<<

Mcrrch 6, 1974 EXTENSIONS OF REMARKS 5591 told, the electric generating system can sup- mainder of this Congress it be in order p.m. the Senate adjour ply up to 54,000 kllowatts hourly to the na- ned until tomor- to refer treaties and nominations on the row, Thursday, March 7, 1974, at 10 a.m. tional power grid, enough power to heat 3,000 days when they are received from the homes. President even when the Senate has no The turbines were especially designed to NOMINATIONS service the needs of the companion water executive session that day. distillation plant where ñve multi-stage evap- The PRESIDING OFFICER. Without Executive nominations received by t he oralors in the system convert salt water into objection, it is so ordered. Senate March 6, 1974: distilled water for industrial usage. Fach Mr. ROBERT C. BYRD. Mr. President, IN THE AIR FoRCE evaporator can turn 50 tons of steam re- I ask unanimous consent that it be in ceived every hour into 450 tons of distílled The following officers for appointment in order for the proper members of the staff the Reserve of the Air Force to the grade water. The total daily output is almost 13 indicated, unde million gallons, enough to serve the daily to receive bills, resolutions, and amend- r the provisions of chapters domestic needs of a municipality of more ments at the desk when signed by the re- 35, 831, and 837, title 10, Code: than 100,000 people. spective Senators at any time during the To be major general The 280-employee plant is situated on the day when no question is raised thereon, Brig. Gen. Willard W. Millikan, xxx-x... - ship channel between Rotterdam and the and that in accordance with the rules xxx... F G, Air National Guard. North Sea. Special unloading facilities with they be appropriately referred, or Brig. Gen. Valentine A. Siefermann, grab cranes were built along the channel amendments be ordered to be printed xx... F G, Alr National Guard. oth- and to receive refuse brought by water from lie on the table. To be brigadier generat er areas in the Rijnmond district. Mr. Col. Doyle C. Beers, xxx-xx-xxxx Detectors tn the district mounted on tall President, I withdraw that re- FG, Alr masts constantly monitor atmospheric con- quest. National Guard. dltlons such as wind direction and velocity, Mr. President, I ask unanimous con- Col. Robert G. Etter, xxx-xx-xxxx F G, Air National Guard. temperature, pollution index, humidity, sent that it be in order at any time dur- Col. atmospheric inversions and other relevant Eugene G. Gallant, xxx-xx-xxxx F G, ing the session of the Senate and for the Air National Guard. data. This information is relayed to an air- remainder of this Congress for members pollution registration center, which analyzes Col. Joseph H. Johnson, xxx-xx-xxxx F G, of the staff at the desk to receive Air Natio the data and reports periodically to the oper- remarks nal Guard. from Col. Lloyd ators of the waste treatment center. In this Senators for insertion in the W. Lamb, xxx-xx-xxxx F G, Air manner periodic adjustments can be made to RECORD when signed by Senators and National Guard. keep air-pollution at a minimum. when presented at the desk by Senators Col. Robert B. Maguire, xxx-xx-xxxx F G, Air National Guard. A long-term contract with the Netherlands only. Col. Donald E. University of Technology will provide contin- The Morris, xxx-xx-xxxx 0 F G, Air PRESIDING OFFICER (Mr. Natioanl Guard. uing research in the ability to extract even HART). Without objection, it is so or- greater amounts of hydrochloric and sulfuric dered. Col. Stanley F. H. Newman, xxx-xx-xxxx FG, acids from the chemical refuse. Judging from Air National Guard. Col. Richard F. Peter the direction of the efforts at the Botlek cheff, xxx-xx-xxxx F G, plant towards maximum resource recovery, Air National Guard. PROGRAM Col. Darr new terminology will have to be invented. ol G. Schroeder, xxx-xx-xxxx F G, Mr. ROBERT C. BYRD. Mr. President, Air National Guard. If the Rijnmond center achieves its goal, al- Col. the Senate will convene at the hour of Harding R. Zumwalt, xxx-xx-xx... F G, most nothing in the Netherlands will "go to Air waste." 10 a.m. tomorrow. National Guard. After the two leaders or their desig- IN THE MARINE CORPS QUORUM CALL nees have been recognized under the The following-named omcers of the Marine standing order, the Senate will resume Corps for permanent appointment to the Mr. ROBERT C. BYRD. Mr. President, the consideration of the unñnished busi- grade of major general: I suggest the absence of a quorum. ness, S. 2747, to amend the Fair Labor Kenneth J . H oughton James R. Jones The PRESIDING OFFICER. The clerk Standards Act of 1938. Frank C. Lang Charles D. Mize will call the roll. Robert D. Bohn Norman W. Gourley There is a time. agreement on that bill Edward J. Miller The second assistant legislative clerk and on amendments thereto. The following-named ofñcers of the proceeded to call the roll. Yea-and-nay votes will occur. Ma- Mr. ROBERT C. BYRD. Mr. President, rine Corps for permanent appointment to It is hoped and believed that ñnal ac- the grade of brigadier general: I ask unanimous consent that the order tion may occur on that bill tomorrow. for the quorum call be rescinded. Albert C. Pommerenk William L. Smith Herbert L. Wilkerson Arthur J. Poillon The PRESIDING OFFICER. Without Manning T. Jannell Kenneth McL,ennan objection, it is so ordered. ADJOURNMENT TO 10 A.M. Ernest R. Reid, Jr. Joseph Koler, Jr. Clarence H. Schmid George R. B rier - Mr. ROBERT C. BYRD. Mr. President, if there be no further business to come Edward A. Wllcox ORDER FOR CERTAIN ACTION TO BE The before the Senate, I move, in accordance following-named ofñcers of the Marine TAKEN DURING THE: REMAINDER Corps Reserve for permanent appointment OF THE SESSION with the previous order, that the Sen- to the grade of brigadle ate stand in adjournment until 10 a.m. r general: Mr. ROBERT C. BYRD. Mr. President, Robert E. Friedrich tomorrow. Paul E. Godfrey I ask unanimous consent that for the re- The motion was agreed to; and at 6: 07 Allan T. Wood · --I

EXTENSIONS OF REMARKS BOSTON, MY HOMETOW N fairs of Allegheny Airlines and herself a "Boston runs to brains as well as to beans native of the Commonwealth. and brown bread," said one such traveler I insert this ñne example of contem- years a go. How true it js ! HON. THOMAS P. O'NEILL, JR. The city has porary writing in RECORD, as follows: within its borders and close OP MASSACHUSETTS by one of the ñnest educational BosTON EXAMINES ITS IMAGE AND FINDS IT complexes jn the world. Boston U niversity IN THE HOUSE OF REPRESENTATIVES DELIGHTFUL , Northeastern Universlty, Simmons College, and just across Tuesdav, March 5, 1974 (By Beverlee Ahlln) the river, the t owers o f p restigious Massachu- The City Mr. O'NEILL. Mr. Speaker, as the city of Boston-"The Athens of setts Institute of Te chnology, Harvard Col- America"--"The Hub"-"A State of Mind" of Boston, the Commonwealth of Mas- . lege's "Yard" (never "campus") and the Known as each and all of these since colo- leafy environs of Tufts University, to men- sachusetts and, indeed, the entire Nation nial times, Boston is today a city of infinite tion but a few. approach our celebration of the Ameri- variety. Increasingly, it has become an at- These great institutions of learning have can Revolution Bicentennial, I oírer with traction and a haven ' for every visitor-the contributed down the years not alone to tens pleasure a sparkling article on venerable- scholar. the businessman, the artist, the of thousands of inquiring young minds but yet-modern Boston which appeared re- tourist and the history bum And as the well- to the solution of the problems of modern cently in the Executive magazine. planned "Boston 200", its Bicentennial cele- business and government and to the daily Its authoress is Beverlee Ahlin, assist- bration, approaches, it will become more fas- improvement of America's way of life. ant to the vice president for public af- clnating than ever, not alone for Americans But this "Athens of America" includes as but for visitors from every land. well not alone these groves of Academe but a CXX-352-Part 4 5592 EXTENSIONS OF REMARKS March 6, 1974

wealth of other cultural offerings almost be­ facilities, campaigns for an ever cleaner Bos­ And in innumerable Boston restaurants, yond count. ton; 4. Visitor Services in their every aspect Brlllat-Savarln, Escoffier and Diamond Jim No visitor to Boston can a..trord to miss the and detail; 5. Economic Development, proof Brady would find themselves happily at home. city's Symphony Hall and its magnificent positive of the appeal and benefits of living, Lunching or dining out in Boston is not an orchestra, or its superb Museum of Fine Arts. working and doing business in this old-new occasion-it is a memorable event, as con­ And it would be unforgivable not to visit the city by the sea. noisseur and commoner have testified Musuem of Science, the Hayden Planetarium, The entertainment highlight of "Boston through the years. and-it's breath-taking !-the Gardner Mu­ 200" may well prove to be the Tea Party Locke-Ober's, the Parker House, Jimmy's seum, once the impressive home of Isabella. Weekend! This will include, on December Ha.rborside, Anthony's Pier 4, The Union Oy­ Stewart ("Mrs. Jack") Gardner. 15-16, 1975, an afternoon tea and an 18th ster HO'USe, Jake Wlrth's, the Rusty scup­ "Mrs. Jack", by the way, a. beautiful crea­ century concert at the Old South Meeting per, the Half-Shell, Stella'&-they run the de­ ture, was also a. woman of fearless inde­ House (where tumultuous gatherings we.re lightful, delectable gamut of menus but with pendence, as staid Boston realized the day held just preceding the original Boston Tea ea.ch and all placing the accent on fine food she appeared on Bea.con Street with a leop­ Party), a Tea Party Ball, with entertainment and friendly service. ard on a leash I of the 18th century, at the Boston Center for A cynical friend of the writer once re­ Happily, Boston is not a city that neglects the Arts, and then the re-enactment of the marked, "The way to a ma.n's heart is not its children's cultural growth, a fa.ct clearly first "Tea Party" by the Charlestown Militia through his stoma.ch but through his pride." evident in its Children's Zoo, Children's Art and the Massachusetts National Guard. I wonder, especially when I consider the gus­ Centre, Children's Museum and, in a travel­ "But this time", says Harron Ellenson, co­ tatory persuasions of Boston. ling "sta.gemobile", its Children's Theatre. ordinator of the Tea Party Weekend, "in­ But as life, in the truism, isn't all cakes This reference to children recalls the little stead of dumping tea and adding to the pol­ and ale, so, too, the modern city, whatever Mormon girl in Salt Lake City who, when lution problems of Boston Harbor, we'll sig­ its assets and attractions, faces sobering asked by a visiting Boston lady if she knew nal our cooperation with local ecology groups problems. Boston is no exception. where Boston was, replied quickly, "Oh yes, to begin a clean up of Boston's waterways!" Mayor White and his predecessor, John we have a missionary there!" Access to Boston and to "Boston 200" will, Collins (now a member of the faculty at "Something old, something new-" aptly of course, be available by land transportation M.I.T.) both identify Boston's biggest prob­ identifies Boston today. At the very top of in varied forms but nowhere so easily and lems as "the on-going renewal of the city Bea.con Hill stands the dignified State House, swiftly as by air to Boston's Logan Interna­ in order to make it a cleaner, healthier, safer the creation of the talented Charles Bulfinch, tional Airport. place to live." while a.cross the Common and the Garden Described by former Mayor John Collins as For a city as old as Boston, urban re­ the swan boats continue to glide serenely on "the most important asset Boston has", newal has been a monumental task and wm a placid pond as they have for decades pa.st. Logan International this year celebrates its be a continuing one, but the spirit and the In the nearby Ba.ck Bay there stlll remain 50th Anniversary, a tribute to those New values that made it great a.re still in abun­ streets that evoke the era of the gaslight Englanders who, half a century ago, saw fur­ dant supply. and the brougham and lovely Louisburg ther and saw more clearly than most of the Crime and poverty, unequal rights, im­ Square remains an architectural and envi­ rest of us. proved educational opportunities and facili­ ronmental delight to every eye. The growing size of Logan, its unrivalled ties, more, and more meaningful, employ­ Nearer the harbor, the Old State House facmties, its 10-minute distance from the ment--these are the modern crises that affiict still stands somberly overlooking the scene heart of the city-all these combine to make this ancient community-as they do every of the Boston Massa.ere. Faneull ("Fa.n'l") it, without question, an asset and an attrac­ other in the land. But, as one old Yankee Hall, once the site of impassioned patriots' tion of incalculable value. put it, "We'll lick 'em, as our fathers did speeches, does double duty as an historic Domestic flights alone, in and out of Logan, theirs and we have a great advantage-they relic and as the center of a. bustling market now exceed 500 per day and the dramatic stood so tall before us." area. addition of Allegheny Airlines' non-stop serv­ That determination is everywhere evident-­ Old Boston, "The Cradle of Liberty", is ice to Washington and Philadelphia has been in Boston's energetic and invigorating busi­ everywhere evident but the New Boston is hailed as another new dimension of Logan's ness climate, in the optimism of its people, overwhelming! great passenger and cargo service. in its wonderful old-and-new architecture, in By reason of the imagination and energy "And this is good old Boston, its educational institutions, in its tmaglna­ of its lea.ding citizens and with the whole­ The home of the bean and the cod, tive public leadership, in its favored posi­ hearted support of every resident, the city tion in national and world geography, in its, has quite literally lifted itself up by its boot­ Where the Lowells talk only to Ca.bots well, in its just being Boston, the Boston of straps and, in selected areas, has undergone And the Cabots talk only to God."• yesterday and today and very certainly, of a magnificent restoration and renewal. No such frosty exclusiveness characterizes tomorrow. Central to this civic triumph is Boston's the Boston of today and travellers by air, rail When next you visit Boston, go to Bunker spectacular, new City Hall, its architectural or highway will find her~ a warm welcome Hlll ("Don't fl.re untll you see the whites of style reminiscent of ancient Aztec creations, and congenial people of every ethnic mix and their eyes!") and be inspired by the scene yet its design as modern as tomorrow. measure. below and around you. The narrow peninsula, Recipient of several international a.wards The Boston Brahmin, perhaps more than the hilly terrain, the spacious and busy har­ as "superlative", "outstanding" and "epo­ the Indian, could be called "The Vanishing bor-think then of how it was when first chal,'' this splendid public building brings a American" but his imprint remains on the the Pilgrims came and of what has been over­ warm glow of pride to every Bostonian's city, to which his children continue to con­ come and achieved since. heart. tribute much of enduring value. Our days are no longer than were theirs, Surrounding the spacious "piazza" before To join him have come, during the past our nights are no darker, and we do have the City Hall stands a circle of equally mod­ century, the Irish, the Italians, the Greeks, one cherished advantage-that they "stood ern government buildings of clean design the Polish, the Scandinavians, the Chinese, so tall before us". and attractive facade, ea.ch of them a. symbol the Armenians and the latter-day English This, then, is the message of this "Athens of the Boston of today. (for Boston ls the most English of all our of America", of "The Hub", of this "state of Farther on, over Beacon Hill and toward cities). mind", of this pulsing, representative Amer­ Back Bay, there tower the Prudential Center These varied strains of blood and intellect, ican city, this Boston. and the John Hancock Building, evidence of of skill and talent have combined to make the determination of Boston's business com­ Boston a truly cosmopolitan and genuinely munity to aspire to the best and most useful, hospitable town. just as did their thrifty forebears whose Nowhere is that hospitality more evident RUSSIAN MILITARY GAINS labors created "The Hub". than in its hotels and restaurants. An hotel Yet nothing, perhaps, so melds the antique of the grande dame vintage, such as the traditions of Boston and its life today as the Copley Plaza, is joined by the up-to-the­ HON. STROM THURMOND Boston 200 Master Plan, its projected cele­ minute Sheraton-Boston in providing cheer­ OF SOUTH CAROLINA bration of the Bicentennial, for which, as ful, spacious welcome. The dignified Rltz­ Mayor Kevin White puts it, "The City is IN THE SENATE OF THE UNITED STATES Carlton looks obliquely across a corner of the Wednesday, March 6, 1974 the exhibit." Garden to the dependable Statler-Hilton and The official "Boston 200" program will be­ gin on April 18, 1975, and last through De­ elsewhere in the city there is al ways "room Mr. THURMOND. Mr. President, fur­ cember, 1976. Meanwhile, the city's planning in the inn". ther evidence of Soviet military gains emphasis is upon five special areas: vis-a-vis the United States are reported 1. Citygame-dramatizlng Boston's wealth *To which they replied from Connecticut: in the February 22, 1974, column of Er­ of historical, cultural, educational, scien­ "Here's to the town of New Haven, nest Cuneo. tific and civic institutions; 2. Festival Ameri­ The home of the Truth and the Light, This column appears in the San Diego can, which will commemorate historic events Where God talks to Jones of the past and the richness of cultural life In the very same tones Union newspaper and raises questions today; 3. Physical and Environmental Im­ He uses with Hadley and Dwight."•• which each American citizen should pon­ provements, transportation and recreational ••Former presidents of Yale. der. March 6, 1974 EXTENSIONS OF REMARKS 5593 Mr. President, I ask unanimous con­ Indeed, it was the Suez Canal upon which dedication to conservation made her ideal sent that this article be printed in the swung the Star of India which was Queen to serve in this post. Victoria's lifeline. Whoever would have Extension of Remarks. thought, only six years a.go that the Suez I gained particular respect for JULIA There being no objection, the article lifeline-and the Star of India would be re­ HANSEN when she was named to serve on was ordered to be printed in the RECORD, designed into the imperial gems of the the Subcommittee on Military Construc­ as follows: Kremlin? tion which I chair. Despite an incredibly RUSSL\N MILITARY GAINS ARE APPALLING And, of all things, by that great team of busy and demanding schedule, Mrs. HAN­ (By Ernest Cuneo) Harvard professors: Galbraith, Moynihan and SEN left an indelible and very creditable Kissinger. Russia has already passed the United States present and working on the side of sound And now, Dr. Kissinger presses on for national defense and adequate facilities as a military power and, on present projec­ detente. tions, will outclass the United States by the By detente, Russia's military might will be for living, working, and training, for mili­ early 1980s. multiplied by American goods on American tary personnel. In all her work her po­ Apparently stampeded by a senseless mass credit. sition always has been based on facts. hysteria against a mythical "military-indus­ At the rate American policy is going, She never tired of digging deep to get the trial complex," the Congress has recklessly Brezhnev's promise to the Russian people true picture of what was going on and she cut and slashed the mllitary budget to the will be validated. He has told them that de­ is a standout to other Members who point where the U.S. armed forces in Europe tente is only a ploy in the objective of Com­ have depended upon her for help and are at the mercy of the Soviet 'forces in any munist world domination, and by 1984, West­ showdown. ern resistance will be all but impossible. guidance and inspiration. The probable reason that there is no show­ The idea of Suez under Russian domina­ Mrs. HANSEN chose a career of public down is that the Russian advantage grows tion would have been laughed at 10 years service early in life. There is no doubt by the day as American and North Atlantic ago; but it's here. she has earned time to rest and to enjoy Treaty Organization strength dwindles al­ Who knows? Today, Suez, tomorrow, the her family and friends. But I doubt she most literally by the hour. . will rest. Instead, I think she will seek Russia has a military-industrial complex In the meantime, Gen. Andrew J. G-Ood­ out causes which need a champion and so huge that the country itself could not sus­ paster, supreme allied commander of Europe, people who neea help and advice. There tain it without forced labor and captive a first class military officer and a quiet gen­ satellite contributions. tleman in the best traditions of the service, are many who will continue to seek her The Soviet army has just been increased has strongly recommended that the United help and counsel as they have for so numerically by lengthening the draft term States arm its forces with small atomic many years. from two to three years, the equivalent of weapons. Those of us who have had the honor raising the combat level by calling up 50 Small atomic weapons are about the only to serve with her and to work with her per cent of the reserves. answer to the vast conventional military in committee and for our Nation know of In the meantime, the U.S. Army morale superiority which the Soviet army now al­ her great contributions to America. I am has gone to pot. Abused, vilified and deni­ ready possesses in Europe. grated by powerful senators, many officers of equally confident those she has served so the armed services want to get out. The well from her ntaive State also know in vaunted volunteer plan is a sickening failure. United detail and appreciate the good work of Large numbers of the recruit-volunteers Type States U.S.S.R. this remarkable woman. aren't fit for garrison, much less battle duty. She is in every sense, a credit to her ICBM __------______• __ 1, 054 1,600 In its quiet way, Russia has capitalized ICBM warheads ______State and Nation. Without her, both its growing advantages brilliantly. It grabbed l, 794 1, 700 Nuclear submarine missile tubes __ _ 656 700 would be poorer. Because of her, both are off Czechoslovakia ruthlessly in 1968. So that Warheads on submarine missiles ___ 4,000 700 richer and safer. there would be no mistake of its oontempt Long range bombers ______505 145 for the U.S. "protection," the Kremlin then Tactical aircraft _____ ------__ 5,000 4 500 Troops ______·---- ______2, 200,000 3, 40 '000 announced "the Brezhnev Doctrine," the Attack carriers ______------___ _ 15 0 right to enter anywhere to protect socialist Support carriers ______------7 3 doctrine. Cruisers and destroyers ______160 219 RETffiEMENT OF CONGRESSWOMAN The answer in the U.S. Senate for this JULIA BUTLER HANSEN challenge was a backdown demand for the withdrawal of half of the U.S. troops in Europe. HON. JOSEPH P. ADDABBO Again, following the Israeli victory in the JULIA BUTLER HANSEN OF NEW YORK desert war of 1967, the Russians sent a fleet into the Mediterranean. It openly "brushed" IN THE HOUSE OF REPRESENTATIVES the famed U.S. 6th fleet. Today, there are Tuesday, March 5, 1974 about 80 Russian warships to 60 U.S. Naval HON. ROBERT L. F. SIKES vessels in the eastern Mediterranean. OF FLORIDA Mr. ADDABBO. Mr. Speaker, it is with It is debatable, but naval opinion is al­ a sad heart that I join my colleagues in IN THE HOUSE OF REPRESENTATIVES paying tribute to the distinguished Mem­ most evenly split on the possibilities of the Tuesday, March 5, 1974 U.S. 6th Fleet remaining in the Mediterran­ ber from Washington State

• i l March 6, 1974 EXTENSIONS OF REMARKS 5599 Commission and any other appropriate offi­ choice over who treats you as long as the We feel, very sincerely, that extremism can cials and agencies. government was sponsoring the program. breed extremism. If we move to one of the "Be it further resolved, that the Citizens Who is going to get to pay for these gov­ economic extremes, or if we accept one o! the Energy Committee take whatever other steps ernmentally enforced programs? You can bet extreme solutions possible in the oil short­ it deems proper to effectuate this resolution." the employer is going to get to pay more than age ... we might be only too willing and his fair share. This will be in addition to an only too frustrated ... to accept political already oppressive Social Security tax that extreme ... and with it, the loss of democ­ will soon rival your income tax in magnitude racy and personal liberty. and will force more employers into bank­ IS NO ONE LEFT TO PLAY TAPS? ruptcy. This is the same Social Security system, incidentally, that started quite innocently HON. KEITH G. SEBELIUS in the 30's and has since grown into a Go­ BIG LABOR FINANCING CERTAIN OF KANSAS liath. In either event, as the government in­ POLITICAL CANDIDATES tervenes more completely in our lives, the IN THE HOUSE OF REPRESENTATIVES free enterprise system's coffin lid will be more Wednesday, March 6, 1974 tightly closed. HON. EDWIN D. ESHLEMAN There are those in my profession and OF PENNSYLVANIA Mr. SEBELIUS. Mr. Speaker, I have everyone else's profession, business or trade, been worried for some time that in try­ who will rush to the trough to get their IN THE HOUSE OF REPRESENTATIVES ing to find answers to our country's share of the government pie not realizing Wednesday, March 6, 1974 many and varied problems, we have been that they are selling their souls to the glut­ traveling down an ill-advised road to tonous gobbling government store. Mr. ESHLEMAN. Mr. Speaker, an arti­ more and more big Government. As a Perhaps we can all celebrate our country's cle appeared recently in U.S. News & bi-centennial by asking our corner commis­ World Report concerning the major result the American people have been sar if we can go to the store to receive our paying more, enjoying it less, and we are financial effort by big labor this year to tube of tooth paste. Now we aren't going to bankroll certain political candidates. still confronted with the same basic call our brand of socialism communism; problems. we're too refined for that. But in it's ultimate At a time when we are all faced with I submit to my colleagues in the Con­ evolutionary process will it be any different? questions about the harmful effects of gress that big Government, along with Is there no one left to play taps? big money in congressional races, I be­ punitive and arbitrary Government regu­ EUGENE C. JARUS, D.D.S. lieve this article should be interesting for lations, does not answer problems, it all my colleagues: creates them. In this regard, Dr. Eugene UNIONS' "BIGGEST DRIVE EVER" FOR OUSTING C. Jarus of Ellsworth, Kans., recently REPUBLICANS DANGERS OF EXTREMISM BAL HARBOUR, FLA.-Organized labor's 1974 wrote a letter to the editor of the Salina political drive-aimed at forcing President Journal that I think merits the attention Nixon out of office and getting more Demo­ of my colleagues. I submit this article HON. EDWARD J. DERWINSKI crats elected to Congress next autumn-is because it contains food for thought to OF ll.LINOIS shaping up as one of the biggest and most those who claim "government" is a ambitious ever attempted by unions. source of money, jobs, goods, services, IN THE HOUSE OF REPRESENTATIVES That is the consensus among top union and just recently even fuel and energy: Wednesday, March 6, 1974 officials here for the annual meeting of the AFL-CIO executive council February 18-28. [From the Salina (Kans.) Journal) Mr. DERWINSKI. Mr. Speaker, an The political strategy, already in motion, Is No ONE LEFT To PLAY TAPs? editorial by Chicago's WGN Radio and will move along side by side with labor's Sm: It is unfortunate that there are no TV, carried on their February 25 broad­ efforts to win extra-large pay boosts this year. senators or representatives left in the United cast, is a very practical 011tlook on the The executive council on February 21 dec­ States Congress to play taps for the free en­ temptation to overreact to the critical lared that workers are entitled to wage in­ terprise system. It is not my purpose to problems of the day. creases in 1974 that would match the rise in blame the Arabs, Israelis, government or the The editorial speaks for itself. I feel living costs and gains in productivity. Coun­ oil industry for the so-called energy crisis, cil economic experts say this adds up to pay that it is a very effective commentary on boosts of about 12 per cent. but it is readily apparent from the line of the present movement that is felt in the questioning of last week's Senate investi­ Congress. WAYS AND MEANS gating committee that the oil industry will Sparking the political maneuvering are the be hung with the blame. The editorial follows : national staffs of the big labor federation Before this drama comes to its final con­ DANGERS OF ExTREMISM and separate committees of many unions clusion it will be amazing if the oil industry There is the temptation, when facing an both inside and outside the AFI.r-CIO. does not end up with such stringent federal extremely critical situation, to propose an Explanations of how these groups wlll cam­ controls as to render them ineffective in the equally radical solution. There is an often­ paign were given by labor insiders in talks future; thus another step will be taken by easy acceptance of radical response when with members of the staff of "U.S. News & the government in its long march to end frustration appears to be unending. Extreme World Report." our free enterprise system. solutions can, however, make matters worse Cash contributions from union members, There are the Nader types who claim this rather than better. to be passed along to favored candidates, will is progress, but it is in reality a march to This country is faced with two economic exceed those for previous years, officials pre­ slavery. My ancestors came to this country extremes, pressure from the opposite ends dict, on the basis of early collections. lured by the benefits of freedom and reward of inflation and recession, operating at the Campaign literature will :flow ·out in huge offered under the free enterprise system. same time. On the energy front, the solu­ quantities. The flood has started, with dis­ This is the system which has made our coun­ tions offered are as extreme, at their out­ tribution of 4 million leaflets calling for the try the greatest on earth. We never receive side, as are the differences between reces­ resignation or impeachment of Mr. Nixon. anything for nothing and we must pay a sion and infiation. At one end of the scale, Although use of union dues to back par­ price for every benefit we gain. When the one can imagine socialization or national­ ticular candidates is illegal, money can be unproductive government is involved t:Qis ization of the petroleum industry, on whole, spent for moves such as leaflet distribution price we pay is part of our freedom because from the well to your car's gas tank, or at that are described as "educational efforts." we as slaves must support our government any place along the way. At the other ex­ Manpower supplied by unions to aid can­ master as well as ourselves. treme, there is full, uncontrolled laissez­ didates, leaders say, will be far greater than My profession and the medical profession faire for the petroleum industry, letting the ever before. In a new move, thousands of will soon be lured into the governmental oil companies do whatever they claim they rank-and-file members are being trained in orbit by such plans as the experimental must to overcome the present shortages of political techniques to augment the regular Health Maintenance Organization. We won't gasoline, heating oil and other products. union staffers. call the plan socialized medicine because of Neither extreme, of cour~e. offers any assur­ The vote-getting drive this time will be the sad experience with these plans in other ance of a real solution. aimed beyond the union membership to the countries. The word is too unpalatable here. Just as we must guard against accepting general public. But it will evolve into the same end product. extreme solutions, we must be wary of ex­ The AFL-CIO has four major goals for this According to the January 21st issue of U.S. tremism in our political life. Should our year's political efforts. News & World Report the biggest objection present economic and energy discomforts be 1. Impeach or force the resignation of Mr. to these pilot plans is that this treatment is still further aggravated over the next two Nixon. too impersonal, that you may see a different years, this nation might be susceptible to 2. Elect enough friendly candidates to doctor every time you use the organization's a presidential candidate or party platform Congress to guarantee that any presidential services. Now the bureaucrats didn't think which smacks of deliverance at the hands veto of legislation can be overridden by the you'd mind surrendering the freedom of of a shining knight on a white horse. required two-thirds vote. CXX--353-Part 4 5600 EXTENSIONS OF REMARKS March 6, 1974 3. End all wage and price controls by April than printing endorsement lists to give to NEW POSTAL SERVICE BEGINNING 30, when the present Economic Stabilization our own peopie." TO SHOW IMPROVEMENT Act expires. The strategy of the Communications ~. Push through the present Congress Workers of America, for example, is taking various prola.bor measures that were blocked that line. CWA, which represents telephone­ HON. DAVID N. HENDERSON last year. industry employes in the majority of States, OF NORTH CAROLINA To accomplish that program, George will conduct its most ambitious political­ Meany, AFL-CIO president, and the council action drive this year, officials said. It wlll be IN THE HOUSE OF REPRESENTATIVES a.re reorganizing their national and regional directed at voters generally. Wednesday, March 6, 1974 staffs. City and State AFL-CIO councils are About 50 congressional districts are to be to get more assistance from Washington cwA targets. Aside from some $500,000 it Mr. HENDERSON. Mr. Speaker, as headquarters on political matters. hopes to raise from its members for contri­ Americans know, over the weekend pos­ SIGNS OF SUCCESS butions to candidates, this union will supply tal rates went up again. While nobody, Union leaders talk of "the start of a candidates with telephone "banks" manned myself included, enjoys paying more to Democratic landslide" when they discuss re­ by its trained telephone workers. mail a letter, I think that it is important cent special congressional elections in Penn­ OTHER RECRUITERS that more of the Postal Service be looked sylvania and Michigan, where the Democratic Al~m going in heavily for rank-and-file at-both in light of our overall economy nominees captured normally Republican political volunteers is the State. County and and the mandate which the Congress seats. Municipal Employes Union. That organiza­ gave the Postal Service less than 3 years Several political directors of AFL-CIO affil­ tion is training about 1,000 polltical experts ago in the Postal Reorganization Act. iates said these victories indicate that labor in more than 20 States for the upcoming Over the past few decades, all prices must expand its 1974 efforts in congressional campaigns, according to William B. Welsh, races. Chief "target" districts have been those who heads the union's political and legisla­ have taken off. In 1934, for example, where the incumbent Congressman won with tive activities. center cut pork chops were selling for 55 per cent of the vote or less in 1972. These Jerry Wurf, president of this public­ 17 cents a ponnd in Omaha; today $1.99 are considered the "marginal" districts, easi­ employe union, reported that the early is not out of the ordinary. Meat and every est to capture. response from members indicates that a big­ other commodity has gone up as well as "We're raising our sights," said an official of scale political campaign will be waged this labor costs-which incidentally account one union. "There's obviously a better chance year by labor. for about 85 percent of the Postal Serv­ now to knock off many more Republicans. "People are scared," Mr. Wurf said. "They ice's operating costs. I believe that, while The early special elections-especially the one feel strongly that this nation is in very in Michigan-proved that." serious trouble domestically and interna- nobody wan ts to pay any more than they Robert Gibson, secretary-treasurer of the tionally." · have to--for a stamp or anything else­ Illinois AFL-CIO, put it this way: Members of the Machinists Union also are people do understand that rising prices "A couple of weeks ago, I'd have said the showing great interest in the 1974 campaign, have been a fact of life in recent times. Democrats stood to gain only one seat in my with heavy early contributions. SO reported Is it any wonder then that postal costs State. Now, after the Michigan election, William J. Holayter, director of the a?d postal rates, like other things, have every Republican Congressman is in danger. Machinists Non-Partisan Political League. risen? "At a minim.um, we'll gain four Illinois Officials expect that voluntary contributions seats in Congress. The only requirement is Despite these cost increases, the Postal will surpass the Machinists' 1971 record high Service made a conscious effort to con­ that Democrats quit fighting each other after of $590,000. the primaries and mount positive cam­ · The Painters Union also expects "to put trol costs and a void raisinp- postal rates. I paigns." out our greatest effort ever in this year's believe they have been partially success­ The upset victory of Democrat Richard campaign," according to its presidenlt, ful in this since, although the costs of Vander Veen in Vice President Gerald Ford's S. Frank Raftery. many products, services, and salaries former district in Michigan came with strong Another AFL-CIO group that is beefing have literally skyrocketed lately, this is labor support. up its poUtical crews is the American Federa­ AFL-CIO unions also saw a union victory the first general postal rate increase in tion of Teachers. The union hopes to raise nearly ·3 years. In fact, a rate increase in an earlier Pennsylvania special congres­ as much as $750,000 in New York State for sional election, despite the thinness of the contributions to congressional and legisla­ planned for January 1973 was deferred victory margin of the Democratic nominee. until now. tive campaigns. Albert J. Zack, AFL-CIO's official spokes­ In the area of service, the Postal Serv­ man, said the Republican vote in Pennsylva­ ice has been meeting and bettering its nia's election ran 18 per cent behind, and in service standards consistently. By Christ­ Michigan, 19 per cent behind that of 1972. mas Eve 1973, all post offices reported Mr. Zack reported that the ~al for the JULIA BUTLER HANSEN November election set by AFL-CIO's Com­ they were clear of mail and it was mail­ mittee on Political Education (COPE) "is wise, the best Christmas ever-despite a net gain of seven friends in the Senate HON. DAWSON MATHIS the obvious problems created by the en­ and 23 in the House." That, he said, would OF GEORGIA ergy crisis. For example, with each 1 insure the "vetoproof" Congress the AFL­ IN THE HOUSE OF REPRESENTATIVES cent increase in the price of a gallon of CIO is seeking. Tuesday, March 5, 1974 fuel, the Postal Service's annual costs At COPE planning sessions here, the polit­ are increased by more than $1 million. ical directors of affiliated unions were Mr. MATHIS of Georgia. Mr. Speaker, These costs, coupled with a general un­ advised repeatedly to emphasize economic I rise to join with all my colleagues in ex­ problems in their campaigns. Unemployment, availability of fuel and a curtailment by the rising ca&t of living, higher interest rates pressing my deep regrets upon learning the airlines of key, mail-carrying :flights, and similar "gut" issues are to be stressed. of the decision by the gentlelady from have made the Postal Service's job Washington not to return to the 94th doubly difficult. ONE LABOR RESPONSE congress. It goes without saying that Union leaders said they are encouraged by Certainly it is possible to point to iso­ JULIA BUTLER HANSEN will be missed. Any lated instances of mail delay and mis­ results of a poll taken by the Machinists Member of this body who retires after 16 Union among its 900,000 members in the handling, just as it is possible to sit U.S. years of service here will be missed, but down with one's daily newspaper and Forty-nine per cent of those responding this unique lady will be missed more than pie~ out typographical errors, but these said President Nixon "should resign for the most. There is no doubt that this Nation are the exception whereas once they were good of the country." In addition, 23.2 per is richer for her service, especially as a the rule. For years before postal reorga­ cent voted "Yes" on a question as to whether result of her chairmanship of the In­ nization, it was not uncommon for mail "Congress should move to impeach the Presi­ terior Appropriations Subcommittee, to be delayed, misrouted, or not delivered dent so the Senate can conduct a trial." where she has displayed her intelligence, and I sometimes think those who speak BACKING CANDIDATES legislative skill, devotion and dedication. of the "good old days" of the mail serv­ Several unions say their efforts this year I extend to this lovely lady every good ice have forgotten about the last 10 or wlll put more emphasis on appeals to the wish for her retirement years, and I ex­ 15 years of the Post Office Department genera.I publlc than in past years, when tend sentiments of "good luck" to her and about the ever increasing volume efforts we.re aimed chiefly at union members. successor, whomever that might be. The of mall to be handled. "Our money and manpower are better person who is elected to serve from the People seem to for get that the Postal spent," one strate,gist said, "in beefing up the Third District of Washington will be fol­ Service as such has only been in exist­ campaign capabllities of candidates rather lowing an extremely tough act. ence for a few years, and the difficulty March 6, 1974 EXTENSIONS OF REMARKS 5601 of overcoming decades of inadequate fa­ cerned, they tell me they want to render Nursing Homes, both of which the SEC has cilities, outmoded machinery, and op­ the very best service they can at reason­ failed to prevent. erational concepts is one which cannot able cost. We can help them with our Nonetheless, H.R. 11955 calls for the for­ mation of a five-man Commodity Futures be solved overnight. constructive criticism but it must be Trading Commission ( CFTC) , which would A quick glance at the 1972-73 annual based on today's world and not the by­ be granted. sweeping policy and police pow­ report of the Postmaster General will gone days of the 17-cent pork chop or the ers under the aegis of the Depairtment of evidence that major strides toward effi­ million dollar postal pork barrel. Agriculture. For openers, the commission is ciences and economies have been made to be given authority to determine the loca­ by the 2-year-old Postal Service. During tion and number of commodities delivery its first year of operation, its net loss points. This is an immensely complex task, FUTURES SHOCK best left to the exchanges. "Wheat delivered was $175 million. During the past :fiscal in Chicago ls more valuable than wheait de­ year, that loss was reduced to $13 mil­ Uvered in Des Moines," notes Rep. Symms. lion. The volume of mail delivered dur­ HON. GEORGE A. GOODLING Thus, in cases where multiple delivery points ing the year rose to a new peak of 89. 7 OF PENNSYLVANIA a.re specified, there a.re also provisions for billion pieces, while at the same time pro­ discounts to offset transportation differen­ ductivity of postal employees increased IN THE HOUSE OF REPRESENTATIVES tials and the like. An inexperienced commis­ by 6.4 percent for the year. These im­ Wednesday, March 6, 1974 sion could easily gum up the works. How­ ever, with every member of the House Com­ provements were accomplished in a post Mr. GOODLING. Mr. Speaker, I wish mittee on Agriculture bucking for delivery office system glutted wi.th mail handling to draw my colleagues' attention to a points in his constituency, the Issue has ir­ plants 60, 70, and even 80 years old. The recent editorial appearing in Barron's resistible political a.p~eal. PoStal system has more than 30 process­ concerning H.R. 11955, the Commodities The question of how much daily trading ing centers constructed in the 19th cen­ Futures Trading Commission Act. l..s we a floor broker can undertake for h1s own and tury, and more than 300 have been in will likely be deciding on this measure a customer's account ls also being turned service since before . These over to the CFTC. The presumption, along the shortly, it behooves all of us to become Potomac at any rate, ls that commission are not minor offices in sparsely pop­ fully acquainted with its far reaching merchants a.re robbing the public blind by ulated areas, but large offices such as ramifications. This article raises some executing orders to their own advantage Memphis-1885, Brooklyn-1892, San excellent points regarding the bill's ulti­ rather than the clients. A look a.t the record, Francisco-1905 and Atlanta-1910. mate effects on the commodities industry however, discloses extremely few documented Much remains to be done, but much has and on the economy as a whole. I recom­ instances of such abuse. Moreover, those in been done in these brief 2 years since mend it for my colleagues' careful con­ the pits are already under strict control by reorganization. the exchanges. Since all orders for customers sideration. and futures commission merchants are dated one of the ways the Postal Service is The article follows: and time-stamped, it's a simple matter to turning the system around is through a FUTURES SHOCK: A LEGISLATIVE THREAT monitor such activities. In addition, any hob­ campaign of instruction and education LOOMS TO COMMODITIES TRADING bling of floor brokers would inevitably re­ of present and future mail users. In an Commodities markets have long served duce market liquidity-it.S investors in securi­ effort to teach young mail users about the economic needs of farmers, processors ties have learned the ha.rd way. Floor men's the mails, the Postal Service just pub­ and consumers without the dubious benefit in-and-out trades are an important prop. lished a 24-page workbook which con­ of close government supervision. But Wash­ Without them, trading would be dominated by commercial hedgers-with consequently tains stories, information, and facts for ington has chosen futures trading as an all­ wider price swings. purpose scapegoat for soaring food prices. elementary schoolchildren. The work­ The CFTC also ls to be granted sweeping book employs puzzles, cutouts and And within the next few days, the power­ injunctive powers, permitting it to close ful House Committee on Agriculture will re­ games, and two pages of United States down anyone who "has engaged, ls engag­ postage stamps for coloring purposes. All port out H.R. 11955, a measure that would ing, or is a.bout to engage" in any act that impose full-scale federal regulation. would violate the law. Injunctions could be of these are used to develop children's With a few honorable exceptions, industry skills and their knowledge of not just the issued whenever a market or an individual spokesmen testifying against the bill made a was in a position "to effectuate a squeeze or postal SYstem, but also our Nation's his­ deplorably weak case-while objecting to this corner or otherwise restrain trading." Thus, tory and geography. or that provision, most were willing to accept the mere capacity to do "wrong" would be An educational kit is being distributed it in principle as something they could "live enough to bring on the feds-a provision upon request to schools by local post­ with" {shades of Wall Street!). As it happens, which on the face of it strikes us an uncon­ masters. In addition to the workbook, the the most forceful and effective opponent to stitutional. emerge ls Congressman Steven D. Symms (R., Another dismaying provision 1s that all kit contains a teacher's guide that sug­ Idaho), who warned flatly: "Unless the i)l­ gests other learning projects; a classroom futures markets would have to be licensed, a dustry exerts enormous pressure to halt this key requirement being to demonstrate that poster that depicts the process through legislation, the freedom that made the fu­ specific contracts serve an economic purpose. which a letter arrives at its destination; tures system the remarkable success it is will Obviously (though perhaps not to lawmak­ bookmarks that feature American themes soon be lost." ers) the best test is success or failure in the as told through stamps; and "junior By contrast, advocates of H.R. 11955 have marketplace. To illustrate, advances in refrig­ postman" cards that remind youngsters mobilized some Senatorial big guns-George eration have greatly increased the tradlng of good mailing practices. McGovern (D., SD.), Hubert Humphrey (D., roster of commodities once considered per­ The costs of printing and all attendant Minn.) and Ph111p Hart (D. Mich.), among ishable, whereas an attempt to launch a mar­ others. These worthies admit they have no ket in turkey futures a few years back was a costs, such as production and collating real evidence of hanky-panky. For example, dismal flop. will total approximat.ely $450,000. Some when Senator McGovern introduced a b111 More alarming, H.R. 11955 has a section 5 million children will receive the ma­ calling for stricter controls on futures trad­ describing circumstances in which the pro­ terials at a cost of about 9 % cents each. ing, he alleged food price increases «were posed commission could seize control of the The total cost of this program represents speculation." Subsequently, h~ backed off, futures industry. To wit: "Whenever it has a mere :five-thousandths of 1 percent of saying: "I've had to eat crow on that one." reason to believe that the a.mount of deliver­ the Postal Service's total operating reve­ Senator Humphrey ls equally ambivalent able supplies, the number of open contracts, nue. and determined. ..I'm not saying there has the relative size of ind1vidua1 traders' posi­ been any nefarious activity," he says. "Don't tions, the amount and direction of price Yet recently, this and other initiatives get me wrong about that. I'm just saying the movements in cash and futures markets, the on the part of the Postal Service have market as it is today isn't structured to pre­ impact of government edlcts and regulations been criticized basically because they are vent wrongdoings. It's like a time bomb." . . . or any other such market factor that new and innovative-notwithstanding Such "reasoning," if one may call it that, creates a condition which threatens orderly rests on the premise that regulation is an in­ trading." their good impact. fall1ble cure-all for the presumed llls of the Some folks want to return to the days market. Indeed, some influential legislators In other words, the commission itself, of 17 cents a pound pork chops when mail a.re urging establishment of an organiza.tio~ rather than free market forces, would decide volume was 21 billion pieces per year as like the Securities & Exchange Commission. when the number of open contracts 1s cor­ opposed to 90 billion pieces a year today. The logic of this position is ha.rd to grasp, rect, when traders• positions are balanced, inasmuch 85 the self-policing commodities whether cash and;or futures prices are mov­ But since we are not there and it is not trade during its 100-odd years of existence ing in the right direction. There are, of foreseeable that we will be there in the has suffered no major scandals-surely noth­ course, no objective yardsticks for determin­ near future, I suggest we live in the pres­ ing remotely resembling such d.lsastrous ing these conditions, and .the CFTC would ent. As far as the Postal Service is con- frauds 85 Equity Funding and Four Season have to make subjective judgments as to 5602 EXTENSIONS OF REMARKS March 6, 1974 when it had the right and duty to intervene. tion, we, in Congress, should he the first many as a source," Casey said. "I believe this in trading. to set an example by opposing a pay a remarkable achievement when we recog­ Such a body could also direct markets in raise for ourselves. nize , , Britain and Japan so-called "market emergencies." These are have been in the Soviet market for 10 years, defined as: " ... Significant intervention of That is why I am calling upon my and have the advantage of geographic prox­ foreign governments in the futures market, colleagues in the House to join with me imity." war or other national emergency, price con­ in opposing the proposed increase in con­ Casey warned businessmen, however, tha.t trols, export embargoes, or any other signifi­ gressional salaries from $42,500 to $52,800 he expected expansion of technical exchange cant disruption of normal commercial pro­ in the next 3 years. with the East to be gradual." cesses which can reasonably be deemed to This is not the time to raise Govern­ He cited several reasons: affect futures transactions." ment salaries. It is the time to fight in­ Russia's shortage of convertible currencies. This proviso gives the proposed commis­ flation by holding the line and rejecting The Soviet economic structure, with its sion immediate justification to control the heavy reliance on centralized planning, commodity futures industry. It could, for a pay increase or any compromise maltes it difficult for that count ry to intro­ example, extend the expiration date of con­ amendment that might be passed by the duce rapidly any new technology, particu­ tracts, limit trading, alter delivery dates and Senate and referred to the House. As larly foreign. even suspend trading. I said before, we must set the example. Russia's lack of personnel experienced in Other features of H.R. 11955 a.re equally Mr. Speaker, only by rejecting this in­ Western production methods and processes. disturbing; there a.re, for example, no com­ crease will the people know Congress is Continued U.S. restriction on export of pelling reasons for continuing the ban on sincere in its efforts to halt inflation. technologies which have military as well as commodities options trading or extending civilian uses when the U.S. government con­ bureaucracy's reach to such previously un­ siders the security risk unacceptable. regulated international commodities as cocoa., Another major difficulty is the interests of coffee, copper, silver and sugar. But proposals the Soviet Union in including technical as­ that go for the jugular of a viable free mar­ TECHNICAL TRADE WITH SOVIET sistance as part of any arrangement for pur­ ket are potentially more disruptive. UNION SOARS chasing equipment and Moscow's preference Commodities producers, processors and for financing any deal by re-exporting a part purchasers need to protect their interests in of the resulting production to the United what is rapidly becoming a. shortage econ­ HON. JOHN M. ASHBROOK States firms supplying the equipment. omy. To illustrate, by buying a. wheat con­ OF OHIO This does not appeal to many U.S. busi­ tra.ct, a baker can guard against a. sudden nessmen, Casey said, because of the "general jump in his raw materials costs. Likewise, by IN THE HOUSE OF REPRESENTATIVES reluctance" of Russia. to permit American selling a contract specifying future delivery Wednesday, March 6, 1974 participation in the management of the of wheat at an agreed-upon price, a. farmer Soviet production which uses U.S. tech­ can assure himself of a. profit even if the Mr. ASHBROOK. Mr~ Speaker, on nology. cash market declines when he harvests his numerous occasions I have brought to Some countries in the Communist East crop. the attention of my colleagues the fact European group-Yugoslavia, Romania and Farm commodities traditionally have domi­ that the United States is exPorting its Hungary-have overcome these difficulties, nated futures markets. But virtually any­ invaluable technology to the Soviet Casey said, by permitting the creation of thing subject to volatile price swings can be­ "joint venture arrangements with Western come a candidate for trading. No contract Union. Despite the aggressive policies firms," thus enabling the foreign company would be viable, however, without participa­ pursued ·by the Kremlin in last fall's to have some voice in the management of tion of individuals whose willingness to spec­ Mideast war and the Soviet Govern­ the production for which it supplied the ulate on future price trends gives com­ ment's brutal treatment of its own citi­ technology and equipment. modities markets liquidity. zens-most recently demonstrated by On the whole, participants get a. far fairer the arrest and exile of Alexander Sol­ shake than in securities markets. Inside in­ zhenitsyn-technical trade with the So­ formation is rare. Most projections on supply and demand are issued by federal agencies, viet Union continues to expand. BAN THE HANDGUN-XXVIII and all players have access to the same score­ According to Acting Secretary of State boards. William J. Casey, U.S. technical trade It is tempting for harried Congressmen to with the Soviet Union and other East HON. JONATHAN B. BINGHAM subscribe to the theory that sinister forces European countries has "gained sig­ OF NEW YORK are engaged in widespread manipulation. The nificant momentum" since the May 1972 IN THE HOUSE OF REPRESENTATIVES fa.ct is, however, the price gyrations of last Moscow summit conference and will un­ summer and beyond were largely attributable Wednesday, March 6, 1974 to shortages caused by ill-conceived govern­ doubtedly continue to increase at a grad­ ment programs. ual rate. The American share of Soviet Mr. BINGHAM. Mr. Speaker, yester­ The very size of the business has ma.de it imports of plant and equipment from day in Buffalo a gunman forced his way an inviting target. In the fl.sea.I year ended the West is now running about 20 per­ into a house, shot three children, their la.st June 30, some 47 million contracts, worth cent of the total. It is ironic that while mother, and later a taxi driver. One child $399 blllion, were bought and sold on the American businessmen are trading hun­ is dead and the other victims are in crit­ nation's 13 exchanges. Five years earlier, the dreds of millions of dollars of plant and ical condition. From cartridges found at totals were 20 mllllon contracts worth $81 the scene of the crime, Buffalo police billion. equipment to the Soviet Union, the ad­ Clearly, the public has considerable con­ ministration is asking for an increased have confirmed to my office that the fidence in the integrity of the current system, defense budget to meet the Soviet mili­ weapon used was .an automatic pistol. which was subject to self-policing 50 yea.rs tary threat-a threat which, in part, is The majority of Americans want before the Commodity Exchange Authority being built with American technology. strong gun laws so maniacal shooting came into existence. Rep. Symms says it's Following is an article from the March sprees such as this could be precluded. possible the proposed measure Will turn out 1, 1974 edition of the Washington Star­ The article appearing in the New York to be one the industry can live with. But News on Mr. Casey's remarks: Times, Ma:r:ch 6, is reprinted herewith: he has doubts. "If this bill ls passed," he warns, "we will have yet another example TECHNICAL TRADE WITH SOVIET UNION SOARS ONE DEAD, FOUR HURT, IN A $HOOTING SPREE of Congress throwing reason out the window, Acting Secretary of State William J. Casey BUFFALO, March 5.-A gunman forced his along with the liberty and economic sur­ said yesterday U.S. technical trade with the way into a house early today, shot three chil­ vival of the American people." Soviet Union and other East European coun­ dren as their mother watched, then shot ERIC AIKEN and ROBERT M. BLEIBERG. tries has "gained significant momentum" her and later a taxi driver, the police said. since the May 1972 Moscow summit confer­ Ninety minutes after the shooting, in ence and will undoubtedly continue to in­ which one of the children died, the police crease at a gradual rate. arrested David L. Benefield, 25 years old, and Casey told a meeting of U.S. businessmen charged him with murder, assault, robbery STOP THE CONGRESSIONAL PAY interested in exchange of technology with and possession of a dangerous weapon. Lieut. RAISE SAYS MARAZITI Russia that the American share of Soviet Leo J. Donovan, chief of the homicide squad, imports of plant and equipment from the said robbery appeared to have been the west is now running about 20 percent of the motive. HON. JOSEPH J. MARAZITI total, whereas prior to 1972 the U.S. share Daniel G. Pascale, assistant detective OF NEW JERSEY of such sales to Russia was only about 5 chief, said Mr. Benefield had barged into a IN THE HOUSE OF REPRESENTATIVES percent. lower flat of the East Side house occupied by Mrs. Leslie Fitch, 37, and her three chil­ Wednesday, March 6, 1974 "Of total Soviet purchases for such goods · of about $3 billion since the beginning of dren, John Davis, 15, Daryl Benton, 9, and Mr. MARAZITI. Mr. Speaker, when 1972, $600 million has been contracted with Lisa Benton, 6. the Government is trying to stem infla- U.S. firms, making us second only to Ger- Chief Pascale said Mr. Benefield had or:.. March 6, 1974 EXTENSIONS OF REMARKS 5603 dered the pajama-clad children to lie on their MY RESPONSIBILITY AS A CITIZEN Others must be allowed to weave their stomachs on a bed, then fired four times. bunting much as I am allowed to weave mine. Each child was shot in the rear of his head Finally, it is my duty to be an individual; and one bullet struck John in the side. Chief to carry out unique actions, whether they be Pascale said. HON. GEORGE E. SHIPLEY for the benefit of all, or solely for the ad­ Mr. Benefield then demanded money, jew­ OF ILLINOIS vancement of myself. If all men are not indi­ viduals, new ideas could never be introduced. elry and a welfare check from Mrs. Fitch, IN THE HOUSE OF REPRESENTATIVES shot her in the neck and telephoned for a But I must stay within the bounds of reason. taxicab, the chief added. Wednesday, March 6, 1974 Even though separate and distinct from all others, I must still be able to interweave in The cab driver, Charles Ziegler, 18, was Mr. SHIPLEY. Mr. Speaker, it is my found shot twice in the head beside his cab society. a.bout three miles from the Fitch house. The honor and privilege to insert in the The aforementioned responsibilities as a police said his pockets and wallet were CONGRESSIONAL RECORD the following citizen are those which I believe to be the empty. prize-winning speech by Scott E. Slezak, most vital; all others are built up around Mrs. Fitch was reported in serious condi­ Danville, Ill., on the theme "My Respon­ these. But these are not only my obligations. tion, and Lisa, John and Mr. Ziegler were sibility as a Citizen." They a.re the respoL.sibilities which every in critical condition. Daryl died about four Scott is the first prize winner for the American citizen carries. To perform these hours after the shooting. duties is to provide a sound basis on which State of Illinois in the annual Veterans to establish my trust in America. Failing to of Foreign Wars Voice of Democracy fulfill these services would be to flaw the ma­ Contest. He will be competing next week terial; a thread which does not prohibit the in Washington for the national cham­ function of the fiag, but detracts from its CALIFORNIA PUBLIC HEALTH ASSO­ beauty. CIATION DIVISION SUPPORTS pionship. I feel that Scott's speech is well worth To be a golden thread in the fringe of the RIGHT TO ABORTION banner of the United States of America is our attention. the desired goal. One like others, in essence, The speech follows: yet still unique; one which is outstanding, HON. RONALD V. DELLUMS MY RESPONSIBILI.TY AS A CITIZEN strong, and contributing to the beauty of de­ OF CALIFORNIA (By Scott E. Slezak) mocracy. IN THE HOUSE OF REPRESENTATIVES Each of us is a thread in the banner of Democracy. We become interwoven into de­ Wednesday, March 6, 1974 mocracy, just as thread becomes interwoven into cloth, by accepting our responsibilities UNIFORM TRUCK WEIGHTS ON Mr. DELLUMS. Mr. Speaker, I wish to INTERSTATE HIGHWAYS insert in the RECORD a letter from the as citizens of the United States of America. northern division of the Caifornia Pub­ As thread remains useless if not woven into lic Health Association that urges opposi­ cloth, so the cloth has no vitality without each thread contributing to its beauty and HON. DICK SHOUP tion to the Buckley and Helms-Hogan strength. It is Ghe contributions of every in­ proposed amendments to the Constitu­ dividual acting collectively which weave us OF MONTANA tion that would effectively prohibit legal into the symbol of the most eminent nation IN THE HOUSE OF REPRESENTATIVES abortions. As the letter indicates, the in the world. Wednesday, March 6, 1974 CPHA is joined by the American Public But just what are my, like every other in­ Health Association, the California Med­ dividual's, responsibilities as a citizen? What Mr. SHOUP. Mr. Speaker, on February ical Association, and the American Med­ is it which constitutes a significant and bene­ 27, 1974, I introduced H.R. 13117 which ical Association in their support for every ficial contribution to the strength and beauty is designed to make uniform allowable woman's right to have an abortion. of the flag? truck weights on interstate highways. The most obvious, and most basic, duty is Since this issue has in the past been The numerous civic, religious, medical, that to vote. It is my responsibility to select and various other local and national those who will lead me. Most important here, plagued with misconceptions, and be­ groups that have indicated strong sup­ though, is the freedom in choosing these cause it is important that this measure port for legalized abortion as is now in­ leaders. Because the selection of leaders is pass this session of Congress, I would sured by law. have underlined the impor­ unabated, I am able to pick the best person like to submit a few comments about tance of maintaining this essential per­ to govern me. what the bill would and would not do. It is my accountability to select the quality The sole purpose of H.R. 13117 is to sonal freedom. It has become extremely of the thread. apparent in recent months that the establish uniformity for truck weight on Another self-evident obligation to America the entire Interstate Highway System. American people would regard any ef­ is the maintenance of law and order. It is forts to prohibit legalized abortion as di­ necessary to obey the laws set forth by my The bill does not in any way interfere rect infringements on their rights as peers, and to originate new laws which are with state jurisdiction over State roads, human beings. beneficial to my fellow peers, so as to pre­ and the matter of weight is still a matter The letter f cllows: vent the loss of our many freedoms. of State control. All that H.R. 13117 does FEBRUARY 26, 1974. Selecting the type of weave is another of is remove a 1956 ceiling which is unreal­ Re Our Opposition to the Buckley Amend- my obligations. istic and unnecessarily restrictive, set a ments and Helms-Hogan Amendment. These duties, and similar ones, are not new maximum and allow any State to Hon. RONALD v. DELLUMS, those which set America apart in the world. place its limit up to or on that point. The House of Representatives, The most decisive responsibilities are more The bill would achieve its purpose Longworth House Office Building, subtle, more ambiguous than these. But they are not any the less significant. through the apportionment of appropri­ Washington, D.C. ated highway funds. It is provided that DEAR CONGRESSMAN DELLUMS: The mem­ The first is the right to give constructive is bership of the California Public Health As­ criticism. Constructive criticism one of the apportionment is allowed only to those sociation, Northern Division, has (along with greatest single factors which has influenced States which restrict weights to 20,000 the membership of the American Public the shaping of democracy. To be able to find pounds per axle or 34,000 pounds for Health Association, the California Medical fault, and then demonstrate how it may be tandem axles. The overall weight is de­ Association and the American Medical Asso­ corrected, is one of the greatest obligations I have. This provides for the continual im­ termined by the formula for what is ciation) affirmed and reaffirmed that every commonly called "Bridge TabJe B." woman in the United States should continue provement upon the workings of democracy. Tandem with this, though, is my duty to ac­ In further support of the bill, I would to have the personal freedom to make, with cept criticism. respect it, and transform it submit the following comments which the physician of her choice, the decision to into action. It is my responsibility to con­ determine the outcome of a pregnancy. were written and published by my col­ Attempts to abridge such basic personal stantly strive for self-improvement within league JIM WRIGHT some years ago when freedoms are being seriously pressed by a mi­ the fa.bric of democracy. this same issue and related issues were nority of our citizens. We urge you to vigor­ I must set the pattern in the material, but under consideration. ously oppose the Buckley and Helms-Hogan be open to the thinking of others. Untii 1956, Congress had never even had proposed amendments to our Constitution The second major responsibility I have is a law concerning the size of trucks. When that would effectively prohibit legal abor­ to prevent transgression upon the rights of we created the Interstate System, we adopted tions, and the Buckley proposed amendment others. To respect the freedoms of others is temporary ceilings to apply to that system to the 1973 Social Security Amendments one of the most difficult obligations to fulfill, alone. We did this to protect those highways. which would prohibit the use of Medicaid yet most necessary for the preservation of We admitted that we didn't know exactly funds to pay for abortions. democracy. When the freedoms of thought, what those ceilings should be. We anticipated Yours very truly, religion, and choice are removed, government that the law would need to be revised. So JAMES T. HARRISON, M.D., by the people no longer exists. As I have the we directed the Bureau of Public Roads to President. right to express my ideas, so do others. make a careful study and then advise U& as 5604 EXTENSIONS OF REMARKS March 6, 1974 to the proper cellings to protect the high­ hesitate to accost the band of escapees MIDEAST WAR'S LESSON FOR THE ways and the traveling public. and to bring them back to custody. UNITED STATES The U.S. Bureau of Public Roads did as He stands as an eminent example to Congress directed. It spent $27 mill1on on road tests to find the right formula. The all of us; and a reminder that our con­ HON. OLIN E. TEAGUE formula in this b111 is the one recommended stabulary is comprised of individuals OF TEXAS by the Bureau of Public Roads as result of who do not hesitate to put their lives in those tests. It is not something dreamed up jeopardy in the interest of their fellow IN THE HOUSE OF REPRESENTATIVES by the so-called "trucking lobby. citizens. Wednesday, March 6, 1974 Not to be overlooked in this matter is Mr. TEAGUE. Mr. Speaker, the Jan­ the energy saving which would result uary 14, 1974, issue of the news magazine, from passage of H.R. 13117. Many States PAY RAISE FOR FEDERAL JUDGES U.S. News & World Report, carries an which are now unable to change inter­ article by Col. William C. Moore, USAF state limits would do so. In fact the ma­ retired, about the Mideast war. Colonel jority of Western States already have Moore brings up some serious points that substantially higher allowances on their HON. BENJAMIN S. ROSENTHAL we might take to heart. The Mideast sit­ noninterstates than they are able to put OF NEW YORK uation should remind us of our recent on the interstates. The increased effi­ IN THE HOUSE OF REPRESENTATIVES conflicts. Colonel Moore brings up the. ciency of load factors would allow fewer Wednesday, March 6, 1974 question, "What do we do if a real crisis trucks to do the same hauling and more Mr. ROSENTHAL. Mr. Speaker, I re­ arises?" We have seen some problems sensible routing would be possible-both cently received a letter from a number lately, but we had better think about resulting in a saving of fuel and either of distinguished judges in the U.S. dis­ what we are going to do should a "real a lowering or stabilizing of rates. trict court in New York regarding the crisis" like a Vietnam or a Korea arise It should also be noted that the over­ proposed Federal pay raise. again. all vehicle weight proposed by H.R. 13117 I recommend the article to you, my is determined by a formula which re­ I am inserting their letter in the REC­ fellow colleagues in Congress, and the ORD because I believe that the arguments lates weight to length. This is necessary they make for a pay raise for Federal general public. in order to protect bridges and to pre­ judges are as persuasive as they are The article follows: clude the concentration of weight in a timely. MIDEAST WAR'S LESSON FOR UNITED STATES small area. (By Col. WWiam c. Moore, U.S. Air Force Let us therefore give the States this I commend this letter to my colleagues in both Chambers of the Congress: retired) legislation which is of great importance (NoTE.-William C. Moore Is a commentator to the public and to the transport in­ U.S. DISTRICT COURT, on military affairs. A graduate of the U.S. dustry. U.S. COURTHOUSE, Mllitary Academy, his background includes New York, N.Y., February 7, 1974. many years as an analyst on active duty with Hon. BENJAMIN s. ROSENTHAL, the Air Force, with service on the Strategic Rayburn House Office BuflcUng, Plans Group of the Joint Chiefs of Stat! and RETffiED POLICE OFFICER ARRESTS Washington, D.C. at Supreme Headquarters Allied Powers THREE ESCAPEES DEAR CONGRESSMAN ROSENTHAL: Federal Europe.) Judges, now slated (along with members of Of th~ many bits of intelligence emerging Congress and others) for a 7.5% pay increase from the Yom Kippur war in the Mideast, one in each of three successive years, have had is considered by top U.S. mllitary planners to HON. JOHN P. MURTHA be the most worrisome and far-reaching in OF PENNSYLVANIA no increases in five years. Anyone who de· serves to be on tb.e bench in this area could implication. IN THE HOUSE OF REPRESENTATIVES earn at least three of four times his current This worry centers on the monumental at­ Wednesday, March 6, 1974 salary in private practice. While it Is not trition rates sutfered by both sides--Arabs suggested that judicial salaries should be and Israelis--during the relatively short pe­ Mr. MURTHA. Mr. Speaker, George riod of fighting. proposed (stm leaving us below the earnings Although sufficient time has not passed to Koban is a retired policeman but that of junior partners in law firms) seems mini­ does not mean he has lost his interest mal. permit the gathering of final statistics, some planners already conclude that never in the in law and order. In these circumstances, we, the under­ annals of military history has attrition been After completing years on the Phila­ signed district judges, respectfully suggest so severe in 18 days of fighting. delphia police force he returned to his that those opposing the increase do not ade­ After one week of warfare, Israel's losses home in Ebensburg in Cambria County. quately appreciate the problem as it affects were placed at 650 tanks and armored ve­ On January 19, 1974, George who the judges of the lower federal courts. If hicles-about one third of its armored learned his crime fightin& techniques un­ members of the Congress mean this opposi­ strength at the start of the war. Air losses der the tutelage of former Philadelphia tion for themselves alone, the position may ranged from one fourth to one third of the Police Commissioner Frank Rizzo, went be ditferent. As to judges, however, whose initial strength. . freedom to earn extra money is (as it should In one week Syria lost nearly 800 of 1,300 on a man hunt of his own to bag three tanks committed to battle. jail escapees who were roaming his prop­ be) sharply circumscribed, there Is no justi­ fication whatever for withholding the long So severe were these attrition rates that erty. The three men were awaiting trial overdue adjustme.nt. Salaries of judges have analysts--given the tempo of fighting in the on various charges at the Cambria first week--estimated that Israel's war sup­ County jail near Johnstown. Carrying a been frozen at 1969 levels whlle most fed­ plies might last only two additional weeks, shotgun, George first spotted the three­ eral employees have enjoyed cost-of-living Syrian stocks might last less than a week, increases almost annually with the result and Egyptian supplies perhaps 10 days, more some walking at the rear of his 156 acre that their current compensation is approxi­ or less. estate and approached them to ask their mately 30% above 1969 rates. Rough estimates for the entire 18 days of presence. They replied they were hunt­ We take the liberty of urging, earnestly the war show Arab losses to be 1,500 tanks ing which seemed unlikely to George and respectfully, that you resist the efforts and 450 aircraft, compared with Israel's since they were unarmed. When the to veto the increase as it applies to judges. losses of 500 tanks and 120 aircraft. trio tried to run away he yelled, ''Stop, Very truly yours, To appreciate the enormity of these attri­ this is the law." They listened to the David N. Edelstein, Marvin E. Frankel, tion rates, consider the battle of El Alamein, authority in his voice, authority bred Morris E. Lasker, Kevin Thomas Duffy, one of the great showdowns in World War II. Constance Baker Motley, John M. Can­ At the start of that battle, which lasted 12 over the long years and which stood days--Oct. 23 to Nov. 4, 1942-General Mont­ him in good stead before he was retired nella, Robert J. Ward, Dudley B. Bon­ gomery, the British commander, had 1,114 for disability in 1971. sal, Murray I. Gurfein, Thomas P. tanks; General Rommel, the German com­ Koban decided to go "hunting" for Griesa, ·Lawrence W. Pierce, Whitman mander, had 600. Montgomery lost 432 of his the escapees after hearing a State police Knapp, Lloyd F. MacMahon, Milton tanks, Rommel lost 500-a. total of 932 for Pollack, Edmund L. Palmieri, Frederick both sides. Compare this with the 2,000 tanks warning that they had fled custody. vP. Bryan, WWiam C. Conner, Arnold destroyed in the Yom Klppur war. His action is characteristic of dedi­ Bauman, Irving Ben Cooper, Charles These staggering attrition rates are what cated police officers· everywhere and I H. Tenney, Robert L. Carter, Charles prompted. the Soviet Union and the united am happy to commend his courageous M. Metzner, Inzer B. Wyatt, Harold R. States to inltiate their massive resupply deed. Although disabled he did not Tyler, Jr. effort. March 6, 1974 EXTENSIONS OF REMARKS 5605 Resupply of Israel by the U.S. started later A FOUR-LETTER WORD ::>SHA discriminates against private en­ than the Russian airlift to the Arabs. but terprise and it is being admlnistered by an the U.S. soon caught up in the number of army of idiots who possess no common sense. tons delivered. Deliveries by U.S. airlift even­ The sooner OSHA becomes just another four­ tually reached a dally peak of between 800 HON. STEVEN D. SYMMS letter word that 1s not a law on the books, to 1,000 tons. according to the Defense De­ OF IDAHO the better off the country will be. partment. IN THE HOUSE OF REPRESENTATIVES By the time of the cease-fire, both the U.S. and the Soviet Union had lnitiated action to Wednesday, March 6, 1974 REAL REFORM DEMANDS ROLE FOR supply greater quantities by ships to keep up Mr. SYMMS. Mr. Speaker. I am happy MINORITY with the needs of their clients. Why are U.S. planners so worried about all to see that opposition is growing to the this? For two reasons: Occupational Safety and Health Act-­ HON. JAMES C. CLEVELAND 1. It raises serious doubts about the valid­ OSHA. Recently an editorial calling for OF NEW HAMPSHmE ity of U.S. war-planning !actors on attrition the repeal of this law appeared in the IN THE HOUSE OF REPRESENTATIVES rates in modern combat. These planning !ac­ Caldwell News-Tribune, my hometown tors determine the stocks U.S. armed forces newspaper in Idaho. I am very pleased Wednesday, March 6, 1974 maintain in order to achieve war alms. that the public is becoming aware of the Mr. CLEVELAND. Mr. Speaker, many 2. It raises serious doubts about the capa­ bility of the U .s. to fulfill its obligations to damage that OSHA is doing to business, of us have observed with great interest client states. as called for by the Nixon Doc­ especially small businesses, and to the the work of the Select Committee on trine. threat to freedom that this law repre­ Committees. chaired by our friend from To fulfill obligations to Israel required sents, also I'm happy to announce that Missouri Q, a ma.chine that perforates aircraft, but great quantities are unquestion­ JOINT STATEMENT OF REPRESENTATIVES RoBERT paper must have a guard on it to prevent H. MICHEL OF ILLINOIS AND JAMES C. CLEVE­ ably available in reserve stocks to supply So­ injury. Trouble is, with the guard on. the LAND OF NEW HAMPSHmE TO THE SELECT viet client states. machine won't operate. COMMITl'EE ON COMMI'ITEES, FEBRUARY 28, These facts raise some obvious and omi­ A store in Caldwell recently tore up its 1974 nous questions for the U.S. military planners. floor and put down a new one, completely Mr. Chairman and Members of the Com­ What does the U.S. do tl Vietnam continues carpeted. The reason: There were two small mittee, as you pursue your deliberations on to get hotter and hotter? And what if, at the bumps in the previous tile :floor that posed your working draft, "Committee Structure same time, the North Koreans initiate mili­ a threat, according to OSHA. That ls all well and Procedures of the House of Representa­ try action to back up their ominous saber­ and good except that the bumps were in a.n tives:• we request that you consider the fol­ rattling against South Korea? And, as U.S. area that was never subject to traffic. lowing proposal !or incorporation in your officials point out, the Mideast is by no means A Nampa firm was fined $50 !or having fina.l report to the House: That when both settled; fighting could break out again, plac­ a fire extinguisher not located at eye level. the Executive and Legislative branches are OSHA was correct: it wasn't at eye level ing additional demands on the U.S. und~ the control of the same political party, unless you happen to be 5-8 or taller. If a real crisis arises, what do we do? Do a Select Committee in the House under the A laundry, at a cost of $9,000, was forced we rob Peter (United States operational control of the minority party be automati­ to install safety devices on washers and cally created, funded and vested with wide­ units) to pay Paul (the client states)? Do dryers so they couldn't be opened until they we dip into reserves which the Mideast war ranglng investtgat.ory authority. were completely stopped. "The only differ­ We believe this proposal is consistent with has shown to be less than minimum? Do we ence," says the owner. "ls that before they equivocate on the Nixon Doctrine? Or do we, both the objectives o! the .structural and shut oft when you opened the door and now procedural reforms this Select Committee 1s in fact. learn some lessons from the Yom they can't be opened until you shut them developing and the larger effort to strengthen Kippur war, and pay the price to correct ex­ oft." the Congress and curb excessive Executive posed deficiencies? The list could go on but we find one more power, t.o which your work represents a sig­ These are not easy questions to answer, thing a.bout OSHA just too hard to take. nificant contribution. In !act, we are con­ but answers are being sought. Under the law cities don't have to comply vinced that this proposal is imperative if the The alternative to no answers and no ac­ with the regulations. other reforms under consideration are to tion 1s to permit the Soviet Union to use its We applaud that section of the law. Now achieve their full potential. vast arsenal of war supplies and client states we need another law that does a.way with Though a substantial departure from cur­ to achieve local mllitary superiority in sev­ OSHA completely, not just on a. selective rent practice, the concept 1s not altogether eral areas of the world. basis. new. It is rooted in the self-evident truth 5606 EXTENSIONS OF REMARKS March 6, 1974 that no Administration can be relied upon to Her proposal would have created a Select been the history whether you are running investigate itself. Nm can the majority party Committee on Investigations composed of 15 for squire or county commissioner or any­ in the Congress be relied upon to investigate members appointed by the Speaker. Eight of thing else." an Administration of that sa:me party. What­ the members, including the chairman would Thus proposals for an independent inves­ ever the competence, commitment and in­ be minority party members selected from a tigatory function by the minority, and ample tegrity of those carrying out investigative panel of 24 minority party members nomi­ evidence to justify them, have been before responsibilities, independence from the sub­ nated by the minority leader. The other seven us for a decade and more. ject of their investigation is critical to the would be members of the majority party. To its credit, the Congress is now in the confidence of the public in their findings. The committee's jurisdiction would be gov­ process of enacting many reforms to redress Such independence ls implicit in our Con­ ernmentwide, but the committee would be the imbalance of power between the execu - stitutional system of checks and balances. In specifically precluded from investigating any tive and the legislature, including those un­ recent days, the principle has been reflected subject under active investigation by a stand­ der consideration by this Select Committee, in advocacy of a Special Prosecutor to investi­ ing committee or subcommittee. war powers legislation, budget reforms and gate the Watergate affair and support--by Arguing in support of her proposal on July curbs on lmpoundment. We think it signifi­ Common Cause and others-for a Federal 26, 1966, Mrs. Dwyer said: cant that many measures proposed or under Elections Commission to enforce compliance "The problem exists regardless of the party active consideration were advocated in some with election laws. in power. I.t is unrealistic to expect the con­ form by the Republican Task Force on Con­ Nor is it new in practice. In 1923, when the gressional members of a political party­ gressional Reform. The fascination with Administration and both Houses of the Con­ again, regardless of the party-to subject Presidential government has gone out of gress were under control of the Republican executive branch officials of the same party fashion. The Vietnam conflict and Watergate Party, Democratic Sen. Thomas J. Walsh of to the kind of complete and searching scru­ have played a role in highlighting the dan ­ Montana was prevailed upon by Republican tiny required for the proper exercise of con­ gers of excessive executive authority. But it Sen. Robert La Follette to take charge of the gressional oversight authority. is not um·easonable to suggest that a change Teapot Dome investigation. Walsh was per­ "While it is understandable in human of Administrations in 1969 contributed to suaded that the Republican members of the terms that majority party Members of Con­ the evolution of majority sentiment in this Public Lands Committee had little relish for gress-whatever the party-should be reluc­ area. This is not to attribute the drive for the task, and accordingly took informal com­ tant to expose their opposite numbers in the reform to excessive partisanship. To the ex­ mand of the committee. The British Parlia­ executive branch to serious political embar­ tent that it is based on an adversary rela­ mentary system has given effect to the prin­ rassment, the integrity and constitutional tionship between the Congressional major­ ciple for more than a century through the authority of Congress cannot be allowed to ity and the White House, it is the positive functioning of the Committee of Public Ac­ be compromised by inaction, however under­ product of our two-party system. Our pro­ counts of the House of Commons, under op­ standable, when abuse of authority, incom­ posal is merely intended to preserve and position party control. petence, inefficiency, or wrongdoing may be strengthen this relationship by lending it Finally, it is not new as an organizational involved." organizational standing in the hope that, re­ proposal. Vice President Ford, while a House Such skepticism was also inspired by the gardless of who controls the two branches, a member in 1965, proposed in a speech be­ performance of the Senate in 1964, when momentum for reform will be maintained. fore the National Press Club that when both proposals to expand the Bobby Baker inves­ Procedurally, the proposal fits in well with branches are under control of the same party, tigation were opposed by the majority by the objective of strengthening the oversight the Government Operations Committees of votes ranging from overwhelming to near function which this Select Committee has both houses be under the control of the mi­ unanimous. rightly identified as a critical need. While nority. Said Ford at the time: "Here would Our colleague from Illinois, Mr. Crane, has expanding the scope of the Government Op­ be a. genuine vehicle to assure that the voice performed a useful service in calling to Mem­ erations Committee's jurisdiction, your pro­ of the minority would be heard, that the bers' attention last July his analysis of seven posals call also for creation of a subcom­ majority would be constantly on notice that key votes, including one to block any broad­ mittee of each standing committee to per­ its actions or inactions were subject to effec­ ening of the probe to Senators and Senate form oversight functions and undertake more tive and critical review. Here would be as­ employees concerning "any financial or busi­ long-range planning and anticipation of surance that the public through (the press) ness interests or activities, including activi­ problems. The existence of a separate in­ would know that any cover-up or wrongdoing ties involving the giving or receiving of vestigating body under the control of the mi­ would be improbable if not impossible." campaign funds under questionable circum­ nority could well ser<'" as a spur to the func­ This proposal was incorporated in Cleve­ stances." It is significant to note that tioning of these subcommittees. land testimony before the Joint Committee majority party members, including the lead­ As noted in the Michel chapter on minor­ on the Organization of Congress on May 24, ership and members later to become presi­ ity investigations in "We Propose," such an 1965, and in Michel's legislation, H.R. 9252, dential candidates, and the current majority arrangement "may do much to restore the introduced on June 21, 1965. It has been re­ membership of the Watergate Committee moral force otherwise lacking and thus secure introduced in succeeding Congresses, the exhibited a determined disinclination to pur­ public acceptance of the fairness and justice most recent version being H.R. 793, January sue the path from the office of the former of congressional actions. The existence of 3, 1973. It also was the basis for the Michel Secretary to the Majority wherever it led. minority control would be a constant re­ chapter in "We Propose: A Modern Congress," This raises serious questions as to whether minder to the official that excessive actions the report of the House Republican Task the Watergate Committee would have been rtsk legislative inquiry and reversal." For fur­ Force on Congressional Reform and Minority established at all, much less performed with ther discussion of the principle, in the con­ Staffing under Cleveland chairmanship. such conspicuous zeal, had the administra­ text of a Government Operations Committee Members of this Select Committee will tion under investigation been of the same performing the role, see the full Michel chap­ note, however, that we are proposing a Select party. ter on the subject. "We Propose," though Committee on Investigations rather than mi­ It can hardly be contended that abuses of published in 1966, remains available in suffi­ nority control over the Government Opera­ the 1972 campaign were a unique creation of cient quantity for the Committee's exam­ tions Committee. Such a body would assert the incumbent administration. In his Feb­ ination. the principle of a strong minority role in ruary 20 testimony before the Joint Com­ A concluding note. In keeping with the investigations without creating an anoma­ mittee on Congressional Operations, Sen. principle of another reform we have advo­ lous situation whereby the minortty would Mondale spoke of the arrogance of power in cated, we would support language assurtng control the traditional legislative functions the executive branch reflected in Watergate. that the majority party in the Congress, in of the Committee on Government Operations. "This arrogance is not a phenomenon only its minority role on the Select Committee Thus our revised approach would not con­ of this Administration, but is the culmina­ on Investigations, be afforded up to one-third fiict with your Select Committee's proposals tion of a trend which began decades ago. of the funds provided for-the appointment of to expand the legislative jurisdiction of the Unless we end the misuse of executive power committee staff, such personnel being as­ Government Operations Committee in the and gain public respect for and understand­ signed for duties at the committee minority's process of restructuring the functional align­ ing of Congress' role in increasing the ac­ discretion. ment of all standing committees. countability of government, we will never Such a separate investigating committee, reverse the loss of confidence which the polls indeed, was pr9posed by former Rep. Florence are now reflecting." WE'RE GOING FOR COMPANIES DwYer of New Jersey on the basis of her ob­ In a similar vein, Democratic Rep. John H. THROATS servations of the conduct of the Government Dent of Pennsy:lvania, Chairman of the Elec­ Operations Committee, of which she was tions Subcommittee of the Committee on ranking minority member, in its investigation House Administration, said during a hearing HON. EARL F. LANDGREBE of the Billie Sol Estes scandal. Largely re­ on campaign abuses, "We can raise money. OF INDIANA sponsible for prodding the committee into If we were in power we would have had the undertaking the probe, Mrs. Dwyer was never W·atergate, what the hell?" IN THE HOUSE OF REPRESENTATIVES satisfied that the investigation, albeit a pro­ With characteristic candor, Chairman Dent Wednesday, March 6, 1974 tracted one, was pursued with sufficient vigor. continued: "I do not think we would have Here was an instance of a majority party had it that bad, ·but we would have had Mr. LANDGREBE. Mr. Speaker, last in the Congress investigating an adm~nistra­ something. Sure, a party in power can raise November 30 I introduced a bill to repeal tion of the same party. an unlimited amount of money, that has the Consumer Product Safety Act of 1972, .

March 6, 1914 EXTENSIONS OF REMARKS 5607 H.R. 11717. On December 5 I inserted notified. Both companies immediately stated profit margin. They just might decide that it remarks in the RECORD detailing my rea­ that they would voluntarily comply with the isn't worth staying in business." sons for offering such a bill. Since that Commission's order and withdraw the sprays. But the Commission's viewpoint is suc­ "We asked that they put the fact that we cintly stated by Commissioner David Pittle: time, four of my good friends and col­ voluntarily complied in their announce­ "When it involves a product that is unsafe, leagues have agreed to cosponsor my bill ment," complains James T. McCrory, director I don't care how much it costs the company to repeal the Consumer Product Safety of government relations for Borden. "But to correct the problem." Act, and it has been reintroduced as H.R. somehow they didn't do it." Pittle, in fact, could have the most infiu­ 12517. I wish to include in the RECORD AWESOME POWERS? ence of all the Commissioners on the CPSC's today an article from Dun's Review, Adding to the Commission's awesome future investigations. As former president of January 1974, which furnishes some powers is the fact that Congress purposely the Alliance for Consumer Protection in Pittsburgh, engineer Pittle had some very more evidence of the threat to a free insulated it from the pressures that have tamed many a fire-eating regulatory agency pronounced ideas about product safety long society posed by the Consumer Product before he was tapped for the Commission. Safety Commission. The article is en­ in the past. In the first place, its chairman­ unlike the chairman of every other regula­ Under a grant from the National Science titled "We're Going for Companies tory agency-does not serve at the pleasure Foundation, he spent a year in the labora­ Throats," a statement made by a mem­ tory examining the safety characteristics of of the President. Once appointed, he cannot some sixty products, including drills, ovens, ber of the Consumer Product Safety be removed until his term has expired. Sec­ Commission, R. David Pittle. The title ond, under its strict conflict-of-interest stric­ irons and bottles. "It convinced me," admits captures the essence of the Commission's tures, no Commission employee at a policy­ Pittle, "that the companies that designed making level can accept a job with a com­ these products gave very little thought to powers and attitude, and unmistakably the safety aspects. This experience gives me illustrates the arrogance of this Commis­ pany that has a matter before the Commis­ sion for at least one year after he leaves the a lot to draw on when we get complaints sion and its hatred of free enterprise. CPSC. about these products." The article follows: Third, and most important, the CPSC WATCH OUT FOR SIMPSON WE'RE GOING FOR COMPANIES THROATS budget is specifically exempted from the con­ Nor, despite his business background, Once in a generation, it seems, the United trol of the White House's Office of Manage­ should the views of Chairman Richard Simp­ States Congress enacts sweeping legislation ment and Budget. Congress has the overrid­ son give much c01nfort to businessmen. The that creates a whole new ball game for busi­ ing say in its budget. "Business can't look to White House tapped Simpson, a self-made ness. In 1890, it was the Sherman Antitrust the White House for help against the Com­ millionaire engineer, for the chairmanship Act; in 1914, the Federal Trade Commission mission," points out a top Washington lobby­ after several other businessmen had turned Act; and in 1933, the Securities Act. And last ist, "because it isn't in any position to give the job down because of strictures prohibit­ year, with very little fanfare, Congress cre­ us any." ing employment with companies that might ated the Consumer Product Safety Commis­ Unfettered by the traditional constraints have to come before the Commission. Given sion-the most powerful business regulatory of the OMB, the Commission, plans to ask the CPSC's sweeping mandate, that could agency in the nation's history. Congress for a whopping 40 % hike in its conceivably include every major company in From bicycles and bowling equipment to budget for the next fiscal year. And given the the country. The well-heeled Simpson, who electric appliances and elevators, the five­ political popularity of consumer safety, it is had sold his business, was in the enviable member CPSC has virtual life-and-death almost certain to get everything it wants. position of not having to worry about future power over practically every major company "No Congressman wants to be put in the employment. in the nation. It can not only issue a ukase position of being against consumer safety," When he was first appointed, Simpson ap­ banning a product without even a court hear­ argues David Swit, publisher of Product peared to be the kind of chairman whom ing, but executives of companies that violate Safety Letter, a Washington-based newsletter business could work with. A registered Re­ its statute can actually be sent to jail for a for executives, "so I am sure the Commission publican, the mild-mannered engineer was year. "If a company violates our statute," will get every dollar it asks for.'' immediately hailed by business groups as a CPSC Chairman Richard Simpson told Next year, another provision of · the law man who would use discretion in wielding DuN's, "we will not concern ourselves with its will go into effect that could spell even more the new agency's awesome powers. But they middle-level executives; we will put the chief trouble for business. Right now, individual were wrong. Once he took office, he immedi­ executive officer in jail. Once we do put a top consumers are permitted to petition the ately began to wield the big stick Congress executive behind bars, I am sure that we will Commission to bar allegedly unsafe products had deliberately put into the Commission's get a much higher degree of compliance from the marketplace; the CPSC then has hands. Businessmen, long used to coming from other companies." 120 days to either grant or deny the petition. into a federal regulatory agancy and working The threat of such a jail sentence was But next year, if the petitioner does not like out a compromise, quickly got the message en.ough to spoil the Thanksgiving dinner of the ruling he can appeal it to the federal that the Consumer Product Safety Commis­ Chairman Charles Bluhdorn of Gulf & West­ courts. "In the end," points out Thomas sion was giving no quarter. With one eye on ern Industries. Last fall, the Commission Green, minority counsel to the House Sub­ the consumer groups that have been calling learned that G&W's Consolidated Cigar sub­ committee on Commerce and Fina.nee, "this for more business scalps, Simpson has re­ sidiary had received many complaints about could be the most important provision in the peatedly declared that the Commission will the hazardous nature of its butane lighters. law. For even if a company has done nothing rebuff any pressures from business. "Unlike But Consolidated failed either to correct- the wrong, the publicity attached to such a suit some agencies around Washington," he says, defect or notify the Commission as required could be very harmful." "this one will never become the captive of by law. Under his policy of going right to the Right now, the basic thrust of the Com­ the industries it regulates. There will be no top, just before Thanksgiving Simpson sent mission's investigations stems from its Na­ deals with businessmen," insists Simpson. a letter to Bluhdorn informing him of the tional Electronic Injury Surveillance System "We especially don't want to hear from the criminal penalties he could be subject to (NEISS). Under this computerized system, guy who comes in here and sayc 'I promise for not complying with the law. "That letter 119 hospitals in thirty states report to the not to produce any more of this if you let worked wonders with Bluhdorn," laughs Commission the causes of injuries sustained me get rid of my inventory.' Furthermore," CPSC Commissioner Lawrence Kushner, "but by patients who have been treated in the pre­ he warns, "all meetings are on the record." we are far from through with Gulf & vious 24 hours. Using the frequency of in­ After naming Simpson chairman, the Western." juries under the NEISS system as a basis, President selected three other Commission Just a sampler of other major companies the Commission recently published a "prior­ members: Barbara Franklin, a White House that have felt the whiplash of the new Com­ ity list" of products that it is going to in­ personnel recruiter whose task had been to mission since it set up shop last May: Ad­ vestigate. Among the targets: bicycles, stairs, bring more women into government; Con­ miral, RCA, Zenith and Philco-Ford, whose doors, cleaning compounds and lawnmowers. stance Newman, a lawyer who had worked in color television sets were deemed fire haz­ "They are hitting everything that is pro­ various anti-poverty agencies; and Lawrence ards; Tappan Co., whose ovens were found to duced in this economy," angrily snaps Rob­ Kushner, a chemtst who had spent 24 years leak gas; and Minnesota Mining and Manu­ ert Buehler, director of government relations with the National Bureau of Standards. "The facturing and Borden, which saw their ad­ for B.F. Goodrich Co. "Why, they could even trouble with this crew," complains the Wash­ hesive sprays suddenly banned on the come to the conclusion that toothpicks are a ington director of a major trade association, grounds that they caused genetic defects. hazard." "is that they have had very little experience "Anytime consumer safety is threatened," For the hundreds of companies that manu­ with the business system. Consequently, they insists Commissioner David Pittle, "we're facture these products, the key question, of couldn't po5sibly understand the problems going to go for the company's throat." course, is how much it will cost to correct of businessmen who come before them." Executives of 3M and Borden are particu­ the problem the Commission might be carp­ At that point, there was still one vacancy larly irate at what they consider the high­ ing a.bout. "Take our guys who make $50 on the Commission. Under heavy pressure handed manner in which the ban on ad­ mowers," argues Dennis Dix, executive di­ from consumer groups and Congress to name hesives was announced. Top executives of rector of the Outdoor Power Equipment In­ a person identified with the consumer move­ both companies were notified around 2 a.m. stitute, a trade association representing some ment, the White House at first simply dug in on a Saturday morning that the ban was in seventy manufacturers. "If they have to add its heels and did nothing. Ultimately, though, effect and that the wire services were baing $10 in costs to pay for safety, that is their the Administration was forced to bow to the CXX--354-Pa.rt 4 5608 EXTENSIONS OF REMARKS March 6, 1974 pressure. The deciding factor was the Senate's ENERGY ACCOUNTING INVESTIGA­ within the same industry? "Helping with rejection la.st summer of the President's nom­ TIONS ACT OF 1974 problems" implies the application of ination of Robert H. Morris to the Federal know··how required in one concern and Power Commission. Washington's powerhouse transmitting it to another. Sena.tor Warren Magnuson, who led the on­ HON. OGDEN R. REID slaught, argued that Morris was too closely Mr. Speaker, where is the fine line to identlfl.ed with the oil industry and that more OF NEW YORK be drawn between an innocent profes­ representatives of consumer groups should IN THE HOUSE OF REPRESENTATIVES sional service and an anticompetitive be named to the regulatory commissions. Wednesday, March 6, 1974 practice? The White House, which foresaw its future Why the concentration of services nominees to the regulatory commissions suf­ Mr. REID. Mr. Speaker, today I have among only seven firms? There are at fering the same fate, indicated to Magnuson introduced the Energy Accounting In­ least eight others of second-echelon size that it would be receptive to any suggestion vestigations Act of 1974. It is, as I see it, and equal quality who, if permitted to he might have for the fifth spot on the one small step towards the goal of a free CPSC. It was Pittle. The White House quickly serve the oil companies, would open up accepted the Carnegie-Mellon University pro­ enterprise and free market economy the area of competitive practice. fessor, and the nomination breezed through which functions fairly and efficiently My bill is designed to investigate the the Senate. with a minimum of Government inter­ possibility of these and similar abuses. The impetus to create the CPSC was the ference. It calls for a Federal Trade Commission report of the National Commission on Prod­ The pattern of accounting services for investigation into the situation. Follow­ uct Safety, appointed by President Lyndon the oil industry is concentrated in little ing this investigation, the FTC is directed Johnson just before he left office, that U.S. more than a handful of firms. Seven of citizens suffered some 20 m1llion injuries an­ to take the necessary stepg to remove nually because of unsafe products. Goaded them audit the books of the 29 largest barriers to competition in the accounting by the report and heavy pressure from Ralph oil companies in the United States, as industry's relations with the energy in­ Nader and other consumer advocates, the well as scores of so-called oil banks, oil dustries. In addition, the FTC is ordered drive for an independent consumer safety affiliates, and oil company employee ben­ to .promote fair and ethical standards in agency was spearheaded in the Senate by efit funds. A number of recent studies those relationships. Magnuson and in the House by California's have outlined the abuses of antitrust pol­ The measure requires integrated major John Moss. The Administration, acutely icy by the major oil companies. The aware of what such an independent commis­ oil companies to report annually on the sion could do to business, attempted to block studies also noted the failures of recent accounting methods they use for each it by calling for an agency within the De­ administrations in curbing the anticom­ and any of their four levels of operation, partment of Health, Education and Welfare. petitive practices which predominate the those being production, refining, trans­ Such an agency, of course, would have been oil companies' dealings with one another portation, and marketing. under the direct control of the White House. and with other industries. The whole concept of concentration of But the strategy backfired. Incensed by the One of those is the accounting indus­ accounting services within the oil indus­ White House's attempt to control the pro­ try. There are undeniable .advantages in try is a neglected area of investigation. posed commission, Magnuson and Moss wrote the concentration of services provided by provisions into the statute tha.t crea.ted the The normal rules against concentration most independent agency in the history of a few accounting firms. An industry ex­ would seem to be applicable in this polite the United States government. Perha.ps re­ pertise is developed which can be car­ society of mammoth accounting firms calling the White House's removal last year ried over and applied within the indus­ and mammoth oil establishments. of Miles Kirkpatrick, the hard-driving Chair­ try to individual firms. There can be a man of the Federal Tra.de Commission, the uniformity of approach in which "like bill's framers were particularly insistent that things look alike." This standardization the CPSC chairman should not be subject provides a floor of understanding which SOUTHERN NEW JERSEY IS DOING to dismissal by the White House. is of considerable value to analysts ITS PART TO CONSERVE ENERGY CAUGHT NAPPING? watching the petroleum industry. G1ven the revolutionary powers granted Nevertheless, Mr. Speaker, uniformity the new commission, it is surprising that the of action and approach promotes habits HON. CHARLES W. SANDMAN law passed with such llttle fanfare. Appar­ and practices which have historically al­ ently, the Washington representatives of the OF NEW JERSEY ways worked to the disadvantage of the IN THE HOUSE OF REPRESENTATIVES major corporations and trade associations general and investing public. Many of either did not realize the law's potential or Wednesday, March 6, 1974 somehow thought it did not have a chance. these practices fall into the gray area of Says Oommissioner Kushner: "My guess is business morality. Mr. SANDMAN. Mr. Speaker, I want to that many business groups failed to attack Servicing several oil clients may, I be­ take a moment to report that the peo­ the bill because they felt that in the end it lieve, cast an accountant's approach into ple of the Second Congressional District wouldn't be passed." a rigid mold with consequent fear of in­ in New Jersey are doing what I consider Once the blll was passed, the President was novation or independence in auditing besieged by business groups, finally waking to be an excellent job of conserving pre­ up to what was happening, to veto the bill. concepts. The history of the accounting cious oil during the current energy crisis. And OMB Director Roy Ash, irate at the up­ industry reveals that it required the Reports I have received from Atlantic, start agency's freedom from traditional courts to dislodge them from the concept Cape May, Cumberland, Salem, and por­ OMB control, tried to convince the President of "generally accepted accounting prin­ tions of Ocean and Burlington Counties that this was a dangerous precedent. ciples" to one in which their primary which I represent in Congress are most Unfortunately for business, the blll hit the duty was interpreted to "present fairly" encouraging. President's desk only two weeks before the the conditions of the firms they audit. With respect to use of the automobile, Presidential election, and he signed it. "No The question of ethics in accounting which is the largest single guzzler of pe­ po11tically minded President," argues Mal­ principles is also at stake when four oil troleum products, my information is that colm Jensen, executive director of the Can companies over a 9-year period were each my constituents have cut their gasoline Manufacturers Institute, "could veto a blll able to increase their assets twice as fast use by a least 15 percent. Needless to say, with the words 'consumer' and 'safety' in its as their retained earnings. Three of the it has been difficult and has involved title that close to a.n election." four were audited by the same firm. some sacrifices. But the people of south­ The creation of the Consumer Product Servicing a number of firms in the ern New Jersey are a sturdy, determined Safety Commission should be an object les­ same industry, in my opinion, places the group of individuals who have always son in elementary civics for every business­ man. For while it ls doubtful that the meas­ account in the role of management con­ been willing to do their share. ure could have been blocked entirely, many duit from which there could follow a par­ With respect to electricity, my entire of its landmark provisions might well have allelism of action and approach. Ac­ congressional district is fortunate to be been watered. down. "That Commission," countants can be conduits for financing served by a public spirited utility that has points out Mississippi's Democratic Con­ practices. In a discussion of top manage­ always been in the forefront of develop­ gressman Jamie L. Whitten, "has more power ment, how far removed would it be for ments to meet the needs of its customers than a good man would want or a bad man the conversation to tum to other strate­ while at the same time serving the best should have." gies that are practiced by companies interests of the country's economy and March 6, 1974 EXTENSIONS OF REMARKS 5609 environment. That utility is the Atlantic tion continues until March 5, 1975, and CASE FOR A FEDERAL OIL AND GAS City Electric Co. will feature programs conducted by in­ CORPORATION-NO. 6 THE NATION'S FmST dividual departments, special seminars, All of Atlantic City Electric's wholly art exhibitions, plays, and concerts. owned generating stations were designed Macalester College has always played HON. MICHAEL HARRINGTON as coal-firing units. With the growing a unique and impartant role in Twin OF 114ASSACHUSE'ITS environmental awareness of recent years, Cities' cultural and academic life. As an IN THE HOUSE OF REPRESENTATIVES area resident I am grateful for the op­ four of the nine units were converted to Wednesday, March 6, 1974 low-sulfur oll during 1970 through 1972. portunity to participate in the special In fact, one of the Atlantic City Electric centennial activities, and all of us in the Mr. HARRINGTON. Mr. Speaker, an generating units was the first in the en­ Twin Cities wish to extend our congratu­ article appeared in the March 2 issue of tire Nation to convert to low-sulfur lations to the college for its 100 years of the Lawrence Mass. Eagle Tribune which crude oll in order to meet the growing fine service to students and community. pointed out a few of the consequences concern for improvements of air quality. the environment may suffer as a result When the present oil shortage ap­ of our inadequate attempts to alleviate proached, once again Atlantic City Elec­ the energy shortage. tric was the first utility in the Nation to "PRIDE IN AMERICA" For example, many have suggested that convert back to burning coal. Both firsts a possible measure to ease the shortage occurred at the B. L. England generating would be to allow power plants, which station at Beesley's Point. HON. ANGELO D. RONCALLO are now using oil and gas as their main I am very proud of this company's fuel sources, to convert to coal. The OF NEW YORK American Public Health Association es­ quick reaction to the changing priorities IN THE HOUSE OF REPRESENTATIVES of our economy. timated that if 60 percent of the power­ Presently, approximately 80 percent of Wednesday, March 6, 1974 plants presently in operation converted the electric energy now serving my con­ Mr. RONCALLO of New York. Mr. to coal, a direct result would be 91,000 gressional district is being produced from Speaker, today's climate is, indeed, a additional attacks of respiratory disease, coal-burning generating units operated trying one for all Americans. While it is and 3,800 deaths from these diseases. by Atlantic City Electric Co. true that we have problems for which Mr. Speaker, we must not allow the en­ One impartant result of this change­ there are no hard and fast solutions, I vironment and the American people to over, of course, is that large quantities have strong faith in the pioneering spirit suffer because of hasty decisions made of crude oil that had been diverted to and gutsiness of the American people during a time of crisis. We must take de­ feed electric generating units can now and am confident that we shall pull out cisive action to alleviate this shortage, be refined into gasoline and other petro­ of our present situation as we have but the important priority of observing leum products. others in the past. strict environmental standards must not The transition has not been without I know, and I am sure many of you be relegated to any lesser place of impor­ problems, as can be imagined considering share my belief, that America is the tance. the magnitude of the energy needs of greatest country in the world. In spite To provide increased supplies of oil and southern New Jersey. of this, we at times seem determined to gas to the American consumer, I have in­ For instance, Atlantic City Electric wear a hair shirt and to throw in the troduced legislation to set up a Federal purchased coal 10 years ago at an average dust what other nations would be proud Oil and Gas Corporation. In addition, as price of $17 per ton. Today, the company to acclaim. I explained in my extension of remarks is lucky to be able to get some tonnage Along this line, I want to share with in the CONGRESSIONAL RECORD on Febru­ at $27. Even so, the quality of much of my colleagues the resolution recently re­ ary 28, this bill provides that all produc­ the coal being produced today is so poor ceived in my office, "Pride in America," tion methods and facilities must be op­ that the B. L. England and Deepwater as adopted by the U.S. Jaycees. I heartily erated and constructed in strict accord­ stations cannot be operated at full ca­ endorse their statement of positive in­ ance with the National Environmental pacity when using it. dividual participation in this cause: Policy Act of 1969 and that all directors And finally, there is the apparent im­ of the Corporation's board must exhibit RESOLUTION-"PRmE IN AMERICA" a "demonstrable belief in environment passe between the needs for coal as a It ls becoming increasingly difficult to ap­ source of energy on the one hand and the preciate that our country offers more oppor­ protection." Thus, the Corporations' need for air quality standards on the tunity than any nation in the world ••. high environmental standards would pro­ other hand. With the shortage of low­ because vide a model for the rest of the industry. sulfur oil at the present time, it is im­ Today this country's detractors show little As we all realize, it is imperative that possible to have the best of both worlds. regard for our institutions. we employ measures to end the energy The public will be the final arbitrator Most Americans have strong convtctions shortage and insure that future short­ of that. I retain confidence that Atlantic in these institutions that are the corner­ ages will be avoided. But this must be stones of our great country: done with due concern for the environ­ City Electric Co. will be able to continue Faith in God, brotherhood of man, free en­ to react promptly in the best interests of terprise, government by the people, indlvtd­ ment. I believe the Oil and Gas Corpora- the country and its customers. uallsm, and service to humanity. . tion would help us strike the desired bal­ Constantly it is repeated that Americans ance between our energy and environ­ no longer enjoy indlvtdual expression. mental goals. The United States Jaycees know better be­ At this point, Mr. Speaker, I insert cause of their aftlliations in 6,700 communi­ the Lawrence Eagle-Tribune article of MACALESTER COLLEGE CELE­ ties throughout this great country. March 2, 1974, in the RECORD: BRATES CENTENNIAL History has proven that the American peo­ ple can unite when threatened! Once aga.ln ENvmoNMENT To SUFFER MosT we are threatened but not by outside forces. (By Michael J. Conlon) Our new threat ls one of self-doubt rein­ WASHINGTON.-The energy crisis has al­ HON. DONALD M. FRASER forced dally by the repetition of negative ready altered llfe styles and shaken consumer OF MINNESOTA examples. complacency, but its biggest long-range im­ IN THE HOUSE OP REPRESENTATIVES The United States Jaycees are tired of pact may be on the environment. those who dally condemn our society as It is to soon to say whether the result will Wednesday, March 6, 1974 deteriorating! be more bad than good, although some en­ Mr. FRASER. Mr. Speaker, Macalester The time ls now for the sleeping giant of vtronmentallsts are already talking about the public "Pride" and posltlve lndlvtdual par­ end of thls automobile-dominated soolety College, a small, liberal arts college 1n St. ticipation to awaken. and hoping for an era in which h1k1ng will Paul, Minn., celebrated the lOOth anni­ Unite with the United States Jaycees in rival highway building as a national priority. versary of the granting of its charter rekindling our "Pride In Amertca"-the key In the meantime there are some immediate March 5, 1974, with a special convocation isyoul consequences of the energy Situation which and reception. The centennial celebra- Adopted: February 16, 1974. by themselves are not good. The most obvl- 5610 EXTENSIONS OF REMARKS March 6, 1914 ous of these is that the air, in a few sections recently observed its third anniversary If New York taxpayers have to. pay for of the country in particular, is on the way and I believe that the publisher of this their own welfare population, we may be toward getting dirtier. paper deserves special plaudits for what certain the situation will be corrected in a Specifically: hurry. In January there were more than 550 re­ she has meant to the people of her area. quests to state environmental agencies from The paper is the North Myrtle Beach industries wanting to burn dirtier fuel than Times of North Myrtle Beach, S.C., a the 1970 Clean Air Act allows. These requests, weekly publication, and I would like to NATIONAL ELDERLY AND HANDI­ if approved at the state level, will be sent to salute Ms. Polly Lowman for the accom­ CAPPED HOUSING LOAN FUND Washington. The requests are almost exclu­ plishments of her paper and for her sively from industries on the East Coast-250 many personal contributions to the area of them in Massachusetts alone-and most her paper serves. involved permission to burn industrial fuel HON. LINDY BOGGS oil with sulfur content higher than health OF LOUISIANA limits permit. IN THE HOUSE OF REPRESENTATIVES The Environmental Protection Agency FAMILY ASSISTANCE PLAN WOULD (EPA), as of January had approved five of the WORSEN WELFARE MESS Wednesday, March 6, 1974 requests which had been passed up from the Mrs. BOGGS. ,Mr. Speaker, today I states. Two are in New York, two in Massa­ have introduced H.R. 13301, a bill to chusetts and one in New Jersey. The air in HON. JOHN M. ASHBROOK establish a trust fund in the Treasury those states and some others will not be as OF OHIO clean. Last winter the EPA approved seven of the United States to be known as the such requests. IN rHE HOUSE OF REPRESENTATIVES National Elderly and Handicapped There is a strong move underway to let Wednesday, March 6, 1974 Housing Loan Fund, and for other automobile makers delay exhaust control de­ purposes. Mr. ~HBROOK. Mr. . Speaker, in the vices scheduled for new cars over the next For several years Federal Govern­ few years, because antipollution modifica­ January 25 issue of the CONGRESSIONAL tions on cars turned out in the last few years RECORD, I stated that it would be a seri­ ment programs have pursued a policy of have cut gas mileage. President Nixon wants ous mistake for President Nixon to res­ enticing private interests to work hand the standards that will be applied to '75 urrect his radical and thoroughly dis­ in hand with public agencies for the model cars-those appearing in the show­ credited family assistance plan. common good of all. This is true par­ rooms next fall-to be extended to the '76 This guaranteed annual income meas­ ticularly in the area of housing con­ and '77 model years as well, instead of the ure would lead to a substantial increase struction for low- and moderate-income tougher standards the law currently requires. families and for the indigent elderly. It A thriving business has developed in some in welfare coverage and welfare benefits. parts of the country by garages that remove As an editorial in the January 25 issue also has been true in the field of nurs­ pollution control devices from cars and there­ of the Arizona Republic warns, Nixon's ing home construction. by improve gas mileage. The EPA admits it revived family assistance plan, "should Across the Nation the call was can be done by highly trained experts, but cause American taxpayers to reach pro­ answered as churches and other chari­ doubts the average shop would know enough tectively for their wallets." table organizations rose to witness their to measurably affect fuel economy. It is Following is the text of the Arizona concern for the needs of their fell ow illegal for a dealer to dismantle the devices man. Nonprofit housing corporations but legal for anyone else. editorial: Congress came very close to passing late Reports that the Nixon administration is sprang up and, with the assistance of last year, and is still considering, legislation prepared to have another go at 'welfare re­ direct grants and long-term, low-interest that would lift air pollution requirements form' with a third revision of the family as­ loans from the Federal Government, through 1979 for power plants that switch sistance plan should cause American tax­ hundreds of thousands of units for low­ back to coal. Some environmentalists fear payers to reach protectively for their wallets. and middle-income families and elderly that millions of tons of high sulfur coal, now Every suggested 'reform' which has come soon got underway. In my own District, a glut on the market because it is too dirty down the pike in recent years, including the the Roman Catholic Archdiocese of New to burn, will be fed into furnaces in the East original version of FAP, would make the wel­ Orleans and the Greater N.O. Fede!·a­ during the next few years if that proposal fare mess considerably worse than it already became law. is. The common feature of these proposals tion of Churches has been especially After months of work the EPA completely is to expand the coverage of welfare in some active in the field. Through swift action scrapped proposals to tax automobile com­ fashion and to increase the scope of federal and the appropriation of seed money of muters in Boston, Newark, N.J., Washington, participation. its own, the Archdiocese in just a few D.C., and parts of California in order to dis­ And these are precisely the ingredients years has utilized governmental pro­ courage driving and help clean up the air. which created the problem in the first place. grams to construct 637 townhouses and The commuter taxes were an indirect casualty By the most liberal official estimates, the apartments at a total cost of approxi­ of the energy crisis because legislation to number of poor people in this country de­ outlaw them had been proposed as a part, clined from about 40 million in 1960 to ap­ mately $11,000,000. Nearly two-thirds though an extraneous one, of energy emer­ proximately 25 million in 1970. Yet in the of these units have been for elderly gency legislation. same span the number of people on welfare citizens, 62 years of age and over. The The EPA contends it is almost impossible doubled-from 7 million to 14 million. Archdiocese also has made its building to know how much dirtier the air is now than TJ;;tis development is treated in most of plans and administrative techniques it would have been without the energy crisis, the welfare literature as an inscrutable mys­ available to other non-profit groups but officials have no doubt there are changes tery, but there is really nothing mysterious which expressed interest in entering the occurring. about it. The simple truth of the matter is that welfare benefits have been raised to · field. The Greater New Orleans Federa­ such a level that for many people it is more tion of Churches in New Orleans now has NORTH MYRTLE BEACH TIMES rewarding to go on welfare than to work. its own housing corporation. Other The point is made by Henry J. Aaron in a groups also have been incorporated. It study for the Brookings Institution. Aaron appeared-until recently-that the be­ HON. EDWARD YOUNG shows that the interlock of public assistance, ginning of a significant movement to food stamps, Medicaid, and subsidized hous­ OF SOUTH CAROLINA relieve a critical shortage of decent ing provides an array of benefits that would IN THE HOUSE OF REPRESENTATIVES be jeopardized by accepting consistently housing was underway. Wednesday, March 6, 1974 gainful employment. But the initiative now has been Indeed, because the money earned by stymied by the freeze of Federal funds Mr. YOUNG of South Carolina. Mr. working would cause a loss of benefits and in the form of grants and loans. The very Speaker, in the Sixth Congressional Dis­ would also be subject to taxes it is possible agency which induced private enterprise trict of South Carolina, we are fortunate to have greater income on welfare than by to become involved has now withdrawn in having a number of newspapers, radio holding down a steady job. the tools with which to work. and television stations who do an out­ Such problems have become acute in lib­ eral jurisdictions where welfare outlays are In my district alone, many charitable standing job of keeping the public in­ especially generous. The problem will be and other private organizations have the formed as to what is happening in gov­ corrected only when the liberal states cut manp'twer and expertise to move for­ ernment, at the National, State, and local back on welfare generosity, and this will be ward with significant building programs level. accomplished only when they bear the full for families and elderly persons. Just this One of the newest of these papers has brunt of their own policies. past year, the New Orleans Archdiocese March 6, 1974 EXTENSIONS OF REMARKS 5611 -embarked on a $4.4 million capital gifts ference on Aging in 1971. But, as it has which previously were made to private program from all segments of the local been observed, this would solve only a groups. community to provide an additional part of the total complex problem. Medi­ Housing experts employed by such 1,042 residential units and nursing home care and medicaid have assisted dramat­ private organizations will not stand idle beds for the elderly. Total cost of the ically in providing health care for the while the Government ponders the fu­ five-part program will run $21,700,000 of elderly, but even such massive programs ture. They will, of necessity, move to which $11,400,000 will be needed in the as these cannot be expected to do the other fields of endeavor and new persons form of low interest, Government loans. whole job. U.S. Government statistics will have to be trained if and when the If the Federal Government does not re­ show that of the 19 million older people Government renews its partnership with instate its policy of low-interest loans nc+t institutionalized, some 20 percent-­ church bodies and private groups to pro-· for such construction, this and other or almost 4 million-were either con­ vide housing for our elderly citizens. programs similar to it across the Nation fined to their houses or needed help to Employment and training of new persons will collapse. get about. Many of these Americans, will cause undue delay in providing qual­ The monumental task of providing more to their own dismay than to any­ ity residential and nursing home facili­ sufficient housing and nursing care fa­ one else's, have become burdens to their ties-facilities which are needed desper­ cilities for the elderly in this country is families and friends. Many also are not ately today. now before us. For more than any other receiving the medical treatment for In urging that we take immediate steps reason this has come about because chronic as well as acute conditions which t~ promote programs which would pro­ Americans are living longer. Improve­ might be considered not only desirable vide new funds for low-interest loans for ments in medical knowledge and tech­ but necessary. Pain and discomfort which residential and nursing homes for the nology, education, nutrition, and sani­ might be at least partially lifted from elderly and for other housing which is tation are obvious factors in extended them become unremitting ordeals and, needed by low-income families, I invite life expectancy. At the beginning of this in a number of cases, contribute to seri­ yow· support of this greatly needed legis­ century only about 3 million Ameri­ ous psychological difficulties. lation. I am grateful to our able colleague can were 65 years of age or older. The The shortage of nursing home beds in the Senate from New Jersey, HARRISON average life expectancy was then 50 nationwide is rapidly becoming acute. WILLIAMS, for the text of this legislation years. By 1940 there were about 9 mil­ Long waiting lists are the rule at most which follows : ' lion elderly citizens in the United States; of the better residences which provide H.R. 13301 in 1950, 12 million and in 1960, 16 mil­ care for the elderly. It also can be argued A bill to establish a trust fund in the Treas­ lion. Today there are more than 200 mil­ that if there were more and better insti­ ury of the United States to be known as lion Americans-some 10 percent of the tutions, the numb-er of applications would the National Elderly and Handicapped total population-who are 65 or older. be considerably greater. The stigma at­ Housing Loan Fund, and for other purposes The average life expectancy has sur­ tached to "old folks homes"-which in Be it enac_ted by the Senate and House of passed 70 years and is heading steadily some cases have been nothing more than Representatives of the United States of toward 80. It is predicted that by the that, with no provision for comprehen­ America in Congress assembled, end of this century, when all surviving sive care--has not yet been eradicated. ELDERLY HOUSING AUTHORIZATION Americans now 39 or older will be 65 But more and more, the efficiently, pro­ SECTION 1. Section 202(a) (4) of the Hous­ years or above, there will b-e 30 million fessionally operated, modern residential ing Act of 1959 is amended by striking out elderly persons in the United States. and nursing homes -are providing the the first sentence thereof and inserting the Lack of money is a painful parallel following: "There is authorized to be appro­ elderly with the services they require priated for the purposes of this section not problem for many people struggling for spending their last years with mini­ to exceed $51,500,000.00." under an accumulation of years. In Jan­ mal pain and worry. ELDERLY AND HANDICAPPED HOUSING LOAN FUND uary of 1973, the Special Committee on :i;n Louisiana, for example, between SEc. 2. Section 202 of the Housing Act of Aging of the U.S. Senate disclosed that 1962 and 1966, the number of homes of­ 1959 is amended by adding at the end thereof about 3.1 million elderly Americans--one fering skilled and immediate nursing the following: in six of those 65 and older-were living care increased significantly. But since "(f) (1) There is established in the Treas­ below the Government-defined poverty that time there has been a distinct level­ ury of the United States a trust fund to be line-$2,100 per year for an individual ing off. During 1972 and 1973 in New Or­ known as the National Elderly and Handi­ and $2 ,640 for a couple. An additional 2 leans alone, several financially pressed capped Housing Loan Fund (hereinafter in million, it was estimated, also would b-e institutions found it impossible to meet this subsection referred to as the "fund"). in that category if the families with The fund shall consist of- U.S. Department of Health, Education, "(A) amounts repaid by borrowers as prin­ which they lived were not above the pov­ and Welfare standards to continue to cipal and interest on loans from the fund· erty line. This is true despite an increase qualify as nursing homes. Since New Or­ "(B) proceeds credited to the fund unde~ of 52 percent in social security payments leans has only one-half the statewide paragraph (3); since 1969. Their ability to earn money average of n w·sing home beds per aged "(C) appropriations to the fund under completely or substantially gone, their person, attempts were made to relocate paragraph (4); fixed, ongoing income ravaged by infla­ these residents in homes in other parts "(D) all amounts repaid by borrowers as tion, their modest savings necessarily al­ of the State. These attempts were less principal and interest on loans from the re­ volving fund established under subsection located only to the most essential needs, than successful because of overcrowding (a) (4); and millions of elderly persons find them­ and long waiting lists at other home;; in "(E) any amounts contained in the re­ selves in grave financial situations which Louisiana. volving fund established under subsection social security and governmental welfare The need is great not only in my dis­ (a) (4) which are not committed on the date and medical care payments only partially trict but in every section of our State and of enactment of this subsection; and alleviate. our Nation. Private organizations stand "(F) receipts from any other source. A report of The National Council on ready to continue their partnership with All receipts, funds, or other assets and all Aging, Inc. says: the Federal Government in an area of liabilities of the revolving fund established under subsection (a) (4) (including liabili­ It is not surprising, that the aged mem­ social concern which is growing more ttes arising under loans made under such bers of our society demonstrate a greater in­ desperate every day. Unless we reinstate subsection) shall become and be assets and dividuality and heterogeneity than any other and expand our programs to make avail­ liabilities of the fund established pursuant population group. They have all accumulated able to private enterprise the funds they to this subsection, as if such assets and lia­ numerous, diverse experiences in the course need to construct residential and nursing bilities had been received or incurred pur­ of their long lifetimes. They have all spent care facilities for the aged, the Govern­ suant to this subsection, and shall be paid many years forming their own distinct life­ ment will be forced to travel the road over, held, and accounted for accordingly. styles and attitudes. Together they span the alone. Should this happen, the Govern­ "(2) Amounts in the fund shall be avail­ full educational and economic spectrum, yet able to the Secretary for the purpose of mak- it is tragic that many of them are poor or ment will be forced to provide not only 1ng loans under this section. The aggregate becoming poor as they grow older. the funds but the manpower to get the loans made under this section in any fiscal job done. Since these projects then would year shall not exceed the limits on such Increasing the income of the elderly become Government-owned and operat­ lending authority established in the annual was among the highest priority of sub­ ed, there would be no return to the Gov­ appropriations Act for such fiscal year. jects discussed at the White House Con- ernment in the form of repaid loans "(3) To carry out the purposes of this 5612 EXTENSIONS OF REMARKS March 6, 1974 subsection, the Secretary ls authorized to self. Believe in your God. Believe in our selves not the last word), for to do so would issue to the Secretary of the Treasury notes country and its system ... the survivor of land you in the marshes of ephemeral philo­ or other obligations in an aggregate amount wars . . . the survivor of assassinations . . . sophical speculation. of not to exceed $---, in such forms and survivor of scandals, survivor of a thousand You also state that "the foreign embassies denominations, bearing such maturities, and crises. in Washington and their governments are subject to such terms and conditions as may The system has not let us down yet. We more concerned a.bout the internal unity of be prescribed by the Secretary of the Treas­ get stronger. We'll celebrate 200 years of America. than about anything else"; but you ury. Such notes or other obligations shall that strength in 1976. provide no documentation for the assertion: bear interest at a rate determined by the an intuitive conclusion perhaps! Secretary of the Treasury, taking into con­ You follow this by saying that "once a sideration the current average market yield President has lost the confidence of the elec­ on outstanding marketable obligations of the torate, resignation ls not a bad but a good United States of comparable maturities dur­ OSCAR STRACKBEIN WARNS OF precedent". I do not know where you find ing the month preceding the issuance of the THE DANGERS INHERENT IN EX­ the precedent since no President of the notes or other obligations. The Secretary of CESSES BY THE NEWS MEDIA United States has resigned. You seem to be the Treasury is authorized and directed to reaching for the parliamentary system of purchase any notes and other obligations is­ England, by mentioning parliamentary de­ sued hereunder and for that purpose he is HON. 0. C. FISHER mocracies. Fortunately or unfortunately we authorized to use as a public debt trans­ OF TEXAS do not have that system. We do have a means action the proceeds from the sale of any IN THE HOUSE OF REPRESENTATIVES of dealing with the question, and that ls im­ securities issued under the Second Liberty peachment; but meantime the case has ln Bond Act, and the purposes for which secur­ Wednesday, March 6, 197 4 effect been tried by a free-wheeling senate ities may be issued under that Act are ex­ committee and by the press and other media. tended to include any purchase of such notes Mr. FISHER. Mr. Speaker, in this day Our capacity at self-government is being and obligations. The Secretary of the Treas­ of emotionalism and lack of restraint badly strained by the untidy approach being ury may at any time sell (l.ny of the notes or on the part of some elements of the news made to a very serious subject. other obligations acquired by him under thiS media, as related to the impeachment Your paragraph about "resignation or dis­ subsection. All redemptions, purchases, and issue, it is imperative that we approach missal" as being something that "happens sales by the Secretary of the Treasury of this matter in a purely unbiased and ob­ in all American institutions or parliamentary such notes or other obligations shall be jective manner. With that in mind I in­ democracy when the chief executive falls" treated as debt transactions of the United clude as a part of my remarks a timely seems out of focus when you appear to States. equate the vacating of the office of the Presi­ "(4) There ls authorized to be appropriated and scholarly letter written by Oscar dency with the dismissal of a football coach, to the fund in each fiscal year a sum equal Strackbein to Mr. James Reston of the among other chief executives. I think you to the difference between the amount of in­ New York Times. Considering the grave are dealing here in different dlmenslons­ terest paid on obligations issued under para­ implications involved in impeachment quite different. I do not think the point graph (3) and the amount of interest paid proceedings directed at any President, needs laboring. on loans made from the fund. Except in the Mr. Strackbein's message should be read There is indeed something at stake in the case of sums appropriated under this sub­ by every Member of the Congress. premises that neither you nor any of the section, the receipts and disbursements of The letter follows: eager columnar denlgraters of Mr. Nixon ap­ the fund shall not be included in the total pear to appreciate, if they are aware of it at of the budget of the United States Govern­ OSCAR ROBERT STRACKBEIN, all. This ls the question of the function of ment and shall be exempt from any limita­ January 7, 1974. the media in society as purveyors of news tion on annual expenditure or net lending. Mr. JAMES RESTON, and opinion. The press, as far as any Consti­ " ( 5) To the maximum extent practicable, Vice President, The New York Times, Wash­ tutional function is concerned has no man­ the Secretary shall use the services and facil­ ington, D .C. date to conduct campaigns that reflect the ities of the private mortgage industry in serv­ DEAR MR. RESTON: Your opinion as ex­ particular political, social or religious philos­ icing mortgage loans made under this sec­ pressed in your column "Mr. Nixon's Last ophy of the owners. tion." 1,000 Days", January 2, 1974, represents a Because of the wholly one-sided concen­ mixture of intuitive appraisal, personal tration of the means and powers of com­ oplnlon, and global as well as speclftc polit­ munication (so far as the private cltizen ls ical interpretation that in turn is based on concerned) in the hands of the press and FAITH IN THE SYSTEM your individual observation of events. Pos­ other media, we have in our midst the com­ sibly a desire to be true to the editorial pol­ ponents of a contest as bitter and far-reach­ icy of the newspaper that employs you, also ing as the contest between the Church and HON. HENRY P. SMITH III played its part. The latter, i.e., the Times' State a few centuries ago, and then the fur­ policy is, and has been irreconcilably anti­ OF NEW YORK ther contest between the monarchs and the Nixon. Your effort to be fair, showing here rights of the people, so clearly deliniated 1n IN THE HOUSE OF REPRESENTATIVES and there, appears to be rooted in rather the writings of Hobbes, Milton and Locke, Wednesday, March 6, 197 4 shallow soil. After all, loyalty to the boss ls and echoed by Thomas Paine and our Decla­ a virtue at times, is it not? ration of Independence. Mr. SMITH of New York. Mr. Speaker, You open the door to Mr. Nixon's exit as if The public today has no desire to fall un­ I am sure all of my colleagues have re­ very little were at stake other than his own der yet another dominance, possibly as bad ceived letters from constituents who say personal humiliation, which you say would as any (because it encompasses the source they just do not believe in our Govern­ "obviously be bad for Mr. Nixon". You say, material necessary to the formulation of "but if he were to go quietly, the Adminis­ judgments on great and vital issues). The ment any more. In the face of this grow­ tration would remain in place", etc. I do not character of the attack on President Nixon ing and tragic trend, I found an edito­ know by what logic you arrive at the con­ provides an example of the potentials of a rial aired last month by WGR-TV and clusion that he would go quietly, even 1f he tyranny that a freedom-loving people cannot Radio in Buffalo very inspirational and I himself did not raise his voice. contemplate without deep misgivings and believe it represents an attitude more of I think there ls much more at stake here profound worry. us should assume. The editorial follows: . than you seem to sense. For one thing The power of the press has on its side a FAITH IN THE SYSTEM neither the partisan nor media opposition weaponry unmatched by anything other than to Mr. Nixon is in a position to catapult a that of the government, should the govern­ In the past few weeks many of us have thousand clean stones into Mr. Nixon's ment seek to use its power; and we do not, become nervous hand-wringers. Common camp. This aspect of the controversy, which I am sure, want to feed a temptation that answers to questions about the times are, is to say the superior moral posture, is prob­ might sprout in the minds of the people in "I just don't know" and "You can't believe ably the most outrageous of all the other reaction to abuse of the privilege of freedom anything anymore." aspects of the campaign in its disregard of of the press. As matters stand today power­ Maybe your faith in individuals has been the fairness doctrine. One does not have to ful media elements seem to be straining to shaken; have faith in the system. To those defend the sins of the Administration to feel generate just such a temptation. Unrestrain who answer "I just don't know" we say you outraged at the absurdly biased character of ed power in the press ls the same in its self­ do know. You know who you are; you know the attack. justlftcation and disregard of legitimate com• who represents and speaks for you in gov­ You say trust is "the first article in the plaint as in any other form of naked power. ernment. Speak to him. You know who the political contract and essential to the moral The idea of popular sovereignty, whTch local leaders are. Speak to them. You know authority of .. the Presidency". I trust that shaped our Constitution, demands that the that our government has suffered through you are not going back to Rousseau, Mon­ people govern themselves through selected crises before; you know we will survive this tesquieu, Locke, and the other pioneers of spokesmen under the restraint of controls one. democratic political· thought, enlightening retained 1n the hands of the people. Such To those who say, "You can't believe any­ as they were (only to be upset by Bentham, sovereignty is not· complete 1f a powerful thing anymore," we say believe first in your- John Stuart Mill, Comte and others, them- source of 1n1luence over the people ts left to March 6, 1974 EXTENSIONS OF REMARKS 5613 its own devices without responsibillty to the that function In an irresponsible role, hav­ TAX ANALYSTS AND ADVOCATES people. When this source of influence lies ing to report nothing of their expenditures CHALLENGES RULING ON THE beyond the need to respond the cause of self­ and answering to no one for their motiva­ ms government is seriously fl.awed. tion, source of income or identification of OIL COMPANIES' USE OF THE FOR­ The present object of powerful elements of their interests. EIGN TAX CREDIT the press and other media, it appears, ts to I have long been a reader of your columns drive the President from office through the and quite surely have profited from them. I hypnotic power of orchestrated chants of trust that you will receive this letter in the HON. CHARLES A. YANIK hate, not all of it without a degree of jus­ spirit ln which it is written, critical, to be OF OHIO tifi.cation. sure, but Without malice. IN THE HOUSE OF REPRESENTATIVES However, should the campaign succeed the Sincerely, Wednesday, March 6, 1974 calamity would surpass by far anything of 0. R. STRACKBEIN. which the President and his Administration Mr. VANIK. Mr. Speaker, the Ways have yet been found guilty. It would be an is act at once destructive of government of the and Means Committee presently con­ people, by the people, for the people, while sidering reforms in the tax treatment of substituting therefor the will of the press LOOKING FOR A SCAPEGOAT oil industry income. At the center of and its allies. Thus would be subverted the these deliberations is the administra­ very integrity of democratic government. The tion's windfall profits tax proposal. De­ way would be opened to conversion of the HON. DALE MILFORD spite all the testimony that we have voice of the people into the voice of the OF TEXAS heard on this legislation, it is clear that press. The danger arises from the explicit and IN THE HOUSE OF REPRESENTATIVES this proposal will do little to correct the implicit intimidatory power inherent 1n the Wednesday, March 6, 1974 tax injustice we now see. very force of publicity or the withholding of The adminltration's tax plan offers it. Not least in this power of intimidation Mr. MILFORD. Mr. Speaker, an edi­ only a weak-kneed approach to a seri­ is the freedom of the media to shape pub­ torial appeared February 24 in three of ous problem. We will not achieve tax licity at will to produce premeditated eff~cts. the papers in my district. · justice if we continue to try to putty over The whole climate so far as public officials, The eloquence of this article in stat­ the gaping loopholes in our tax code elected or appointed, or aspirants to office, ing the need for getting off the "witch including career politicians, are concerned 1s with hastily conceived quick-fix propos­ one that predisposes them to wariness. They hunt" of whom to blame for the present als. The top priority in this reform must proceed under justifi.ed fear of the press and energy crisis, and getting on about the be a thorough examination of our tax will take care not to offend it lest they incur business of correcting the problem is of treatment of the oil companies' foreign its 111-will. such a nature I think my colleagues source income. Under our tax laws as They seek to avoid offending those ele­ should read it. they now stand, we have not only en­ ments of the press which they regard as nec­ The editorial which appeared in the abled the oil companies to eliminate vir­ essary to their success, and therefore bow Sunday papers-Grand Prairie Dally tually any U.S. tax liability on their for­ to the wishoo of those sources of publ1c1ty. Irving They do not Wish above all to lay them­ News, Daily News, and Richardson eign operations, we have also encouraged selves open to the variety of attacks avail­ Daily News-urges a release of the hob­ the continued outfiow of investment dol­ able to the owners of the means of pub­ bles we have had on the petroleum in­ lars from the United States. In 1963 the licity, such as vilification, denigration, con­ dustry. largest oil companies spent over 70 per­ signment to oblivion, preferment of op­ The editorial follows: cent of their exploration expenditures in ponents through various means of favorable LoOKING FOR A SCAPEGOAT the United States. By 1971 they were presentation by contrast, such as relative More than a decade ago, petroleum indus­ spending less than half in this country. prominence and frequency of mention in try leaders began warning of a trend in na­ These investments were geared primarily the news, headline and position in the news­ tional policies and laws, including public paper as means of reflecting favor or dis­ to develop foreign production for foreign utillty-type regulation of natural gas pro­ markets, and they proved to be tremen­ favor; and other well-known devices open ducers, that were certain to bring oil and to biased reporting. natural gas shortages. Their warnings were dously profitable. In the most recent fi­ The same wariness extends to other lead­ disregarded as self-serving. nancial data released by the companies, ers, those in the private world. Otherwtse the Now, in the panic over the energy crisis, the profit bulge for most of the major oil practice of public relations counseling and the hunt 1s on for a scapegoat. The oil in­ companies came in their foreign opera­ press a.gentry would not have blossomed as dustry is blamed for contriving the short­ tions. In short, our tax code has operated they have-all with an eye on media accept­ age, although it has been blocked at every ance and, possibly, manipulation. to stimulate oil company profits at the Leaders of causes, private associations ded­ turn for the past several years in attempts expense of the American consumer and to expand reserves and productive resources. taxpayer. icated to the representation of private inter­ Hundreds of mtles of pipe at such places as ests, be they economic, social, political or re­ Valdez, Alaska has been rusting away for At the heart of the problem is the oil ligious-all take care to trim their sails to years while endless arguments over the en­ companies abuse of the foreign tax credit. the winds of publtcity, concerned to curry vironment raged in Congress and across the The foreign tax credit has been a part of the favor of the media and not to otfend nation. Four years ago. politicians, the en­ our tax laws since 1918. It is designed to them. This represents a highly corruptive vironmentalists and the public were deaf to lnfiuence. provide "tax neutrality" for international As the power of the media grows and ex­ warnings of impending shortages. Even to­ investment considerations by preventing day, the leaders of the witch-hunt for an the double taxation of profits generated pands, the media gain monopolistic power energy scapegoat refuse to face the implaca­ and can come to preside over the destiny of ble facts of life. They have obscured the in one country by a company located in the country and its people. Awareness of basic issues of how to cure the energy short­ a second country. Recently, the Subcom­ this growing and unfenced power is mov­ age in a smoke screen of controversy over mittee on Multinational Corporations of ing rapidly, like a storm-front, into public oil company profits. They talk about putting the Senate Foreign Relations Committee consciousness; and the media would be well government into the oll business. The con­ documented how in the early 1950's the advised to give it heed. The ca.mpaign to fusion they raise tends to camoufiage the drive Mr. Nixon out of office ts the most oil companies, representatives of the eloquent example of journalistic practices truth that, as one energy authority observes, Treasury Department, and the oil-pro­ that are not entitled to the protection of the industry's profits during the past 15 ducing states reached an accommoda- the highly valued protective injunction of years have been insufficient to fill capital . tion in defining oil company payments spending needs. Between 1970 and 1985, the the First Amendment. If it succeeds our de­ to the producing countries for the pur­ mocracy will have suffered an alarming oil industry, it is estimated, must spend an incredible $1.3 trillion to meet projected de­ pose of determining U.S. tax liabilities. defeat. The result: The producing countries in­ Be it noted in these premises that the mand, and a.bout $755 billion of this money expression of opinion ls one thing, an ac­ must come from profits. creased theil;" revenues; the oil companies The atmosphere in which the oil industry decreased their U.S. tax payments; and tivity that should indeed remain free. carry­ is working today ts tragic. Looking for a ing on an orchestrated campaign ls some• the U.S. Treasury was left holding an scapegoat for the petroleum shortage when empty bag. thing else. It represents an illegitimate activ­ all of us have had a hand in creating it ls ity under the umbrella o! the First the ultimate example of a foolish waste of -An excellent review of the issues sur­ Amendment. priceless time. The damage to the nation of rounding the tax credit controvergy is We have political parties, assocla.tions ot public ignorance about one of Am.erlca's contained in a recent petition filed with a variety of interests for that purpose. The great industries could be of critical propor­ the 'Internal Revenue Service by the pub­ media are by way of elbowing their way into tions. lic interest group. Tax Analysts and Ad- 5614 EXTENSIONS OF REMARKS March 6, 1974 vocates. The petition seeks to revoke pre­ eign source income, and since the current Presently, amounts paid by United States vious IRS revenue rulings which defined rulings are patently inconsistent with the oil companies to the principal OPEC nations revelant statutory _ requirements, it is re­ are divided artificially into two categories­ oil company payments to the producing spectfully requested that action on this peti­ a relatively small amount denominated as a countries as eligible for the computation tion be taken on an expedited basis. "royalty" and a larger amount denominated of the foreign tax credit. The text of this as an "income tax." The "royalty" payment is petition follows: I. STATUTORY FRAMEWORK The relevant United States statutory the number of barrels produced during the TA/ A PETITIONS To BAR CREDIT FOR OIL frwmework can be summarized briefly. Sec­ relevant period by a company holding a con­ ROYALTY PAYMENTS tion 901(b) of the Code allows qualifying cession multiplied by a low percentage, gen­ (By Ira L. Tannenbaum) United States taxpayers to claim a foreign erally 12-15 % of the posted price for each Tax Analysts and Advocates February 19 tax credit for "the amount of any income, barrel. The larger part, the "income tax," in petit!oned the Internal Revenue Service to war profits, and excess profits taxes paid or general, is the number of barrels of oil pro­ revoke revenue rulings which permit Ameri- accrued during the taxable year to any duced by a company holding a concession can oil companies to credit against domestic foreign country or to any possession of the multiplied by a per barrel cost equal to a income taxes payments to the major oil ex- United States." 3 A credit against federal fixed percentage (around 55-60% ) of the porting nations. The payments, TA/ A said, income taxes only can be taken for foreign posted price reduced by the per barrel pro­ are in fact royalties and thus not creditable income taxes paid; no credit is allowed for duction costs and the royalty payment. under States law. TA/ A said the IRS also foreign taxes,' excise taxes,5 turnover taxes,e The mechanics of the calculation of the shmHd issue regulations specifically barring or royalties paid to a foreign government. All OPEC government per barrel revenue is il­ a credit for such payments. Following is the such taxes and royalties are treated, when lustrated by the following example based text of the petition and the supporting appropriate, as ordinary business expenses upon the $7.00 "government take" and $11.65 evidence. and therefore can be deducted from gross posted price now in effect for the bench­ This petition is filed pursuant to Reg. Sec. income, rather than result in tax credits mark Persian Gulf crude produced in Saudi 601.601 (c) of the Statement of Procedural which can offset taxable income on a dollar- Arabia-Arabian light 34° API: Rules to revoke: for-dollar basis. Per barrel (1) Rev. Rul. 55-296, 1955-1 Cum. Bull. - Section 903 of the Code provides that Posted.price ______$11,651 386, which allows a foreign tax credit for " ... the term 'income, war profits, and ex­ Royalty ------~---- (1. 46) Saudi Arabian "income taxes" imposed by cess profits taxes' shall include a tax paid Production cost______(0 . 12) the Royal Decrees of November 4 and De- in lieu of a tax on income, war profits or cember 27, 1950; and excess profits otherwise generally imposed by Profit before tax ______10.07 (2) Rev. Rul. 68-552, 1968-2 Cum. Bull. any foreign country or by any possession of Tax at 55 3 ------­ 5.54 306, which allows a foreign tax credit for the United States." Prior to the enactment in Governmeut take (Royalty plus "income taxes" imposed under Article 14(1) 1942 of the predecessor of Section 903, allow­ tax) ______------7. 00 (a) of Libyan Petroleum Law No. 25 of 1955, ance of foreign tax credits generally had been Tax paid cost______as amended through November 20, 1965. restricted to payment of foreign taxes which 7. 12 (D) In addition, all private unpublished rul- closely resembled the United States net in­ ings issued by the Internal Revenue Service come tax law. The legislative history of this The posted price, which in some countries should be revoked which allow foreign tax provision states that it was enacted to make ls called the "tax reference price," is an arbi­ credits for similar purported "income taxes" foreign tax credits available in the very lim­ trary value established by an oil producing imposed by other oil producing countries ited set of circumstances where, " ... a nation for a barrel of this crude oil for the which, in fact, are pure or almost pure per foreign country in imposing income taxa.tion purpose of computing the revenues owed that barrel royalties, and are not bona fide income authorized, for reasons growing out' of the country by the oil companies. For the past taxes.1 administrative difficulties of determining net several years, posted prices have been set This petition is fl.led because, as detailed income or taxable, basis within that country, substantially in excess of the actual market in the following analysis, the current treat- a United States dometsic corporation doing price or market value of the crude oil, there­ ment of the taxes covered by these published business in such country to pay a tax ... by resulting in payments by the oil compa­ and private rulings as creditable taxes is pat- measured, for example, by gross income, gross nies far in excess of 55 % or 60 % of their ac­ ently inconsistent with the explicit relevant sales or a number of units produced within tual net income from the production of the language of the Internal Revenue Code. the country ..." 7 oil on which the payments are made. In place of these published and private II. BACKGROUND Although some minor differences exist in rulings, I urge the Internal Revenue Service According to the opening statement of the methods by which the principal OPEC to issue a regulation under Sections 901 and Senator Frank Church, Chairman of the Sen- nations calculate their "take," the systems 903 of the Internal Revenue Code providing ate Foreign Relations Subcommittee on Mul­ are sufficiently similar for the purpose of that amounts paid to foreign governments tinational Corporations, at the January 30, determining the creditability of the "taxes" which constitute fixed or almost fixed charges 1974 Subcommittee Hearing on Interna.thmal of these countries, as not to require dif­ per barrel of oil produced in these coun- Oil Companies and United States Foreign ferentiation in this petition. tries pursuant to concession agreements, are Policy, the Treasury Department, in the sum­ The following partial text of a December 23 not creditable income taxes for purposes of mer of 1950, at the urging of the Depart­ 1973 OPEC press release clearly shows hoV.: either Section 901 or 903. As a result, credits ment of State, agreed to treat payments de­ currently the Persian Gulf OPEC members would not be available for amounts currently nominated as "income taxes" and made to first determine the precise amount of rev­ paid in the guise of "income taxes to the Middle East oil producing nations by United enues they will receive in "royalties" and principal oil exporting members of the Orga- States oil companies as taxes qualifying fo!: "taxes" under the various concession agree­ nization of Petroleum Exporting Countries the foreign tax credit under Section 90. ments to which they are parties, and then (OPEC), including at least Saudi Arabia, As a result of this decision, a pattern de­ work backward to set the artificial posted Iran, Kuwait, Iraq, Abu Dhabi, Qatar, Ni- veloped pursuant to which the principal oil price which will yield these precise per bar­ geria, Libya and Venezuela. (These nine producing nations in the Middle East, North rel revenues: countries shall be referred to hereafter in Africa and South America promulgated a "Although the findings of the economic this memorandum as "the principal OPEC series of formal income tax statutes which Commission Board as well as direct sales nations.") However, the proposed regulation appeared to impose net income taxes on realized by some of the Member Countries would not deny foreign tax credits for United States companies producing oil in indicate a [current world market] price in amounts paid as bona fide income taxes im- these foreign nations. In 1955 and 1968, the excess of $17 per barrel, the Ministerial Com­ posed on net income derived from foreign Internal Revenue service published rulings mittee decided to set government take of $7 petroleum production, such as those income that the "income taxes" paid respectively to per barrel for the market crude, Arabian taxes presently imposed by Canada and Aus- Saudi Arabia and Libya on oil produ::tion Light 34° API. The relevant posted price for tralia, as well as the tax to be imposed on income, were creditable taxes.8 In additbn, this crude will therefore be $11.651 per bar­ income earned from oil produced in Nor- it is understood that in this post-1950 period, rel. The effective date for this posted price way.2 the IRS has issued numerous private, un- shall be January 1st, 1974 ..." io The tremendous recent increases in the published rulings to U.S. oil companies that The $7.00 rate enunciated in the communi­ posted prices of crude oil will result in un- payments denominated as income taxes made que is only for the benchmark 34 ° API precedented billions of dollars of revenues to the other principal OPEC nations :dso Arabian light crude. Measured from this being paid by U.S. oil companles 'to the prin- were creditable taxes under Section 901. touchstone crude, the OPEC nations have cipal OPEC nations in the guise of "income Whatever the merits and correctness of established various oil fields and countries taxes" over the next few months. Since the these rulings when they first were issued, it in the Persian Gulf. continued creditability of these payments is evident that as important changes have It should be noted that if, in the example will re3ult in the continued total nonpay- occurred in the method of calculating the on the previous page, production company ment of income tax to the United states by "tax" revenues due the principal OPEC na­ after tax profit per barrel of the benchmark the major U.S. oil companies on their for- tions, the nature of the payments has been crude is assumed to be $0.50 (i.e., that each transformed so that presently they clearly barrel of Arabian light crude can be sold for are not creditable taxes under either Section $7.62 without taking shipping costs into Footnotes at end of article. 901 or Section 903 of the Code. account), the producing company would li>e March 6, 1974 EXTENSIONS OF REMARKS 5615 paying Saudi "income taxes" at a rate of a normal royalty from foreign oil companies, NEW FORMULA WILL DEPRIVE over 91 % of its taxable income, i.e., $5.54 and also impose a tax on their net produc­ of tax on $6.04 of pre-tax income ($5.54 plus tion income determined by arm's length NEEDY COMMUNITIES OF MAN­ $0.50). pricing at the same rate as that paid by all POWER MONEY The $7.00 per barrel revenues are collected other corporations on Norwegian source in­ by the Saudi government on a monthly basis. come (50.6%). Petroleum Intelligence Week­ Thus, any expenses which enter into the de­ ly, July 30, 1973, at 4. HON. DAVID R. OBEY ductible production costs also must be cal­ 3 Section 902 enables a domestic corpora­ OF WISCONSIN culated on a monthly basis. Although the tion to take a credit for foreign income taxes IN THE HOUSE OF REPRESENTATIVES Saudi Arabian tax statute applicable to oil paid by its controlled foreign subsidiaries, production income appears to provide numer­ at the time the subsidiaries pay dividends to Wednesday, March 6, 1974 ous deductions from gross income for items the parent corporation. Mr. OBEY. Mr. Speaker, last Decem­ such as capital expenditures and other drill­ "Guantanamo & Western R .R., 31 T.C. 842 ber, the Congress passed the Compre­ ing and exploration costs, the deductions (1959). hensive Employment and Training Act available for production costs apparently are 5 Keasbey & Mattison Co. & Rothensies, 133 so small compared to the total oil company F. 2d 894 (1943), cert. denied., 320 U.S. 739 of 1973. Title I of the act established income calculated on th~ posted price per (1943). manpower revenue sharing and title II barrel basis, that in the recent past, even 6 Eitington-Schild Co., 21BTA1163 (1931); created a public service employrnent pro­ substantial changes in the gross amount of Rev. Rul. 56-635, 1956-2, Cum. Bull. 501. gram-PEP-to assist localities with such deductions would, at a maximum, only 7 S. Rep. No. 1631, 77th Cong., 2d SesS'. 131 high levels of unemployment. alter the deductible per barrel production (1942), 1942-2 Cum. Bull. 504. 602. Because of new methods of determin­ costs by a negligible amount--a few pennies 8 See p. 1 for citations to these rulings. ing allocation of funds now being con­ at most.11 Previously, in 1950, The IRS had published sidered by the Department of Labor, However, the language of the December 23, LT. 4038, 1950-2 Cu. Bull. 54, which per­ 1973 OPEC press release quoted earlier with mitted taxes imposed on oil production in­ much of the money under these pro­ respect to the announced $7.00 per barrel come under Article 31, Chapter XI of the in­ grams may not be distributed in an equi­ Persian Gulf "government take" failed to come tax law of Venezuela to be creditable table fashion and some of the people mention any possibility that these govern­ taxes. However, this ruling was declared who need this assistance the most may ments would accept anything less than $7.00 obsolete by Rev. Rul. 70-243, 1970-1 Cum. be left out altogether. The States of Mas­ per barrel for oil taken under concession Bull. 282. sachusetts, New Jersey, and Wisconsin, agreements. Yet such a result would occur 9 Petroleum Intelligence Weekly, January for instance, will receive dmstic reduc­ if oil company production costs increased 14, 1974, at 6. tions in manpower moneys as a result of after the posted price was set, and such costs 10 Middle East Economic Survey, December were allowed under local OPEC tax law to 28, 1973, at 3a. these new methods, and an community reduce taxable income, and therefore to re­ n See Adelman, M.A., The World Petroleum in the country which has sub ntial sea­ duce government take. Thus, the manda­ Market 210 (1972). sonal employment in tourism Jr agricul­ tory $7.00 per barrel language strongly im­ 12 Petroleum Intelligence Weekly, December ture is likely to receive less money than plies that the principal OPEC nations now 24, 1973, at 1-2. it should. will not allow unforeseen high production The law requires that 37.5 percent of costs to reduce their receipts below the speci­ fied per barrel government revenues. This the manpower training money be allo­ press release very likely may have signaled NO BREADLINES FOR BEAN SOUP cated to States on the basis of their un­ the elimination of the last remnants of the employment rate and that virtually all system which permitted production costs to of the public employment money be allo­ even minimally affect the revenues paid the HON. JOSEPH M. GAYDOS cated to local units of government with principal OPEC nations. In effect, the prin­ OF PENNSYLVANIA unemployment rates of more than 6.5 cipal OPEC nation "income taxes" may have IN THE HOUSE OP REPRESENTATIVES percent on the basis of the estimated changed from almost fixed per barrel charges number of unemployed in such localities. to pure fixed per barrel costs. Wednesday, March 6, 1974 Since October 1973, posted price increases, In short, unemployment estimates are such as the $11.65 price set for Persian Gulf Mr. GAYDOS. Mr. Speaker, it is with important in the allocation of manpower crude after January 1, 1974, have been made heavy heart I inform some of my col­ revenue sharing money and crucial to the unilaterally by the principal OPEC nations leagues that in the near future they may allocation of public employment money. without prior consent of the concession­ be deprived of one of the benefits of These estimates are calculated by the holding western oil companies.12 This cur­ serving in the Congress of the United Bureau of Labor Statistics-BLS--by rent practice of unilateral posted price in­ States. That famous delicacy on the caf­ two ~eparate methods. The first is used creases was preceded by a period in which eteria menu-bean SOUP-may be on its posted prices were determined by protracted to determine the national rate and con­ negotiations between the OPEC nations and way out. sists of a monthly 50,000 household na­ the international oil companies. The Libyan According to a report accredited to tional survey. It is something like a giant negotiations of 1970-71 apparently served as the Bureau of Labor Statistics, beans are Gallup poll. The cost of using surveys in the prototype for other OPEC/ oil company in danger of becoming extinct as a com­ each locality across the country to de­ negotiations during 1970-1973. A recently mon food because of cost. Beans are in termine local unemployment rates has released chronology of these Libyan nego­ the same bag as bread and beef. They been considered prohibitive and in 1960 tiations u indicates that different oil compa­ are endangered by the Nation's present the Bureau of Labor Statistics developed nies holding oil concessions within Libya each engaged in separate negotiations with era of emergencies. a different method of estimating local the Libyan government. As a result of sepa­ BOL notes that in 1 year the price rates by taking the number of people in rate agreements, different concession holders of beans climbed high on the stalk of any given community who are receiving paid taxes at dlfferent raks. For examole, on inflation. A 1-pound bag which sold for unemployment compensation and add­ December 28, 1970, while ttie prevailing rate 25.7 cents on the average in retail stores ing to it various amounts based on a of "tax" paid by oil comoanies in Libya was last year now sells for 57.2 cents. And, complex 70-step formula. The 70 steps 54/ 55 % of the posted price, Aquitaine still the Department of Agriculture expects attempt to estimate the number of work­ was oaying "tax" at a 50 % rate while Occi­ the effect of beans in the Nation's diet ers in a given community who are unem­ dental Petroleum was paying "tax" at 58% . Certainly, imposition of "taxes" at different will worsen before new harvests are ployed but who are not covered by un­ rates on similarly situated taxpayers is incon­ ready. employment compensation. sistent with the application of true national For the first time, the Department has A simplified rule of thumb is that income taxes; it is much more consistent with rejected all offers by vendors to sell dry there is about 2 percent more unem­ royalty negotiations. beans to the Federal Government for ployment than is represented by those FOOTNOTES donation to various programs. It has ad­ drawing unemployment compensation. t For example, it is understood such a pri­ mitted it cannot afford to buy beans to The 70-step formula tries to estimate vate ruling was issued on September 7, 1954, give to poor people. My colleagues, who that figure a little more scientifically. with respect to the tax imposed under Ar­ enjoy bean soup will not be able to stand There are obvious drawbacks, how­ ticle 35 of the Iranian Income Tax Law of in breadlines to get it. ever, in the accuracy of this type of 1949. Mr. Speaker, under the circumstances estimate. States with liberal unemploy- 2 For example, Norway does not intend to and in light of the season, may I suggest ment laws tend to have inflated figures. use a posted price system for its forthcom­ they will find spiritual solace, at least, States with stricter laws tend to under­ ing North Sea oil production, but will collect by giving bean soup up for Lent. estimate unemployment. Areas with 5616 EXTENSIONS OF REMARKS March 6, 1974 large numbers of agricultural and self­ this methodology will create if imple­ (a) Not adequately developed or refined to employed workers have far more unem­ mented in my own State of Wisconsin. be used in eligibility determination process; ployed not . covered by unemployment The initial BLS directive required com­ (b) ~ot being applied on a statistically re­ liable basis; and compensation than the 70-step formula parison of 1972 statewide 70-step esti­ (c) Not being applied on a compatible allows for as do areas plagued by per­ mates with BLS survey estimates from basis for all po·tential jurisdictions in the sistent long-term unemployment where Wisconsin. The 70-step method esti­ nation. even those workers who were once cov­ mated 16 percent more unemployment ered by unemployment insurance have than the survey and BLS ordered a 16- I think that our experience in Wiscon­ since had their benefits run out. percent cut in unemployment figures for sin shows that those criticisms are accu­ Several years ago, the Department of each county in the State. rate. The public employment program Labor and the Office of Management and While most of Wisconsin has enjoyed was designed to deal with specific local Budget directed the Bureau of Labor relatively low unemployment and con­ conditions. It makes no sense to use a Statistics to come up with a more ac­ siderable economic growth in recent statistical method which handles every curate method of estimating unemploy­ years, the extreme northern part of the area of the State in the same manner. ment on the State and local level. State has continued to have severe eco­ While seeking ways of providing more Although I think an honest effort was nomic problems. The region has been the accurate labor market information is an made, the end result is worse than the target of the Upper Great Lakes Regional important and worthwhile activity for original problem, especially for purposes Development Commission, because the the Department of Labor, new methods of distributing PEP money. Congress has recognized that this area should not be implemented for deter­ The Bureau of Labor Statistics began faces far more difficult employment mining the allocation of Federal money by taking figures from the 50,000 house­ problems than those found in most Amer­ until reasonable reassurances can be hold national survey-which had never ican communities. given that the new methods will provide been intended for any use except pro­ Seventeen of these counties had an for a more equitable distribution than viding nationwide statistics-and divid­ average rate of unemployment for 1973 the old. ing the respondents up by State. In 31 of over 6.5 percent, the level required by I urge all Members of Congress and States BLS decided that the number of law to qualify for public employment particularly those from areas most di­ respondents was too small to provide any funds. Several counties had unemploy­ rectly affected, to join me in expressing information whatever. ment of over 10 percent. In short, this dissatisfaction with the Department of BLS, however, felt that it had ade­ was precisely the kind of area of persist­ Labor's intention to implement this quate information to make unemploy­ ent high unemployment which the Con­ methodology and contact the Secretary ment estimates in the 19 largest States gress had in mind when it passed the of Labor to urge him to abandon such and in 30 metropolitan areas-mostly public employment program. changes in the computation of employ­ within those 19 States. The sample was Further, these are the kinds of coun­ ment data until it can be demonstrated so small in many of these 19 States, how­ ties in which economists will tell you that those changes will more accurately ever, that the margin of error in esti­ that the true unemployment problem is and fairly reflect the unemployment mating unemployment was 12 to 15 per­ underestimated. A relatively small por­ problems of all communities. cent, according to BLS. In 30 metropoli­ tion of the labor force is covered by un­ tan areas BLS decided to substitute sur­ employment insurance and long-term 11500 BANANAS ON PIKE'S PEAK vey figures for the 70-step figures al­ high unemployment would have caused together. In 7 of the 19 States BLS found benefits to lapse for many of the workers the 70-step figures to be consistently who had been covered and discouraged HON. CRAIG HOSMER different from the survey figures on a others from actively seeking employ­ OF CALIFORNIA statewide basis. ment. IN THE HOUSE OF REPRESENTATIVES Since BLS had no real data from the Yet, because statewide estimates were survey about unemployment rates within believed to be inflated, the rates for Wednesday, March 6, 1974 any given locality in a State outside of a these counties were cut 16 percent along Mr. HOSMER. Mr. Speaker, if you major metropolitan area they had to with the rest of the State. Furthermore, want to get cold in the winter and hot make a critical and I believe inaccurate the Department of Labor is, as of now, in the summer, because coal to power assumption in order to apply the state­ planning to use seasonally unadjusted, furnaces and air-conditioners is short, wide information to any given locality. summer and fall employment statistics, you can easily reach this objective by The assumption was that 70-step esti­ a period during which unemployment voting for H.R. 11500, mislabeled as a mates of local unemployment were in­ drops briefly, because of seasonal jobs in bill to regulate the surface mining of accurate by the same ratio in all com­ tourism and agriculture. The end result coal. Actually, it is a vehicle to achieve munities within a given State. was that none of those 17 counties quali­ the cherished dreams of the most hard­ On the basis of that assumption the fied for public employment funds. Other nosed environmentalists who want to unemployment figure for each county in States will be facing the same inequity. abolish strip mining. If any coal is dug the State was added to or subtracted Now the Department of Labor is under H.R. 11500, it would be little short from by a flat percentage according to planning to use 1973 figures. Interest­ of a miracle. the degree of difference between the ingly enough, the rate which BLS be­ For instance, H.R. 11500 would give all statewide 70-step estimate and the state­ lieves unemployment has been over­ existing surface coal mining operations wide survey estimate. estimated, on the basis of a 1973 com­ only 90 days to comply with impossibly This cut applied to suburban commu­ parison of national survey and 70-step strict regulations which would demand nities where an overwhelming portion of figures, drops to 7 percent in Wisconsin. that countless operators completely re­ the labor force was employed by large This is probably explained by the fact vise their mining plans. Many would manufacturing concerns and almost that the survey has a 12- to 15-percent have to buy much new equipment which everybody was covered by unemployment margin of error. The Department of La­ cannot be delivered that soon or for a· insurance and it applied to small rural bor is also planning to use more recent long time after. H.R. 11500 will not turn counties where there were few jobs and months in the base period for determin­ the coal industry around. It will turn it even fewer thait were covered by un­ ing the level of unemployment. off. And, along with it, turn off the lights employment insurance. Since the BLS The 9-point reduction in the amount in parts of America. survey statistics indicate that the accu­ rates are to be cut for Wisconsin, coupled That makes about as much sense as racy of the 70-step figures vary from one with the extension of the base period, trying to grow bananas on Pike's Peak. State to another, it would seem to me has improved the situation in Wisconsin H.R. 11500 should be replaced by a that it is really more logical to assume somewhat for this year. But the basic in­ measure which regulates strip mining that the accuracy also varies within equities of this methodology remain. efl'ectively, requires reclamation of the States than to assume the ratio of error A manpower task force of the National mined land, but lets the needed energy is uniform. Governor's Conference has described the resource beneath be removed to power An example of the inequities which methodology as: America's energy-dependent society. March 6, 1974 EXTENSIONS OF REMARKS 5617 REVOLUTION A LA SOLZHENITSYN West, particularly the United States, Solz­ man Relations Commission where she wfil henitsyn would have Russia turn away from continue her work in the resolution of young the West and look inward for a solution of people's problems. her problems. Therefore, be it known this 2nd day of HON. ROBERT J. HUBER The novelist says that "some of the prac­ March 1974 that we are in recognition of the OF MICHIGAN tical proposals in this letter may cause sur­ dedicated and selfless service given to the­ prise" and that "they are being put forward IN THE HOUSE OF REPRESENTATIVES community by Maudie D. Cummings, and with little hope-but not with none." further direct that this commendation be Wednesday, March 6, 1974 He sees reason !or hope, for exam.pie, in entered into the Congressional Record. the "Khrushchev miracle" of 1955; 56 when, Mr. HUBER. Mr. Speaker, Solzhenit­ after the death of Stalin, millions of inno­ syn has recently called upon the Soviet cent prisoners--Solzhenitsyn has put the Government to do the unspeakable-­ figure as high as 12 million-were released abandon communism. Now would that from the vast network of labor camps de­ ESTONIA CELEBRATES not be a blessing if we could deal with scribed in "The Gulag Archipelago, 1918- INDEPENDENCE Russia as a nation state instead of a 1956," the author's latest book. revoluntionary cause bent upon subver­ Alluding to Nikita S. Khrushchev's de­ Stalinization program as giving rise to "the sion of every existing non-Communist ragged beginnings of a humane code of law," HON. RONALD A. SARASIN government? Russia, as a nation state, Solzhenitsyn writes: OF CONNECTICUT could afford to grant real autonomy or "This culmination of Khrushchev's activ­ even independence to the many nation­ ity goes far beyond the political steps he IN THE HOUSE OP REPRESENTATIVES alities that have been forcibly incorpo­ was obliged to take. In its essence, it was Wednesday, March 6, 1974 hostile to Communist ideology and incom­ rated into the Soviet Union since Lenin Mr. SARASIN. Mr. Speaker, on Sun­ took over. In my view, Solzhenitsyn has patible with it (which is why it was so hurriedly rejected and systematically aban­ day, February 24, I joined with Estonian­ an important message for all of us. The doned). His reforms were undoubtedly gov­ Americans across this Nation in remem­ story from the Washington Star-News erned by genuine emotion, by penitence and bering the 56th anniversary of the inde­ follows: open-heartedness. pendence of the Republic of Estonia. On REVOLUTION A LA SOLZHENITSYN "If mercy can once gleam where it seemed this date in 1918 the hearty people of NEW YoRK.-Alexa.nder I. Solzhenitsyn, the ruled out forever, it may yet be repeated. To rule out such a possibility would mean Estonia successfully achieved their in­ Russian dissident writer, has addressed a dependence from the Soviet Union. long letter to the Soviet leaders, .asking them totally shutting the door on any hope for Pre­ to abandon communism as an a.lien, unwork­ a peaceful evolution of our country." viously having been subjected to the rule able political philosophy, dismantle the So­ Solzhenitsyn addresses the leaders of the of various powers for nearly 700 years, viet Union and focus on developing Russia Soviet Union as Russians, "which almost all the people of Estonia are to be com­ proper as a separate state. of you are by birth," affirming his sense of mended for their steadfast desire for The author's 15,000-word propos.a.J. of na­ Russian nationallsm in the face of the many independence. tional priorities also urges a halt in the head­ other ethnic groups that inhabit the Soviet Estonian independence was born out Union. long rush into an urbanized, industrial so­ of the confusion and terror accompany­ ciety and a return to the traditional Russian "I wish all peoples well,'' he declares, "and rural way of life, including more settlement the nearer they are and the more they de­ ing World War I. Eleven days after the of the vast empty re.aches of Northern Rus­ pend on us, the more so. But what I am Armistice bringing an end to the war, sia and Siberia. chiefly concerned with is the fate of precisely Estonia was ruthlessly invaded by the Solzhenitsyn regards such a radical change the Russian people, not only because, as the Soviet Union. Together with a single in course over the next 10 to 30 years as the proverb has it, home is where the heart is, British naval squadron, the courageous only way of instilling a new idealism in cyni­ but even more deeply because of the unpar­ people of Estonia successfully defended cal youths and of averting what he views as alleled sufferings Russians have undergone." their homeland and by the end of Janu­ The 55-year-old writer declares that he felt two impending disasters: War with China ary 1919 little reminder of Soviet rule and the collapse of Russian civilization, to­ entitled to advance his ideas "to the extent gether with that o! the West, in a polluted that my name has assumed a certain weight remained. The Soviet Union signed the environment. in our country and abroad." He says that Brest-Litovsh Treaty on March 3, 1918, The sweeping proposals, reflecting the the letter might never have been written and granted ofiicial recognition of Es­ writer's penchant for Russian nationalistic if one or more of the Soviet leaders "out of tonian independence by signing the values and his distaste for the big noisy pure curiosity" had taken a few hours for a Treaty of Tartu in February 1920. cities and other attributes of the modern private chat to find out what made the au­ The people of Estonia were further sub­ age, are dated last Sept. 5. thor so opposed to the Communist regime jected to oppressive rule when in World After several months had passed without and its policies. a reply "or even the hint o! one" from the War II the Soviet Union and Nazi Ger­ authorities, the author states in a foreword, many divided Poland. A treaty with the he decided to make his statement public. Soviet Union permitting the establish­ But Solzhenitsyn, after his expulsion from ment of Russian military bases and the the Soviet Union on Feb. 13, decided to make MAUDIE D. CUMMINGS stationing of Russian troops was forced a number of changes in the origina.l letter upon the defenseless Estonians. By 1940, for publication in the West. The nature of Estonia was once again under the tyran­ the revisions could not be ascertained imme­ Hon. Yvonne Brathwaite Burke diately. The modified text is scheduled to be nical rule of the Communists. published in English today by the Sunday OF CALIFORNIA The Estonian people today are charac­ Times of London and the Russian tomorrow IN THE HOUSE OP REPRESENTATIVES terized by their yearning for freedom by YMCA-Press, a Paris publishing house. Wednesday, March 6, 1974 and adamant desire for self-betterment. There was no explanation of why the Collections of their folklore, among the author found it necessary to change the Mrs. BURKE of Ce.lifornia. Mr. Speak­ richest in the world, can be found in the wording of a message that was already in er, under leave to extend my remarks In Folklore Archives in the university city the hands of the Soviet government in its the RECORD, I include the following: of Tartu. A particular feature of Esto­ original form. This article is based on the RESOLUTION nian national culture is the huge singing original versl'On. Whereas, Maudie D. Cummings has been festival traditionally held every 5 years. Solzhenitsyn's ambitious proposals for re­ selected for the signal honor of Woman of making Russia as a nation after more than Therefore, I am honored to pay tribute the Year by Zeta Phi Beta Sorority, and; to the proud citizens of Estonia in their half a century of Communist rule recalled Whereas, Maudie D. Cummings has served another statement of similar sweep, issued undying efforts to free themselves com­ her community in innumerable ways as a pletely from Soviet rule. Their culture in 1968 by Andrei D. Sakharov, the physicist social worker for Los Angeles County as and dissident leader, in the book "Progress, Founder and President of Women for Good and art are testaments to their heritage Coexistence and Intellectual Freedom." Government, and with many clubs and phil­ but more importantly, their perseverance But while Sakharov saw the salvation of anthropic organizations, and; is a virtue through which we can all share the world from nuclear war, pollution, over­ Whereas, Maudie D. CUmmings was re­ in the hope that the people of Estonia will population and starvation in a "con­ cently appointed to the sensitive position of realize the freedom they so richly de­ vergence" between the Soviet Union and the Commissioner for the Los Angeles City Hu- serve. 5618 EXTENSIONS OF REMARKS March 6, 1974 EDWIN C. WHITEHEAD: CONNEC­ farm house kitchen with its crackling fire in Membership dues were $200 a year. TICUT JAYCEES FARMER OF THE the kitchen fireplace. Looking east over the cornfield out of the The funds thus collected were used to YEAR sunlighted window next to the kitchen table, ~efray expenses incurred in the produc­ we got the feeling we were on a farm in the tion of newsletters, mailings and other Midwest, nothing but snow, with corn informational material. ' HON. ELLA T. GRASSO stumps breaking through for miles. To date the club has collected $6 200 OF CONNECTICUT Mr. Whitehead looked out over the 800" all of which has been expended for' th~ IN THE HOUSE OF REPRESENTATIVES acres that he and his dad, Robert Whitehead, purpose mentioned above. work and said: "I hope the people of Con­ Wednesday, March 6, 197 4 necticut aren't short-sighted and allow good productive land go for houses. If they do. Mrs. GRASSO. Mr. Speaker, Edwin C. as a state we would be relying on all our food Whitehead, a fourth generation dairy supplies being brought in from other parts FOOD STAMPS FOR PUERTO RICO farmer from Washington, Conn., and of the country. We would be at the mercy this year's winner of the Connecticut of disasters, truck strikes and other mis- Jaycees Farmer of the Year Award, ex­ haps." emplifies those qualities that have made "To the farmer," Mr. Whitehead said, "the HON. OGDEN R. REID the American farmer such an important farm is his only heritage to pass on to future OF NEW YORK generations. · force in today's world. "There are more townspeople, meaning IN THE HOUSE OF REPRESENTATIVES In a society where the 9-to-5 day is Washington residents, who are getting inter- Wednesday, March 6, 1974 often the rule, Mr. Whitehead rises at ested in the preservation of land for agri- M · 4:30 a.m. to tend to his milking, so that culture. We need more people all over the r. REID. Mr. Speaker, I wish to call the people of Connecticut and surround­ state to get on the ball, because we are to the attention of my colleagues the ing States can have fresh, wholesome losing 10 per cent of the dairy ---." recent regulations issued by the Depart- dairy products to eat. We asked Mr. Whitehead why he wanted men_t of Agriculture concerning the es­ Farming has changed considerably to be a farmer. He answered: "I like being tabllshment of the food stamp pr since the days of Edwin's father, his z:1Y own boss. ~ like having elbow room. I •in Puerto Rico. The USDA h ogr~m llke working with animals, I get attached ." ·decided t 0 . f as apparen ly grandfather, and his great-grandfather, to some of them sometimes. I like all the t gi.ve ewer ~~am:ps of less value 0 but the dedication to basic American people who are associated with agriculture . . f ~utherttot~!can f~Tihes ~n spi~e of the ideals and the commitment to the wel­ They are sincere, hard-working people and . ac.,. a h .., cost ch food In Puerto Rico fare of the community and its people independent in making their own way. 1 ~ higher than on the mainland. This ac­ are as important in Edwin's experience Finally, I like being a farmer because I like t~on appears to disregard certain provi- as they were in the days of his fore­ the challenges with nature," he said. s10ns of the Food Stamp Act bears. . Mr. Whi_tehead said, "generally in farm- The Food Stamp Act states th t f mg, help is one of our biggest problems." coupon allotments must b t ta ood Farming is still hard work, and rising On the White Ayr farm there are three farm lev th t e se a such a costs for necessary commodities have hands plus Mr. Whitehead and his father, e1 a would equal the cost of food, seriously threatened the livelihood of not counting the wives and children. t~ough coupon allotments for Puerto some farmers, putting many out of busi­ Mr. Whitehead continlled: "Right now a Rico ca.nnot exceed the levels allotted on ness in the past few years. Yet, fortu­ greater problem is that we are in a cost t?~ ma.mland. Currently a family of four nately for Connecticut residents, Edwin price sque~ze. Our milk prices haven't in- llvmg m the United States can receive Whitehead continues to live and work on creased with our operating expenses. We $142 worth of food stamps monthly need a lot of soy bean meal for protein diet. However since food · · his farm with his wife and children. He Most of the soy beans are being shipped out stantiall h. h . pnc~ are sub- has taken the fine education he obtained of the country, thus bringing the price up." t I fy ig. er 1Il Puerto Rico than the at the University of Connecticut's School Mr. Whitehead told us that the trend in cos . ~ ood m the United States, those of Agriculture, combined it with the wis­ dairy farming right now is for fewer farms fanuhes who reside on the island need dom of his farm heritage and developed but larger ones. more ~oney to put the same food items a successful formula in a field in which We asked Mr. Whitehead why he is so on ~heir table than those who live on the success was never easy. ~uccessful as a dairy farmer, he answered: mamland. Under the regulations issued I would like to congratulate Mr. White­ Good training from my grandfat_her and b~ the USDA, an island family of four father, they both were successful. I llke dairy will receive only $122 th f head on his marvelous accomplishments, farming. I get good help from the county stamp thl wor O food and on the honor bestowed upon him by agents." s mon y. the Connecticut Jaycees. In choosing Although Congress clearly noted that such a deserving man as their "Farmer b~ne~t levels in Puerto Rico or the ter­ of the Year," the Jaycees have once ACTIVITIES OF EIGHTH DISTRICT ntones should not be higher than those again made clear their commitment to CLUB IN VffiGINIA set for the United States, it based the al­ excellence. lotments on the price of food. It did not For the benefit of my colleagues, I am permit benefits in those territories to be inserting in the RECORD excerpts from HON. STANFORD E. PARRIS lo~er if food prices were in fact higher, the New Milford Times article written OF vmGINIA with the net effect of requiring equal al­ about Mr. Whitehead. The article pro­ IN THE HOUSE OF REPRESENTATIVES lotments for the islands if food prices vides an insight into the life of this out­ Wednesday, March 6, 19 ~ere higher. Apparently, the USDA has standing young dairy man: ignored the requirements of the law and Mr. PARRIS. Mr. Speaker, it is my EDWIN WHITEHEAD NAMED STATE FARMER has set a discriminatorily low stan'.dard custom to publish a financial statement for the island. OF THE YEAR each year and to make public all other (By Jack Muckstadt) In addition, it appears that the USDA financial matters involving my congres­ has also violated the law with its delayed Edwin C. Whitehead, 32, part owner of the sional office which may be of conse­ White Ayr Dairy Fa.rm in Washington, Conn., implementation of the food stamp pro­ last weekend was named state farmer of quence of my constituency. Accordingly, I am submitting a brief report on the gram throughout the island. The amend­ the year by the Connecticut Jaycees. ments Congress adopted in August 1973 We went to visit Mr. Whitehead, his wife, activities of the Eighth District Club, an June and three children Joey, 7, Rachel, 2, organization founded last year. required implementation of this progra~ and Jason, 11 months, Tuesday morning for The club is nonpolitical in nature. Its in every political subdivision of the breakfast at their old fashioned country main function is to facilitate dissemina­ United States, including Puerto Rico, by farm house. tion of information to residents of my June 30, 1974. The only exception that Breakfast was a.t 9 a .m ., but don't let that congressional district and create direct was provided in the law was if the pro­ fool you. Mr. Whitehead had been up since gram was impossible or impractical to 4 :30 a. .m. At that time he just >lad a. cup of communication between the membership coffee, then went out to tend "iis milking. and myself. Several luncheon and din­ implement. The Department of Agricul­ It was about 12 degrees t ve outside, ner meetings were held last year with a ture has announced, however, that it is Tuesday morning, but warm a.U"'coast in the speaker of note attending each. instituting the program on a town-to- March 6, 1974 EXTENSIONS OF REMARKS 5619 town basis, under which only five rural GRANTS TO EST.. IBLISH NEW STATE which the Administration had requested, towns will be served by the deadline. POSTSECONDARY EDUCATION Congress recognized that much of the money San Juan will not receive food stamps would need to be obligated to support the COMl\USSION IS LAUNCHED Higher Education Facilities Commissions; until March 1975. Clearly, this is dis­ and, indeed, that some of this money had heartening and unfair-if not illegal. already been obligated for this purpose un­ Unless the USDA and the Common­ HON. ALBERT H. QUIE der the continuing resolution. At the same wealth of Puerto Rico can show why OF MINNESOTA time, however, the Congress also stated its such implementation is impossible, the intention "that a substantial portion of this food stamp program must be instituted IN THE HOUSE OF REPRESENTATIVES appropriation should be made available" for by June 30, 1974, throughout the island. Wednesday, March 6, 1974 Section 1203 planning grants and/ or tech­ nical assistance to those States which desire If impracticability is not clearly estab­ Mr. QUIE. Mr. Speaker, on March 1 to establish State Postsecondary Education lished, the USDA's delayed action will letters were sent by the Commissioner Commissions under Section 1202. And finally, indeed reflect a violation of the law. of Education to all Governors explain­ the Congress called upon the U.S. Office of Finally, when setting the income­ ing how any State that desires can Education "to do whatever is necessary" eligibility standards, the USDA appears qualify for Federal postsecondary edu­ to see that those States which comply with to have once again ignored the intent of cation planning grants by creating a the criteria for Postsecondary Education Congress. The Department was in­ Commissions set forth in Section 1202 of the State commission under section 1202 of Higher Education Act, as amended, will "get structed by the 1971 amendments to the the Higher Education Act, as amended in assistance from this appropriation to move Food Stamp Act to calculate eligibility 1972. ahead in launching the work of these im­ by multiplying the number of persons in Many of us have felt that the vast portant commissions. each household by the per capita income postsecondary education community In accordance with Congressional intent, for the island, thus arriving at a maxi­ within ea.ch State should be doing a bet.: and after a careful review of the work which mum figure for each household size. ter job of cooperative planning to make the Higher Education Facilities Commis­ This apparently was not done, for the sions must complete during the remainder each segment and each institution as ef­ of Fiscal Year 1974, we have moved to limit eligibility standards are approximately fective as possible. While competition the aggregate total of State allotments for 14 percent lower for Puerto Rican among public and private, 2-year and 4- work performed by the facilities commissions households than those in the United year, academic and vocational i nsti~u­ to a maximum figure of $2 million, leaving States. tions is healthy, uninformed plannmg at least $1 million of the Section 1203 ap­ The purpose of this program was to during a period of rather stable enroll­ propriation for FY 74 available to fund ap­ help the poor, not to perpetuate their ment can too easily result in duplication plications from Section 1202 State Com­ disadvantageous status. At least 500,000 missions for Section 1203 planning grants of effort and a waste of resources. and/or technical assistance. Puerto Rican families of four who are The uniqueness of these so-called With this action accomplished, we are now eligible for this program will be receiv­ 1202 commissions is the requirement that confronted wlth the question of what is nec­ ing $20 less than they are due each they ml,lst be broadly and equitably rep­ essary to bring about establishment of State month, the equivalent of $10 million a resentative of the general public and all Postsecondary Education Commissions which month, or a full $120 million a year. This (a) will comply with the criteria set forth segments-both public and private-of in Section 1202(a) of the Higher Education loss to Puerto Rico violates the purpose education beyond the high school within and intention of the Food Stamp Act. Act, and (b) will thereby qualify to apply the State. for and receive Section 1203 planning grant The unconscionable situation must be Mr. Speaker, I hope each Member will funds and/ or technical assistance from the rectified. read the following letter which was sent $1 million which the U.S. Office of Educa­ to the Governors. It gives some of the tion has reserved for such purposes in ac­ background of this issue which has gen­ cordance with instructions from the Con­ A SOLAR POST OFFICE IN THE gress. erated considerable controversy in the In reviewing the rather lengthy and sub­ WORKS past 18 months. We will all watch with stantial record of discussions on this subject, interest to see how well the Governors it seems to me that the salient points are use the direction now given to them in as follows: HON. PATRICIA SCHROEDER carrying out the spirit as well as the l~t­ ( 1) There ls no general Federal require­ ter of law. I believe these State commis­ ment that the States establish Section 1202 OF COLORADO Commissions. Only those States which desire IN THE HOUSE OF REPRESENTATIVES sions will prove useful to the States that choose to create them and hope that to receive assistance under the Section 1203 Wednesday, March 6, 1974 authority, i.e., from the $1 million which is Congress will add to the approximately presently reserved to support that authority, Mrs. SCHROEDER. Mr. Speaker, the $1 million available for Federal planning are required to establish Commissions which Sun produces as much energy in 40 min­ grants this fiscal year. co;mply with the criteria set forth in Sec­ utes as humankind uses in a year. A post The letter from Commissioner Ottina tion 1202 (a). office scheduled to be built soon will take follows: (2) If a State desires to receive Section advanatge of some of this bountiful en­ DEPARTMENT OF HEALTH, EDUCATION, 1203 assistance, and decides to establish a AND WELFARE, Section 1202 Commission in order to qualify ergy source. Assistant Postmaster Gen­ for such assistance, the law implies three eral Robert E. Isaacs has reported that Washington, March 1, 1974. options from which the State may choose in the post office will be built in Ridley DEAR GOVERNOR: You are perhaps aware meeting the criteria set forth in Section Park, near Chester, Pa. Bids are present­ that the Labor-HEW Appropriations Act for 1202(a): (a) creation of an entirely new Fiscal Year 1974 includes the sum of $3 mil­ Commission which meets the criteria of Sec­ ly being taken on this project, with a lion for Federal support of State Postsecond­ completion date of early 1975. The pur­ tion 1202 (a), (b) designation of an existing ary Education Commissions. These monies State agency or State Commission, if it meets pose of this prototype is to provide the have been made available by the Congress un­ the Section 1202(a) criteria, or (c) expand­ U.S. Postal Service with a solar energy der the appropriation authority contained in ing, augmenting, or reconstituting the mem­ program, a successful demonstration Section 1203 of the Higher. Education Act of bership of an existing State agency or State model for postal facilities nationwide. 1965 (as amended in 1972), which provides Commission to meet Section 1202(a) criteria. Preliminary estimates indicate that the that State Commissions established pursuant (3) The only function which Federal law to Section 1202 of the same Act ma.y apply authorizes the designated 1202 Commission supplemental solar energy supply at the to the U.S. Commissioner of Education for Ridley project will reduce its dependence to perform, and for which the $1 million is grant funds and/or technical assistance to being reserved from the FY 74 appropriation, on conventional energy sources by 20 support " ... comprehensive inventories of, ls planning for postsecondary education. The percent. and studies with respect to all public and expectation is that other State agencies and Mr. Speaker, as a supporter of the private postsecondary educational resources Commissions, local governments, and institu­ Solar Heating and Cooling Demonstra­ in the State, inducting planning necessary tions of postsecondary education would use tion Act (H.R. 11864) , which so recently for such resources to be better coordinated, the results of planning activities undertaken improved, expanded or altered so that all by the State Commission to carry out their passed the House, and as a member of the persons within the State who desire, and who respective administrative responsibilities. Post Office and Civil Service Committee, can benefit from postsecondary education (4) In addition, the law provides two op­ I am doubly glad to see the Postal Serv­ may have an opportunity to do so." tions between which the State may choose in ice make this bright beginning. In approving the $3 million appropriation providing for continuing State administra- 5620 EXTENSIONS OF REMARKS March 6, 1974 tion of the Community Services and Con­ have been made to insure continuing com­ Federal energy policies and Iaws of the tinuing Education authority (HEA Section pliance with these requirements of the law. past is dramatically emphasized in the 105), the Equipment for Undergraduate In­ We hope you will find the procedure out­ following article by Bruce Henderson. struction authority (HEA Section 603) and lined in this letter to be comfortable, con­ the Grants for Construction of Undergradu­ venient, and effective in carrying out the in­ It is the responsibility of the Congress ate Academic Fac111ttes authority (HEA Sec­ tent of Congress with maximum respect for to act to correct these mistakes. We need tion 704); namely, (a) designation of the the prerogatives of the States. Several States legi$1.ation to avoid the need for gasoline Section 1202 Commission to serve as the have previously communicated with the U.S. rationing, not legislation that will force State agency for purposes of adm.1n1sterlng Office of Education about some action or an­ us to ration. Such measures as my bill any one or more of these program authori­ other with respect to Section 1202. Since we to allow dealers to adjust emissions co1~­ ties, or (b) maintenance of separate State had not decided which approach or what trols on cars to improve gas mileage agencies or Commissions to administer these conditions and criteria would be used to ac­ program authorities. tivate the Section 1203 planning grants pro­ where not needed for public health is a (5) Finally, and certainly most important­ gram, the U.S. Office of Education is not in specific example of what Congress ought ly, whichever option the State chooses to a position to recognize any correspondence to enact immediately. pursue in bringing about the establishment prior to this letter as sufficient evidence of Mr. Speaker, the country is looking to of a Section 1202 Commission, and whatever compliance with the procedures now agreed Congress for some responsible legislation additional responstb111ttes the State decides upon and set forth above. on energy. It is past time Congress pro­ to assign to the Commission beyond the If you have any questions or concerns, vided it. planning responsib111ties authorized under please get in touch with me or John D. Phil­ The article follows: Section 1203, Section 1202(a) of the law pre­ lips, Acting Associate Commissioner for Stu­ scribes that the State Commission must be dent Assistance, who can be reached at Area To CREATE AN ENERGY SHORTAGE "broadly and equitably representative of the Code 202-245-9436. In the meantime, we NATURAL GAS general publfc and public and private non­ will be preparing application materials and Set a celling price on natural gas. This 'Pf'Ofit and proprietary instituttons of post­ funding criteria for the award of Section 1203 discourages exploration and increases use. secondary educatton in the State including planning grants and technical assistance. We Keep the prices down in spite of lnfiation. community colleges, funior colleges, postsec­ expect that planning grants made during this This amplifies the effect and guarantees a ondary vocational schools, area vocattonal Fiscal Year wlll remain available for expendi­ shortage eventually. schools, technical institutes, four-year insti­ ture by the Section 1202 State Commissions COAL tuttons of higher educatton and branches through June 30, 1975. thereof.• Sincerely, Ban the use of coal with sulfur content. This sharply restricts the supply. Sharply re­ This letter ts intended as an invitation for JOHN OTrlNA, you to advise me as to the course of action U.S. Commissioner of Education. strict strip mining for cosmetic reasons. This which will be followed with respect to imple­ further restricts the supply. Then suddenly mentation of Section 1202 and 1203 of the impose drastic new safety rules which will IDgher Education Act, as amended, in your substantiruly cut output from existing mines. State. Freeze prices so no one can offset cost in­ If your State does not desire to establish a TO CREATE AN ENERGY SHORTAGE crease from reduced output or justify fur­ Section 1202 State Commission to apply for ther investment. a planning grant and/or technical assistance ATOMIC POWER under the FY 74 appropriation for Section Delay construction a matter of years by 1203 planning activities, it would help us 1f HON. LOUIS C. WYMAN uncertainty about licensing requirements. you could notify the U.S. Office of Education OF NEW HAll!PSHmE Delay operation at full power after con­ of this fact as soon as possible. IN THE HOUSE OP REPRESENTATIVES struction. Delay start of construction by en­ If your State does desire to establish a Wednesday, March 6, 1974 vironmentalist suits. State Commission which meets the ''broadly OIL and equitably representative" criteria of Sec­ Mr. WYMAN. Mr. Speaker, seldom has With natural gas, coal and atomic power tion 1202(a), and thereby qualifying said the Congress passed legislation as ill­ all severely restricted, that leaves only pe­ Commission to apply for and receive Section considered as the recent conference-re­ troleum. First, grossly increase automative 1203 planning grants and/or technical assist­ ported Energy Emergency Act. consumption of gasoline by requiring drastic ance from the FY 74 appropriation, the U.S. reductions in engine efficiency because of Office of Education needs to receive the fol­ The purpose of this legislation alleged­ ly was to establish, for the first time, a pollution related modifications. That alone lowing information from you by April 15, will insure a severe shortage of energy. Then 1974: coordinated Federal energy policy aimed ban the use of oil containing sulfur. This ( 1) Which of the three options for estab­ at correcting present shortages. If signed severely reduces refining capacity. Put into lishing a Section 1202 Commission has your int<> law its effect will be the opposite. effect new pollution objectives which make State chosen to follow: (a) creation of a new It would assure the continuance of en­ refin-eries far more expensive. At the same Commission, (b) designation of an existing ergy shortages and guarantee them into time, introduce great uncertainty into the State agency or State Commission, or (c) requirements that must be met. That will expanding, augmenting or reconstituting the the foreseeable future. Under the guise of "consumerism,'' virtually stop refinery construction or expan­ membership of an existing State agency or sion. Eliminate practically all new refinery State Commission? the act would roll back domestic petro­ sites because of environ.mental legal delay­ (2) Which, if any, of the following State­ leum prices but not foreign and world ing tactics. Further curtail refinery invest­ administered program authorities contained prices which are beyond its reach. In ment by making supplies of crude oil very in the Higher Education Act has your State this country most of the known, easily uncertain. Block the use of Alaska North chosen to assign to the Section 1202 Com­ recovered, relatively inexpensive to drill Slope oil by arguments on the cosmetic ef­ mission: petroleum deposits have been used up or fects in uninhabited and unreachable re­ (a) Community Services and Continuing gions. Stop the use or search for oll offshore Education (HEA Section 105)? are on line. The remaining deposits are in California because of potential leaks. Slow (b) Equipment for Undergraduate In­ substantial, but require costly secondary all offshore operations for environ.mental rea­ struction (HEA Section 603)? and tertiary recovery technology such as sons. For good mea.sre, hold down the price (c) Grants for Construction of Under­ of gasoline to half that in Europe. This en­ graduate Academic Facllittes (HEA Section water injection under pressure, and so forth. courages large cars. 704)? To be sure that all of the above ts mis­ (3) What is the Commission's official Imposing an artificially low price by understood by the general public, bring a name, address and telephone number? law-as has been the case with natural law suit which charges all the largest energy (4) What are the names, ma111ng addresses gas-merely insures that the costs of companies with being non-competitive and and terms of office of the Commission's be therefore causing the energy shortage. members? secondary recovery cannot met. This means the oU will stay in the ground. The The above scenario has actually occurred (5) What ls the name, title, ma.111ng ad­ in the U.S. Each and every action described dress, and telephone number of the Com­ lines at the gasoline stations will grow above has been the result of public policy. mission's principal staff officer? longer. Each act had laudable objectives. In the ag­ (6) A letter signed by you explaining how This is not responding to the needs of the membership of your State Commission gregate these actions will prove to be very meets the "broadly and equitably representa­ the consumer. punishing to the general public for years to tive" requirements of Section 1202(a) at That our present shortages are in large come. the present moment, and what provisions part due to shortsighted, fragmented Such program management by a private March 6, 1974 EXTENSIONS OF REMARKS 5621 business would justify charges of gross mis­ He ser¥ed three terms as commissioner ST. GEORGES VILLAGE BOTANI­ management. The whole task of management and was responsible for reorganizing the is optimization of value delivered from the CAL GARDENS-A SHOWCASE OF resources available. False weighting of values Newark Housing Authority, the city BEAUTY AND COOPERATION or misallocation of resources are equal fail­ agency serving as the focal point for ures. analyzing, structuring, developing, and All the ultimate objectives can, in due handling the city's housing problems. course, be achieved by coordination, by From commissioner, he became city HON. RON DE LUGO scheduling, by value/cost optimization and councilman, serving twice as council OF THE VffiGIN ISLANDS by resource allocation priorities. That, how­ president. And, as mayor, Ralph Villani IN THE HOUSE OF REPRESENTATIVES ever, is what management is. Wednesday, March 6, 1974 The object of management is optimization drew on all these experiences, insights, of benefits from the use of the avallable re­ and perspectives to best meet the needs Mr. DE LUGO. Mr. Speaker, I wish to sources. The objectives of public policy also so critical to the growth and development bring to the attention of my colleagues require management to achieve optimum re­ of Newark and her people. two newspaper articles that emphasize sults. Impulsive, extremist, poorly ttme