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16600 EXTENSIONS OF REMARKS June 30, 1988 EXTENSIONS OF REMARKS MANDATORY ARBITRATION IN choice but to sign an arbitration agreement in In short if arbitration is attractive to the con­ SECURITIES order to open his or her account, who may sumer they will go to arbitration willingly. If the not have even been aware that they were industry operated arbitration system cannot be HON. RICK BOUCHER giving up their right to go to court when they shown to give the consumer a fair shake it is OF VIRGINIA signed the agreement, and who felt that the clearly unfair to mandate that they sign com­ arbitration system run by the industry had pulsory arbitration agreements as a condition IN THE HOUSE OF REPRESENTATIVES treated them unfairly, would not have confi­ for dealing in securities. Thursday, June 30, 1988 dence in dealing with the securities industry Our legislation will resolve this issue by Mr. BOUCHER. Mr. Speaker, our entire fi­ again? making it clear that arbitration clauses are vol­ nancial system is ultimately reliant on the twin Of course not. Yet the Subcommittee on untary, and that the signing of such an agree­ principles of trust and confidence. This is true Telecommunications and Finance, as well as ment is not a precondition for a customer to with regard to the relationship the Govern­ the Securities and Exchange Commission is enter into a securities account agreement. ment has with its citizens when it issues cur­ aware that this is precisely what has hap­ And by making it very clear to the consumer rency, and it is true with regard to the relation­ pened in countless cases. This is why the that they are indeed signing such an agree­ ship between broker I dealers and their clients. staff at the Securities and Exchange Commis­ ment by requiring that such clauses be con­ The legislation I am introducing today along sion has recently formally recommended that tained on a * * * must be separately signed. with the chairman of the Telecommunications the Commission take steps to reimpose a The legislation also makes a number of pro­ and Finance Subcommittee, Mr. MARKEY, and system of voluntary, rather than mandatory, cedural reforms in the arbitration system the chairman of the Energy and Commerce arbitration. The specific bill Mr. MARKEY, Mr. which are designed to make the system fairer Committee, Mr. DINGELL, attempts to reestab­ DINGELL and myself are introducing today is for both sides in the dispute. These reforms lish and reinforce confidence in our securities also endorsed by both the North American include stipulating that there be ample oppor­ markets by implementing an improved system Securities Administrators Association, and the tunity for customers to receive documents of arbitration which may be used to resolve Consumer Federation of America. from their brokers which are necessary to pre­ disputes between securities dealers and their We need to be very clear about the intent pare their case. That the arbitrators provide a clients. of this legislation. Our legislation will in no way brief written opinion indicating the reasons for We are all aware that since the market prevent brokers and their clients from using their decision and the elements of their award. crash of October 1987 there has been a crisis arbitration to resolve disputes, or prevent It requires that a majority of the arbitrators not of investor confidence in the markets. At a them from signing predispute arbitration be substantially involved in the industry, recent hearing of the Telecommunications and agreements at the time a securities contract is unless the customer requests otherwise and Finance Subcommittee on the current manda­ originated. that reasonable biographical information about tory securities arbitration process James Arbitration, particularly in cases involving the arbitrators be provided to the customer. small investors, can be an efficient and effec­ Meyer, president of the North American Secu­ Mr. Speaker, the securities industry is, and rities Administrators Association, testified that: tive method of resolving securities disputes. should be, a regulated industry. It is clearly in Larger and more sophisticated investors are the best long-term interests of the industry, The events of last October provided addi­ familiar with the arbitration process and its tional incentive for designing an arbitration and the Nation for us to resolve disputes reform proposal. Thousands of investors benefits. Many of these sophisticated inves­ through a system that is not only fair and effi­ with complaints arising from the market tors currently opt to voluntarily sign arbitration cient, but that appears to the customers who crash got a second rude shock when they agreements when they deal in the commod­ are complaining that it is fair and efficient. The learned, frequently to their surprise, that ities exchanges where mandatory predispute current securities-run, mandatory arbitration they would have no recourse other than ar­ arbitration agreements are not permitted. system does not have these qualities. Observ­ bitration. The key word is not arbitration, which our ers on the left, right, and center agree that the The ire of these investors is understandable bill will retain and enhance. The key word is system needs reform. The legislation we are when one considers that currently customers mandatory. Our legislation will simply make introducing today is a balanced attempt to must sign agreements to enter into the securi­ the arbitration system with regard to securities achieve that reform and reassure uneasy in­ ties market for either option or margin ac­ equivalent to the way it was prior to the June vestors. counts. Similar agreements are not required 1987 Supreme Court decision in the McMahon A section-by-section analysis of the bill fol­ for a customer entering into the commodities versus Shearson case. I believe the security lows: market. industry was able to operate quite effectively SECTION-BY-SECTION ANALYSIS OF SECURITIES The arbitration system the securities indus­ prior to that decision under the voluntary, ARBITRATION REFORM ACT OF 1988 AS IN­ try forces onto these customers is run by the rather than the compulsory, arbitration system. TRODUCED BY REPRESENTATIVE BOUCHER exchanges themselves. There are no rules of I am confident it will continue to do so after SECTION 1. SHORT TITLE evidence. The arbitrators are paid by the ex­ our bill is passed into law. Section 1 of the bill states that the bill changes. The locations and times of the hear­ I have seen no evidence that the litigation may be cited as the "Securities Arbitration ings are often set at the convenience of the costs for securities firms have dropped sub­ Reform Act of 1988." arbitrators and brokers with little regard for the stantially since the McMahon decision, and I SECTION 2. MINIMUM STANDARDS FOR ARBITRA· investor seeking redress. When the investor see no reason why litigation costs would rise TION AGREEMENTS; RULEMAKING AUTHORITY does win awards it is seldom for the full dramatically if we overturn that decision with Section 2 of the bill amends the broker­ amount of loss, and in some cases do not this legislation. dealer registration and regulation provisions even cover the cost of travel and attorneys Many people in the securities industry have of section 15 of the Securities Exchange fees. There are no written decisions and few argued to me that their research indicates that Act of 1934 . This new paragraph seeks to records are kept. Nothing is made public and the arbitration system is not only fair, but actu­ achieve two major objectives: invalidate all appeals to the courts are extremely unlikely ally works to the customer's advantage. If that existing and future pre-dispute arbitration except in the most blatant cases of miscon­ is indeed the case, then there should be no agreements between brokers or dealers 1 and duct, and not necessarily even in those cases. problem to presenting this evidence to the Is it any wonder that a customer who had customer at the time of contract origination in 1 For purposes of this explanation, the term lost a good deal of their money through un­ which case I would expect the majority of cus­ "dealer" incorporates the term, "municipal securi­ sanctioned trades by their broker, who had no tomers to sign arbitration clauses willingly. ties dealer.''

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. June 30, 1988 EXTENSIONS OF REMARKS 16601 customers and direct the SEC to develop ap­ In its entirety, therefore, this section This prov1s10n serves the purpose of pro­ propriate rules to ensure the voluntariness seeks to prevent contracts of adhesion from moting greater clarity in the award process. of any entry by customers into such agree­ being imposed upon customers who wish to Traditionally, arbitrators, to a greater ments. enter into brokerage arrangements with se­ extent than judges, have sought to do Solo­ Currently, the Exchange Act does not ad­ curities firms. In general, it is designed to monic justice by "splitting the baby" and dress the issue of mandatory pre-dispute ar­ ensure that customers who sign binding ar­ rendering partial awards in tough cases. bitration clauses. Typically, a customer is bitration clauses do so with adequate knowl­ This provision seeks to make it more diffi­ presented with a brokerage contract con­ edge of how the arbitration process works, cult for an arbitrator to make an award taining many provisions, including a binding what rights they are waiving, and with ex­ based upon unprincipled reasoning. Arbitra­ agreement to arbitrate future disputes. No press acknowledgment that their decision to tion should not function as enforced settle­ explanation as to the consequences of ac­ submit controversies to arbitration is volun­ ment, in which both parties are willing to cepting the arbitration clause accompanies tary. give something up because they are afraid the agreement. Moreover, the broker is in SECTION 3. SUPERVISION OF ARBITRATION PRO· of the outcome of a judicial proceeding. no way constrained from conditioning entry CEDURES BY SELF-REGULATORY ORGANIZA· Rather, it should strive to reach an appro­ into the brokerage contract on the custom­ TIONS priate resolution based upon the facts of the er's willingness to accept the arbitration Section 3 of the bill, via subsection , case. The significant difference between ju­ clause. amends section 6 of the Exchange Act by dicial and arbitral resolution should be Section 2 would address this situation by adding a new paragraph (9) which provides speed, cost, and efficiency rather than the adding a paragraph <7> to section 15 that an exchange shall not be registered as accuracy or quality of justice. This provision that expressly prevents brokers, dealers and a national securities exchange unless the does not, however, require a lengthy opin­ municipal securities dealers from entering Commission determines that the rules of ion, nor does it require "legal reasoning" of into pre-dispute arbitration agreements the exchange governing arbitration proce­ the sort unfamiliar to a "lay" arbitrator. It with customers unless entered into in ac­ dures provide for the fair, equitable, and ex­ seeks simply to commit the arbitrator to a cordance with the provisions of the section. peditious resolution of controversies and reason or reasons, briefly stated, for the de­ Subparagraph directs the SEC to es­ disputes between customers and members of cision. The paragraph compels the arbitra­ tablish procedures to effectuate the require­ the exchange . In order to give members>. While the bill does not elaborate the award so that the claimant knows pre­ additional guidance to the SEC and in order upon the precise rules that must be adopt­ cisely what he has won and for what rea­ to ensure that decisions to enter into such ed, it enumerates certain minimum require­ sons. agreements will be truly voluntary on the ments the rules must incorporate in fur­ Paragraph <9> makes several changes part of the customer, subparagraph therance of the overall objectives of fair­ to the current system of arbitrator selec­ specifies certain minimum requirements to ness, equity, and expeditiousness. tion. First, it provides that a single arbitra­ be incorporated in such rules. First, each The general charge to the exchanges con­ tor will be the norm unless the customer pre-dispute arbitration agreement must be tained in paragraph <9>, that the ex­ prefers a panel of arbitrators. Current pro­ on a separate page and must be separately changes develop rules to provide for the cedures call for a single arbitrator only in signed. This segregation seeks to assure that fair, equitable, and expeditious resolution of small . If the customer consents While diversity exists in the area of cash ac­ Paragraph <9> makes explicit the right to a panel of more than one arbitrator, then counts, the trend is clearly toward mandato­ to adequate and timely access to documents a majority of the arbitrators-again, unless ry clauses for such accounts as well. In addi­ and witnesses. Explicit reference is made to the customer requests otherwise-must not tion to the prohibition on making the sign­ the taking of depositions, as the arbitrator have been so engaged. This provision ad­ ing of the agreement a condition of doing deems necessary, limited in scope by the dresses several concerns. In particular, it business, this provision prohibits customers general mandate to provide for the fair, eq­ recognizes that an arbitrator with knowl­ that opt not to sign the pre-dispute arbitra­ uitable and expeditious resolution of the edge of and ties to the industry may be prej­ tion agreement from being discriminated dispute. These criteria are intended to udiced in favor of his industry colleagues. against by brokers and dealers on the basis assure adequate discovery without allowing While there is also the concern that an indi­ of fees or access to any privileges, benefits discovery to be used by the parties as a dila­ vidual with such ties may have dispropor­ or services. tory tactic or as a means of escalating ex­ tionate influence over other arbitrators on a Third, the bill specifically directs the SEC pense. One of the most commonly high­ panel, there is the recognition that knowl­ to prescribe the form in which disclosures lighted flaws in securities arbitration as it edge on the part of an arbitrator can be are to be made to the customer in the sepa­ currently exists is the lack of consistent and helpful to the panel in complex cases. This rate arbitration agreement. It establishes adequate rights to discovery. Frequently, can perhaps obviate in part the need for that all information necessary to the exer­ where production of documents, for exam­ expert witnesses. If, however, the customer cise of an informed and voluntary decision ple, is compelled, the documents are notre­ has concerns about industry affiliations, he by the customer be clearly and prominently quired to be produced until the commence­ can opt for a single arbitrator. On the other disclosed. The intent of this provision is to ment of the hearing. The lack of authority hand, if a customer believes that the com­ ensure that information such as the absence on the part of the arbitrator to enforce such plexity of his case is such that he would be of a right to appeal an arbitral decision is orders may result in an incomplete or inad­ best served if all arbitrators were to have in­ disclosed clearly to the customer before he equate presentation of the facts and, as a dustry experience and familiarity, he can so signs. consequence, a resolution that may not re­ elect. This provision seeks to provide the Subparagraph expressly voids all flect justice in the case. Paragraph <9> customer with maximum flexibility. agreements already in existence that were seeks to address this problem by directing Paragraph <9> requires the exchange entered into without benefit of the protec­ the exchanges to develop procedures to to develop rules to ensure that the customer tions of this section. Congress, having made enable the arbitrator to enforce such discov­ receives sufficient biographical information a judgment that mandatory pre-dispute ar­ ery. about potential arbitrators to enable him to bitration agreements are unfair to custom­ Paragraph <9> requires the arbitrator exercise informed challenges. ers, should not leave intact those unfair to issue a brief written statement in which Subsection (b) of section 3 of the bill re­ agreements for persons forced to sign such the reasons for the decision are set forth peats the provisions of subsection de­ clauses in the past. and the elements of the award are disclosed. scribed above as an amendment to section 16602 EXTENSIONS OF REMARKS June 30, 1988 15A of the Exchange Act. Subsection (b) What is a transgenic animal? because to do so would permit the farmer to adds a new paragraph 12 to section 15A(b), Researchers have developed techniques become a direct competitor with the patent which applies to associations of brokers and that allow them to insert genes from one orga­ owner without any research and development dealers. It would provide that an association of brokers and dealers be registered as a na­ nism into another. For example, it is possible investment. The parameters of the farmers ex­ tional securities association only if it com­ to alter the genome of a mouse so that it can emption are open to further modification when plies with the provisions of this subsection. be used as a medical model for cancer re­ this bill is marked up. It is possible that a con­ SECTION 4. WAIVERS OF RIGHTS AND REMEDIES search. In the near term these types of trans­ sensus involving agricultural interests and the INVALID genic animals are the most likely commercial biotechnology industry will emerge to narrow Section 4 of this bill amends the contract product. In the long term, greater than 5 this exemption. validity provisions of section 29 of the Ex­ years, it will be possible to genetically alter The legislation establishes a regulatory change Act. Subsection (a)(l) of the bill livestock to produce leaner meat and more scheme within the Department of Agriculture makes a technical amendment to section disease resistant animals. Some researchers to coordinate and review research in the agri­ 29(a) to substitute the words "of a self-regu­ have also produced transgenic animals that culture field. Under the bill, biomedical re­ latory organization" for the words "of an can produce pharmaceutical products from search would continue to be regulated by the exchange required thereby". their mammary glands. Subsection pool needed a little mongrelizing. I appreci­ DR. WILLIAM C. BABER RETIRES AFTER 54 ate that. YEARS IN PRACTICE And I appreciate the oomph and the appe­ Dr. William C. Baber, who has practiced tite of the man, batting around the back­ podiatry in Clarksburg since August of 1933, HON. MARIO BIAGGI woods in his old diesel Scout, or tromping has officially closed his practice and entered OF NEW YORK the hilltops and gullies in a pair of L.L. an active retirement. Bean gumshoes. Here's a man in his 60s, He was born in Richwood on July 15, 1909 IN THE HOUSE OF REPRESENTATIVES racing a vintage Porsche RS Spyder at and graduated from Richwood High School. Thursday, June 30, 1988 Laguna Seca, cruising to Tucson in a some­ Dr. Baber finished at the top of his class at what faded 911 with a hand-tweaked gorilla Temple University in Philadelphia, in June Mr. BIAGGI. Mr. Speaker, as Chairman of motor under the bonnet, riding the trails on 1933. the 115-Member Ad Hoc Congressional Com­ a BMW motorcycle. Dr. Baber noted that in the 54 years of his mittee for Irish Affairs, I want to bring to the The lad looks like Young Santa Claus practice here he has only had one landlord: attention of my colleagues a critically impor­ before the elf went to fat and his beard got the Union National Bank of West Virginia. tant report released this week by Amnesty long and snowy. But the twinkle in the eye His office has always been located in the International entitled, "United Kingdom-North­ was there since way back when, and stays lit bank building. ern Ireland: Killings by Security Forces and eternally. He loves his Jack Daniels and "I grew up in Richwood but I never was roast beef and Yorkshire pudding, relishes a much of a ramp eater," he said of the early Supergrass Trials." tale well-told rather than a dirty joke. spring wild plant peculiar to the Appalach­ This report culminates a lengthy investiga­ Here's a Rabelaisian character you can take ian area. tion by Amnesty International into practices anyWhere. He does himself proud in any "I moved to Clarksburg and worked here and policies of the British security forces oper­ company, any circumstance. for a while in the men's clothing business ating in the north of Ireland, which have been June 30, 1988 EXTENSIONS OF REMARKS 16605 the subject of increased attention of late. This leased on appeal. Although the Court of Amnesty International has monitored the report also focuses on the so-called "Super­ Appeal quashed all but one of these convic­ observance of human rights in Northern grass" policy, which is the use of paid inform­ tions, the Government of the United King­ Ireland for many years and has repeatedly ants who present uncorroborated testimony in dom has denied as recently as October 1987 expressed to the United Kingdom Govern­ that the procedures and rules of evidence ment its concerns about human rights viola­ criminal trials. It is the crown jewel of a crimi­ applied in the "supergrass" trials failed to tions there. The organization has drawn at­ nal justice system which already makes a guarantee the basic right to a fair trial. Be­ tention to situations in which some people mockery of due process and justice. cause of some procedures and rules of evi­ arrested and held in Northern Ireland were I wish to insert at this time the introduction dence, Northern Ireland "Diplock courts" denied rights available to other detainees, in to the report which covers the contents of this may have convicted defendants who would Northern Ireland, as well as in other parts much awaited and startling investigation. In be acquitted or perhaps not even tried in of the United Kingdom. In the early 1970s the ordinary court system. Amnesty International voiced serious con­ subsequent days, I will insert other relevant The current period of civil conflict has portions for your information. cerns about internment without charge or continued in Northern Ireland since civil trial in Northern Ireland. The organization In addition, in the very near future, I will be rights marches in 1968. There are armed op­ subsequently reported numerous incidents sending a letter to Secretary of State Shultz to position groups in both the Catholic and of incommunicado detention, allegations of urge that the United States express its con­ Protestant populations. The republican ill-treatment and convictions of defendants cern about the issues raised in the Amnesty armed opposition groups, such as the Irish solely on the basis of statements of admis­ report as well as press the British Government Republican Army and the Irish National sion obtained under duress. Amnesty Inter­ Liberation Army, whose membership is pre­ national published two reports, in 1972 and to agree to the judicial inquiry and begin nec­ dominantly of Roman Catholic background, essary reforms in the system. in 1978, about the ill-treatment and torture are opposed to British presence in Northern of political prisoners by the security forces. UNITED KINGDOM-NORTHERN IRELAND: KILL­ Ireland and fight for a United Ireland. To Allegations that detainees are ill-treated INGS BY SECURITY FORCES AND SUPERGRASS that end, they are engaged in a campaign of continue to be of concern, but their num­ TRIALS murdering members of the security forces bers have diminished considerably since the 1. INTRODUCTION TO REPORT and others through bombings, military-style beginning of the 1980s with the introduc­ This report covers two main areas of con­ attacks, and assassinations. They also carry tion of measures for supervising the interro­ cern in Northern Ireland in the 1980s: kill­ out execution-style killings of suspected in­ gation of suspects. ings by security forces and "supergrass" formers and mete out punishment in the Since 1982 Amnesty International has trials. It examines shortcomings in the ad­ form of beatings and maimings to alleged been concerned about allegations that six ministration of justice by the Government common criminals. Security forces person­ unarmed people were killed by security of the United Kingdom in responding to vio­ nel are at serious risk at all times from forces in that year as part of a policy to lent civil unrest. these groups, including when they are un­ eliminate suspected government opponents A series of fatal shootings by security armed and off duty. Loyalist armed opposi­ instead of arresting them. Five of the vic­ forces in Northern Ireland has given rise to tion groups, notably the Ulster Defence As­ tims were members of republican armed op­ serious allegations of an official policy of sociation, the Ulster Volunteer Force and position groups. As part of the organiza­ deliberate, planned killings of suspected the Ulster Freedom Fighters favour North­ ern Ireland's remaining a part of the United tion's investigation into these incidents, Am­ members of armed opposition groups. The Kingdom and have also engaged in violent nesty International examined in detail how official procedures for investigating such activities, including bombings and , the procedures for investigating disputed killings have failed to answer adequately directed mainly against the Catholic popu­ killings functioned, how the law was applied these allegations. Officers of the Royal lation. They also carry out punishment and what action was taken by the govern­ Ulster Constabulary . that is the beatings and shootings of alleged informers ment. The organization also monitored Northern Ireland police force, falsified and or common criminals. Loyalist forces are other incidents of killings by the security concealed information crucial to the investi­ drawn from the Protestant community, forces since late 1982 and found that 49 gation of the killing of six unarmed suspects which makes up some two-thirds of the pop­ people had been killed, 19 of whom were un­ in 1982. The senior English police officer ulation of Northern Ireland. According the armed. Although the report gives details initially appointed to lead an official inquiry government, between 1969 and 1987 there about all 49 killings, it has focused on the stated that his efforts to establish the facts were approximately 2,300 conflict-related 1982 incidents because they highlight the were obstructed. The inquiry concluded that deaths in Northern Ireland that were attrib­ organization's concerns both about current RUC officers had conspired to pervert the uted to armed opposition groups. The Irish legislation governing the use of lethal force course of justice. The government stated in Information Partnership, which publishes and about the investigative procedures. January 1988, however, that no officers data on the conflict in Northern Ireland, Most recently, the organization has called would be prosecuted for reasons of "nation­ gives a figure of 2,170 for such deaths for full and public clarification of the cir­ al security" and "public interest" and that during this period. According to the Infor­ cumstances in which three unarmed mem­ the report of the inquiry would not be made mation Partnership, 1,065 deaths were bers of the Irish Republican Army public. These developments have seriously caused by the IRA, 442 deaths by other re­ were shot dead in the British colony of Gi­ called into question the government's com­ publican armed groups and 663 deaths by braltar on 6 March 1988. They had report­ mitment to investigate fully disputed kill­ loyalist armed groups. edly been under surveillance for weeks ings by its security forces, make the findings Amnesty International takes no side in while making preparations for a bombing public and prevent the possibility of unlaw­ such conflicts. It opposes, as a matter of attack. Parts of the body of contradictory ful killings in the future. principle, the torture and killing of prison­ evidence suggest that British security forces Amnesty International is therefore con­ ers by anyone, including opposition groups. targeted the three and deliberately killed vinced that a wide-ranging judicial inquiry Amnesty International holds that govern­ them without properly challenging or at­ is essential. The inquiry is needed to provide ments are responsible for bringing those tempting to arrest them. Some eye-wit­ a full and public account of the circum­ who commit violent crimes to justice. In nesses alleged that the soldiers continued to stances surrounding the killings, to evaluate meeting this responsibility and in seeking to fire at the IRA members as they lay on the official investigative procedures and to ensure the security of their societies, howev­ ground. Amnesty International is investigat­ assess legislation governing the use of lethal er, governments must act in accordance ing this incident and will send observers to force. Such an inquiry is also vital to pre­ with international standards for the protec­ the inquest into the three deaths which is vent future unlawful killings and to ensure tion of human rigbts. to take place in the summer of 1988. This that all disputed killings by security forces Amnesty International considers that it is report does not cover the organization's con­ are promptly investigated and publicly clari­ particularly in situations of civil strife in­ cerns about the incident in Gibraltar. fied. volving violent crimes that a government International standards, as established in Ten "supergrass" trials took place in should ensure that safeguards remain in the United Nations Code of Conduct for Northern Ireland between 1983 and 1985. place to maintain the impartial administra­ Law Enforcement Officials and the Europe­ The trials were based on the testimony pro­ tion of justice. The organization examined an Convention on Human Rights, place vided by "supergrasses"-that is, partici­ its concerns in Northern Ireland in light of more stringent requirements on the use of pants in the crimes charged who informed the International Covenant on Civil and Po­ force than those applied by the United against large numbers of their alleged ac­ litical Rights and the European Convention Kingdom in Northern Ireland. The interna­ complices. Sixty-five of more than 200 de­ on Human Rights, both of which have been tional standards address force in terms of fendants prosecuted at these trials were ratified by the United Kingdom Govern­ "absolute necessity" and "strict necessity", convicted on the uncorroborated testimony ment. These treaties provide for the right to while the law in Northern Ireland permits of "supergrasses". Some defendants spend life, the right to a fair trial and the right to the use of force "as is reasonable in the cir­ up to five years in prison before being re- equal treatment under the law. cumstances" in preventing crime or in ef- 16606 EXTENSIONS OF REMARKS June 30, 1988 fecting lawful arrest. Amnesty International ner resigned in 1984, charging grave irregu­ nary courts, a is responsible for weigh­ does not question the need for a govern­ larities in police records. By mid-May 1988 ing evidence and deciding on defendants' ment's security forces to carry or discharge the inquests into the 1982 deaths had still guilt or innocence. "Diplock courts" have no lethal weapons in the course of duty. How­ not taken place. jury. A single senior judge, as arbiter of ever, the organization is concerned that the Existing investigative procedures have both law and fact, instructs himself on the law is inadequate to prevent or deter the ex­ failed to eliminate the possibility that the dangers of accepting uncorroborated accom­ cessive us of lethal force by security forces. six people shot by security forces in 1982 plice testimony. Amnesty International is also concerned were killed with premeditation and that the Amnesty International is concerned that that the existing procedures for investigat­ killings resulted from an official policy, at some of the procedures and rules of evi­ ing disputed killings-that is, police investi­ some level, to eliminate or permit elimina­ dence applied in "Diplock courts" appear to gations, criminal proceedings and inquests tion of individuals suspected of belonging to vary so substantially from those of ordinary are ineffective in bringing to light the full armed opposition groups. John Stalker pub­ courts that "Diplock courts" may have con­ circumstances about such incidents. Few licly stated that he discovered sufficient evi­ victed defendants who otherwise would be killings involving serious allegations of un­ dence to convince him that RUC officers acquitted, or perhaps not even brought to lawful use of lethal force have resulted in murdered or otherwise unlawfully killed at trial. Such proceedings would be contrary to the prosecution of security force personnel least five of the six people. Amnesty Inter­ the United Kingdom's international legal and most of those prosecuted have been ac­ national believes that such a statement by a obligation to afford all people equal rights, quitted. The procedures primarily relied on senior police officer who conducted an offi­ including the right to a fair trial, regardless for determining the facts in such cases are cial investigation must be regarded with of their political beliefs. police investigations and inquests. utmost seriousness There have been no trials in the "Diplock Initial police investigations into the kill­ The concerns about killings by security courts" based on uncorroborated accomplice ings of the six unarmed people in 1982 were force personnel which are raised in this evidence since 1985. Amnesty International obstructed by senior officers of the Royal report have been presented to the govern­ remains concerned, however, that the gov­ Ulster Constabulary . who invoked ment in correspondence stretching over the ernment continues to maintain that the pro­ the Official Secrets Act to falsify and con­ past three years. The most detailed re­ cedures applied were satisfactory in guaran­ ceal crucial information. John Stalker, the sponse of the government to Amnesty Inter­ teeing the defendants' right to a fair trial. senior British police officer in charge of the national's concerns about the killings is in­ The organization has registered a number subsequent investigation, has stated public­ cluded in the Appendix to this report. of other concerns related to "supergrass" ly that his inquiry was officially obstructed. Since 1985 Amnesty International has re­ testimony. Some individuals were detained The inquiry begun by John Stalker in peatedly asked the government to establish for long periods of time prior to their trials. 1984 and completed in April 1987 under the an independent judicial inquiry to review all Over half of the trials had more than 20 de­ direction of Chief Constable Colin Sampson of the disputed killings since 1982 with a fendants, the largest involving 37 defend­ revealed that police officers had conspired view to estabishing effective investigative ants. Several trials exceeded 100 days' dura­ to pervert the course of justice. The United procedures for disputed killings by security tion. In some of the trials, there had not Kingdom Government, however, announced forces. The organization has also urged that been full disclosure to the court of induce­ in January 1988 that no prosecutions for the inquiry review current legislation gov­ ments offered to the "supergrass" to obtain such offenses would take place for reasons erning the lethal use of force. In connection his testimony. of "national security" and "public interest". with the six killings which occurred in 1982, In December 1987 Amnesty International In February the government said that two Amnesfy International believes that the ju­ submitted a detailed memorandum to the additional inquiries had been initiated to de­ dicial inquiry should address allegations of government outlining its concerns about the termine whether disciplinary proceedings an official policy to eliminate or permit the fairness of the trials and proposing a against police officers were warranted. Five elimination of government opponents. All number of specific recommendations. An and a half years after the killings, the gov­ methods and findings of the inquiry should edited version of the memorandum forms ernment has still not given a full and public be made public. the basis of Chapters 8 through 15 in this account of the circumstances surrounding Amnesty International continues to urge report. It urged the government to consider those killings. Moreover, the government the government to establish such a judicial the apparent disparity between a lack of has refused to publish the findings of the inquiry because it believes it to be vital in safeguards for defendants in the "Diplock Stalker/Sampson inquiry. The govern­ order to ensure that effective procedures court" system and protection available to ment's decision not to make public the find­ and safeguards are instituted against the oc­ defendants in ordinary United Kingdom ings of the inquiry lends credibility to alle­ currence of unlawful killings and if disputed courts. The recommendations included gations of an official policy of deliberate killings do occur, they are fully and prompt­ adopting a policy against authorizing pros­ and planned killings. ly investigated and publicly clarified. ecutions based solely on the uncorroborated The main procedure for publicly clarify­ Amnesty International has also been mon­ evidence of a "supergrass"; reviewing the ing the facts concerning a disputed killing, itoring the judicial procedures and rules of number of defendants tried concurrently the coroner's inquest, is also of concern to evidence used in the "Diplock courts" in and the complexity of such trials; and en­ Amnesty International while coroners' Northern Ireland. These courts have a suring that the trials take place within a courts in England and Wales can bring in a single judge and no jury. Between 1983 and reasonable time. For the government's most verdict of unlawful killing, coroners' courts 1985 more than 200 defendants accused of detailed reply on this issue, please see the in Northern Ireland have been barred since committing or promoting violent acts were Appendix to this report. 1959 from making such a judgment. In 1980 prosecuted during 10 "supergrass" trials in inquest verdicts in Northern Ireland were these courts. The defendants included al­ further restricted solely to "findings" re­ leged members of both republican and loyal­ SECURITIES ARBITRATION garding the cause of death. The coroners' ist armed opposition groups. A key element REFORM ACT OF 1988 offices in England and Wales summon of the prosecution's evidence in all of the jurors in the order presented on a list of trials was the testimony, often uncorrobor­ names randomly chosen from the popula­ ated, of one witness who had been an al­ HON. JOHN D. DINGELL tion, but coroners' court in Northern leged accomplice to the crimes charged, OF MICHIGAN Ireland are selected and summoned by commonly known as the "supergrass". senior RUC officers. Other restrictions, Sixty-five of the 120 defendants who were IN THE HOUSE OF REPRESENTATIVES which apply throughout the United King­ convicted at the trials were prosecuted and Thursday, June 30, 1988 dom, hinder the family in trying to clarify convicted solely on the basis of the uncorro­ the circumstances of a suspicious death. For borated testimony of "supergrasses". Sixty­ Mr. DINGELL. Mr. Speaker, today I join example, legal aid is not available to fami­ four of the 65 were acquitted on appeal, al­ Representatives BoucHER and MARKEY in in­ lies to engage legal representatives or though some spent up to five years in deten­ troducing legislation, the Securities Arbitration expert advice. In addition, forensic and eye­ tion. Reform Act of 1988, to provide for voluntary, witness reports are not made available to Amnesty International is not aware of any fair and equitable arbitration of customer­ the family or its legal representatives until prosecutions in England or Wales based broker disputes. the beginning of the inquest. solely on uncorroborated "supergrass" testi­ On February 11 , 1987, the Subcommittee Inquests are frequently delayed for long mony since the mid-1970s. The dangers of periods of time. Coroner investigating the reliance on such testimony are generally ac­ on Oversight and Investigations opened an in­ six deaths which occurred in 1982 stated in knowledged in the United Kingdom. But quiry into the adequacy of the current self-reg­ 1983 that "the unexplained delay by the Di­ some safeguards available in ordinary courts ulatory system and the Commission's over­ rector of Public Prosecutions" prevented are not available in "Diplock court" pro­ sight thereof in connection with complaints him from carrying out his duties. The coro- ceedings used in Northern Ireland. In ordi- against broker-dealers for securities-law viola- June 30, 1988 EXTENSIONS OF REMARKS 16607 tions. We were particularly concerned about jecting claims that arbitration panels are churned a $321,262.00 account down to increasing numbers of complaints in connec­ biased as "really absurd," maintained that $820.00. She filed a lawsuit against Paine tion with churning and violations of suitability arbitration is "demonstratively faster, more Webber and the broker claiming that, in a efficient and less expensive" for investors. six-month period in 1984, they lost approxi­ requirements, as well as complaints that arbi­ Asked what investors should do if they mately $200,000.00 of her estate and gener­ tration procedures are rife with conflicts of in­ prefer to go through the time and expense ated commisions in excess of $90,000.00. terest-since the arbitrators are peers of the of a , O'Brien said, "They then Like many customers, she signed a mandato­ brokerage firm being sued-and are i!lad­ shouldn't open a brokerage account." [em­ ry agreement waiving the right to sue in equate to enforce the statutory rights of cus­ phasis added] federal court and agreeing to settle disputes tomers against broker-dealers. This suggests that, if customers refuse to in arbitration. Mrs. Anderson's case went to On June 8, 1987, the U.S. Supreme Court sign a pre-dispute arbitration agreement, arbitration and, after attorney's fees and ex­ handed down a 5 to 4 decision in Shearson/ they should not be able to open up a broker­ penses, she received only $125,000.00 of her age account. I understand that the firms in­ American Express Inc. et al. versus McMahon losses back. creasingly are moving in that direction. As On December 3, 1986, the Miami Review et al. holding predispute agreements to arbi­ Justice Blackmun stated in McMahon: carried an article, "Securities Safeguards: trate Exchange Act fraud claims "Both the Securities Act of 1933 and the Se­ How Secure?," that reported on a $47 mil­ "enforce[able] * * * in accord with the explic­ curities Exchange Act of 1934 were enacted lion dollar lawsuit by investors whose ac­ it provisions of the Arbitration Act." Justice to protect investors from predatory behav­ counts were churned and placed in unsuit­ Blackmun, in his strenuous dissenting opin­ ior of securities industry personnel." A able and highly-leveraged government bond ion-joined in by Justices Brennan and Mar­ trend toward mandatory pre-dispute arbi­ trades by two Dean Witter Reynolds Inc. shall-noted his support for the work of the tration contracts raises serious questions brokers, John Kenning and John CarPenter. about investor protection and the enforce­ The article states that the scheme grew be­ subcommittee and specifically stated that ment of the antifraud provisions against Congress appears to be the last resort for the cause two self-regulatory organizations misbehavior by brokerage firms. of the Commodity Exchange Act had knowledge of serious allegations against Court denies them today." clearly states that each contract market Kenning three years before the SEC finally In response to that invitation and the outcry shall filed suit. The Commission's Associate Re­ from public investors, our Subcommittee on <11> provide a fair and equitable procedure gional Administrator passed the buck to the Telecommunications and Finance held hear­ through arbitration or otherwise reported a sharP its actions on behalf of investors in this area. voluntary and (ii) the term "customer" as increase, from 375 in 1982 to 551 in 1983 and The Commission has been working with the used in this paragraph shall not include an­ 528 in 1984, in securities law violations com­ Securities Industry Conference on Arbitration other member of the contract market; . . . mitted by broker-dealers that were not de­ [emphasis added] tected by the SROs. "Securities Regulation: to improve their Uniform Code of Arbitration. Investors in the securities markets deserve Further, the SEC has announced that it will Securities and Exchange Commission Over­ the same protections. sight of Self-Regulation," GAO/GGD-86/- take up its staff's legislative recommendation I commend you for going forward on this on arbitration at an open meeting on July 7. 83 and are inadequate to enforce and how many for the brokerage house. rities laws, the issue of voluntariness must the statutory rights of customers against The Subcommittee is informed that the be addressed. The day after the McMahon broker-dealers. Commission has submitted an amicus curiae decision, a Newsday article, "Ruling Limits This issue is receiving broad national at­ brief on the side of the securities industry Investors' Right to Sue in Disputes," report­ tention. rather than investors in the Supreme Court ed: On January 4, 1987, CBS "60 Minutes" did case Shearson/American Express, Inc. and The brokerage industry was delighted a segment on an 84-year-old widow named Mary McNulty v. Eugene McMahon, et al., with the ruling, said Edward O'Brien, presi­ Mrs. Evelyn Anderson whose Paine Webber No. 86-44 <1986) concerning whether anti­ dent of the Securities Industry Association, stockbroker put her into index options in fraud cases brought under the Securities a Wall Street trade association. O'Brien, re- violation of suitability requirements and Exchange Act of 1934 and the Racketeer In- 16608 EXTENSIONS OF REMARKS June 30, 1988 fluenced and Corrupt Organizations Act are fairs Committee have received with increasing census has not dropped and nurses are over­ barred by predispute agreements between frequency reports of inadequate resources at extended, overworked and unable to provide brokers and their customers to arbitrate dis­ many VA hospitals across the country. Based good care. putes arising out of those contractual rela­ Initially, I sent several memos to the Asso­ tionships. The Commission's position is a re­ on these reports, as well as the committee's ciate Chief of Nursing Services protesting versal of the position the Commission took own site visits to medical facilities, there is but my assignments when I believed that the in a 1975 case in which the SEC said arbitra­ one conclusion: VA hospitals are suffering patient load was so great as to place pa­ tion could not be used to settle fraud claims from serious professional staff shortages and tients in jeopardy. Things didn't improve, under Section 10(b) of the 1934 Act and insufficient funds to care for current work and writing more memos seemed to be Rule 10b-5 thereunder. loads. pointless. I spoke briefly with the Hospital Furthermore, the Commission's brief in The bottom line is insufficient funding. The Director and with the Associate Chief of the McMahon case argues the expansive­ annual productivity reductions mandated by Nursing Services on May 18 expressing ness of the SEC's post-1975 regulatory au­ again my concerns and to inform them that thority and that arbitration is adequate to OMB, inadequate funds for special pay and equipment, failure to request funds for activa­ I was considering notifying JCAH. It is my enforce the firm's duties because: hope that working with you and Congress ... Since 1975 the Securities and Ex­ tion of new facilities and failure to request instead, will bring more immediate results: change Commission has had extensive au­ funds to implement new programs, have It is not my intention to be a hothead or a thority to oversee and to regulate the arbi­ caught up with the agency. trouble maker. I just want patients to re­ tration procedures prescribed by stock ex­ Mr. Speaker, I am deeply concerned about ceive an optimal level of nursing care, and change and other self-regulatory organiza­ this situation, as are many VA employees who nurses to carry reasonable workloads. tions for use by members (such as petitioner are being forced to cope with circumstances The VA formerly used a formula to deter­ Shearson> in disputes with their customers. mine how many hours of care patients See Section 19 of the Exchange Act, 15 that must be reversed for the sake of those hospitalized veterans who need and deserve needed each shift to receive good, complete u.s.c. 78s. This regulatory authority, as its care based on their acuity. Patient acuity exercise to date demonstrates, can ensure quality health care. refers to the level of care a patient requires that such arbitration procedures are ade­ A supplemental appropriation is needed based on a number of factors. A patient quate to protect statutory rights. now to alleviate the problems for the remain­ with an acuity of I requires little nursing Yet, time and time again, the Commission der of this fiscal year and I hope it is forth­ interventions, whereas a category IV often has advised the Committee of serious limi­ coming. requires several hours of care. Acuities re­ tations on your authority and in the arbi­ The following letter from a VA nurse is one flect time, not health. A patient who is con­ tration process itself. For example, an of several received from VA medical staff that fused and incontinent may be a category IV August 1986 report prepared by the staff of even if he is not seriously ill. Like EPA mile­ the Commission's Division of Market Regu­ are being brought to the attention of our com­ mittee: age estimates, the time actually required lation stated: The Commission has no au­ often varies, but at least the formula is a thority to review a specific arbitration to MAY 26, 1988. Mr. MONTGOMERY, tool to measure against. On May 17, during assure either compliance with the procedur­ a meeting with my head nurse, and myself, al requirements of the Code or accurate in­ Veterans' Affairs Committee, U.S. House of Representatives, Washington, DC. the Associate Chief of Nursing Services in­ terpretations of underlying federal securities formed me that the hospital is not using the law or other claims by the arbitrators. The DEAR MR. MONTGOMERY: I am a staff nurse on Ward 7C at [West Coast] VAMC andre­ acuity system to allocate staffing require­ Commission has no authority to overturn an ments; arbitration award, just as it cannot do so in cently spoke with members of Representa­ 7C is a 40-bed ward with 30 medical other private dispute resolutions, such as tive Wyden's and Senator Cranston's offices and 10 intermediate care beds. Currently, civil litigation. (p. 3 > about my concerns regarding the frequently we often run the day shift with only 4 staff Arbitrations have historically been consid­ unsafe care patients currently received due available. With 38-40 caregiver hours, we ered to be private dispute resolution forums. to poor staffing. often attempt to meet needs that often re­ They have not been open to the public, arbi­ During my 2% years at the VA, I have quire in excess of 70 hours of care. Evening trators generally do not provide written been a strong patient care advocate and and night shifts are similarly understaffed. opinions explaining their awards and the work hard to see that my patients receive On my wing, with 22 patients, I have at awards are generally not known to the the care and teaching necessary to recuper­ times had patient acuities that translate public unless disclosed by the parties. (p. 5) ate and to maintain good health. I have into greater than 45 hours of care, with only (emphasis added) never been afraid to stand up for patient myself and one other staff member to deliv­ Please provide the Subcommittee with rights. It is because of my deep concern for er that care. The VA has not been staffing copies of any documents, memoranda, or patients that I write to you. to meet acuities. Unfortunately, ignoring notes which discuss, analyze, memorialize, Morale is the lowest I've ever seen. This acuity levels does not mean that I can evidence or otherwise relate to the Commis­ discontent is directly related to cuts made a become a super-woman and handle the sion's position on this matter in connection month ago. Because of previous experience, heavy load safely. with the 1975 case and its current position I recognize that nurses at the VAMC work Some specific instances of which I am in the McMahon case. Advise us of any leg­ much harder and carry larger patient loads aware of unsafe care: islative or regulatory changes you deem ap­ than those working in the private sector. It On May 17th, I worked a 10% hour shift propriate to improve the arbitration process is usually our love for the veteran that nonstop. One patient had chest pains off and your oversight thereof. keeps us at jobs that are more demanding and on throughout the day that necessitat­ We would appreciate receiving your re­ and lower paying than jobs at many local ed close observation and evaluation. While I sponse by the close of business on Friday, hospitals. But many of us now feel that we spent so much time with him, the other 21 April 24, 1987. If you have any questions, are asked to do the impossible. We are tired, patients were taken care of by my one sup­ please contact Michael F. Barrett (225-4441> overworked and angry about the poor qual­ port staff. Nine a.m. medications were not or Consuela M. Washington (225-2927) of ity of care we are forced to deliver because delivered to all patients until after noon. the staff. staffing is so inadequate. In the last several One of my surgical patients did not receive Thank you for your cooperation. weeks, patient care has become adversely af­ a needed dressing change. Sincerely, fected and health is severely compromised. On May 19th, I worked 6 hours before I JOHN D. DINGELL, Apparently, the hospital became finan­ was able to take a break. One patient had a Chairman, Subcommittee on cially overextended when one of our nursing hematocrit of 19, many of the problems facing such na­ tance of keeping the recipe fairly simple­ Government to extend such relief. tions, such as drought and famine, have easily adaptable to almost any change of This is in keeping with actions taken by our been beyond the control of such nations; what was going to be needed by future gen­ (4) the Secretary of the Treasury, in a erations. allies on this issue. Approximately 1 week speech to the Africa Development Bank on All of the citizens of our fledgling country after Secretary Baker suggested that he was June 21, 1988, stated " ... the build-up of were well-fed on liberty, and America not against governments extending debt relief, rescheduled debt often presents a difficult thrived and grew and prospered. When the both France and West Germany developed problem for the poorest countries ...";and time was right, new ingredients were added plans to provide relief. French President Fran­ <5> the Toronto Economic Summit Decla­ in the form of amendments, and America cois Mitterand announced that his Govern­ ration stated that the G-7 summit nations did not suffer for it. By no means-in fact, ment would forgive approximately one-third of ". . . welcome proposals made to ease fur­ the value of the family receipe increased a ther the debt service burdens of the poorest hunderdfold when such things as a sprin­ the debt owed to it by sub-Saharan African countries that are undertaking internation­ kling of voting rights or the cup of emanci­ nations. ally approved adjustment programs ...". pation was stirred in. As new groups of In the recent Toronto economic summit, the (b) UNITED STATES GOVERNMENT LENDING Americans were found that were not receiv­ summit declaration stated that the G-7 wel­ INSTITUTIONS To BE ALLoWED To FORGIVE ing their fair share, more was added so that comed proposals to ease the debt burden of DEBT OF CERTAIN SUB-SAHARAN NATIONS.- 16612 EXTENSIONS OF REMARKS June 30, 1988 The President shall authorize any agency or talion, 8th Cavalry, 3d Armored Division appeal. The day is coming when the only real instrumentality of the United States Gov­ release the debtor from the obligation fense Department. toward restoring individual investor confidence to repay part of all of the loan; I am proud to inform you that your son so severely damaged after the October crash. (2) provide an interest subsidy to the SFC Kevin Mayhew played an instrumental Smaller investors feel strongly that the decks debtor with respect to the loan; role in achieving this important victory. His performance was absolutely superb and you are stacked against them; they see insider <3> extend the maturity of the loan; or trading abuses, the development of high-tech­ <4> take other action which would reduce can take great pleasure in knowing that he the total outstanding debt of the debtor. is a true professional who has made a signif­ nology trading strategies available only to in­ (d) CONSTRUCTION OF SECTION.-This sec­ icant contribution to his unit, his Army and stitutions and unprecedented volatility driven tion shall not be construed to authorize the his country. You can also take assurance in by such strategies. It is critical that these in­ President to reduce any assistance which is the facts that Kevin is, on a daily basis, per­ vestors be afforded more, not less choice, to be provided to any foreign country under forming a mission which is vital to main­ that they be given a greater, not a lesser the Foreign Assistance Act of 1961 (22 taining the NATO alliance as well as deter­ ring war in Europe. His performance during degree of self-determination. Otherwise, we U.S.C. 2151 et seq.), the Export-Import will face a marketplace populated exclusively Bank Act of 1945 <12 U.S.C. 635 et seq.), the the Canadian Army Trophy competition has Arms Export Control Act <22 U.S.C. 2751 et helped send a message to our potential ad­ by large institutions, betting against one an­ seq), or any other law. versaries that the American Army today is other. strong and ready. It was only after the October 19 market I extend to you my warmest regards and crash that many investors realized they had share in the pride you must have for Kevin. IN HONOR OF SFC KEVIN signed contracts which included pre-dispute MAYHEW He is an excellent soldier. Sincerely, arbitration clauses. Confronted with abuses of THoMAs N. GRIFFIN, Jr. discretion, misexecution of orders, and other HON. DOUGLAS APPLEGATE wrongs committed against them, they were OF OHIO shocked to learn they had no recourse to the IN THE HOUSE OF REPRESENTATIVES INTRODUCTION OF THE SECURI­ courts of law. Instead of being able to elect TIES ARBITRATION REFORM Thursday, June 30, 1988 arbitration as part of a rational decision after ACT OF 1988 the claim had arisen, they were compelled to Mr. APPLEGATE. Mr. Speaker, it is my do so when even the existence of such claim, greatest pleasure to extend my congratula­ HON.EDWARDJ.~Y not to mention its complexity and magnitude, tions to Sfc Kevin Mayhew and the 1st pla­ OF MASSACHUSETTS was a matter of hypothesis and speculation. toon, Delta Company, 4th Battalion, 8th Caval­ IN THE HOUSE OF REPRESENTATIVES Interestingly, investors in stock index futures ry, 3d Armored Division [SPEARHEAD]. He, Thursday, June 30, 1988 were not met with such a troubling surprise. along with the rest of his platoon, has proven The commodities laws, unlike the securities in an exemplary manner his skills and abilities Mr. MARKEY. Mr. Speaker, today my col­ laws, have long required that a customer's in the execution of a near perfect tank gun­ league Representative BoucHER is introducing entry into an agreement to arbitrate future dis­ nery firing exercise, winning the prestigious the Securities Arbitration Reform Act of 1988. putes must be voluntary and may not be a Canadian Army Trophy. This is something that As a cosponsor of this bill, I rise in support of condition of the broker's doing business with has never before been accomplished by an it and of the important protections it would the customer. American Army unit. afford investors. This bill would restore to in­ By playing a vital role in the Canadian Army vestors their basic right to seek judicial re­ Arbitration does have an important role to Trophy competition, he has been able to show dress of wrongs committed against them by play in the resolution of disputes. Smaller the precise and demanding qualities and char­ securities brokers and dealers. It would also claims are simply not economically feasible to acteristics set forth by the U.S. Army. Not only ensure that investors who elect to resolve litigate in court. The expertise of industry arbi­ do we in the United States realize this accom­ their disputes by arbitration can participate in trators may be desirable to customers with plishment, but the entire world has recognized an arbitration process that is fair, equitable, larger more complex disputes. This bill in no and acknowledged this victory. and expeditious. way discourages the use of arbitration where I also would like to extend congratulations At present, investors wishing to invest in se­ the customer thinks it is appropriate. In fact, it to Kevin's parents, Mr. and Mrs. Kenneth curities are, far more often than not, required seeks to enhance the process in several sig­ Mayhew. Their son has performed a great by brokerage houses to sign agreements to nificant ways to make it fairer in actuality and task for both them and our country. This is submit all future disputes between them and appearance. Moreover, under the charters of something they surely take pride in, along with their brokers to arbitration, and to waive their the securities exchanges, which oversee the the rest of the Nation. The difficulty of perfom­ rights to litigate their claims in court. Typically, arbitration process, customers can always ing such a task is possibly not fully under­ these "predispute arbitration clauses" are elect to proceed to arbitration of their claims, stood by most, but let me assure you that it buried in the midst of a customer account notwithstanding their refusal to sign a pre-dis­ deserves the greatest of accolades by all. agreement, unaccompanied by any disclosure pute arbitration clause. Claims that should be Mr. Speaker, I would like to take this oppor­ as to its existence or explanation as to its sig­ arbitrated will continue to be arbitrated after tunity to provide my colleagues with the full nificance. In my view, these clauses are con­ passage of this bill. congratulatory remarks extended to Sfc Kevin tracts of adhesion. Those few customers Some within the retail brokerage industry Mayhew's parents by Thomas N. Griffin, Jr., aware of such clauses and who attempt to argue that to permit customers this choice is major general, U.S. Army, commanding. strike them from the agreement rarely suc­ to deny brokers and dealers their freedom to ceed in doing so. The emerging reality is that do business as they please. The plain truth is DEPARTMENT OF THE ARMY, HEADQUARTERS, 3D ARMORED DIVISION, basic access to the securities markets is in­ that brokers are engaged in a regulated indus­ New York, July 23, 1987. creasingly conditioned upon customers sign­ try. Like others entrusted with a public fran­ DEAR MR. & MRs. MAYHEW: On June 19, ing a contract to waive their rights to trial, to chise and a public trust, they cannot always 1987, 1st Platoon, Delta Company, 4th Bat- the Federal rules of civil procedure, and to do business exactly as they please. A broker June 30, 1988 EXTENSIONS OF REMARKS 16613 is subject to numerous rules of conduct to refuge with the Porcupine herd. Its princi­ measures. I encourage my colleagues to keep which the corner grocer is not. Permissible pal calving area includes the Prudhoe Bay in mind the devastating impact the drought conduct toward brokerage customers is cir­ oil field. That herd was estimated at 3,000 in has had on dairy farmers. Specifically, there 1972 and has grown to 13,000 in 1985, de­ cumscribed in numerous ways. The public in­ spite the fact that production at Prudhoe must be no 50-cent cut. And a targeted in­ terest in affording investors a choice, in pro­ Bay began in 1977. Environmentalists, Con­ crease in the price support for drought-affect­ viding them with basic fairness, and in assur­ gressional Quarterly reports, "criticize those ed areas will certainly help Midwestern farm­ ing them the preservation of their fundamental numbers as guesswork, and say any increase ers minimize the economic hardships placed rights is sufficiently strong to justify prohibiting in caribou is largely because the oil drilling on them by the drought. brokers and dealers from imposing upon their drove out wolves, the main predator on cari­ customers these contracts of adhesion. bou." I commend the SEC staff, in its legislative So, the environmentalists would have us A DICTATOR IS ALWAYS A DIC­ disregard as guesswork the clear evidence recommendation to the SEC, for its strong en­ TATOR, NO MATTER WHERE that caribou and oil development can coex­ HE IS dorsement of the concept that customer entry ist, with the caribou actually thriving, and into agreements to arbitrate be voluntary. I base policy decisions vital to the future of await the SEC's action on July 7 on this issue, the entire nation on the speculation that HON. GEO. W. CROCKETT, JR. and hope that the Commission members join development could reduce the size of a OF MICHIGAN us in calling for free investor choice. In this larger caribou herd next door. IN THE HOUSE OF REPRESENTATIVES Yes, we must be very careful in our devel­ post-crash era of investor alienation from the Thursday, June 30, 1988 markets, we must move boldly to restore con­ opment of on resources on the fragile Arctic coastline. Yes, we must ensure that all the fidence in our marketplace and I believe this Mr. CROCKETT. Mr. Speaker, a recent lessons of Prudhoe Bay are used to mini­ event in our own country makes it clear that a legislation is a critical first step along that mize the disruption of the ANWR coastal path. plain. dictator will always be a dictator and will But we also must look to our nation's always treat his people ruthlessly, no matter energy needs, not just now but in the where he is. ENERGY AND ANWR future, when tensions in the Middle East Earlier this month, Paraguayan ruler Gen. could disrupt our economy and threaten our Alfredo Stroessner, the longest-running dicta­ HON. DON YOUNG security even more than the oil embargo of tor in the world, came to the United States to OF ALASKA the 1970s. address the United Nations. But he and his We must explore the potential of the entourage did not leave Paraguay far behind. IN THE HOUSE OF REPRESENTATIVES Arctic National Wildlife Refuge. Thursday, June 30, 1988 When he encountered a group of Paraguayan exiles peacefully protesting human rights vio­ Mr. YOUNG of Alaska. Mr. Speaker, many DROUGHT RELIEF FOR DAIRY lations and the lack of democracy in their of our colleagues are aware of our energy de­ FARMERS NEEDED country, General Stroessner sent out his pendence upon other nations, and the fact troops in downtown New York City, just as he that the picture is not looking any brighter for HON. TOBY ROTH has always done in downtown Asuncion, Para­ the foreseeable future. Nevertheless, legisla­ OF WISCONSIN guay. tion before the Congress to open to environ­ IN THE HOUSE OF REPRESENTATIVES Several members of the official delegation mentally-sound oil and gas leasing the Coast­ accompanying the general crossed Park al Plain of the Arctic National Wildlife Refuge Thursday, June 30, 1988 Avenue and proceeded to beat the protestors. in my district-the State of Alaska-is the Mr. ROTH. Mr. Speaker, Wisconsin dairy The next day, the general cut short his stay bright spot in terms of responding to this farmers have been particularly hard hit by the and he and his party went off for sightseeing growing international threat. Today I submit for severe drought that has blanketed the Mid­ in Florida. But unlike Paraguay, in a free coun­ the RECORD an article from the Birmingham west. The drought has already caused serious try there is recourse for victims of such abuse. News, which underscores the need for prompt damage to Wisconsin crops with an estimated A complaint was filed with the New York City action by the Congress on this subject. Be­ loss of at least 30 percent. In fact, many of Police Department and an investigation cause of the vast support nationwide for this Wisconsin's farmers are now selling their dairy ensued. Because of a claim of "limited immu­ legislation, I will do this daily. cows and heifers because of the acute lack of nity" as members of the official delegation, [From the Birmingham News, Aug. 26, forage. the perpetrators were able to leave the coun­ 1987] I commend Agriculture Secretary Lyng for try. However, according to the New York City CARIBOU AND OIL his prompt authorization of emergency haying, Police, if the individuals in question ever return Environmentalists and oil interests have grazing and harvesting of acreage in the Con­ to the United States, they would be subject to spent most of this year gearing up for the servation Reserve Program. However, it is evi­ a summary arrest. expected debate in Congress over whether dent that additional disaster relief measures Ambassador Robert E. White, former U.S. to open the coastal plain of the Arctic Na­ are desperately needed. Ambassador to Paraguay, who has been re­ tional Wildlife Refuge up for oil and gas drilling. With the reduced yield of hay crops and the fused entry into Paraguay by the Government, It is the largest untapped potential source dramatic rise in feed grain prices, many dairy recently wrote the following article for the of oil and gas in the United States, and the farmers cannot meet production costs. If the Washington Post on this incident. I commend last undisturbed wilderness on the nations dry weather continues through July, as recent­ it to my colleagues' attention. Arctic Ocean coastline. ly predicted by the National Weather Service, [From the Washington Post, June 4, 1988] Our nation has decided over and over, as a many Midwestern dairy farmers may have little matter of public policy, that conservation is SoMETHING RoTTEN IN PARAGUAY choice but to liquidate their herds. In an effort . State HUNDREDS OF EXTREMISTS shaws, water buffalo, mini-vans, tractors, Department testimony during the same There are hundreds of anti-Government and the ever present green trucks of the hearing acknowledged that there are "indi­ extremists in the Punjab, although more police and paramilitary. Stores remain cations that officials of the Stroessner gov­ than 200 of them surrendered to security open-even liquor vendors, the perennial ernment and his Colorado Party are in­ forces last month at the Golden Temple targets of the militants

AGENCY RETIREMENT STATISTICS-MARCH 1988

0 to 30 days 31 to 60 days Over 60 days Total number of Department/agency records Number Percent Number Percent Number Percent

House of Representatives ...... 10 32 26 13 42 31 United States Senate ...... 17 77 23 ...... 0 22 Architect of the Capital ...... 0 """' 0 0 library of Congress ...... ~ '12" 63 37 19 Government Pnnting Office ...... 3 43 4 57 . 0 7 3 60 1 20 ""'"""'}" 20 5 ~~~!~/~~~n-~i_n_~.. ~-f-i~~:::::::::: :::::: ::: ::: :::::::::::::: ::::::::::::::::::::::: .. ::···· ...... 4 0 I 20 5 Administrative Office/U.S. Court ...... 18 ~~ . """'22" 21 64 62 104 Treasury/White House ...... 0 0 0 0 CIA ...... 0 1 6 """"""15" 94 16 26 149 35 168 39 427 ~:~~:~lj~~~~~~e~: ::::::::::::: : :: : ::: :: ::::::::::::::::::::::::: ..... :::.:::::::::::::: ::::: :::: .. ::::::····· ...... 110 0 5 100 5 Department/Interior...... 47 3~ """""""55" 39 38 27 140 Department/Justice...... 9 9 65 64 28 27 102 Department/labor...... 14 14 35 34 54 52 103 30 429 37 380 33 1,161 ~r,~~~~f~~~le/'MtL:: ::::: :: ::::::::::::::::::::::::::::::: : ::::::::::::: :: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :: ::: d5~ 81 268 12 162 7 2,232 Department/State ...... 4 9 12 28 27 63 43 Department/Treasury ...... 17 2 131 17 635 81 783 40 1,202 46 361 14 2,588 ~er.~~e~u~~~- :: : : : : : :::::::::: ::::::: ::::::::::::::::::::::::::::::::::: :::::::: ::::::: :::: ::::::::::::::::::::::::::::::::::::::::::::: :::: ::: :...... 1,025 0 2 100 2 National Credit Union Administration ...... ~ "3" 75 1 25 4 Federal Communications Commission ...... 0 3 33 6 67 9 Federal Reserve Board ...... 0 """"""""""""" 0 """""""""" 0 0 Federal Trade Commission ...... 0 ...... 0 """"1" 100 1 Interstate Commerce Commission ...... 3~ ...... 6" 0 1 100 1 40 4 27 15 ~~~~~~n~:~ull~!~i7ut~~~is-~~~n_:::::::::::::: ::: :: :: :: :: : ::::::::::::: :: :::::::::::::::::::::::::::::::::: ...... 0 ... 0 0 National Gallery of Art ...... ~ "" '!" 50 "}" 50 2 International Trade Commission ...... 0 1 50 I 50 4 Veterans' Administration...... 896 77 253 22 17 1 1,166 ACTION ...... 0 " 0 ...... 0 0 Equal Employment !>Jlportunity Commission ...... 0 7 39 11" 61 18 General Services Admmistration ...... 11 14 39 46 34 40 84 National Science Foundation...... 2 24 I 13 5 63 8 Securities and Exchange...... 5 33 6 40 4 27 15 Federal Deposit Insurance Corporation...... 0 9 100 9 Department/Air Force ...... """" 498" 5~ 266" 29 153 17 917 National Endowment/Arts ...... 2 0 2 50 4 Railroad Retirement Board ...... 2 ~~ " i" 33 """""" 0 3 Consumer Products Safety Commission ...... I 25 2 50 """"""""}" 25 4 National labor Relations Board...... 2 17 4 33 6 50 12 0 1 50 1 50 2 ~s~~e-~--v.~~~~~-~~~-~~~~~ -:::::::: ::::::: ::::::::::::::::::::::: ::::: ::: :: ::::::::::::::::::::::::::::::::::::::: .. ::::::::::...... 1 6 6 35 10 59 17 EPA ...... 9 23 17 45 12 32 38 Department/Transportation...... 63 29 115 52 43 19 221 Overseas Private Investment Corporation ...... 1 100 ...... 0 ...... 0 1 0 3 23 10 77 13 ~~~~~{~~~~~~t~~i:r~~~:.e.~t_:::::::::::::::: : : :: :::: :::: ::::::::::::::: .. :::::::::::::::::·...... ::::: .. :::::::::::::::::::::::::: ...... 0 9 69 4 31 13 Departmeni/HHS...... I 59 10 499 88 564 0 3 100 3 ~~-~r~·i·~- Adminis-~~~-~~~-~ .:: ...... · ...... 15·· 2~ " '20" 29 34 49 70 Federal Home Loan Bank ...... 1 16 4 67 1 17 6 50 1 50 ...... 0 2 ~r.~~~re:~ iiiid .. iiiriiiefi::::::::::::::::::::::::::::::::::::::::: :::::::::::::::: ::::::::::::::::::::: ::::: l 25 3 75 0 4 64 6 24 """3" 12 25 39 23 38 14 23 61 ~E~a:~!~!~:i~~ ::::: ::: :::::::::: :: ::::::::::::::::::: : :::::::::::::::: :: ::::::::::::: : ::::::::::::::·_::::::: : ::: :::::: :: : ::::...... ~~ 0 "" 0 3 100 3 Federal Mediation and Conciliation Service ...... 1 100 ... 0 0 1 Panama Canal Commission ...... 17 77 5 23 0 22 Army Corps of Engineers ...... 53 38 37 26 51 36 141 D.C. Government...... 8 5 38 23 118 72 164 Total ...... 5,077 45 3,340 29 3,025 26 11,442 16618 EXTENSIONS OF REMARKS June 30, 1988 HONORING BLESSED ROSE PHIL­ opened the first free school west of the Mis­ acute, this situation exists nationally, and I LIPINE DUSCHENE UPON HER sissippi. Phillipine's efforts blossomed, with urge my colleagues attention to this growing CANONIZATION the founding of a convent, a boarding school, problem in our civil court system. and a novitiate in Florissant, MS. Her accom­ plishments would later include an orphanage, RESOLUTIONS URGING THE U.S. DISTRICT HON. JACK BUECHNER COURT FOR MASSACHUSETTS AND THE MASSA­ academy, free school in St. Louis, and a OF MISSOURI CHUSETTS CONGRESSIONAL DELEGATION TO IN THE HOUSE OF REPRESENTATIVES series of her society's houses from New Orle­ ALLOCATE ALL NECESSARY RESOURCES TO ans to St. Louis. Thursday, June 30, 1988 ENSURE THE EFFECTIVE DISPOSITION OF As­ Despite her success, Blessed Phillipine had BESTOS-RELATED CLAIMS Mr. BUECHNER. Mr. Speaker, this Sunday still not realized her lifelong dream of working Pope John Paul II will elevate Blessed Rose with the Indians. So the 71-year-old future Whereas, many citizens of the Common­ Phillipine Duschene to sainthood in the Basili­ saint embarked on a journey west carrying the wealth suffering from asbestos-related dis­ ca of St. Peter. This heroic woman was a pio­ dream she had held since her childhood. She eases are currently seeking redress for their neer missionary to the new world, founding arrived in what was to become Kansas with injuries through the U.S. District Court; the first free school west of the Mississippi in and St. Charles, MS, in 1818 and the first convent the hope to minister to the Native Americans, but could not master the Potawatomi lan­ Whereas, there are almost 2800 cases re­ of the Society of the Sacred Heart of Jesus in lating to asbestos disease, making up more the United States in Florissant, MS, in 1820. guage. But this builder of Catholic America knew a language spoken among every nation than one-third of the civil docket, currently When Pope John Paul II canonizes Blessed pending in the U.S. District Court in Massa­ Phillipine, she will become the first saint from and every race. . . the language of kindness and love. Indians named her "Woman Who chusetts; and the Archdiocese of St. Louis. It is fitting that Whereas, the plaintiffs in these cases have this nun, who pioneered education and mis­ Always Prays," inspired by her dedication and unwavering faith. been subject to long inordinate delays, some sionary efforts in the new frontier and became spanning more than seven years, in having an inspiration for all generations, should now She returned to St. Charles where on No­ their cases brought to trial and, along with receive the recognition she so deserves. Her vember 18, 1852 her life ended. We remem­ their families, are enduring the serious example embodies the spirit of independence ber her now as her sainthood begins. We hardships resulting from these delays; and recall the words of Father Pierre Jean and self-determination which enabled the in­ Whereas, there have been many victims habitants of the frontier to blaze new trails in DeSmet: "No greater saint ever died in Mis­ who have died from their diseases and this Nation under God. souri," he said, "or perhaps in the whole whose families are still awaiting court as­ Born in Grenoble, France on August 29, union." signment of their cases, therefore prolong­ 1769, Blessed Phillipine was surrounded by More important than the death of Mother ing the period of grief and anguish which the fire and rebellion of the French Revolu­ Rose Phillipine Duschene, however, is the ex­ they have already endured; and tion. As a young girl, she applied her family's ample she gave to both the people of the Whereas, the administration of asbestos characteristic strong will toward a moral and frontier, and we who reflect today. "I marvel disease cases in the U.S. District Court in virtuous life. One story tells of how Phillipine at the power of grace," Mother Duschene Massachusetts has been shown to be one of "discarded her dolls and threw herself into said, "which makes me happy in the separa­ the worst in the Nation with the length of this ministry. To the children of the families tion from all I love best and without any suc­ disposition averaging over six years, more she visited with her mother she gave her cess which could make me forget my sacrifi­ than five times the length of non-asbestos small possessions. To the beggars who came cies." case dispositions, and the U.S. District to the house she gave her spending money. Court, is at least nine years away from Mother Duschene may have thought at one eliminating the current backlog of asbestos 'But Phillipine,' her parents protested, 'we give time that she was unsuccessful, in fact she you that for your pleasure,' This is my pleas­ cases under its present rate of scheduling; wrote from Florissant in 1820, "Saints are and ure,' said Phillipine." needed for work among souls so little pre­ Despite her father's objections and the un­ pared. I am all the more distressed not to be Whereas, these delays and inaction add to certainty of the times, Phillipine's desire to the physical, emotional and economic suf­ one." This humble frontier missionary has fering of the victims and their families and enter the noviceship burned deeply. The year been proven otherwise. was 1787, and 18-year-old Phillipine was re­ are insensitive to their need for support and moved from the formal preparation to religious On May 12, 1940 Mother Duschene was right to litigation; and life. The French Revolution resulted in the ex­ given the title of "Blessed" and "declared Whereas, the demand for remedial action pulsion of many religious communities, includ­ worthy of veneration and imitation." by the court has been urged by local govern­ ing her teachers, the Visitation Sisters. But, Mr Speaker, I join the people who remem­ mental bodies, community and civic groups, Phillipine continued her personal preparation ber Blessed Phillipine and pray for her inter­ organized labor and thousands of private for service by compassion and immediate cession as they celebrate her canonization. I citizens from across the Commonwealth; contact with human suffering and misery. She congratulate the Archdiocese of St. Louis and therefore be it was true to her tasks, receiving abilities equal those who have worked to honor and com­ Resolved, that the members of the Massa­ them. memorate Blessed Phillipine Duschene. chusetts House or Representatives join with After an effort to resume the Visitation con­ the victims and their families, and with all vent's work failed, the determined Duschene others concerned, to urge the U.S. District discovered the Society of the Sacred Heart, Court and the U.S. Congress to allocate all and offered this new group's founder, St. THE CRISIS IN CIVIL ACTIONS necessary resources to ensure that asbestos Madeline Sophie Barat, the convent's build­ FOR WORKERS INVOLVED IN cases are no longer effectively discriminated ASBESTOS-RELATED CLAIMS against, but are expedited, rather, with the ings. Barat brought a new direction and focus same deliberate speed as non-asbestos cases to Rose Duschene's life. Mother Barat tem­ on the civil docket, and request that the pered Duschene's desire to mission to the In­ HON. BRIAN J. DONNELLY chief justice of the U.S. District Court in dians in North America. Though the idea was OF MASSACHUSETTS Massachusetts commit publicly to a definite reintroduced to Phillipine in 1-806, she finally IN THE HOUSE OF REPRESENTATIVES timetable and to streamlined procedures set off for America in 1818. After 11 tumultu­ which will eliminate the present asbestos­ ous weeks on the Atlanta, Duschene's dele­ Thursday, June 30, 1988 case backlog by a specific date; and be it fur­ gation landed at New Orleans. Forty-seven Mr. DONNELLY. Mr. Speaker, I would like ther days later, the group reached St. Louis on to submit for the record a copy of a resolution Resolved, that a copy of these resolutions May 29, the feast of the Sacred Heart. which was recently adopted by the general be forwarded by the Clerk of the House of Bishop Louis William DuBourg sent Rose court of the State of Massachusetts, address­ Representatives to Chief Justice Frank H. and her companions to St. Charles where they ing the problem of judicial review of asbestos­ Freedman of the U.S. District Court in Mas­ found French, Creole, and English Catholics, related damage suits. While the crisis in the sachusetts and the Massachusetts congres­ poor and in need. It was here these women, District Court of Massachusetts is particularly sional delegation. June 30, 1988 EXTENSIONS OF REMARKS 16619 FALSE PROMISES The telecommunications environment is ONE MAN'S VIEW changing rapidly and State, as well as Feder­ (By Mike O'Callaghan> HON. BOB McEWEN al, jurisdictions are evaluating regulatory alter­ Great Basin National Park is everything OF OHIO natives to rate-of-return regulation. Nearly that Sen. Harry Reid hoped it would be one-half of the States have evaluated or are when he was fighting to make it a legal re­ IN THE HOUSE OF REPRESENTATIVES evaluating a variety of alternatives to rate-of­ ality. The snow on towering, 13,063 foot Thursday, June 30, 1988 return in their legislatures or public utility com­ Wheeler Peak and on lesser 12,298 foot missions. In my home State of Illinois, the Baker Peak greeted the visitors from rapid­ Mr. McEWEN. Mr. Speaker, Nicaraguan Dic­ ly heating Clark County last week. tator Daniel Ortega is off on an official visit to General Assembly in 1985 passed a major re­ see his Marxist comrade-in-arms and fellow write of the Public Utility Act introducing more The campgrounds all the way from Lower Lehman Creek at 7,500 feet up to the 9,950 Dictator Fidel Castro, who welcomed his competition in the telecommunications indus­ try, while preserving protection for those con­ foot level Wheeler Peak Campground were recent arrival in Havana with a 21-gun salute filled for the long Memorial Day weekend. and a bear hug. sumers who are unable to easily afford univer­ The license plates on the vehicles of visitors Commandante Ortega deserves such fine sal service. were from at least 11 states including Ohio treatment from his long-time mentor and It is my understanding from reading the pro­ and Michigan. island neighbor. He has had a very successful posed rulemaking that price caps will not Carolyn, my wife, and I stopped for re­ year. Not in Nicaragua, Mr. Speaker, where affect the State commissions' ability to regu­ freshments with Juanita Miller at Major's the economy is in ruins. No, this is not where late local rates since the plan applies only to Place before making the sharp turn east on he has made his most impressive marks. It is the Federal interstate portion of telephone the way to Baker last Thursday. During our the U.S. Congress. regulation. That is an important distinction to stop at Major's Place we learned the trout The Nicaraguan dictator has racked up a list be made in order that we do not try to radical­ were biting on Silver Creek and in the reser­ of foreign policy successes that would make ly alter ·regulation of the local loop in this voir. The next day before heading up to the Lenin and Stalin proud. process . . park" we caught our limit of trout in the He has won a majority in the House with his Silver Creek Reservior to make certain we In conclusion, Mr. Speaker, I look forward to false promises of democratization and peace had dinner that evening. ongoing discussions about this new form of while his Interior Ministry thugs take to the A short hike on a park nature trail and up regulation. A hearing is planned in the House streets of Managua and fill Thomas Borge's a couple of ridges to get some photos of Telecommunications Subcommittee, on which prisons and harass the opposition newspaper Wheeler Peak was a good way to start the I serve, for mid-July and others may follow. I La Prenza. visit. Then we jumped in our rig and drove believe that as we deliberate on this important to the snow and Wheeler Peak Camp­ As the dictators meet to affirm their solidari­ matter, the regulatory process should go for­ ground. ty against the United States and democracy, ward. Mid-course corrections to the plan can The air was crisp and the camp fires were the freedom fighters starve in the jungles­ and should be made. Price caps are worth ex­ surrounded by entire families getting ready courtesy of the majority leadership in Con­ amining to see if they meet the key test: "Will for dinner. The kids, in warm clothes, were gress. the American consumers markedly benefit throwing snowballs and some grandparents from them or not?" were taking pictures of the young ones. You could easily imagine they were taking pic­ tures of the present activities but their minds probably were wandering back over PRICE CAPS: A CONCEPT TO the years to their earlier days. EXAMINE The following morning was spent at Cave ONE MAN'S VIEW Lake, which was surrounded by Las Vegans, HON. CARDISS COLLINS and then on for a visit in Ely with pal OF ILLINOIS HON. JAMES H. BILBRAY Nobuo Nakashima. Later in the day we IN THE HOUSE OF REPRESENTATIVES viewed the Robinson mining project at OF NEVADA Ruth and then attended services at St. Mi­ Thursday, June 30, 1988 IN THE HOUSE OF REPRESENTATIVES chael's Church in McGill. Mrs. COLLINS. Mr. Speaker, in May, the Thursday, June 30, 1988 We planned to spend the next day, Federal Communications Commission [FCC] Sunday, hiking into Stella and Teresa Lakes adopted a further notice of proposed rulemak­ Mr. BILBRAY. Mr. Speaker, I rise today to and up to the bristlecone pines in the park. ing regarding price cap regulation. As one call to the attention of my colleagues an arti­ Mother Nature took over and early Sunday who has been critical of many FCC operations cle recently published in the Henderson Home morning the temperature in Baker dropped in the past, I was pleased to see that this new News concerning the Great Basin National to the thirties and a snowstorm along with proposed rulemaking, comprising nearly 300 Park in Nevada, and of the rightful pride Sena­ even colder weather dominated the upper pages in length including appendicies, put tor HARRY REID may take in his efforts in levels of Great Basin National Park. Several more "meat on the bones" on this concept bringing this magnificent area to the Nation's inches of fresh snow covered the mountains than did the first FCC effort in August, 1987. attention and to protect it for generations of and by late afternoon, while we were busy Price caps are a marked departure from the Americans to come. catching another dinner at Silver Creek 'Reservoir, the storm continued to swirl current rate-of-return regulation now imposed Senator REID, who preceded me in repre­ around the cloud covered peaks. It wasn't a on the regulated telecommunications industry. senting Nevada's First Congressional District day for a pleasant hike at the 10,000 foot I believe we should thoroughly examine this in the Congress, recognized the unique beauty level of the park. effort to ascertain if benefits to consumers are of these lands had to be preserved. Leading I'm glad we had to settle for more Silver increased by price caps, if cross-subsidies can efforts within Nevada, and working closely Creek trout that evening as we watched the be eliminated, if quality of service can be ac­ with our colleagues on the Interior Committee, snow stick to the sagebrush outside of curately monitored, and if it would encourage Senator REID led the Nation's focus to the Baker. The trout were delicious and plan­ innovation by providing marketplace incentives majestic beauty of Wheeler and Baker Peaks, ning for our next trip to hike into the lakes to lower prices and encourage companies to and rallyed congressional action to dedicate was like dessert. deploy new technologies and services for con­ this crown jewel as a national park. Without If you are planning a summer trip with sumers more rapidly. All of us would agree, I his leadership and efforts, the Great Basin the family don't overlook White Pine believe, that rate-of-return regulation is badly National Park would not have been dedicated County or the Great Basin National Park outdated. For nearly 50 years, this has been last year. near Baker. If it is during a recess of Con­ the method of regulating telecommunications gress let's hope you run into the Harry Reid Mr. Speaker, I commend the article, written utilities. Rate-of-return regulation has placed family enjoying the mountains. Mter all, by the respected former Governor of Nevada, more emphasis on profits companies can the legislative leader who helped create the Mike O'Callaghan, to my colleagues: make rather than on what prices consumers Great Basin National Park should find time must pay. The article follows: to enjoy it at every opportunity. 16620 EXTENSIONS OF REMARKS June 30, 1988 ASSURING THE COMPETITIVE- internationally integrated market for financial cratic Party, and was a founding officer of the NESS OF U.S. FINANCIAL INSTI- services and products. Tullytown Democratic Club. TUTIONS Fortunately, Sam's energies were not spent on politics alone. He was a vital member of SANTA BARBARA VICTORIA many of the area's volunteer organizations. HON. JOHN J. LaFALCE STREET COMMUNITY HOUSE Sam was a lifetime member of the Volunteer OF NEW YORK Firemen of Armstrong County, and was also a IN THE HOUSE OF REPRESENTATIVES HON. ROBERT J. LAGOMARSINO member of the Tullytown Volunteer Fire Com­ Thursday, June 30, 1988 OF CALIFORNIA pany. He was an active member of both IN THE HOUSE OF REPRESENTATIVES American Legion Post 961 of Tullytown and Mr. LAFALCE. Mr. Speaker, as we approach Fallsingtown American Legion Post 834. Sam Thursday, June 30, 1988 this holiday weekend during which we cele­ was involved with many service projects as a brate the most important single event in our Mr. LAGOMARSINO. Mr. Speaker, I would member of the Bristol Moose Lodge, the Tul­ history as a nation, I would like to discuss a like to take this opportunity today and recog­ lytown Lions Club, and the Fairless Works Re­ matter that will have significance in our eco­ nize the remarkable efforts of those members tirement Club. In recognition of his long years nomic history. The Congress is now consider­ of the Santa Barbara community who worked of community service he received the Tully­ ing whether to shed the shackles of the toward the purchase of the Victoria Street town Lifetime Community Service Award. Glass-Steagall Act from our Nation's banks Community House to provide a permanent Tullytown Borough is a small community of and declare them independent to compete in home for three local charities. They include only 2,500 souls. Sam Spencer's efforts were world markets. I believe this action will be the Council of Christmas, the Retired Seniors felt by everyone who lived there and many necessary in order to preserve the preemi­ Volunteer Program, and the Child Abuse and people throughout the entire county. Personal­ nence of the United States in the world's fi­ Listening Mediation. ly, he was a source of great support, and nancial markets. Mr. Speaker, under the outstanding leader­ taught me invaluable lessons about life and The potential loss of our place at the top of ship and direction of Larry Crandell and Rich­ human nature. Sam Spencer passed away financial markets was brought home to me by ard Berti, several business and civic leaders with the knowledge that he was loved and re­ a very good white paper prepared by the Insti­ of the Santa Barbara community donated hun­ spected by many, and that he made the lives tute of International Bankers entitled "Global dreds of hours of their time and energy on of people around him better. Sam is survived Survey of Permissible Activities for Banking behalf of the charities to gain the financial by his wife, Francis, his daughter, Linda Ma­ Organizations in Major Financial Centers Out­ support of the community in order to purchase zenko, four grandchildren and one great side the United States." The Institute pre­ the building site located at the corner of Cha­ grandchild. pared this study to show the developments in pala and Victoria Streets in Santa Barbara. the powers of banking organizations in nine The group was able to raise the $1,250,000 major countries and in the European Econom­ through several major grants, gifts, small do­ URANIUM REVITALIZATION ACT ic Community. It is clear that the trend in other nations, individual loans, and a consortium of countries is to permit banks to engage in se­ five Santa Barbara lending institutions who HON. HOWARD C. NIELSON curities, insurance, and real estate activities provided the mortgage financing for the pur­ OF UTAH as well as to hold investments in industrial chase of the building. IN THE HOUSE OF REPRESENTATIVES companies. The building will provide space for the three Thursday, June 30, 1988 The developments in the European Commu­ agencies benefitting abused children and their nity are of particular interest. Just as 1776 is a families, as well as the elderly and the indi­ Mr. NIELSON of Utah. Mr. Speaker, on noteworthy date here, 1992 will take on a gent. In addition, the building will also provide behalf of my colleague, Mr. CHENEY, who is great deal of significance for banks that are space to other community nonprofit agencies absent today because of illness, and 27 other based in European Community member serving the needs of the Santa Barbara com­ Members of the House, I have today intro­ states. By that year, a unified banking system munity. duced legislation to revitalize the domestic will be implemented that will include authority Mr. Speaker, community cooperation is the uranium industry and reform the Government's for banks from different member states to hallmark of this project. I applaud the efforts enrichment operations. conduct full securities activities in all of the of these devoted citizens showing real volun­ The background of this legislation is as fol­ other member states. Thus, there will be a teer spirit through pooling resources to pro­ lows: Back in April, 47 of us introduced H.R. single banking market in Europe in which vide services to the community in a more effi­ 4489, the Uranium Revitalization, Tailings banks will have access to 321 million people. cient manner. Reclamation and Enrichment Act. This legisla­ This is but one example of the progressive­ tion was patterned after S. 2079, which was ness on the issue of bank powers in other approved by the other body on March 30 by a countries. RALPH "SAM" SPENCER vote of 62 to 28. It is worthy of note that American banks are H.R. 4489 includes three titles. Title I would taking advantage of the authority to engage in HON. PETER H. KOSTMAYER repeal the requirement of section 161 (v) of full securities activities as well as other busi­ OF PENNSYLVANIA the Atomic Energy Act that enrichment of for­ ness lines abroad. However, if they can IN THE HOUSE OF REPRESENTATIVES eign uranium be restricted in order to maintain engage in these activities overseas and pro­ a viable domestic industry. Instead, it imposes vide services to their customers abroad, why Thursday, June 30, 1988 for an interim period charges for the use of should consumers of financial products and Mr. KOSTMAYER. Mr. Speaker, on Tues­ foreign uranium above specified levels. services come to New York, Chicago, or Los day, June 28, 1988, Ralph "Sam" Spencer Title II of H.R. 4489 creates a system for Angeles where banks and other U.S. financial passed away at age 71 . With Sam's passing, I funding the reclamation of mill tailings based institutions are narrowly and artificially limited lost a friend and the people of Bucks County on contributions by the Federal Government, in the financial products and services that and Tullytown lost a dedicated citizen, devot­ nuclear utilities and the owners or licensees of they may offer? ed to community service. Sam was born and mill tailings sites. The Institute is to be commended for raised in Apollo, PA, served his country in Title Ill creates a Government enrichment making this valuable contribution as we World War II as a member of the U.S. Navy, corporation to operate the Federal Enrichment debate the future of the financial industry in and spent the last 27 years living and serving Program as a commercial enterprise. this country. We did not hesitate to look to the the people in the community of Tullytown, PA. The pending free trade agreement with work of philosophers from abroad to formulate Sam dedicated much of his life to local gov­ Canada has a direct bearing on H.R. 4489 be­ the fundamentals of the American ideal of ernment. Sam served as a member of the Tul­ cause it would repeal with respect to Canadi­ government. Accordingly, we also should not lytown Borough Council for the last 3 years, an uranium the statutory requirement for re­ shy way from the learning in other countries he was a Borough Democratic Committeeman strictions on the enrichment of foreign urani­ on how best to structure our financial system for 20 years, he had been a member of the um without providing any alternate program to in 0. context of an increasingly global and- Bucks County Executive Board for the Demo- preserve a viable domestic industry. June 30, 1988 EXTENSIONS OF REMARKS 16621 It has been proposed that the administration istration-as well as research undertaken ees, military retirees, civil service annuitants include in the legislation implementing the free through private sector initiatives has saved and recipients of black lung benefits would be trade agreement the program of charges for countless lives and improved the health of vir­ assured early delivery of their benefit checks the use of foreign uranium contained in title I tually every American and member of the in the event the day regularly designated for of H.R. 4489. world community. The list of health and eco­ delivery falls on a weekend or a legal public In an effort to develop an alternative to this nomic benefits provided by medical research holiday. Thus my legislation would place this proposal, the administration has conducted and the promise of new treatments and poten­ smaller group of retirees on equal footing with extensive negotiations in recent weeks with tial cures for the diseases and illnesses that recipients of Social Security benefits. I urge the utility industry and the uranium producers. still plague humankind serve as ample justifi­ my colleagues to support this long overdue There has emerged from these negotiations a cation for the celebration of October 1 as Na­ legislation. compromise alternative to the title I program. tional Medical Research Day. The compromise proposes a 5-year $750 mil­ Diseases that once killed or incapacitated lion procurement program to buy domestic millions-such as tuberculosis and polio­ HONORING JOE ANDERSON uranium for use in enrichment operations. The have been virtually eradicated. Medical re­ Secretary of Energy would purchase the urani­ search has also led to the discovery of DNA HON. J. DENNIS HASTERT um through competitive bidding with funds as the molecular basis for inheritance, the de­ OF ILLINOIS from a uranium revitalization fund, which velopment of new, innovative pharmacological would also be used to fund the reclamation of and surgical techniques to combat cancer and IN THE HOUSE OF REPRESENTATIVES mill tailings. The fund would be financed by a heart disease, the discovery of the causative Thursday, June 30, 1988 $450 million contribution from the U.S. Enrich­ agents and possible treatment and cures for Mr. HASTERT. Mr. Speaker, one of the ment Corporation, a $300 million contribution infectious diseases such as AIDS and legion­ most outstanding civil leaders in my congres­ from uranium producers and a $1 billion con­ naire's disease and the identification of the sional district, Joe K. Anderson of St. Charles, tribution from the licensees of nuclear reac­ genetic basis for addictive disorders. As the has just recently been selected to receive one tors. $1 billion would be available from the result of these and other advances, American of the highest honors in Scouting, the Distin­ fund for the reclamation of mill tailings in ac­ medical research has become the envy of the guished Eagle Scout Award. cordance with existing law. entire world. During the past four decades, Joe Anderson The compromise includes the provisions of has focused his attention on his community. title II of H.R. 4489 for the reclamation of mill He has provided leadership to many organiza­ tailings, and title Ill, which creates the enrich­ ASSURE TIMELY DELIVERY OF CIVIL SERVICE, RAILROAD AND tions including serving as president of the ment corporation. Kane County Livestock Association, as presi­ Mr. Speaker, it is not yet clear whether the MILITARY RETIREMENT, AND BLACK LUNG BENEFIT CHECKS dent of the St. Charles Community Chest, as compromise I have described can be included commander of American Legion Post 342 in in the legislation implementing the free trade HON.BERNARDJ.DWYER St. Charles and as president of the Rotary agreement. Discussions are still ongoing be­ Club. tween Congress and the administration on OF NEW JERSEY He was founder of the Tri-City Salvation that issue and many of us continue to believe IN THE HOUSE OF REPRESENTATIVES Army and has been a 25-year member of the that it would be appropriate to include the Thursday, June 30, 1988 Tri-City Red Cross Board of Directors. He has compromise as part of the agreement. served three terms on the St. Charles School On Tuesday, June 28, Chairman UDALL held Mr. DWYER of New Jersey. Mr. Speaker, today I have introduced a package of four bills Board and one term as a member of the hearings before the Interior Committee on board of directors of Augustana College. A H.R. 4489 and the compromise proposal. Be­ to insure the timely delivery of Federal pen­ sion checks to railroad retirees, military retir­ decade ago, he was selected as recipient of cause of interest expressed by other mem­ the Charlemagne Award for outstanding con­ bers, we are today introducing the compro­ ees, civil service annuitants and recipients of black lung benefits. tribution to his community, St. Charles. mise in legislative form so that both the origi­ His career with Scouting dates back more nal bill, H.R. 4489, and the compromise will Currently, the Post Office receives benefit checks on a specified date, usually the first or than 50 years. He earned his Eagle Scout be formally pending before the appropriate Badge in 1933 and became an assistant committees of the House. third of the month. In the event the date of disbursement falls on a Saturday, Sunday or a Scoutmaster in 1937. He has served as chair­ holiday, the Post Office will deliver the checks man of the Two Rivers Council annual golf NATIONAL MEDICAL RESEARCH on the next available business day. As a outing and has helped raise more than DAY result, retirees many times must wait several $50,000 in support of Scouting activities. Just days before they receive their check. In some last year he received the Silver Beaver Award HON. STENY H. HOYER instances, these checks have already been in recognition of his distinguished service to delivered several days in advance to the youth. OF MARYLAND Mr. Speaker, today I salute Joe K. Anderson IN THE HOUSE OF REPRESENTATIVES Postal Service, which must then hold the checks until the designated date of delivery. and commend him for his sense of service to Thursday, June 30, 1988 For those individuals who depend on their his community and to youth, our future lead­ Mr. HOYER. Mr. Speaker, today it is my monthly checks as their sole source of ers. great pleasure to introduce a resolution which income, this delay can pose an unnecessary designates September 14, 1988, as "National hardship. EXTENSION OF AMERICAN Medical Research Day." This year we are As a result, in 1977 Congress approved CANAL PROJECT celebrating the centennial of the National In­ Public Law 65-216, which included a provision stitute of Health, and it is indeed appropriate to provide for the early delivery of Social Se­ that to continue the momentum generated by curity benefit checks whenever the regular de­ HON. RONALD D. COLEMAN this 1OOth anniversary celebration we com­ livery date for payment of either Social Securi­ OF TEXAS memorate the priceless contributions made to ty or Supplemental Security Income checks IN THE HOUSE OF REPRESENTATIVES the health and well-being of the citizens of the falls on a Saturday, Sunday, or a legal public United States and the world by America's holiday. Unfortunately, Congress never ex­ Thursday, June 30, 1988 medical research enterprise. tended this courtesy to the 4.4 million recipi­ Mr. COLEMAN of Texas. Mr. Speaker, I rise The breakthroughs in health promotion and ents of civil service, railroad and military retire­ today to introduce a piece of legislation that disease prevention generated by the Federal ment benefits and black lung benefits. directs the Secretary of State acting through centers for medical research-the National In­ My legislative package would simply assure the Commissioner of the International Bound­ stitutes of Health, the Alcohol, Drug Abuse, other Federal retirees the same treatment al­ ary and Water Commission to construct, oper­ and Mental Health Administration, the Centers ready afforded to recipients of Social Security ate, and maintain an extension of the Ameri­ for Disease Control, and the Veterans' Admin- benefits. Under my legislation, railroad retir- can Canal in El Paso, TX. 16622 EXTENSIONS OF REMARKS June 30, 1988 The construction and operation of an exten­ ing to the United States and illegal diversion Mr. Speaker, in December 1984 the Federal sion of the American Canal which would lie of water is taking place by Mexican farmers. It Home Loan Bank Board created 15 million wholly in the United States would provide for is widely believed that potentially disruptive shares of participating preferred stock of the a more equitable distribution of waters be­ international issues might arise from the com­ Federal Home Loan Mortgage Corporation tween the United States and Mexico, reduce mingling of the waters of the United States [Freddie Mac]. The stock was distribllted to water losses, and eliminate many hazards to and the waters of Mexico in this reach of the the savings and loan industry to improve the public safety. Rio Grande, while such issues would not arise capital position of individual institutions. How­ In 1976, this construction program was au­ if a canal extension were constructed and op­ ever, the value of the stock has never really thorized to be administered by the U.S. erated wholly on the American side of the increased because of a restriction that the Bureau of Reclamation. The American Canal river. The proposed extension would eliminate stock can only be held by members of the Extension, a feature of the Rio Grande that diversion and would eliminate the source Federal Home Loan Bank System. In short, project, would be located along the Rio of potential disputes and tension. that means that savings and loan institutions Grande within the city of El Paso, county of El This project would have the added benefit can only sell the stock to each other, an ex­ Paso, in southwestern Texas. The extension of creating construction jobs as well as other tremely small market. Because of the small project would consist of enlarging about 1.4 employment opportunities in a border area market, the price of the stock has been under­ miles of the existing American Canal, con­ that is beset with economic problems and valued and there has been little sales activity structing a 13-mile extension of the American high unemployment as well as address numer­ in the Freddie Mac stock. Canal, modifying traffic and drainage struc­ ous problems involving this community's most The legislation that I am introducing today, tures, and eliminating a portion · of the existing vital natural resource-water. along with the gentleman from Ohio [Mr. Franklin Canal. I ask for the support of my colleagues for WYLIE], and the gentleman from Indiana [Mr. This project would bestow numerous bene­ this worthwhile project. HILER], would remove the ownership restric­ fits upon this area in southwest Texas, and tion on the Freddie Mac stock. It would allow the canalization effort enjoys the support of the stock to be sold to anyone, regardless of local, State and Federal agencies. The two A TRIBUTE TO OBIE HENEGAR their affiliation with the Federal Home Loan most directly involved Federal agencies, the Bureau of Reclamation and the International Bank System. It must be pointed out that HON. MARILYN LLOYD while this bill will indeed raise an impressive Boundary and Water Commission, have OF TENNESSEE voiced favorable opinions for this project in amount of money for the savings and loan in­ IN THE HOUSE OF REPRESENTATIVES view of the fact that numerous benefits would dustry, it will in no way interfere with the oper­ arise from the extension of the American Thursday, June 30, 1988 ation of the Federal Home Loan Mortgage Corporation since this is nonvoting stock. Canal. Mrs. LLOYD. Mr. Speaker, today I proudly I want to commend Senator ALFONSE Primarily, this extension would result in the rise to pay tribute to Obie Henegar, a most D'AMATO of New York, who introduced this salvage of between 12,000- and 22,000-acre special resident of my district. Mr. Henegar legislation in the Senate earlier this month. feet of water lost annually due to seepage. will retire from service to the city of Oak Ridge Senator D' AMATO has indeed come up with Water transportation losses fluctuate greatly in on July 8, 1988, where he has been director an important way to raise money for the thrift the Franklin Canal as well as the Rio Grande of the Oak Ridge Senior Center since its 1977 industry and at no cost to the taxpayers. I due to the dirt lining and seepage losses, and opening. Under his leadership, the Senior commend him for his vision in this area, and I salvaged water could increase annual allot­ Center has grown dramatically in progress and am happy to be the House sponsor of the ments to each water right acre if a cement attendance. Mr. Henegar should receive spe­ lined canal was available. The value of this cial commendation for his involvement with companion legislation. amount of water that would be conserved to a the Senior Olympics, a much acclaimed and At the present time, the Freddie Mac stock community such as El Paso is enormous. much needed program. is held by some 2,900 savings institutions. For Another benefit would be derived would be The proud father of five children and seven the most part, since the issuance of the stock, the elimination of health and safety hazards to grandchildren, he has served his nation and the trading price has remained fairly constant. the citizenry of El Paso. The current use of his city well these last 40 years. After service However, since the first introduction of the the Franklin Canal, located in a downtown in the U.S. Marine Corps from 1948 to 1950, legislation to lift the restrictions, there has area, has created a health and safety problem he worked at the Oak Ridge Gaseous Diffu­ been a dramatic increase in the price of the in that refuse and garbage are illegally sion Plant and joined the city of Oak Ridge stock. On June 3, the stock was being traded dumped in the canal, creating a breeding Recreation and Parks Department in 1964. at a price of $62 per share. On Monday of this ground for bacteria. Disease-carrying mosqui­ Mr. Speaker, I am deeply honored to be week, June 27, the value of the stock had in­ tos, spiders, scorpions, and snakes breed and given the opportunity to herald such a fine creased to $91 .50. Nearly a $30 jump in 3 live in the vegetation along the canal, and public servant. In fact, I hope to personally weeks. This increase was brought about by stagnant water during the months when irriga­ thank and congratulate Mr. Henegar in the the belief that the restrictions on Freddie Mac tion is not carried through the Franklin Canal very near future. We must always remember stock ownership would be removed by the creates further health problems due to con­ the importance of those who demonstrate Congress. If the stock has increased in value tamination. their love for our institutions and our people merely on speculation that Congress will act, In addition, a number of drownings occur with devoted service. Mr. Henegar is just such you can imagine the increase that will take every year in the canal because of its proximi­ a man, and I know his importance to the great place once the restrictions are lifted. ty to public housing. The 5.5 miles of the city of Oak Ridge will long continue. Savings and loan officials have estimated Franklin Canal I am proposing to eliminate that at the very least, passage of this legisla­ have the heaviest density of population per tion will increase the total value of the out­ square mile than any other area of El Paso. LEGISLATION TO PUMP $1 BIL­ standing Freddie Mac shares by nearly $1 bil­ The average size of family in this area is 5.6 LION INTO THE SAVINGS AND lion. That money will immediately boost the persons, and the largest percentage of chil­ LOAN INDUSTRY INTRODUCED capital position of savings and loans through­ dren in the families are less than 13 years of out the country. That is money that can be age and have no access to public or private HON. FRANK ANNUNZIO used to make housing loans, which in turn will swimming pools. The proposed extension OF ILLINOIS generate more income for the savings and would render the Franklin Canal obsolete and IN THE HOUSE OF REPRESENTATIVES loan industry. it could be filled in for some more beneficial Mr. Speaker, it is my fondest hope that this public use in the area. Thursday, June 30, 1988 legislation can be passed by the House quick­ The possibility of international friction be­ Mr. ANNUNZIO. Mr. Speaker, today I am in­ ly, so that we can get the money to the sav­ tween Mexico and the United States would troducing legislation that will pump roughly $1 ings and loan industry as quickly as possible. I also be reduced if the American Canal is ex­ billion into the savings and loan industry, and hope that we can use whatever expedited pro­ tended. The present canal does not allow op­ it will be done without costing the taxpayers 1 cedures are available to pass this much timal control over the portion of water belong- cent. needed legislation. June 30, 1988 EXTENSIONS OF REMARKS 16623 LOGAN AIRPORT FEE this special day with you and my colleagues. panies to skim off the profits of delivering mail STRUCTURE This is a part of the American experience that to the cities while forcing the Postal Service to we must take note of. serve the less profitable rural areas. The HON. AMO HOUGHTON Juneteenth Day is celebrated with a lot in House recently voted to remove the Postal OF NEW YORK mind: The pain and suffering of the road Service from the Federal budget, a status it toward the abolition of slavery was a long and IN THE HOUSE OF REPRESENTATIVES had from 1973 to 1985, which would stop the emotional one. In celebrating this day we can administration's back door attempt at privat­ Thursday, June 30, 1988 capture the joy and thanksgiving with which ization and remove the Postal Service from Mr. HOUGHTON. Mr. Speaker, unfortunate­ our forefathers celebrated their freedom. the annual budget battles waged by Congress ly a point of order was made against language and the administration. Last year's budget in the Department of Transportation appro­ ST. LOUIS POSTAL SERVICE battle resulted in cuts in post office retail priation bill concerning MASSPORT's PACE RATED NO. 1 IN QUALITY OF window hours, curtailed weekend mail sorting Program to boost landing fees at Logan Air­ SERVICE and suspension of some 700 capital-improve­ port for operators of small private planes. ment projects. These cutbacks resulted in a This was unfortunate because the MAS­ public outcry for better service. Hopefully, the SPORT proposal blatantly discriminates HON. WILLIAM (BILL) CLAY Senate will follow the House's lead on the off­ against smaller and lighter aircraft and could OF MISSOURI budget bill to permit the Postal Service to op­ have profound and far-reaching consequences IN THE HOUSE OF REPRESENTATIVES erate an efficient national mail system. The St. for air service throughout this country. Thursday, June 30, 1988 Louis Postal Service is making its contribution MASSPORT's plan departs from the tradi­ in providing quality service, we in Congress Mr. CLAY. Mr. Speaker, I want to share with tional method of determining airport landing should as well: fees and instead uses a per landing basis. my colleagues the article in the spring issue of DELIVERING QUALITY The increases, which are scheduled to go into the Postal Life magazine praising the St. Louis effect July 1, could hurt the economies of Division of the U.S. Postal Service for being They were at the bottom of everybody's No. 1 in delivering quality service. Postal em­ list. They ranked 56th out of 58 cities in the more than 40 communities in the northeast Phoenix-Hecht Report, a nationwide study and mid-Atlantic regions that depend either ployees in St. Louis are to be commended for their hard work in turning around the St. Louis by the banking industry of post offices and exclusively or primarily on commuter aviation . how fast mail gets from point to point. In for access to the major carriers at hub air­ Postal Division. studies conducted by the Chamber of Com­ ports. It was not long ago that St. Louis was merce and local newspapers, more than 60 Logan Airport has decided that it can ignore ranked 56th out of 58 cities in a nationwide percent of the people interviewed said that Secretary Burnley's request to delay imple­ study by the banking industry of post offices the Postal Service "hurt their business." menting a radical landing fee structure and on how fast mail gets from point to point. They were even at the bottom of their own, the U.S. District Court in Boston is being Back in 1984 and 1985 I was in constant con­ region's quality and service ratings. St. tact with the Postmaster General about St. Louis had nowhere to go but up. asked to rule that the PACE plan violates Fed­ And up it went. Last year, the St. Louis eral statutes that prohibit airports from unjustly Louis' mail delivery. While the St. Louis Postal Service was being unfairly maligned by certain Division was number one in the Central discriminating against air carriers. Region in terms of quality and service, win­ Mr. Speaker, Logan Airport is the benefici­ elements in the business community which ning the region's coveted "Eagle" quality ary of Federal funding as evidenced by the used its own unscientific methods to rate the award, an award given each fiscal year to money appropriated in this transportation bill. St. Louis postal system, nevertheless there the division in the Central Region having Logan Airport is introducing a discriminatory was ample concern expressed by my constitu­ the best overall quality /service perform­ fee structure that goes against Federal policy. ents about their mail delivery. The Postmaster ance. And what about that 56th place in the At the very least, Logan should give the Fed­ General responded quickly to my request for Phoenix-Hecht Report? St. Louis finished the year tied for first place. eral Government time to investigate this fee an investigation into the quality of postal serv­ structure. ices in St. Louis and steps were taken to im­ THE SEARCH FOR QUALITY prove mail service. One of the corrective The amazing turnaround of the St. Louis steps was the assignment of John Goodman Division illustrates that quality service can JUNETEENTH DAY as the executive assistant for customer rela­ be achieved. Throughout the nation, compa­ tions in St. Louis. Goodman, now St. Louis nies and organizations in both the private HON. CHARLES B. RANGEL Postmaster, has worked closely with the sector and in the government have imple­ postal employees to make St. Louis No. 1 in mented quality programs in order to make OF NEW YORK "Made in the U.S.A." once again synony­ IN THE HOUSE OF REPRESENTATIVES delivering quality service. John Goodman credits postal employees for the turnaround mous with quality. Thursday, June 30, 1988 American companies such as Ford, Chrys­ and the success they have achieved. Coop­ ler, Alcoa, and Xerox have made the same Mr. RANGEL. Mr. Speaker, I would like to eration between management and employees kind of comeback as St. Louis. Through em­ share the passing of a special occasion with proves that teamwork pays off. The ultimate phasizing quality, they have turned them­ my colleagues. It is called Juneteenth Day, winners are the postal customers who expect selves around and have begun to regain the the day which commemorates the freeing of and are receiving prompt, courteous and effi­ markets they had lost to foreign manufac­ the last black slaves in America. Juneteenth cient service. turers. Day is celebrated on June 19; and it repre­ The St. Louis Division of the Postal Service But quality defects still nag American sents a very important date in black history; received the "Eagle Award" for having the business-and the Postal Service, too. Consider these facts: and in America's movement toward a truly best overall quality/service performance in its One quarter of American workers don't democratic society. region. In addition, St. Louis soared from a produce anything; they simply fix other When Abraham Lincoln made the Emanci­ 56th place finish to first place nationwide in workers' mistakes, a recent article in Busi­ pation Proclamation on January 1, 1863, he how fast it moves mail. The St. Louis statistics ness Week reported. declared all slaves in the Confederate States speak for themselves: 6 percent reduction in IBM estimated last year that it would take free. These States were still resisting the mishandlings and 14 percent reduction in de­ $2.66 billion of additional revenue to gener­ Union, and hence ignored the proclamation. layed mail; 28 percent improvement in parcel ate the same amount of profit that could be On June 19, 1865, Gen. Gordon Granger post service performance, 16 percent in ex­ realized if each employee removed work landed near Galveston, TX, and informed the press mail service, and 5 percent in priority product defects. More than two-thirds of postal customer slaves of their freedom. The news quickly mail service. complaints originate in areas of misdelivery, spread through the remaining Confederacy, The U.S. Postal Service increasingly has delay, nonreceipt and change of address, all thus marking the beginning of the celebration come under attack by the Reagan administra­ areas having to do with making errors. of Juneteenth Day. tion which advocates turning over mail serv­ Reworked mail costs and Postal Service With the Fourth of July celebration only a ices to the private sector. This would destroy more than $300 million a year, and that's few days away, I believe it is fitting to share universal mail service by allowing private com- just the tip of the iceberg. 16624 EXTENSIONS OF REMARKS June 30, 1988 Quality control experts in the Postal Serv­ job they had done. We visited stations and they will sometimes overlap two letters, and ice estimate that just a 1 percent reduction branches and associate offices, telling the the back one will not get a bar code sprayed in machine letter mishandlings could save people how appreciative we were of their on it. When that happens, it just tags along more than $30 million a year. work. whereever the one overlapping it goes. That Clearly, this is a big money game. It costs "Managers sometimes spend a lot of time means a missort. the Postal Service millions to redo, rework, on about 5 percent of workers-those who "But the solution to the problem is or repair what wasn't done right the first do a lousy job-and let the 95 percent who simple. You just have to make sure the belts time. And not only does it cost money, it are doing a good job fend for themselves. in the machine are not worn or loose. The drives customers to competitors and endan­ We made a conscious effort to devote our trouble is, the machine runs along just fine gers the very survival of the Postal Service. time to that 95 percent. We made a decision when the belts are loose or worn, so you are Today, the organization faces tough compe­ to always have an upbeat attitude. We unaware that this is happening unless you tition from private industry in many areas would be honest about our situation, but we take the time to check. If lots of letters of its business, particularly Express Mail always tried to leave employees with a posi­ don't have bar codes, then you can bet the and Parcel Post, and the threat of dismem­ tive attitude. cause is worn belts. All a supervisor has to berment if those who espouse privatization "We had all the tools for success here in do to prevent this problem is to check for have their way. St. Louis. Our people are professionals, but uncoded missorts periodically. It's that The message is clear, John G. Mulligan, after being beaten on the head for three simple, but it takes a commitment to doing Senior Assistant Postmaster General for years with negative comments, they had un­ things right the first time." Operations Support, said, recently: "The derstandably developed some bad feelings. Postal Service has to deliver quality or get Now they have a lot to be proud of." THE RIGHT TOOLS beaten by its competitors." GOOD PLANNING Telling people to "do it right the first A WINNER Planning also played a bit part in St. time" becomes an empty slogan unless man­ Delivering quality became the number one Louis' comeback. "In 1985, we developed agement enables them to do just that. Em­ concern of the St. Louis Division employees plans for everything," says quality control ployees must be motiviated and provided when they set out to change their service manager Thomas Fields. "How to sort mail, with the tools to do the job right: A clear and their image. As impossible as it seemed how to label it, how to transport it. And as message of what is expected, good training, at the time, they decided to set their cap for long as we conform to that plan, which is supplies, praise, pleasant surroundings, and the "Eagle" award. the textbook definition of quality, every­ the information necessary to do their jobs­ And in 1987, they won it all. The victori­ thing turns out fine. It's when we don't that all of these are important to a quality oper­ ous division had the greatest overall im­ problems crop up." ation. provement in the quality control testing Part of the plan was to begin to emphasize St. Louis employees, justifiably proud of area with a 6 percent reduction in mishan­ quality in every phase of division operations their "Eagle" award and their improved dlings and a 14 percent reduction in delayed and involve everyone who worked there. status, believe that most people want to do a mail. Its composite First-Class Mail Origin­ "We started with quality talks to all mail good job and will do so if given a little help Destination Information System processing people in small groups of about from management. Window clerks Alva score of 92.0 was tied for best in the region 20," says Fields. "I went armed with statis­ Mosley and Levi Loggins think that getting and amounted to a 12 percent improvement tics about the operations. I talked about the right information to employees is cru­ over the fiscal year '86 score. missorts and mishandlings and what they cial to doing a good job. "For instance," says In addition, St. Louis achieved a 28 per­ cost us, and I asked for their help. The Mosley, who has been a window clerk for 18 cent improvement in Parcel Post service intent of those talks was to increase under­ years, "take the recent rate raise. We are performance, 16 percent in Express Mail standing and create awareness of the prob­ the ones people always ask questions of service, and a 5 percent improvement in Pri­ lems and gain commitment for change." during a rate raise, so when prices go up, we ority Mail service. "I remember one SLM [letter sorting ma­ need to be told what is happening as soon as How did this happen? How did St. Louis chine] group I talked with. I gave them the possible." transform itself from the bottom of the statistics for their unit and asked for their Loggins, a 28-year postal veteran agrees: heap to become No.1? help. They came up to me after the talk and "We also need to have enough new stamps UPBEAT ATTITUDE said, 'We're better than that, and we're too, particularly three-cent ones. During the General Manager /Postmaster John C. going to prove it,' and they did. rate increase three years ago, we ran out of Goodman, a man who is enthusiastic about "The interesting point is that those talks two-cent stamps and that made the custom­ his job and about the people with whom he worked. I think it's because we sent a clear ers mad. They think if we raise the rates, we works, says it was postal people who turned message that quality is all important-plus ought to keep the right stamps on hand. the division around. "When we started our it was a signal to employees that we cared The current rate change went a lot smooth­ quality campaign in 1986," he says, "we had about their work. er because we were informed and had the an attitude problem. So attitude is what we "We often don't give employees sufficient necessary supplies." concentrated our efforts on. credit. The average postal employee is Lula Brown, a mail handler in St. Louis "We immediately embarked on a program highly motivated and dedicated and cares for 17 years, believes a pat on the back moti­ to tell our people how necessary they are, about this business, and if you involve them vates her to do a good job. More than any­ how good they already were, and how much in solving problems, they will do their thing, "It doesn't cost anything to say better they could be. Things were so bad share." 'thank you, you did a good job.' " here, and the press was so down on us that Supervisor of mails Ernestine Hendricks She also sees training as crucial to the we were willing to try anything to boost agrees. She thinks that part of the secret to ability to do a good job. "When I first came morale. We appealed to everyone's sense of St. Louis' success is tapping employee's into the Postal Service, we didn't have on­ pride and gave them a dose of good, old­ wealth of skills and knowledge. "I try to the-job-training like we do now. Now we fashioned praise. listen to my people," she says. "No one have instructors who show you how to do it Goodman says mailings were sent to em­ knows the job better than they do. If you've the right way. One woman told me she had ployees' homes telling them how important got a problem, ask for their help. As a su­ been putting mail in this one section in the the team was and how important they were pervisor, I'm not afraid to admit my employ­ wrong place for months, because no one had to the team. Articles were placed in the divi­ ees might know more than I do." ever shown her the right way. You have to sion newsletter praising postal people for BEAUTIFUL MACHINES know the right way from the start." their work and encouraging them to do even Fields says the division also has made an Brown's fellow mail handler for 17 years, better. New training programs were estab­ intense effort to introduce quality into its William Caldwell agrees that training is im­ lished to help employees know their jobs automation program. "Optical character portant. "In earlier years there was very better. "We appealed to their competitive readers and bar code sorters are beautiful little training. A new person would come in, spirit," says Goodman. machines," he says with genuine pride, "but and they would say 'go over there,' and that "Our plan was very basic. We wanted to they tend to be fragile. By that I mean was about it for training. It was kind of sink give our employees the information, the something can go wrong very quickly with­ or swim." training and the tools they needed to do out you knowing it. It's the kind of oper­ Caldwell, now an acting 204 B supervisor their jobs and then praise them when they ation that you have to give attention to on three days a week, says training has im­ did them right. Very simple, very basic. But an ongoing basis, day-in and day-out. proved 100 percent over what it used to be. it works. "The beauty is that most of the problems "I recently was assigned to a new position "As soon as any office showed progress," in automation can be traced to a very small and a supervisor spent the whole day with continues Goodman, "we would immediately number of underlying causes. For example, me. When the day was done, I knew every make up signs thanking everyone for the one of the problems with the sorters is that job on the floor." June 30, 1988 EXTENSIONS OF REMARKS 16625 Anita Brown, a distribution clerk in St. of odds: "If you think training's expensive, get to her house until 1:30. Now I can't fail Louis for 20 years, says that supervisors try ignorance." a customer like that." sometimes find it difficult to set aside the TEAM WORK When a customer is waiting for a letter or time they need to train employees or check Letter carrier Lenson Staples, a big, soft­ a check that's due on a certain day, and their work because they've got so much to spoken man who has been delivering the when that day comes, nothing about this do. "But supervisors should always be given mail for 29 years, exemplifies the kind of job pleases Staples more than being able to the time to instruct and show," she says. employee who helped boost St. Louis to the pull that letter out of his bag and give it to "That is the biggest help." top. He realizes how important he and the the customer-on time. "And to be able to A sign is prominently displayed in the St. mail he carries are to his customers. "The provide that kind of quality service," he Louis Postal Employee Development Center other day," he explains, "an elderly woman says, "requires the cooperation and team that goes a long way to explain how on my route told me that she had come work of a whole lot of people in the Postal the division made itself No. 1 against a lot down to wait for me at 9:30, and I don't even Service."