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
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
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