curtain countries proposal that would seem to have no chance economic and social progress of all countries, would be eligible tQ participate in th~s whatever of acceptance by governments. those producing as well as those consuming Commission. "The experts recommend-and this is such raw materials." The report of the experts and its recom­ their most specific proposal-the establish­ You will note that this provision again mendation for this new commission was ment by the Council of a Trade Stabiliza­ urges the member governments to establish placed on the agenda of the meeting of the tion Commission. This commission would multilateral commodity agreements. Economic and Social Coun_cil which con­ ba concerned with proposals for dealing with The amended resolution further provided vened in New York in April 1954, and a reso­ the problem of stabilization generally. It that the Secretary General was to appoint lution was introduced by the Argentine Gov­ would leave unQ.isturbed the existing inter­ a group of experts to study the entire prob­ ernment to establish this new commission. national machinery, such as the Interim Co­ lem· and make recommendations for further The comments of our representative to the ordinating Committee for International action to the Economic and Social Council Economic and Social Council, Mr. Preston Commodity Arrangements and its associated of the United ·Nations. Pursuant to this Hotchkis, are most illuminating. I shall study groups, which provide mainly tor resolution, the Secretary General appointed now read his statement regarding these action, on commodity by commodity. five economists whose recommendations proposals: "My. delegation is unable to support this were transmitted to the Economic and So­ "The problem of marked price instability recommendation. The proposed commission cial Council in a report released in Novem­ in primary commodity markets is, therefore, would inevitably exercise the same general ber of 1953. This report is entitled "Com­ one with which my Government and all responsibilities as the old Economic and Em­ modity Trade and Economic Development." governments of the free world must be great­ ployment Commission of the Council and The report suggested the establishment ly con.verned. As to the desirability of re­ might be expected to suffer from the same of world buffer stocks and a new interna- · Q.ucing this instability, there can be no dis­ defects. The establishment of a commis­ tiona! currency which would be based upon agreement. The problem to be faced is how sion charged with responsibility for consid­ the monetization of these stoclts. It also this can be safely accomplished. Devices that serve temporarily to reduce price fiuc­ ering broad questions of economic policy proposed the negotiation of multilateral would simply invite duplication of discus­ commodity agreements to cover a group of tuations must be judged by their poten­ tialities for contributing to healthy eco­ sion, since these are questions which the commodities rather than a single commodity. Council itself must necessarily debate." There were many other strange proposals nomic growth. They may retard rather than promote such growth if they interfere with The resolution introduced by the Argen­ which were totally incompatible with Amer­ tine Government established the terms of ican free-enterprise economic concepts. The long-term price trends and introduce rigidi­ ties and restraints that impair the 'elasticity reference for this proposed new Commission. most important recommendation of the I shall now quote from the resolution: committee of experts was that a new trade of economic adjustment which is fundamen­ Stabilization Commission be established. tal to economic progress. "The main task of the Commission shall Now I shall read exactly what the experts "This is a danger which must be faced in be to examine measures designed to avoid proposed in this connection. They said: the consideration of proposals for govern­ excessive fiuctuations in the prices of and "It seems to us that there is at present mental commodity arrangements. This the volume of trade in primary commodities, no effective international procedure for dis­ danger and the great practical difficulties including measures aiming at the mainte­ cussing and proposing action on the general involved in reaching accord on the details nance of a just and equitable relationship problem of stabilization-a matter which c;>f any contemplated arrangement largely between the prices of primary commodities transcends the problems of particular com­ explain why so few international agreements and the prices of manufactured goods in modities. The present organization is di­ involving consuming as well as producing international trade. • • •" rected toward piecemeal action, commodity countries have hitherto been reached. The This resolution is designed to establish a. by commodity. We do not think that this experts recognize this situation and see little system of international parity prices which is sufficient; a general and simultaneous ap­ prospect of any substantial increase in the is totally incompatible with our approach to proach to the problem of stability in its many number of agreements. My delegation foreign economic relations. aspects is required. It is poss~ble that a gap shares this view. This resolution was adopted on April 30, in international organization has here arisen "The experts also believe, however, that on a rollcall vote of the 18 nations comprising unintentionally, through the absence of an commodity agreements, if properly drawn the Economic and Social Council. The international trade organization as envisaged and operated, may be an effective means for United States was joined in opposing the in the Habana charter." preventing excessive price fiuctuation. This establishment of this new Commission by This so-called gap in international organ­ they hope might be obtained if the attempt Belgium, Norway, France, and the United Ization to which the experts refer, had not were made to cover several commodities in Kingdom. The Australian delegation ab­ arisen unintentionally insofar as the Con­ a single agreement instead of relying on the stained from voting. The resolution was gress of the United States was concerned. I inevitably slow and uncertain increase in supported by 12 countries, the Argentine, shall continue reading from the recom­ single-commodity agreements. Free China, Cuba, Czechoslovakia, Ecuador, mendations of the experts: "I must confess, Mr. President, that I find Egypt, India, Pakistan, Turkey, U. S. S. R., · ~ we therefore propose that the Economic no ground to justify this hope. The diffi­ Venezuela, and Yugoslavia. and Social Council should establish an inter­ culties experienced in negotiations relating The formation of the Commissison had governmental commission, which we will to a single commodity would in my judg­ the support of Soviet Russia and Czecho­ refer to as the Trade Stabilization Commis­ ment be greatly multiplied if we attempted slovakia whose concepts of stabilizing com­ sion. In order to provide permanent repre­ to deal with many commodities at the same modity markets would certainly be quite sentation for the most important trading time. Moreover, any agreement covering different from our own. 'l'he resolution as countries and an adequate rotation of repre­ many commodities would inv.olve widespread adopted deferred th.e actual organization of sentation for others, it would probably be interference with the workings of a free­ the Commission until the 18th session of the necessary to have eight or nine member world economy. It would magnify the dan­ Economic and Social Council which con­ governments." ger of diverting production, consumption vened at Geneva in June of 1954. Our dele­ "The work of the Commission would in­ and trade patterns from the channels they gation at Geneva continued its opposition to volve exchanges of views between govern­ would be likely to assume under a more the formation of this Commission and indi­ ments on possible types of action to which healthy, competitive and free-enterprise cated that even if we were elected, we might they may not wish to appear publicly com­ system. The net result of such arrange­ not be willing to participate. In spite of mitted; and there is a very real risk that ments, even if it were practicable to con­ United States opposition, the Council voted premature knowledge of the Commission's clude them, would, I firmly believe, be to proceed with the organization of the Com­ deliberations would produ<:e harmful effects detrimental and not beneficial to economic mission with the first session scheduled for in the commodity markets. We therefore development. January 1955. recommend that, contrary to usual United "The experts extend their proposals for The United Kingdom and France voted Nations practice, the Commission should comprehensive commodity stabilization ar­ with the United States to delay the organi­ meet in closed session except when it decides rangements by recommending for further zation of the Commission. However, follow­ otherwise. We would expect that, in addi­ study a 'commodity reserve currency scheme.' ing the vote in the Economic and Social tion to the formal meetings, occasions If this were an academic seminar we might, Council both these countries announced that would be required for informal exchanges of Mr. President, find some interest in discus­ they would participate in spite of their op­ view among the representatives of the mem­ sing the complexities of this by no means position. The resolution adopted at Geneva. ber governments, meeting in private." novel proposal. This, however, is not an transferred most of the functions of the In­ Our Government should not establish an exercise in which I would care to engage in .terim Coordinating Committee for Interna­ international organization in which govern­ this forum. I see no likelihood whatever tional Commodity Arrangements to the new ments would make proposals to which they that my Government would be disposed to Commission on International Commodity may not wish to appear publicly committed. give this scheme any serious consideration Trade. The Interim Committee, which was I subscribe to Pre!>ident Woodrow Wilson's in the foreseeable future. I feel sure that only to be . in .existence until the Habana. doctrine . of. open covenants· openly arrived other delegations will share my view that _Charter was ratified, thus has now become at. I am opposed to private meetings to the scheme is i;mpractical. I hope therefore .a permanent United Nations organ under a ~ 'rig " cp.rp.modity m_arkets. This is essentially that the Council will not devote time and new name. 1822 CONGRESSIO~AL RECORD--HOUSE 'F_ ebruary -·18.·. The announcement of our Government in · condemnation .imposed by chapter V of the cartels were bad per se. Some believed that which we declined to participate at the first charter. In a sense chapter VI was really a. cartels were useful devices and that action session of this new Commission included · modification or loophole in chapter V. was required only to cope with flagrant this statement: "The United States Govern­ Professors Stocking and Watkins in their abuses. The Luxembourg delegation took ment will be prepared to reexamine the ques­ book Cartels or Competition define a cartel this position. Others took a middle ground. tion of its eventual participation after the as"* • • an arrangement among, or on be­ The United Kingdom delegation took such a Commission's terms of reference and its half of, producers engaged in the same line · point of view. There was actually very little scope of activities have been defined." I am of business, with the design or effect of lim­ support for the stringent action recom- glad that this is the case as we have no iting or eliminating competition among mended by the United States. . desire to minimize the seriousness of the them. • • *" Chapter V of the Habana Charter dealt problems of price instability. Our Govern­ They also say "rival business enterprises only with restrictive business practices ment is opposed to the present terms of ref­ may set up cartels by direct negotiation and when, and I quote: "Such practices have erence which imply Government action to mutual commitments, or governments may harmful effects." The definition of harm­ stabilize prices through international agree­ establish them by treaty." ful effects was to be left to the new inter­ ments and international parity prices. I can The commodity agreements provided in national agency to determine. No sanctions see many possibilities for useful work by this chapter VI are, of course, cartels established for failure to comply with the Charter were commission in compiling statistics and through government negotiation and com-_ imposed. This philosophy is also incorpo­ studying market problems, thus making it mitment. The evils of cartels were dramati­ rated in the new United Nations proposals. possible for the free markets of the world cally shown during the Hitler and Mussolinl I shall now trace the steps since the re­ to operate more effectively. My interpreta­ regimes in Germany and Italy where private jection of the Habana Charter by the Con. tion of the statement by our representative cartels were taken over by these governments gress of the United States which have re­ is that we will always be prepared to assist to strengthen their economies for war. The sulted in this report of the United Nations in such activities that do not compromise entire Habana Charter concept, as embodied ·ad hoc committee on Restrictive Business free- enterprise economic principles. in chapter V, was to curb private interna­ Practices presently on the agenda ot the The history I have related follows the tional cartels but to tolerate the government Economic and Social Council. progress of this concept from 1945 to 1955, cartels provided in chapter VI. In retro­ our antitrust laws are of the utmost im­ a 10-year period. Our State Department de­ spect, let me. remind you of the extraordinary portance in promoting a free-enterprise serves great credit for having successfully economic power developed by the Nazi Gov­ economy. The Sherman Act was adopted in extricated the United States from a creature ernment through intergovernmental com­ 1890 during the administration of President of its own creatl,on which has untold po­ modity agreements after it came to power in Harrison, a Republican President. The tentialities of causing economic chaos. The Germany. Clayton Act and the Federal Trade Commis­ New York Times of January 11, in reporting Prof. EdwardS. Mason, of Harvard Univer­ sion Acts were adopted during the admin­ the forthcoming meeting of this new Com­ sity, was deputy to the Assistant Secretary istration of President Wilson, a Democratic mission made the following significant com­ of State in charge of Economic Affairs in President. The spirit of our antitrust laws ment: 1945. Presumably, he was quite famil1ar is truly bipartisan and they have a vital with the proposals issued by our State De­ role in maintaining a competitive economy_ "The United States will pass up a dele­ partment at that time. gate's seat, but will send an observer to the in this country. I believe in them and I He published a book under the sponsor­ am in favor of strengthening these laws if first session of the newly· established Com­ ship of the Committee for Economic Develop­ mission on International Commodity Trade. such action is shown to be necessary and ment entitled "Controlling World Trade" in in a vigorous enforcement of the laws now The Commission will open its meetings here June of 1946. I shall now read two para­ next Monday. on the statute books. I am opposed to all graphs from the introduction of this book: cartels. There are no good cartels as far "Although United States opposition to "This divergence between American and as I am concerned. the Commission is nothing new, this is the other experience with cartels and commod­ Unfortunately, our antitrust laws have first time that Washington has given a ity agreements must be borne in mind in sometimes been used to harass legitimate diplomatic cold shoulder to a United Na­ the ensuing discussion. There is a school business by those whose paramount interest tions organ." of thought in the United States that abhors has not been the preservation of free enter­ It has always seemed to be a paradox that cartels as private treaties restrictive of trade prise. I am afraid they may have been de­ those who advocate free trade and the re­ but embraces commodity agreements as in­ liberately used to bring it into disrepute and moval of Government restrictions on our tergovernmental arrangements inevitably to lay the groundwork for a socialist economy economy should, at the same time, have been serving the public interest. Cartels may, and within the United States. Those who con­ fostering commodity agreements. There is usually do, restrict trade but so do commod­ ceived such improper uses of the antitrust probably no more restrictive device than.. ity agreements-and much more effectively. laws are, I am sure, no longer on our Govern­ such an agreement as. it interjects Govern­ Nor is the range of interests served neces­ ment payroll. ment controls throughout the production sarily very different. It seems strange that almost immediately and marketing process. ."The general line of policy defended in after the rejection of the Habana Charter by During pr.evious administrations, our this report is that, when international con­ the 81st Congress, and the decision by the State Department was apparently most sym­ .trols relating to a commodity or industry State Department not to resubmit it to the pathetic to the commodity agreement con­ are demonstrably necessary, they should be 82d Congress, the United States Government cept. I am happy to see that this is no intergovernmental in character. It does not took the lead in attempting to implement longer so. follow that intergovernmental commodity chapter V through the United Nations. The Randall Commission, in both its ma­ agreements should be numerous or easily In 1951, the United States delegation sub­ jority and minority reports condemned such justifiable on grounds of public interest. If mitted a resolution to the Economic and agreements as restrictive devices. Follow­ the agreement, moreover, lies outside the Social Council asking that the question of ing the release of the report by the Randall field of agriculture, it is likely to involve a restrictive business practices should be Commission, our Government declined to type of governmental relation to industry placed on the agenda of the 13th session of participate in the International Tin Agree­ with which the United States has as yet the council. The United States draft reso­ ment. We have also resisted efforts to estab­ had little experience." lution recommended the establishment of an lish commodity stabilization groups within Mr. Mason concluded his 265-page treatise ad hoc Committee on Restrictive Business the Western Hemisphere at the Rio Confer­ with this statement: Practices charged with formulating and sub­ ence. Let me again compliment the Secre­ "To enable the machinery to function, it mitting to the Council, proposals on appro­ tary of State and his colleagues who have will be necessary to reshape not only com­ priate methods to be adopted by interna­ credibly performed a very difficult task in mercial policy but policies hitherto consid­ tional a.greement to deal with harmful re­ reversing this trend . toward Government ered as belonging to the field of domestic strictive business practices. controls over the world's economy. regulation, and such action as is proposed Perhaps, the purpose of establishing this Unfortunately, all our problems are not can only be taken with the cooperation of international machinery was to be able to behind us. The original State Department other governments and with due regard for proceed against American companies doing proposals of 1945, included measures to deal their interests." business abroad because of our inability to with restrictions imposed by private com­ We are now confronted with exactly the apply United States statutes in the jurisdic­ bines and cartels. As I have already indi­ situation portrayed by Professor Mason if tion of other sovereign nations. We must cated, chapter V of the Habana Charter was the report of the so-called Ad Hoc Commit­ remember that these same companies were drafted to implement these particular pro­ tee on Restrictive Business Practices is bound to conduct their activities so as to posals. adopted by the Economic and Social Council. comply with the laws of the country in which This chapter, dealing with restrictive prac­ The United States delegation to Habana they were operating. Since our antitrust tices by private business, was in sharp con­ was opposed to restrict!ve business practices laws are free-enterprise laws, I see no way flict with the philosophy of chapter VI which per se. This is consistent with all of our that an international body, including Com­ fostered Government price-fixing and cartel economic concepts. In reviewing the Ha­ munist and Socialist states, could establish operations. Many apparently believe that bana Conference I find that there were three appropriate methods to deal with antitrust actions taken by governments in concert points of view which were compromised in violations on a universal basis. It would with other governments or in cooperation the final draft of chapter V. As I have al­ seem to me that treaties by the United States with certain industries should ·escape the ready indicated, our point of view was that and other countries with tbe same type of - ~ · ·J "l- ~· "' ...... , """' 1 "'"' • r :r~--..-"' - 1955 CONGRESSIONAL RECORD- HOUSE 1823 economy and with similar judicial pro­ in the preceding paragraphs shall be based practices have harmful effects on the expan. cedures might be more fruitful. The United on the principles set forth in-chapter V of sian of production or trade.2 It is provided Nations approach can only lead to chaos. the Habana Charter concerning restrictive that there will be a 'representative body' The United States proposal was debated at· business pra,ctices." composed of all members of the United Na­ length during the 13th session of the Eco­ Thus, entirely at the initiative of the tions, and an 'executive board' which is to nomic and Social Council held in the sum­ United States Government this ad hoc com­ carry out the functions and duties of the mer of 1951 at Geneva. The Yearbook of mittee was established under the Economic representative body and ~xercise its powers. the United Nations for 1951, reports this and Social Council of the Unit ed Nations to Membership on the executive board will be debate and I am particularly interested in implement chapter V of the rejected Habana determined by the extent to which a nation the comments which appear in this official Charter. participates in international trade, and by a document on the attitude of other coun­ The United States representative on this geographical balance. tries who have no concept of our antitrust committee was Corwin Edwards, the former "The draft articles of agreement contain a laws. I shall now quote from the United chief economist of the Federal Trade Com­ preamble, 20 ar-ticles, and an appendix which Nations Yearboolc mission. The secretary of the ad hoc com­ describes the share in world trade of indi­ "The representatives of Belgium, France, mittee itself was Sigmund Timberg, formerly vidual countries. The preamble states that Peru, Sweden, and Uruguay, while agreeing with the Antitrust Division in the United national and international action is required as to the harmful effects of many restrictive States Department of Justice. The commit­ to attain: ( 1) A reduction of governmental business practices and believing that far­ tee assembled in January of 1952 and pre­ and private trade barriers and the promotion reaching private agreements constituted a sented its report in March of 1953. During on equitable tenns of access to markets, political danger, felt nevertheless that in­ this period, the committee held 77 meetings, products, and productive facilities; (2) en­ ternational producers' agreements were not a great majority of which were closed to the couragement of industrial and agricultural always to be condemned and that in certain public. The report of the committee was development, particularly in underdeveloped cases they met urgent needs connected with filed with the United Nations Secretary-Gen­ areas; (3) balance and expansion of the economic progress. eral in March of 1953. world economy through greater and more "The representative of Peru stated that, in It was considered briefly at two sessions efficient production, increased income and South America, public commercial enter­ of the Economic and Social Council who re­ greater consumption, and the elimination prises were operated in the interests of the · quested the Secretary-General of the United of discriminatory treatment in international State an_d of the community, many of them Nations to refer this report and the analysis trade; and (4) the promotion of mutual un­ being accompanied by measures to protect by the Secretariat to the member states and derstanding and cooperation to solve prob· the individual's social rights. These enter-· to specialized agencies for examination and­ lems arising in all aspects of international prises, he said, should not be confused with comment. The Council also decided that consideration of the report would be resumed trade. The preamble concludes with a private monopolies. recognition that national and international "The representatives of Chile, Mexico, and not later than at its 19th session which will convene at United Nations headquarters in action in the field of restrictive business Uruguay also emphasized the irpportant part practices can contribute substantially to the· played by public commercial enterprises in New York at the end of March of this year. It is important that the people of the attainment of such overall objectives. · their national development. The Chilean "Article 1 sets forth the general policy to· and Mexican representatives stated that they United States be familiar with this report and the pitfalls into which we can be led ward restrictive business practices. Each would abstain from voting on the joint draft member of the Organization shall take resolution. Representatives supporting the should it be adopted. An article by Samuel K. C. Kopper which appeared in the Virginia measures and cooperate with other members· resolution believed, however, that studies to prevent restrictive business practices that and investigations were necessary to distin­ Law Review of December 1954 gives a com- . plete analysis of this report. This article have harmful effects on the expansion of guish between good and bad restrictive production or trade. The Organization is practices. is a revision and expansion of a paper origi­ nally presented by Mr. Kopper to the Fourth empowered to determine whether a particu­ "The representative of the International lar practice is restrictive and ·has harmful Cooperative Alliance referred to a recent International Congress of Comparative Law at the Faculte de Droit, University of Paris, effects whenever: (1) It receives a complaint;· survey by his organization which had re­ (2) the practice is engaged in or made effec· vealed the widespread use and the harmful on August 6, 1954. Mr. Kopper has an unusual background tive by one or more private or public com· effect of restrictive business practices. He mercia! enterprises; and (3) such enterprises described the manner in which his organi­ which uniquely qualifies him to review the report of this Committee. After graduating possess effective trade control among anum·· zation had been fighting such practices and ber of countries in one or more products. urged the Council to undertake an authori­ from Princeton University in 1937, he ob­ tative investigation in this field. tained his law · degree at the University of "Restrictive business practices are defined as (1) Fixing of prices, or of terms or condi­ "In the view of the representatives of Virginia in 1940. Subsequently, he studied Czechoslovakia, Poland, and the U. S. S. R., at the Academie de Droit, Internationel de la tions to be observed in the purchase, sale, the United· States proposal was desfgned to Haye. From 1946 to 1949 he was an adviser or lease of any product; (2) exclusion of en­ camouflage the real objective of United to the United States delegations to the terprises from, or allocation or division of, States monopolies. Figures were cited in United Nations Security Council and to its any territorial market or field of business order to show _that these monopolies con­ General Assembly. He was a special consult­ activity, or allocation of customers, or fixing trolled the United States foreign trade and ant to the Assistant Secretary of State dur-· of sale or purchase quotas; (3) discrimina· investments. These monopolies, those rep­ ing 1952-53. He has also been the officer in tion against particular enterprises; ( 4) pro· resentatives said, in their struggle to gain charge of North African Affairs, the Deputy duction limitations or quotas; (5) preven· domination of world markets, engaged in and Acting Director of the Office of Near East tion of development or application of tech· extensive restrictive business practices to Affairs, and is presently counsel for the Ara­ bian-American Oil Co. in New York City. He nology or invention, whether patented or remove any competition; they earned im­ not, or withholding of same with the result mense profits in underdeveloped countries, is also the chairman of the Near East Com­ mittee, Section of International and Com­ of monopolizing an industrial or commercial and were powerful enough to obtain a field; (6) illegal extension of rights under stranglehold on European trusts, secure parative Law of the American Bar Associa­ tion. patents, trade-marks, or copyrights; and (7) markets for their excess production in 'any similar practices which the Organiza· Europe, and influence the political life of I shall now read the relevant sections of other countries through• economic control. Mr. Kopper's article. tion may declare, by a majority of two-thirds United States exports were being used as ''EXCERPTS FROM THE INTERNATIONAL REGULA• of the members present and voting, to be re• instrume~ts of discriminatory policies ap­ TION OF CARTELS-cURRENT PROPOSALS strictive business practices. plied against the peoples• democracies. "(By Samuel K . C. Kopper) American big business, those representatives 2 The ad hoc committee was not specifi· maintained, fostered the creation of mo­ "A. The draft articles cally instructed to prepare the draft articles. nopolies which it could dominate, but op­ "The report of the ad hoc committee con­ It appears clear, however, that the Committee posed the creation of those over which it tained draft articles of agreement,! which considered this the most satisfactory way to had no control." were based largely on chapter V of the Ha_­ implement ECOSOC's recommendation. The After extensive debate and the adoption bana Charter. The draft articles of agree­ Secretary-General of the United Nations had of amendments the United States resolution ment call for the establishment of a United been instructed to obtain information on was approved and the Ad Hoc Committee on Nations organization composed of all United the type of organization which could imple· Restrictive Business Practices was ap­ Nations members, the basic objective of ment the Committee proposals. See note 26, pointed. It consisted of Belgium, Canada, which is to coordinate national and interna­ supra. France, India, Mexico, Pakistan, Sweden, the tional action to prevent and eliminate re· However, he explained in a note to ECOSOO United Kingdom; United States, and strictive business practices . whenever such that this could not be done by July 1953, be­ Uruguay. cause one of the most important of the inter. The terms of reference of the' ad"boc com·· 1 Report of the Ad Hoc Committee on Re ... governmental bodies, the Contracting Parties niittee provided that, and I · quote: "The· strictive Business Practices E/ 2380, E/AC .37 / 3 to GATT, had had no regular meeting. Note Economic and · Social Council of the United (U. N. Economic and Social Council Official by the Secretary-General concerning the Nations recommend that the- measures­ Records, 16th sess., Supp. 11) 12 et seq. report requested under Council resolution adopted in the cases and the purposes stated (March 30, 1953). ~75 (XIII) E/2443 (1953). 1824 CONGRESSIONAL RECORD ·- HOUSE · February 18 "The breadth of this article can be fully which. the Organization shall make on the commercial enterprises do not engage in re­ appreciated only by a careful study of its matter. strictive practices. as previously defined. , precise language. It clearly appears at a "This article clearly indicates that there is Members are to comply promptly with re­ glance, however, that the article is not only discrimination in favor of public enterprises quests from the Organization for informa­ broad but vague. Furthermore, it is qu,es­ and against private enterprises. The ad hoc tion regarding complaints. They are to take tlonable whether the criteria set forth are committee frankly admitted that 'special action in accordance with their constitu­ adequate for an international organization difficulties arose, however, in connection tions o~.: systems of law and econ<;miic or­ to determine whether specific practices are with restrictive business practices which ganization. Nothing in the agreement shalt restrictive or not. Perhaps the most funda­ were sanctioned by governmental statutes be construed, however, as requiring a mem­ mental question raised by this article is or regulations.' G ber to give information contrary to its essen­ whether its basic philosophy is generally ac­ "This is a fundamental defect in the whole tial security interests. cepted in the family of nations. It pre­ plan. A further defect which appears in this "The obligations imposed on the members sumably represents the philosophy of the article is the provision that members will contain no safeguards against frivolous com­ .United States, but in the United States there be requested'0 to take remedial measures in plaints. The criteria upon which the Or­ is no clear agreement as to just what this accordance with their respective laws and ganization will base its decision as to philosophy really is. procedures. Nations like the United States, whether a complaint is justified are unclear. "The confusion about the application of which has rigid and enforced laws, will be The burden may frequently be on the de­ American antitrust laws in foreign commerce placed at an obvious disadvantage vis-a-vis fending country to prove that it-is innocent­ could hardly be greater .3 Not only is there countries with less rigid and frequently un­ under its own laws. Furthermore, the para­ confusion about the application of these laws enforced laws. If this disadvantage were graph requiring members to take action but there is also little agreement about the temporary it might be tolerated. It is per­ under the constitution or system of law and meaning of some of the terms used in arti­ fectly clear, however, that it might last for economic organization is meaningless in cle 1. The Attorney General of the United years, or decades, and hence would be unac­ view of the wide diversity of such systems. States has established a committee to re­ ceptable. It is obvio~s that laws and proce­ There is no equitable basis for international examine our antitrust laws.' Particular at­ dures vary widely in the various countries conduct or action. tention is to be paid to their extraterritorial of the United Nations. r. When, if ever, they "In article 8 it is recognized that certain application. Pending the completion of this will come to resemble those of the United services, e. g., transportation and telecom­ study, it is doubtful whether other nations States is uncertain. munications, are substantial elements of in­ will be eager to accept the terminology and "A final observation about article 3 should ternational trade, and that any restrictive philosophy of this article. Certainly an be made. The investigation, trial, and adju- · business practices by them may have harm­ international organization composed of na­ dication of cases involving restrictive busi­ ful effects. If. any member thinks that-.such tions having widely differing concepts of ness practices are extremely intricate and· harmful restrictive business practices exist,. law would have an exceedingly difficult time complicated tasks. The patient and pains­ it may submit a written statement on the implementing or interpreting it. taking efforts of trained people are always situation to those whose private or public . "Article 2 provides that any member may required to bring about a fair and just set­ enterprises are involved, and · sympathetic consult directly, or ask the Organization to tlement of such cases. The proposed United consideration shall be given to effecting a arrange a consultation, with ether members Nations plan does not spell out how these satisfactory adjustment. If no adjustment in any instance in which the member thinks difficult tasks will be performed. Will there is made and the matter .is referred to the it has been affected within the meaning of be an investigatory staff, or is the advisory Organization, it shall be transferred to the article 1. If the Organization considers ac­ staff provided for in articles 13 and 15 to con­ intergovernmental body concerned if one tion justified, it will arrange for and assist duct investigations? What information exists. If there is no such body, the Organ­ in such consultation. This article gives the will be used? ·can judicial proceedings ·and ization may make recommendations. Organization very broad authority without. committee investigations in this country be "Article 9 contains four paragraphs which . any checks. It could open the door to frivo­ used? What power and authority will an in­ empower the Organization to bring to the lous cases which might very well be con­ vestigatory staff have? Or if the investiga­ attention of members ·measures taken by sidered by the Organization for political tions are left entirely to the individual mem­ other members or intergovernmental bodies reasons. ber nations, what assurance can there be or agencies regarding business practices; to "Article 3 concerns investigative procedure. that investigative procedures will be · rea­ make. arrangements with other intergov- . It provides for the presentation of written sonably similar? The answer to the last ernmental bodies or agencies which will pro­ complaints to the Organization which must question clearly semes to be that there can vide for effective cooperation with respect contain minimal information (prescribed by be no assurance because ·Of the wide differ­ to restrictive business practices; and to make the Organization) as to the nature of the ences in approach to this whole subject· suitable arrangements for consultation and. practice complained of. The Organization among the member nations of the United cooperation with nongovernmental organi­ determines whether the complaint is justi­ Nations. It should be noted in conclusion zations. fied. If, however, the Organization is satis­ that it would be possible under article 3 for "If it is anticipated that the Organiza.tion fied that the practice in question was spe­ the Organization to publish reports on will do these things, as well as all of the cifically required by governmental measures charges even though the latter had been other things provided for in preceding ar.­ in existence prior to the complaint, no fur­ proved false. ticles, on a worldwide basis, it will have to ther investigation shall be undertaken, pro­ "Article 4 authorizes the Organization to maintain an astonishingly large staff of vided that any practice found to exist in make studies of all aspects of restrictive highly trained personnel.- more than one country may be further inves­ business practices. It may request members "Article 10 provides that the representa­ tigated in the Organization's discretion, if to supply information in connection with tive body is to consist of all members of such practice is not specifically required in these studies. Thus, the burden may fall the agency. Each is to have one vote. De­ all countries in which it is found to exist. on nations with a great deal of commerce to cision.:> are to be made by the majority of "Reasonable opportunities for being heard receive recommendations from countries the meml;>ers unless otherwise provided in shall be afforded the complainant and the whose basic motives are political. the agreement. The representative body is commercial enterprise alleged to have en­ "Article 5 provides that each member shall to meet .regularly and can be convoked by gaged in the practice complained of. All take all possible measures to insure that· the executive board or by one-third of the members are to be informed of the com­ within its jurisdiction private and public members of the representative body._ It ·is plaint. Any member can be asked for in­ to establi~h its own rules of procedur~. ·. and final authority to determine the pollices of formation on the complaint. The Organiza­ li Report of the Ad Hoc Committee on Re­ the agency shall be vested in it. tion shall decide whether there has been a strictive Business Practices E/ 2380, E/ AC.37/ 3 violation, and shall inform all members of (U. N. Economic Social Council Official "This article underscores what has been Records, 16th sess., Supp. 11) 4, par. 22 pointed out in comments on previous ar- . its decision and reasons therefor. If there ticles-the policies with regard to restrictive is a violation, the Organization has the power (March 30, 1953). 6 business practices might very well be de­ to request the members · concerned to take The Organieation's power. is limited to "re­ questing" members to take remedial action termined, by a group of n!ltions having only remedial action in accordance 'with their and "recommending" possible remedial meas­ a small percentage of world comme:rce, and respective laws and procedures. • The re­ ures. whose motivations might stem from politi­ mainder of the article deals with reports ' This conclusion is based on the findings in cal, ideological, or other reasons to the detri­ Analysis of Governmental .Measures Relating ment of more highly commercial nations. 3 See Searls, ·Trade or Commerce Among the to Restrictive Business Practices E/2379 and The proposed program is, to say the least, Several States or With Foreign Nations, pro­ E / 2379/Add.1, E/AC.37/2 and E / AC.37/2/:­ a novel one. The procedure for adjudication ceedings at annual meeting, section of anti- . Add. 1 (U. N. Economic and Social Council is nonjudicial, and might easily become po­ trust law, American Bar Association 58 (Aug. Official Records; 16th sess.; Supp. llA), (April litical or partisan. Yet various articles of .26, 27, 1953) • See also Hale and Hale, Monop­ 29, 1953), and Foreign Legislation Concern­ the proposal -refer to what the Organization oly Abroad: The Antitrust Laws and Com­ ing Monopoly and Cartel Practices (report may decide, or to de.cisions of, the · Organi­ merce in Foreign Areas, 31 Texas L. Rev. 493 of Department of State to Subcommittee on zation.8 Are, these decisions to take on the ( 1953) ; see note, Foreign, Subsidiaries in Monopoly, Senate Select Committee on Small aura of· judicial decisions? With. no . appli~ Antitrust Law, 4 Stan. L. Rev. 559 (1952). Business,. subcommittee , print No. 5, 82d 4 See 21 U. S. L. Week 2651 (June 30, 1953) •. Cong., 2 sess.) (1952). 8 E. g., art 2, pars. 3, 5, 8; art. 5, par. 4. . . 1955 CONGRESSIONAL 'RECORD- HOUSE 1825" cable law : and no agreement about basic "The provisions for the coming into force an investigation by an international body principles, confusion unbounded might easily of the agreement are sound. They do pre­ would have been more successful.' 11 rclg~ · vent it from becoming effective without the "This conclusion is as unjustified as it is "Article 11 concerns the executive board. concurrence of most of the important com­ revealing of exactly what the International· The executive board is to carry on the mercial countries. Cooperative Alliance really wants. functions of the representative body. Its "The appendix of the agreement points up "C . .General Considerations eize and composition are to be determined the fact that only seven countries in the by the body. The selection of members is world have trade over 3 percent of the world "Aside from the specific objections to the to be made with due regard to 'the objec­ total. These are: ad hoc committee plan outlined in earlier tives of including members from the differ­ paragraphs, there are a number of general Percent observations which ought to be taken into ent types of economies and degrees of eco­ "('1) United Kingdom and depend- nomic development to be found among mem­ account: encies ------17.57 "(1) Chapter V of the Habana Chapter, bers of the agency, from the broad geo­ "(2) United States and dependencies_ 17.22 graphical areas to which the members be­ upon which the ad hoc committee plan "(3) France and dependencies ______8.04 is based, was only one part of an overall long, and from countries of chief economic 5. 15 importance, for which last criterion particu-. " ( 4) Canada------proposal to deal with barriers to the free "(5) Germany (Federal Republic) __ _ 4.47 fiow of trade. To attempt to implement ls.r regard shall be paid to members' shares in "(6) Netherlands and dependencies __ 3.91 international trade.' only a part of the plan would be a mistake; "On the basis of previous experience in "(7) Belgium-Luxembourg and de- . "(2) The committee's plan does not rest the United Nations, orie could. anticipate a pendencies------3.77 on a sound basis of agreement as to what Board composed roughly of 25 percent from · "The total of these 7 countries is 60.13 per­ is or is not an objectionable business prac­ Latin America, 25 percent from Europe, 25 cent. There are 57 countries each with trade tice; percent from Asia, and the remainder from· under 3.percent of the world total. "(3) The language employed in the plan is not sufficiently precise, but is vague and the United States, the Iron Curtain c.oun­ "B. International Reaction to the Draft tries (if they should join the Organization), ambiguous; Articles "(4) The plan purports to deal with mat­ and -the. British Commonwealth. In the ab­ "In light of the foregoing objections to sence of a clearer definition of the powez:s ters normally handled by the courts in the the ad hoc committee's report, it seems re-· various countries covered by it, yet there are' and limitations of the Organization, the markable that none of the delegations or tp.e countries having rigid laws on restrict~ve no provisions which would insure the use of nongovernmentl:l-1 organizations pointed out judicial prc;>cesses by the Organization. On business practices would be placed in a dis­ the defects of the plan.9 Furthermore there advantageous position in dealing with na­ the contrary, it would appear that there is has been no indication yet that these diffi­ · no guaranty of due process of law, and that tions having looser or unenforced laws. culties will be taken into account. One is "Article 13 provides that the chief advisory enforcement would be obtained by indict­ forced to conclude that the fear of being ment; officer of the agency, who is appointed by the branded a 'procartelist' has muted the voices representative body, shall be the director of of organizations and individuals. This is a "(5) Members of ~he. Organization would the advisory -staff. He is to. select the staff. regrettable situation, since we are not con­ be such on different bases inasmuch as the The advisory staff shall exercise its functions cerned with the merits or demerits of cartels laws of the participating nations all differ in some r~spects; · with complete independence in the general and restrictive business practices, but only interest of all members, and shall neither with the wisdom and validity of plans to " ( 6) There is no. reference to the impor­ solicit nor acce.pt instructions from any gov­ handle them. tant question of the right of each sovereign ernment, ·Article 15.assigns. to the advisory, ' "The Belgian representative to ECOSOC nation to h!tndle. restrictive business ·prac­ staff ·almost entire respons,ibility,for .eya,lu ... tices in its ·own territory in accordance witb, did-observe that' cart'els were not necessarily 12 . ating the substance of each complaint. The evils in themselves. Their evil springs from its own laws and ideologies. The commit­ staff is to arrange for the analysis of the in­ the general economic situation that calls tee recognized the difficulty, but stated that formation, and to prepare the report. It can them into be,ing. -Turkey questioned wheth­ 'the issue [of overlapping jurisdictions and call for additional information, and do what­ er there was any point in the Council's dis­ confiicts of laws] h .as, however, far-reaching ever is necessary to obtain information to cussing only one part of the ITO Charter. implications which raise serious difficulties prepare the report of the representative body. The French representative felt that the of substance; moreover, the question arose "Articles 13 and 15 make it obvious that whether the matter came properly within the the position of the ·director of the adv.isory proposals might well be expanded so that there would be a comprehensive coverage committee's competence. For these reasons, staff is importa-nt. Likewise, the staff will and ha.ving regard to the limited time avail­ have considerable latitude in light of -its of all restrictive practices. The United States and the United Kingdom were non­ able to the committee, most members felt "complete independence." The director. has committal.10 · it would not be profitable to ·pursue the a substantial amount of power. His position matter.13 should not be underestimated. He is in "The other members of ECOSOC and the effect both prosecutor and judge. This, nongovernmental representatives seemed for '"Ill. Domestic laws and conditions in the coupled with the fact that there are no rules the most part to be favorably disposed to­ nations concerned of law to guide . him or within which he ward the committee's report. The soviet :'Any consideration of p_roposals for the should operate, produces a unsatisfactory Union, which is the largest and most omi­ international regulation of cartels must take and unacceptable system. nous cartel in history, abstained after mak­ into account national legislation on the sub­ "Article 16 provides that the representative ing some snide remarks about the same ject. With world trade and business activity body 'shall take full account of reports of American industry which had contributed expanding, the private-law aspects of inter­ the advisory staff.' This emphasizes the im­ so much to Russian success against nazism. national industrial combinatio-ns become of portance of the work of the advisory staff. The Russian representative and Mr. Boson,' increasing interest to the student of conflict "Articles 17, 18, 19, and 20 make provisions the representative of the International Co­ of laws. The ad hoc committee made an for the content of reports; entry into force operative Alliance, referred to the antitrust analysis of the constitutional provisions and of the agreement; and amendment, with­ suit of 1952 against a number of American laws of a number of countries on the subject drawal, termination, interpretation, and defi­ oil companies. Boson hardly paid a tribute nition of the, agreement. · The agreement is ·to the American system of law when he 11 Id. at 244. The views of other nongov­ to come into force on the 60th day after- stated: ,ernmental organizations like the ICFTU . "'(a) The number of. governments. which ·~ 'In ·th.e United States of America, the seemed to spring from a genuine apprehen­ have• deposited instruments of acceptance _ grand j~.uy _ inves~igating the. int~rnatio.nal sion of restrictive business arrangements . shall reach 20 or more and shall cover 65 ..petroleum cartel had failed to establish a Unfortunately, they do not seem to have •i percent or more of the total value of world :Prima fa.cie case. There was no doubt that recognized the dangers of an unworlmble imports and exports, as set forth in ap- plan. Possibly . time. will permit a more . pendix A; [O!] - 9 The Inter-nationaLChamber of Commerce thorough examination of the proposals . . "'(b) The number of governments which has subsequently indicated its opposition to 12 See Haight, International Law and Extra­ have deposited instruments of acceptance the plan. Resolution adopted by council of territorial Application of the Antitrust Laws, shall have reached 20 or more and shall International Chamber of Commerce, Doc. 63 Yale L. J. 639 (1954); Whitney, Sources cover 65 percent or more of the total value 225/23, Rome, Italy, April 13, 1954. Likewise, of Conflict Between International Law and of world imports and exports as set forth in the National Association of Manufacturers the Antitrust Laws, 63 Yale L. J. 655 (1954). appendix A, and shall include six countries has indicated its lack of· agreement. See , Tb,e .confiict of laV\5 could not be more clearly which individually have 3 percent or more of Restrictive Business Practices.. Com­ illustrat-ed than in the recent cases of United such total value.' ments • * • E/2612 (U. N. Economic and So­ States v. Imperial Chemical Industries, Ltd. "Amendment of the agreement can be cial Council Document) (May 28, 195,4). (105 F. Supp. 215 (S.D. N. Y. 1952) ), and effected by a · two-thirds majority of the But there has not been any analytical sur­ British Nylon Spinners, Ltd. v. Imperial members of the Organization. Any member vey of the implications of the P,lan . . Chemical Industries, Ltd. (( 1953) 1 Ch. 19). may withdraw at any time. Withdrawal -is ~0 ':'he summary of attitudes is taken from · ~3 Report of the Ad. Hoc Committee on Re­ to become effective 6 montl~s after receipt of Official Records (U. N. Econ. & Social Coun­ strictive Business· Practices E/2380, E/ AC.-. the written notice by the executive secretary. cil, 16th Sess.) 742d meeting E/ SR.742,. p. 37 ;a· (U. N. Econ. & Social' Council Official The agreement. can be terminated by a three­ 239 et seq. (July 30, 1953), 744th meeting Records, 16th Sess., Supp. 11) 6, U 36 (March fourths vote of the members. E/SR.744, p. 257 et seq. (July 31, 1953). 30, 1953). 1826 CONGRESSIONAL RECORD- HOUSE February 18 o! restrictive business practices. The con· toria.lly to foreign operations of American be effectively employed to control or elim­ 2 elusions of the committee are of interest. concerns may in certain instances work a. inate such practices. ' " 'The documents have confirmed in the positive disservice to national security inter­ " 'Germany's industrial development has minds of the committee three broad propo· ests of the United States. In nations unac­ been characterized by a high degree of eco­ sitions which underlie Resolution 375. customed to American antitrust law, reac­ nomic concentration during the entire peri­ These are: tions to antitrust proceedings against Ameri­ od of the existence of the country as a "'1. That opinions differ from country to can companies frequently range from sur­ modern industrial state. country about restrictive business practices prise and incredulity to suspicion and hostil- " 'In general, the economic structure of and about governmental policies towards _ity-particularly where criminal proceedings Germany has been characterized by indus­ them; are instituted. trial combinations based on financial and " '2. That restrictive business practices "Space does not permit a. detailed analysis legal interrelationships such as trusts and affecting international trade may in some of all governmental measures which have combines, and by cartels.25 circumstances have harmful effects on the been taken relating to restrictive business "'The political and business climate in fulfilment of widely acceptable objectives of practices. The recent reports of the United Western Germany is generally unfavorable international economic policy; Nations ad hoc committee and of the to a program for the elimination of restric­ " '3. That it may be difficult in such cases United States Department of ·state to a Sen­ tive business practices.26 19 for appropriate action to be undertaken ate Subcommittee on Monopoly contain a " 'Swiss industry is highly organized into solely by governments acting individually.' a review of constitutional provisions and legis­ trade associations which regulate the terms "Paragraph 1 of the preceding quotation is; lation in a. number of countries. There are of sale and prices in practically all sectors of if anything, an understatement of the pres­ certain significant deductions which can be the economy.27 drawn from these reports when a compari­ ent situation. In a number of European "'There are no laws in Denmark which countries cartels have been quite acceptable son of the various laws is made. to governments.u In the United States, "We have noted that the ad hoc com­ actually prohibit business enterprises from organizing cartels or engaging in other ar­ Congress passed the Webb-Pomerene Act,18 mittee found that opinions differ from rangements designed to restrain competi­ authorizing exporters to combine to form country to country about restrictive · busi­ 28 export corporations so they could match their ness practices.20 The Department of State tion.' foreign competitors. The question has been report comes to the same conclusion: "The selected comments quoted above raised whether the European Coal and Steel "'As might be expected, the type of clearly indicate the wide variety of ideas and Community might end in a. superinterna­ statutes as well as the degree of effectiveness concepts on how to deal with restrictive tional cartel. Whether it does or not, the of their provisions and of their administra­ business practices. It should be noted that plan proposed to the United Nations simply tion has varied greatly from country to both the Department of State Report and does not cover arrangements like these. country. These factors are a function of a. the United Nations Ad Hoc Committee's. Re­ "The ad hoc committee plan takes no number of complex considerations, such as port discuss only a relatively small number appreciable account of the problems which the type of government in the particular of countries. Important though these coun­ confront private enterprise seeking to do country at the period in which legislation tries may be, there is still a large group of countries which have virtually no interest business abroad under laws which are all too was adopted; its economic, social, and politi­ 28 frequently different from those at home. cal aims; and the fundamental philosophy in the whole subject. The risks involved in such ventures are of the government and the people of a coun· ~'Conclusion often enormous. At the present time, the try toward the part the business community "It is true that there has been much in­ petroleum industry is in the forefront of should play in the economic and political terest manifested in some countries, par­ American investors abroad. Th!'l industry is structure of the country. It is accordingly ticularly in Western Europe, about the prob­ concerned about the implications of the ex­ difficult to reach -any generalizations as to lem of restrictive business practices. How­ tension of American antitrust laws to opera­ the trend of development in the group ·of ever, it would seem abundantly clear that tions being conducted within the sovereign countries as a. whole.' 21 11 even the proponents of United Nations ac­ territory of another State. There must be a "Comm~nts from the State Department tion in the field recognize the great variations clarification of the national laws before any report on selected countries are also of in national approaches to the problem.30 Fur­ international action based on national law interest: thermore, while constitutional and statutory can be undertaken. " 'The Austrian economy is characterized provisions may exist in many countries, "In the United States there is a confusing by an absence of free competition, caused whether they are really enforced is quite lack of clarity as to where the Attorney Gen­ in large part by the concentration of eco­ another matter.at eral's jurisdiction should logically end, and nomic power. This concentration results where that of the Secretary of State should from such factors as (a) the dominant in­ 4 begin. While it is very true that the Sher­ ' Id. at 20. A bill for the surveillance of fluence of a few firms in the principal areas economic agreements to ensure freedom of man and,Clayton Acts have been strong links of private industry; (b) the dominant posi­ 18 production and trade was submitted to the in the chain of the free enterprise system, tion of the larger banks; (c) a complex net­ efforts to extend their application extraterrl- Assemblee Nationale at the second term, work of interlocking directorates by means 1953, No. 5704.· See texts of National Legis­ of which a few leading groups control a. large 14 lation and Other Governmental Measures , Analysis of Governmental Measures Re­ part of the private industrial economy; and Relating to . Restrictive Business Practices lating to Restrictive Business Practices E/ (d) the nationalization of a major sector of E/ 2379/Add. 2. E/AC.37/2/Add. 2 (U.N. Eco­ 2379 and E/ 2379/Add.1, E/ AC.37/2 and E/ industry.u nomic and Social Council Official Records, AC.37/2/ Add.1 (U.N. Econ. & Social Council "'Industrial federations form the principal 16th sess., supp. llB) 76 n.9 (March 13, 1953). Official Records, 16th Sess., Supp. llA) 1 basis of the strong ties that exist among 25 Id. at :h. (April 29, 1953). individual Belgian firms. • • • 26 Id. at 43. Despite the stringent allied u Examples: Cement Entente of 1935 in "'Existing Belgian legislation is favorable Belgium.: Zinc Rollers Entente of 193:3; syn­ decartelization program, there are numerous to the formation of cartels and imposes but signs that German industry much prefers dicate of Belgian Manufacturers of Machine few limits on their operation.23 Tools. In Austria virtually all industry is to do business by the old methods. " 'There are in France few large industrial 27 organized through trade associations. See Id. at 58. firms in a monopoly or nonmonopoly posi­ :s Id. at 62. :r:.ote 49 infra. tion. There has, however, been a trend to 16 40 Stat. 516 ( 1918), 15 U. S. C. § § 61-65 29 Recent -comments from member nations, the uniting of business firms in cooperative (1952). 49 Stat. 1526 ( 1936), 15 U. S. C. § 13 specialized agencies, intergovernmental or· et seq. (1952) (Robinson-Patman Price Dis­ agreements or associations. The comptoir ganizations, and nongovernmental organiza· crimination Act) further complicates Ameri­ system of doing business often involves re­ tions regrettably reflect little additional an­ can antitrust law. strictions on the right of the individual :Qrm alysis of the problem, particularly as it in­ to take independent action as to prices, 17 Joint Oil Producing Ventures in the Mid­ 'Volves the efficacy of the ad hoc committee's dle East-Their Status under United States quantity and type of production, and areas proposals. Restrictive Business Practices. Antitrust Laws (Submittal by Standard Oil of sale. Comments • • • E/2612 (U. N. Economic Co. of N.J. to Att'y. Gen.'s Nat'l. Comm. To "'At the present time, there is no legisla­ and Social Council document) (May 28, Study the Antitrust Laws) (Dec. 13, 1953). tion in existence in France directly relating 1954). See also the defendants' answers in United to restrictive business practices which can ao This is the writer's conclusion with re­ States v. Standard Oil Co. of N. J. (Civil No. spect to such informative articles as Tim­ 86-27, S.D. N.Y.); defendants' answers filed 1o See notes 10, 25 supra. berg, Restrictive Business Practices, 2 Am. Sept. 1, 1953; amended answer filed by Texas 20 See note 40 supra. J. Comp. L. 445 (1953). Mr. Timberg was Co., Sept. 21, 1953. 21 Foreign Legislation Concerning Monop· secretary of the ad hoc committee on restric­ 18 The importance of the antitrust laws to oly and Cartel Practices (report of Depart­ tive business practices. United States foreign trade was clearly stated ment of State to Subcommittee on Monop· 31 Id. at 465; by the Honorable Stanley N. Barnes, Assist· oly, Senate Select Committee on Small Busi· While the constitutional texts and statu· a1:t Attorney General of the United States, ness, Subcommittee Print No. 5, 82d Cong., tory provisions of many other countries ·show in an address before the Washington Board 2d sess.), 1 (1952). on their face a similar hostility against of Trade, entitled "World Trade and the 2~ Id. at 6. monopolies, these have no history of prac­ Antitrust Laws" (Sept. 27, 1954). sard. at 15. tical enforcement. 19-55 CONGRESSIONAL RECORD.-- ·HOUSE 1827 "This brings us to the conclusion that no turbed me. They review our antitrust laws prices, and to divide foreign producing and matter how strongly one may feel about re­ and refer to criminal proceedings which are marketing territories.37 The complaint strictive business agreements, action in the meaningful to those familiar with American charged further that some thirty jointly International sphere which is predicated on jurisprudence, but place American free en­ owned companies were created· to give effect national law is questionable policy. There terprise in an unfavorable light in a forum to these arrangements." can be little doubt that the ad hoc com­ such as the United Nations with its Iron You will note the reference to a price­ mittee was confronted with a most diffi­ Curtain members who do not adhere to our fixing conspiracy, collusion, and the state­ cult task.32 Valiant though its efforts were.. judicial concepts. ment that a criminal case was instituted. the great differences of opinion were an ex­ Our Government has just recently fur­ I am sure that the representatives from the ceedingly difficult problem to overcome. nished another report to the United Nations Soviet Union will be happy to have this offi­ "It can only be concluded, therefore, that pursuant to this resolution. · This report cial report of our Government to use for the answer to the question raised by Prof. assumes a complete understanding of the propaganda purposes. Corwin Edwards as to whether the United philosophy underlying our antitrust laws by This report also recites actions recently Nations proposals 'afford a useful basis for the reader of a United Nations document. instituted under the 1950 amendments of a beginning of multilateral action'33 is that Unfortunately, few foreign readers possess section 7 of the Clayton Act. This statement they regrettably do not appear to be satis­ such understanding. It proceeds to describe is meaningful to those of us who are familiar factory in their present form. Whether any various antitrust cases which have been ini­ with this legislation, but in the form in plan can be developed in the absence of tiated in the United States and cites the which the report is presented, it has no uniformity in national laws is extremely complaints in detail. Many of these cases meaning whatsoever to other count.ries who doubtful. In the meantime, based on his have not been brought to trial, and I am will receive it through the United Nations experience attending United Nations sessions sure that those who wish to• impugn the Economic and Social Council. In official and semiofficial capacities, the motives and philosophy of American busi­ Our present able delegation to the Council writer believes that it would be a positive ness enterprise will have a field day with this has sutlicient difficulty in presenting the disservice to the United Nations organization document. I wish to read just one page merits of the American free-enterprise sys­ to attempt to give it a somewhat nebulous from this report, which clearly shows the tem without having to be confronted with responsibility based on an ambiguous plan unfavorable light in which American enter­ a report placing American business enter­ to attain a hazy objective in the field of prise is placed. I shall now read from page prise i:n a most unfavorable light in such restrictive business practices. On the other 3 of the document: a forum. · hand, a heavy responsibility rests on govern­ "3. ADMINISTRATIVE DEVELOPMENTS On October 21, 1953, I testified before the ments and business to see that business prac­ Subcommittee on Minerals, Materials, and tices are not harmful or disruptive of the "During the course of the period since Fuels Economics of the Committee on In­ free flow of international trade, and to make January 1, 1953, the Antitrust Division of terior and Insular Affairs, of which the dis­ any constructive suggestions toward this end the Department of Justice had brought tinguished senior Senator from Nevada was which the United Nations and its members through July 1954, a total of 55 new cases, the chairman, and reviewed the steps which might consider." of which 29 have been criminal proceedings, led to the convening of the conference at Ha­ The principal conclusion I derive from and the remaining 26, civil cases. These ~ana. After outlining the State Depart­ what I have just read is that it is impossible cases cover a broad variety of industries as ment's 1945 proposals, I said that they rep­ for an administrative body established within well as of types of restraints. A majority of resented a bold move in the direction of the United Nations to act as a court and them have been directed at traditional viola­ world government and threatened the meas­ determine violations of restrictive business tions of the antitrust statutes such as price­ ures of security in which I have been par­ practices. The laws of the sovereign nations fixing, allocation of customers or territories, . ticularly interested throughout my entire differ so widely concerning this subject that and boycotts. As an example, a criminal case adult lifetime. it is impossible to frame an agreement pre­ and a separate civil action were filed The report of this ad hoc committee on dicated on national law which would be against four pencil manufacturers charging Restrictive Business Practices, which will be meaningful. Without a uniformity in na­ a price-fixing conspiracy, including collusive before the Economic and Social Council this tional laws which, in turn, presuppoes some bidding on Government contracts.34 In an­ spring; included this sta-tement which con­ common agreement on the type of economy other instance, four distributors of toilet firms the fears I expressed at that time: under which the different countries shall goods, perfumes, and cosmetics were charged, "Governments have long since come rea .. operate, it is impossible to conceive of any in a separate action filed against each com­ listically to accept the concept that different useful purpose resulting from the implemen­ pany, with attempting to restrain trade, types of trade barriers must be dealt with tation of chapter V through a new United through misuse of the United States trade­ at a different pace and through different Nations organ. · mark laws, by preventing goods produced by organizational arrangements. For examp:e, The resolution establishing this ad hoc their foreign affiliates from being imported the International Monetary Fund, which is committee, which was adopted in September and sold in this country through competi­ charged with the problem of dealing with of 1951, also provided-and I am quoting tors.35 exchange restrictions, was established sev­ from the resolution: "Several important cases having interna­ eral years before any organization had been "Determines further that the committee tional as well as domestic significance have set up to deal with the problem of import shall: been brought against monopoly or monpo­ restrictions, the close companion of ex­ "(a) Obtain information from govern­ listic practices of dominant companies in change restrictions; and the General Agree­ ments, specialized agencies and other their respective fields. One of these, filed on ment on Trade and Tariffs was established sources, on restrictive business practices, October 9, 1953, charges the American without any parallel organization with re­ whether based on cartel agreements or not, Smelting & Refining Co. and St. Joseph Lead spect to restrict! ve business practices. Both that affect international trade and interna­ Co., with a conspiracy to monopolize and the International Monetary Fund and the tional economic cooperation generally, and restrain trade in primary lead.30 The case General Agreement, in turn, were created on legislation adopted and measures taken by charges the companies with collaborating to at a time when no formal arrangements had individual member States in connection with preempt supply sources of raw material, to been developed for continuous consideration restrictive business practices and with the limit the marketing opportunities of com­ of commodity agreements and commodity object of restoring the freedom of competi­ petitors and to restrict overall domestic pro­ allocations, problems which are intimately tion; and duction of lead ore. On April 21, 1953, a related to trade-barrier problems. In each "(b) Present to the council analyses of complaint was filed against five leading of these fields, notwithstanding their inter­ this information together with the proposals United States oil companies charging tin­ relationships, machinery for international ac­ mentioned in paragraph 4. • • •" lawful agreement to secure and exercise con­ tion was developed at its own pace and in its trol over foreign production and supplies of Pursuant to- this. r~solutjon, two United own form. The problems of liaison and Nations documents were issued, known as petroleum and its products, to regulate im­ consistency of pace have proved far less dif­ supplements llA and llB to the official rec­ parts into the United States in order to ficult in actuality than in the abstract. A ords of the 16th session of the Economic and maintain an agreed level of domestic world common core of membership in these groups, Social Council. These documents analyze supplemented by the enterprise of the secre­ governmental measures relating to restric­ 34 U. S. v. American Lead Pencil Co., et al. tariats, by arrangements similar to those tive business practices. While these docu­ (Civ. 73-54), civil complaint and final judg­ provided in article 9 of the draft agreement, ments clearly_show that there is no uniform­ ment, 2 copies enclosed; criminal action, and by. a few formal ties, have created a ity in the approach to restrictive business copy enclosed. reasonably workable system." practices by the natio:ns of tlie world, they 35 U. S. v. Parfums Corday, Inc. (civ. 93- I am confident that the steps which have also raise another problem which .has dis- 268), complaint, copy enclosed. LanVin Par­ already been taken by the Eisenhower ad­ fums, Inc. (civ. 93-269), complaint, copy en­ ministration to repudiate chapter VI of the 32 Having participated in a number of in­ closed. Guerlain, Inc. (civ. 93-267), com­ Habana Charter through our nonparticipa­ ternational conferences, the writer is deeply plaint, copy enclosed. Empro Corp. (civ. tion in the Trade Stabilization Commission aware of the painstaking effort and .nego­ 93-270), complaint, final judgment, copy en­ will be repeated at the forthcoming session tiation necessary to achieve. workable agree­ closed. of the Economic and Social Council when, ments. au U. S. v. American Smelting and Refining 33 Edwards, Regulation . of .Monopolistic Co. and St. Joseph Lead Co. (civ. 88-249), 3 7 U. s. v. Standard Oil Co. (New -Jersey) Cartelization,14 Ohio St. L. J. 252,278 (1953). complaint, 2 copies enclosed. et al. (civ. 88-27) complaint, copy enclosed 1828 CONGRESSIONAL RECORD -1-IOUSE February 18_ I sincerely hope, we will withdraw from any Since tt ts the consistent policy of the bases may -eventually shift to the air, but further participation in this group designed United States not to initiate preventive war, such a development requires endurance in to implement chapter V of the rejected Ha· it is plain that our determent of war before aircraft beyond anything presently in sight. bana Charter. it starts (and our survival if it does) depends For today's use, inventing an American mo· on our ability to counterattack promptly and bile deterrent force for the atomic age is not with great force and precision no matter necessary. Because the Navy has not lost how severe the enemy's initial attack. Such sight of the strategic and tactical value of a defense requires two things: First, the mobility which the sea provides, naval power Aircraft Carrier Potential United States long-range weapons and their stands squarely in the road to meet future delivery systems must remain adequate in national strategic requirements. EXTENSION OF REMARKS numbers and second to none in quality. On this faith in the enduring virtues of OF Second, the bases from which these weapons mobility the American carrier striking force are launched must neither be nor appear was founded. That force is mobile deterrent HON. HENRY J. LATHAl\1 to be vulnerable to an enemy's initial attack. power today. Furthermore, carrier forces OF NEW YORK 'rhis last requirement cannot be overempha· have the additional virtue, uncommon these sized. The present contest is not a game in days, of diverting enemy intentions and IN TilE HOUSE OF REPRESENTATIVES which the aces are hidden. The enemy must weapons away from our populated areas and Friday, February 18, 1955 know and know well that his best calcula· out to sea. This is extremely important tions and best efforts cannot earn him im· when considering such things as radioactive Mr. LATHAM. Mr. Speaker, for the munity from a blow of magnitude equal to, "fallout." benefit of my colleagues, I wish to set or greater than, that which he has attempted. The mobile deterrent forces the United forth in the REcoRD a most significant Therefore the security of the base sys· States will need must have three characteris· and enlightening article by James H. tern from which our retaliatory attack is tics. First, they must have the ability to deal Smith, Jr., Assistant Secretary of the launched is a major concern of our military devastating blows precisely-a high rate of Navy

• 1830 CONGRESSIONAL RECORD- HOUSE February 18__ vacillation would constitute, in my opinion, Mr. WALTER. That is the usual fee provided The Office of the President of the Ubited a far greater risk. If we stand by, while for by law. world communism directed from Moscow Mr. MATUSow. As the per diem? States conquers one nation after another by force Mr. WALTER. That is provided by law. I' and insidious conspiracy, the time would ultimately come when we would be out­ At the time Mr. Matusow said "I EXTENSION OF REMARKS flanked militarily, economically, and in every turned it over to a charity of some sort," OF other way. That would be a prospect of real I regretted I did not have time to have peril. him name the charity of some sort. HON. EMANUEL CELLER "The present situation is grave, but we Also, his recent swearing that he lied OF NEW YORK are acting from a position of strength. Our and testified falsely before some Govern­ IN THE HOUSE OF REPRESENTATIVES own Armed Forces are in a high state of ment committees, including the House efficiency and the military and economic Friday, February 18, 1955 resources of the free world plus our power Un-American Activities Committee, of to strike, if attacked, with overwhelming which I am a member, further substan­ Mr. CELLER. Mr. Speaker, under nuclear force will continue to be the great tiates the position taken by me as a leave to extend my. remarks, I insert deterrent to Soviet aggression. We must member of that committee; to wit, that herewith the following speech I deliv­ continue to build this great strength for said committee and all congressional ered before the Consular Law Society the long haul. It will best guarantee the committees must be increasingly on the on February 23, 1955: national security and the peace." alert to search and discover, so far as it The Congressman also touched briefly on It is a singular honor to be appearing be­ present immigration laws which he said is possible, the creditability of all wit­ fore the Consular Law Society. I say "singu­ were working great inequities upon many nesses before congressional committees. lar" advisedly, since here I am facing the American families and veterans who, despite Certainly, Mr. Speaker, the earning of soul-chilling scrutiny of the expert. The their fine citizenship and loyal service, are $25 a day, as earned by Mr. Matusow be­ Congressman envies the expert, and I often prevented by law from having their rela­ fore various Government boards and believe that the Congressman is called upon tives join them in this country. "There congressional committees, together with to have opinions on everything, conviction should be a rule of reason in these matters. on nothing, and the little learning the poet the fact that he, and also other similar Pope has dubbed dangerous. These laws should be liberalized," he said. witnesses, had recently testified that PHILBIN congratulated the members of the Nonetheless, I secretly confess to holding Hoboken Club who, he said, had conducted they had falsified in testimony before a dozen or so convictions, and it is on one themselves in the best traditions of the these boards and committees should of these to which I would like to address Nation. "Your contributions to Milford and make us all wary and most cautious myself tonight. That is, the Office of the to the Nation in war and in peace represent about being placed in the position where . President of the United States. the highest type of citizenship. And your we are expected to fully believe and give During my 32 years in Congress, I have devotion to the cause of your own people watched 6 Presidents, each in his own way, full face to th~ir testimony. define the Office of President: Harding, has heightened your allegiance to this coun­ The above-mentioned editorial fol­ try. I wish you many more years of useful Coolidge, Hoover, Roosevelt, Truman, and service and happiness," he concluded. lows:- Eisenhower. It is in this definition of the THEY WHO HAVE SOWN THE WIND line that both weaves together and at the Implications of the Harvey Matusaw re- . same time separates the executive and legis­ cantations continue to spread out like the lative branches of the Government, the line ripples from a stone dropped into a pond. that is most generally and, I might add, m'ost They Who Have Sown the Wind-An Edi­ loosely, called checks and balances, that each The admitted former-Communist and self­ has differed; an·d it is in this difference of styled professional witness now declares un-. torial Naming Harvey Matusow personal definition that has set, and con­ der cross-examination that he was hired to tinues to set, the course of the ship of state. prepare black lists by at least two big ad_­ Where the President is fully aware that vertising agencies and as a consultant on his office is the governing office of the coun­ EXTENSION OF REMARKS subversion by New York City's superintend­ OF try, he accepts both the tones and the over­ ent of schools, and that he made false ac­ tones of power and the awful responsibility cusations. His testimony as a witness for the that goes with the possession of such power. HON. CLYDE DOYLE . Department of Justice in several trials in­ Particularly is this true in the conduct of OF CALIFORNIA volving alleged Red activities he had pre­ foreign affairs. He in the office of the Presi­ viously sworn was false. dent is charged with that responsibility. IN THE HOUSE OF REPRESENTATIVES We cannot be sure that what he declares The ultimate decisions must be his. You to be the truth now can be relied on any Friday, February 18, 1955 can no more separate the loneness and the more than what he declares was false. That· loneliness of the man in this office than you Mr. DOYLE. Mr. Speaker, by reason remains to be proved. Nor does the re­ could separate the tides of the ocean from cantation of one ex-Communist prove that the pull of the moon. The President who of unanimous consent granted me here­ all the Red apostates have given false testi­ tofore so to do, I present the text of an seeks to divest himself, in all good faith, mony. But dependence upon paid informers from the loneness and loneliness of the of­ editorial printed in the Christian Science is a risky business under any circumstances; fice, deserts the charges of responsibility that Monitor on Thursday, February 17, 1955. retention by congressional committees and office has placed upon him. In view of the fact that this editorial the Department of Justice of a string of Undoubtedly today we have in our Chief deals with Harvey Matusow, and with them for use on call in a semipolitical field Executive a man with the will to peace. If former Communist and self -styled wit­ has made many people, no friends of the sincerity were the only quality the

• 1955 1831 mehts. While it is' true that the· Executive­ What was at first the relentless decision not that public opinion, unaware of new and can veto a bill, the ultima,te power still lies in to consider the Chinese Communist govern-· subtle developments, may compel a rigidity the Congress while it is in session by the ment as either de facto or de jure, we now in the operation of foreign affairs which new overriding veto. But there is a vast area of seek, through the language of the Formosa developments no longer warrant. This eager­ power consciously not made explicit by the treaty and through the efforts of cease-fire, to ness for public announcement has already framers of our Constitution who were aware bring ourselves to the point of acknowledg­ resulted in unnecessary confusion at home of the curbs placed on the Executive with­ ing the existence of two Chinese govern_. and abroad and has left the unwarranted out corresponding; explicit c~rbs which the ments, one for the mainland and one for impression that the United States leaps be­ Executive could use in its relationship with Formosa. fore it looks. the Congress, and it is in the use of this area I do not quarrel with .some of the deci­ Hamilton has said it well in discussing the that a President fails or succeeds in the gov­ sions that have ultimately been made; I make powers of the President: ernment of his country. only the point of the circuitous, contradic­ "In the article which gives the legislative It is because the fathers of this coun­ tory routes that have been passed through powers of the Government, the expressions try h ad an image of what the President to reach them. are, 'All legislative powers herein granted must be to match the responsibility of the Perhaps the severest test placed upon the shall be vested in a Congress of the United office-decisive, subtle, informed, and im­ office of the Presidency is that of silence. States.' In that which grants the executive aginative-that this area of power exists. In the delicate operations of negotiation power, the expressions are, 'The executive When the office of the President is filled upon which, perforce, the conduct of for­ power shall be vested in a President of the with a man limited in the exercise of these eign affairs must hinge, there are changes United States.' The enumeration ought qualities, the country must suffer. So it is from day to day · which alter or amend therefore to be considered, as intended today. earlier decisions. The volume and the com­ merely to specify the principal articles im­ We have had, unfortunately, too many. plexity . of such exchange among govern­ plied in the definition of executive power; commissions and not enough· decisions. We ments can be known to the President alone. leaving the rest to flow from the general have had a reliance on the resonant phrase: The public cannot know what they are, grant of that power, interpreted in conform­ "dynamic massive retaliation"; "liberation"; nor should they. I am talking, mind you, ity with other parts of the Constitution, and "agonizing reappraisal", to catch the pub­ of the day-to-day exchange among gov­ with the principles of free government.'' lic mind. We have had to swing around ernments. Hence a dramatic announcement It is well that those of us who are con­ from "liberation" to "containment." We of policy must be watched lest it be tainted cerned with the conduct of government be­ have had an unleashing. and a re-leashing with the poison of prematurity. come increasingly aware of the relationship of the Chinese Nationalist troops on For­ We have seen just such a public scramble between the office of the President and the mosa. We have had decisions made, re­ relative to the now ex-Premier of France, Congress of the United States. The indis­ made, and un-made again, from . the first, Mendes-France. It was first the violence pensable factor must be Presidential initia­ decision that the Tachen Islands are vital directed against him in the repudiation of tive. There has been-unfortunately, I say, to our defense to the un-made decision to EDC by France, and then the reassessment despite the fact I am a Member of Con­ evacuate the Tachens. We have had the upon the completion of the Paris agreements. gress-a growing dependency upon congres­ deci.sion of defending Quemoy and the Matsu Our policy in the Far East has been paralyzed sional support, in the conduct of our foreign Islands through the promise of Secretary by public statements emanating from the affairs particularly. If this tendency devel­ Dulles to Chiang Kai-shek and again through White House. Good intentions are not a ops to too great a degree, we shall find a rad­ "implications" in Mr. Dulles' foreign policy substitute for firmness, nor overeagerness ical disturbance in the distribution of powers, statement of last week. Now we are not for public approval a substitute for delicacy an imbalance which bodes ill for the country. quite sure what the decision will be since and imagination. This growing imbalance can only be re­ the President's statement to the Senate on This, of course, is not a brief for the with­ dressed by the man who, by the strength of the Formosa resolution. We have had the · holdi:hg of information from the public. It his visions, understands the responsibilities, decis.ion to defend Dien Bien Phu and then is, rather, a reminder that the hasty jump­ duties, and the powers of the office of the' the decision not to defend Dien Bien Phu. ing into public print carries with it a danger President.

in the midst of today's falsehood and clerks, announced that the House had SENATE darkness. We ask it in the dear Re­ passed a bill