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19ri2 CONGRESSIONAL RECORD-- SENATE 6001 for printing and reference to the proper year to be known. as Management Day; to the calendar, as follows: Committee on the Judiciary. SENATE By Mr. McDONOUGH: Mr. REAMS: Committee on Post Office and H.J. Res. 465. Joint resolution designating TUESDAY, MAY 27, 1952 Civil Service. S. 1828. An act to confirm the first Tuesday of June of each year as Na­ the status of certain civilian employees of tional Teachers Day; to the Committee on

BURLEY TOBACCO FARM ACREAGE ALLOTMENTS Qf Session Laws of Hawaii, special session, Howard Moland, Clarence Moland, Lothard A letter from the Secretary of Agriculture, 1950, a'nd regular session, 1951 (with an Moland, and H. T. Moland, partnership doing transmitting a draft of proposed legislation accompanying volume) : to the Committee ;business as Moland Bros. Trucking Co.; relating to burley tobacco farm acreage al­ on Interior and Insular Affairs. Murphy Motor Freight Lines, Inc.; lotments under the Agricultural Adjustment Sixty-two letters from the Chairman of the Walter Petersen, doing business as Nielsen Act of 1938, as amended (with an accompany­ United States Motor Carrier Claims Com­ and Petersen; ing paper); to the Committee on Agriculture mission, Kansas City, Mo., transmitting, pur­ Ralph M. Wallace and Isabel Wallace, a and Forestry. suant to law, reports of claims against the partnership doing business as Northwest United States which have been concluded REPORT ON COOPERATION WITH MEXICO IN CON• Freight Lines; by the Commission (with accompanying re­ On-Time Transfer Co.; TROL AND ERADICATION OF FOOT-AND-MOUTH ports); to the Committee on the Judiciary, DISEASE Frank H. Prucka, doing business as Frank as follows: - H. Prucka Transportation Co.; A letter from the Assistant Secretary of Wilson Storage & Transfer Co., Inc.; Agriculture, transmitting, pursuant to law, Raymond Bros. Motor Transportation, Inc.; Ace Lines, Inc.; Riss & Co., -Inc.; a report on cooperation of the United States Arkansas Motor Freight Lines, Inc.; with Mexico in the control and eradication Bos Truck Lines, Inc.; Floyd Green, Lena Green, and Herbert Ja­ Rohweder Truck Lines, Inc.; of foot-and-mouth disease, for the month of cobs, trustees for liquidation purposes of March 1952 (with an accompanying report); Walter H. Schumacher, doing business as Ash Truck Lines, Inc.; Schumacher Motor Express; to the Committee on Agriculture and For­ Matthew Leo McKeone, doing business as estry. Takin Bros. Freight Lines, Inc.; Red Ball Transfer Co.; Harry E. Reynolds, as surviving partner of SURVEY REPORT ON PECOS RIVER WATERSHED, Bos Freight Lines, Inc.; Harry E. Reynolds, and Norman · Nold, a NEW MEXICO AND TEXAS Brady Transfer & Storage Co., Inc.; Brashear Freight Lines, Inc.; partnership doing business as Tri-State A letter from the Assistant Secretary of Transportation Co.; Agriculture, transmitting, pursuant to law, Briggs Transfer Co.; a survey report of the Pecos River Watershed Perry A. Brooks, doing business as Brooks Tri-State Motor Transport, Inc.: in New Mexico and Texas (with accompany­ Truck Co.; Union Transfer Co., a corporation, doing ing papers); to the Committee on Public Alvin Brown, surviving partner of John business as Union Freightways; Works. Brown and Alvin Brown, doing business as The Chief Freight Lines Co.; Brown Transfer Co.; Witte Transportation Co., a corporation: INCLUSION OF GUAM UNDER PROVISIONS OF Watson Bros. Transportation Co., Inc.; NATIONAL DEFENSE ACT Bruce Motor Freight, Inc.; Earl F. Buckingham, Glen D. Buckingham, Werner Transportation Co., a corporation: A letter from the Secretary of the Interior, Harold B. Buckingham, and Oliver L. Buck­ and transmitting a draft of proposed legislation ingham, doing business as Buckingham C. E. Mickelson, receiver for Arthur F. to amend section 62 of the National Defense Transportation Co.; Janke, doing business as Janke Transfer Co. Act (39 Stat. 166, 198), as amended (32 Commercial Freight Lines, Inc.; U. s. c., 1946 ed., sec. 4C), to include Guam Consolidated Freightways, Inc.; (with an accompanying paper); to the Dakota Transfer & Storage Co., Inc.; PETITIONS AND MEMORIALS Committee on Armed Ser.vices. Charles W. Darling, doing business as Dar- REPORT OF MARITIME ADMINISTRATION ling Transfer; Petitions, etc., were laid before the A letter from the Secretary of Commerce, Denver Trucking Co., Inc.; Senate, and referred as indicated: transmitting, pursuant to law, a report of Des Moines Transportation Co., Inc.; By the VICE PRESIDENT: the Maritime Administration of the Depart­ Glendenning Motorways, Inc.; A telegram in the nature of a memorial ment of Commerce, for the period January G. & P. Transportation Co., Inc.; from Harry A. Cobrin, executive secretary, 1, 1952, through March 31, 1952 (with an Gillette Motor Transport, Inc.; Clothing Manufacturers' Association, New accompanying report); to the Committee on George Hart, doing business as Hart Motor York, N. Y., remonstrating against the action Interstate and Foreign Commerce. Express; of the Committee on Banking and Currency AUDIT REPORT ON FEDERAL MARITIME BOARD Hawkeye Motor Express, Inc.; denying that association an opportunity to AND MARITIME ADMINISTRATION Lena Henneman, executrix of the estate of be heard in opposition to the so-called Ful­ A. G. Henneman, deceased, successor in in­ A letter from the Comptroller General, bright amendment, relating to the clothing terest to A. G. Henneman, doing business as industry; to the Committee on Banking and transmitting, pursuant to law, an audit re­ Henneman Transfer Co.; port on the Federal Maritime Board and the Currency. Samuel Shapiro, surviving partner of A letter in the nature of a petition from Maritime Administration, Department of Louis M. Shapiro and Samuel Shapiro, a Commerce, for the fiscal year ended June 30, sundry students of Germany, participating partnership, doing business as Hennepin in the educational exchange program of the 1951 (with an accompanying report); to the Transportation Co.; Committee cm Government Operations. State Department, expressing appreciation Harry Hess, doing business as Hess Motor for the opportunity of participating in the REPORT OF NATIONAL LABOR RELATIONS BOARD . Express; · educational program; to the Committee on A letter from the Chairman, National Hi-Speed Motor Express, Inc.; Foreign Relations. Labor Relations Board, transmitting, pursu­ Highway Motor Freight, Inc.; A resolution adopted by the Hawaii Farm ant to law, a report of the Board for the Holdcraft Transportation Co.; Bureau Federation, Honolulu, T. H., favoring fiscal year ended June 30, 1951 (with an Urban J. Haas and Cyril H. Wissel, doing the enactment of House bill 4799, to amend accompanying report); to the Committee on business as H. & W. Motor Express Co.; section 73 (i) of the Hawaiian Organic Act Labor and Public Welfare. Anna C. Koepp, administratrix of the relating to the acquisition of farm lots; to REPORT ON PERSONNEL OF NATIONAL LABOR estate of Ernest Robert Koepp, deceased, do­ the Committee on Interior and Insular RELATIONS BOARD AND LIST OF CASES HEARD ing business as Koepp Trucking Service; Affairs. BY THE BOARD Eugene Pikovsky, special administrator of A letter in the nature of a petition from A letter from the Chairman, National the estate of Hyman Pikovsky, deceased; the Reserve Officers Association of the United Labor Relations Board, transmitting, pur­ · Lee Way Motor Freight, Inc.; States, Department of Puerto Rico, San suant to law, lists containing the names, Century-Matthews Motor Freight, Inc., as Juan, P. R., signed by F. S. Nishwitz, presi­ salaries, and duties of all employees and successor in interest to Steve Bonello, doing dent, praying for the approval of a constitu­ officers of the Board for the year ended business as Century Motor Freight and Mat­ tion for Puerto Rico; to the Committee on June 30, 1951, together with a list of all thews Freight Service, Inc.; Interior and Insular Affairs. cases heard during the period July 1, 1950, B. F. Iles, R. A. Brown, H. E. McKinney, A resolution adopted by the municipal to June 30, 1951, and the list of cases in doing business as Meadows Transfer Co., suc­ government of San Lorenzo, P. R., favoring which the Board rendered decisions during cessors to Meadows Transfer, Inc.; the approval of the Constitution of Puerto the period July 1, 1950, to June 30, 1951 (with Merchants Motor Freight, Inc.; Rico; to the Committee on Interior and In­ accompanying papers); to the Committee on McCoy Truck Lines, Inc.; sular Affairs. Labor and Public Welfare. H. G. Nilles, J. C. Heisler, F. R. Scott, A. c. Resolutions adopted by the Sixty-first Con­ Elsholtz, Franklin J. Van Osdel, A. R. Mitch­ tinental Congress of the National Society of RE~ORT ON CLAIM OF MENOMINEE TRIBE OF ell, Ray Warner, W. E. Elsholtz, L. K. INDIANS v. UNITED STATES the Daughters of the American Revolution, Naughton, Elzine Jacobson, R. J. Coughlin, Washington, D. C., relating to the celebra­ A letter from the Chief Commissioner, Mrs. Carroll Page, Mrs. Wm. Elsholtz, Emma tion of the one hundred and seventy-fifth I ndian Claims Commission, transmitting, W. Freeman, E. E. Simonson, Interstate Seed anniversary year of independence, etc.; to pursuant to law, a report on the conclusion & Grain Co., J. N. Kunkel, B. T. Rath, Jr., the Committee on the Judiciary. of the claim of the Menominee Tribe of Eugene Rath, E. J. Schonberg, H. G. Sayler, A resolution adopted by the Stevenson­ Indians, peti tioner, v. United States of owners of the Claim of Midnite Express, Inc.; DeLauncey Post, No. 79, Veterans of Foreign America, defendant (with an accompanying Midwest Motor Express, Inc.; Wars of the United States, Meridian, Miss., paper); to the Committee on Interior and Arthur A. McCue, doing business as Min­ relating to the methods employed by the Insular Affairs. nesota-Wisconsin Truck Line and Mccue United States Civil Service Commission in SESSION LAWS OF LEGISLATURE OF HAWAII Transfer Co.: establishing rosters of eligibles for postmaster A letter _from the Acting Secretary of Rolland :EI. Kinney, .doing business as Mo• ~ppointm~nts; to the Committee on Post Hawaii, transmitting, pursuant to law, a copy hawk Freight Lines;. Ofiice and Civil Service. 6004 CONGRESSIONAL RECORD·- SENATE May 27 A resolution adopted by the city council (for himself and Mr. JOHNSON of Colo­ journed periods of the Eighty-second Con­ of the city of Chicago, Ill., relating to a. sur• rado), was referred to the Committee on gress; to require by subpena or otherwise vey of damage along-the shore of Lake Michi· Rules and Administration, as follows: the attendance of such witnesses and the gan at Chicago caused by high lake levels production of such books, papers, and docu­ and to compensate the owners of property Resolved by the Senate (the House of Rep­ ments; to administer oaths; to take such from Federal funds for such damage, and so resentatives concurring), That there is here­ testimony; to have such printing and bind­ forth; to the Committee on Public Works. by established a joint congressional com­ ing done; and to make such expenditures, A petition signed by sundry members of mittee to be known as the Joint Committee as it deems advisable. The cost of steno­ the Women's Society of Christian Service, of on Newsprint (referred to hereinafter as the graphic services in reporting hearings shall the Methodist Church of Turtle Lake, N. Dak., "committee") which shall be composed of not be in excess of 25 cents per 100 praying for the adoption. of Senate Concur­ three Members of the Senate appointed by words. Subpenas shall be issued under the rent Resolution 61, providing for the equip­ the President of the Senate, and three Mem­ signature of the chairman or any member ment of a room in the Capitol to be used as a bers of the House of Representatives ap­ of the committee designated by him and chapel by Members of Congress; to the Com­ pointed by the Speaker of the House of Rep­ shall be served by any person designated by mittee on Rules and Administration. resentatives. The committee shall select a the chairman or any such member. chairman and a vice chairman from among SEC. 4. The expenses of the committee un­ its members. Vacancies in the membership der this resolution, which shall not exceed REPORT OF A COMMITTEE of the committee shall not affect the power $25,000, shall be paid one-half from the con­ of the remaining members to execute the tingent fund of the Senate and one-half The following report of a committee functions of the committee, and shall be from the contingent fund of the House of was submitted: filled in the same manner as the original Representatives upon vouchers signed by the By Mr. McFARLAND, from the Committee selections. chairman. Disbursements to pay such ex­ on Interior and Insular Afiairs: SEC. 2. It shall be the duty of the com­ penses shall be made by the Secretary of S. 2621. A bill to provide for national mittee (1) to formulate a national policy the Senate out of the contingent fund of cemeteries in the State of Arizona; without to meet the immediate and future newsprint the Senate, such contingent fund to be re­ amendment (Rept. No. 1600). needs of the United States, considering spe­ imbursed from the contingent fund of the cifically, the possible utilization of bagasse, House of Representatives in the amount of cornstalks and other fibre producing crops, one-half of disbursements so made .. ENROLLED JOINT RESOLUTION the possible further utilization of existing The statement by Mr. CASE · 1s as PRESENTED forest resources, the development of federally owned waterpower sites in the Tongass Na­ follows: The Secretary of the Senate reported tion3.l Forest of Alaska and elsewhere with STATEMENT BY SENATOR CASE that on today, May 27, 1952, he presented a view to long-term leases or contracts for Ownership of the Nation's newspapers is to the President of the United States the power service to privately owned newsprint vested in thousands of individuals and com­ enrolled joint resolution to amend the Mutual DEFENSE PRODUCTION ACT-UNAN· the minority leader and the majority Security Act of 1951, and for other pur­ IMOUS-CONSENT AGREEMENT leader for their judgment on the sug­ poses. The VICE PRESIDENT. The question Mr. MAYBANK. I should like to ask gestion I have made. is on agreeing to the amendment of­ a question of the distinguished majority Mr. McFARLAND. I have discussed fered by the Senator from Idaho [Mr. leader. I inquire what his plans are with the subject with the distinguished mi­ WELKER] for himself and other Sena tors. respect to legislation to be considered nority leader and with the distinguished Mr. GEORGE. Mr. President, I sug­ after the Senate disposes of the mutual Senator from Illinois, and, so far as gest the absence of a quorum. security bill. I know, there is no objection to such a The VICE PRESIDENT. The Secre­ Mr. BRIDGES. I was going to ask procedure. tary will call the roll. the same question of the distinguished Mr. President, I ask unanimous con­ The Chief Clerk proceeded to call the majority leader. I was wondering sent that when the Senate begins the roll. whether the plan was to take up the consideration of the control bill (S. 2594) Mr. McFARLAND. Mr. President, I controls bill immediately after the Sen:. a motion to strike from the committee ask unanimous consent that the order ate disposes ·of the mutual security bill. amendment title 4 or title 5, or to strike for the quorum call be vacated, and that Mr. McFARLAND. It is planned to both titles, may be made, with the un­ further proceedings under the call be take up the defense production bill after derstanding and agreement that if the dispensed with. the pending bill is disposed of. I under­ motion does not prevail, any amendment The VICE PRESIDENT. Without ob­ stand that no appropriation bills are may thereafter be offered to either title. jection, it is so ordered. ready for action. Therefore, following Mr. HOLLAND. Mr. President, a par­ Mr. McFARLAND. Mr. President, we action on the mutual security bill, we liamentary inquiry. are anxious to complete consideration o! shall proceed immediately to the ·Con .. The VICE PRESIDENT. The Senator this bill, as well as of other pending sideration of the defense production bilL from Florida will state it. 6008 CONGRESSIONAL RECORD - SENATE May 27 . Mr. HOLLAND. In tfie event the ment is rejected, to allow amendments which I shall read. It is a return pos· . course of action suggested by the ma­ to be proposed to the. titles without tal card: jority leader should be followed, would prejudice. MUTUAL SECURITY AGENCY, it preclude later the ~enewal of a mo­ Mr. McFARLAND. It is my under­ Washington 25, D. C.: tion to strike a title, provided amend­ standing that ·the rule of _the Senate pro~ Please add our name to the list of news­ ments proposed to such.title were agreed vides that if an amendment is offered papers to receive Mutual Security News as to or rejected, which might change the to strike out . a title, and perfecting issued. It is understood that it will be sup­ thinking of a Senator with reference to amendments are offered, it is necessary plied without charge to us. the desirability of retaining the particu­ to vote on the perfecting amendments Newspaper ------· . lar title in the bill? before it is possible to vote on the amend­ Publisher ------· The VICE PRESIDENT. If the agree­ ment to strike out a title. The purpose Town or citY------· ment suggested by the Senator from Ari­ of the agreement is to get around that State ------· zona is entered into, the Chair would un­ rule of the Senate. This postal card is evidence that the derstand it to mean that a vote would Mr. MAYBANK. That is correct. Mutual Security Agency is planning to first come on a motion to strike out The VICE PRESIDENT. Is there ob­ spend, for propaganda purposes, thou­ title 4 and title 5. If the motion were jection to the request of the Senator sands of the taxpayers' very important defeated, any amendments would be in from Arizona? Let the Chair state what dollars which are involved in the pend­ order to either title. If the motion pre­ he understands the request to be. The ing authorization bill. vailed, of course, that would end it, and unanimous-consent request is that when I am sure that Members of the For­ there would be no title 4 or title 5 in the the control bill, S. 2594, is before the eign Relations Committee which has re· bill. Senate, if a motion is made to strike out ported the · bill-and particularly the Mr. HOLLAND. If I may renew my title 4 or title. 5, such motion shall be distinguished chairman of the commit-. request for a ruling, I understand per­ first voted upon. If the motion prevails, tee-are amazed. at the effrontery dis­ fectly well that what the majority leader that title goes out of the bill. If the mo­ played by the officials of the Mutual Se­ intends to do is to have a motion made tion does not prevail, amendments to the curity Agency in proposing. to undertake based upon the question of whether title title are in order, as if the motion had not an extensive propaganda campaign to IV-that is the title which deals with been made. Thereafter, if amendments "sell" to the taxpayers of the United price and wage controls-shall remain · ·are added to such a title, a motion would States the foreign spending program. in the bill. Assuming that such a mo­ then be in order to strike out the title Mr. President, I had been engaged in tion failed, amendments could be offered as amended. newspaper work for most of my adult to title IV. The purpose of my question Is there objection to the request of the life prior to coming to Congress. I know is to invite a ruling as to whether or not, Senator from Arizona? The Chair hears that there may be some legitimate rea. after amendments have been offered and none, and the order is entered. son for disseminating information-al­ acted upon, it would be in order to again The Chair would like to congratulate though probably not so widely as in this · make a motion to strike title IV. the majority leader and the minority case-dealing with the foreign spend. The VICE PRESIDENT. The Chair leader and all other Senators for the ob­ ing program, merely from the standpoint · thinks it would be in order, after any viously sincere effort to make some prog.. of publicity and information which the amendments were agreed to with re­ ress. It is very pleasing to the Chair, people should have in regard to this im­ spect to either of the titles referred to, to : one of whose duties it is, of course, to portant subject. move to strike out the title as amended. try to facilitate the transaction of busi­ I am sure, however, that all other Mr. McFARLAND. Of course the · ness by the Senate. Members of the Senate will agree with striking out would be by way of an · Mr. MAYBANK subsequently said: me that when such publicity is hand­ amendment, rather than a motion. Mr. President, from the Committee on picked and censored and ·controlled en. The VICE PRESIDENT. The Chair Banking and Currency, I report favor­ tirely by the public relations bureau has not seen the bill. Therefore the ably, with amendments, the bill : within the Mutual Security Agency, the Chair does not know what the commit­ to extend the provisions of the Defense people of the United States· will not get tee amendments may be. There may be Production Act of 1950, as amended, a true, impartial story concerning this one committee amendment. The Chair and the Housing and Rent Act of 1947, program, but can expect only the propa­ does not know about it. If a motion as amended, and I submit a report thereon. I ask unanimous con­ tration's spending of these billions of it prevails, that takes the title out of sent that minority views may be sub­ dollars abroad. the bill. If the motion does not prevail, mitted later in the day by the Senator Mr. President, this morning, after the title is open to amendment. In that from Illinois [Mr. DOUGLAS], the Senator having only partially recovered from the event a motion could be made later to from Michigan [Mr. MoonYl, and the shock I received yesterday when I read strike out the title as amended. Senator from Connecticut [Mr. BENTON]. a copy of No. 1, volume 1, of Mutual Se­ Mr. MAYBANK. In my judgment the and be printed with the majority report. curity News, I was amazed when I read ruling of the Chair is entirely correct. The VICE PRESIDENT. The report in today's· Washington Post-and I as­ The reason I brought up the point was will be received, and the bill will be sume practically every other Member of that it was our desire to ascertain placed on the calendar; and, without this body has read the same story-an whether the Senate would retain title IV objection, the minority views may be article relating to 7-week tour of Europe, or title V, or both, with the understand­ filed and printed, as requested by the to be paid for by the Mutual Security ing that afterward, if either title were Senator from South Carolin~ Agency. Inasmuch as it is possible that amended, and, as amended, it was un­ some Members of the Senate may not satisfactory to any one Senator who MUTUAL SECURITY ACT OF 1952 yet have read the article, I shall go into voted to retain it in the bill, he could, so detail regarding it, because I am sure to speak, · reverse himself and vote to The Senate resumed the consideration strike out the title. of the bill ITORS FL y TO EUROPE AS MSA PAYS Mr. BRIDGES. Reserving the right yesterday I called the attention of the A 7-week tour of Europe by air, all ex­ to object-and I shall not object-it is Senate to the No. 1 issue, volume 1, of penses paid, is being provided a group of my understanding that the unanimous­ the Mutual Security News, reflecting the farm editors and farm organization leaders consent request asked for on the control political aspects of the mutual-security by the Mutual Security Agency, successor to bill-and of course we are looking some.­ program. the Economic Cooperation Administration. The group left New York last night by Pan what to the future with respect to this I understand that copies of this pub­ American plane. Its members will visit six agreement-has to do solely with a pos• licity sheet were mailed to thousands of or seven countries, a public relations officer sible amendment to strike out certain newspapers throughout the United for MSA told the Washington Post last night. titles of the bill, and, if such an amend- States, with the accompanying card They will return about July 10. 1952 CONGRESSIONAL RECORD-SENATE 6009 Estimates of the cost of the trip vary. partment accompany this delegation, Transportation to the places indicated by the of the Committee on Foreign Relations­ scheclule released by MSA alone would cost consequently it was aware of this trip; because I know they are sincerely eager between $1,000 and $1,200 for each passenger, and because of the invitation it had re­ to see that this program is su·ccessful­ Transatlantic Airways report. One MSA ceived it was possible for it to have this to certain figures submitted recently in official estimated the total cost if made at very pertinent information at this time. a report by the United States Depart­ personal expense would be around $6,000 or I said, "Well, probably the MSA Press ment of Commerce, showing that from $6,500. Agency issl,led several thousand of these the beginning of World War II to De­ On the trip are: releases." I was told that that was not cember 31, 1951, a total of $88,000,000,000 Radio editors: Claude Mahoney, farm pro­ the case, that it was reasonably certain gram director, Columbia Broadcasting Sys­ had been expended abroad. I shall not tem; Sami1el Schneider, president, Radio that no publicity had been issued or re­ take the time to tell about the MSA pro­ Farm Directors, KVOO, Tulsa, Okla.; C. W. leased by MSA at this time, concerning gram, the UNRRA and other similar Jackson, farm program director, KCMB, Kan­ this junket of publicity agents, editors, programs, and various other spending sas City, Mo., and Lawrence Haeg, farm pro­ and other representatives of American programs abroad, because all Members of gram director, WCCO, Minneapolis, Minn. newspapers and radio stations, to spend this body are fully conversant with those Magazines: Earl McMunn, editor Ohio 7 weeks at public expense checking over programs. I understand that during the Farm, and correspondent, Capper Publica­ the results of the Marshall plan and the present year $16,000,000,000 are avail­ tions, Topeka, Kans.; Eugene Butler, the Pro­ ECA. gressive Farmer, Dallas, and Donald S. Wat­ able for various spendi:ug programs son, the New England Homestead, Spring­ Yet, Mr. President, obviously more im­ abroad. The mutual security bill, as field, Mass. portant than that is the implication that, recommended by the President, would Farm organizations: Ted F. Berry, editor, in this election year, when such editors have made available another $8,000,000,- Washington State Grange News, Seattle; R. S. and other representatives will have re­ 000, making a total of $112,000,000,000 Gilfillan, editor, Farmers Union Herald, St. turned to their respective homes within to be spent abroad within the short pe­ Paul, Minn.; Gwynn Garnett, American Farm the United States, they will feel obligated riod of 12 years. Bureau Federation, Washington, and Kit to sell this foreign-aid program to the Mr. President, it is unfortunate that Haynes, National Council of Farmers Coop­ American people through the agencies of eratives, Washington. any Member of this body should rise Accompanying the party will be C. H. their respective newspapers and radio upon the :floor of the Senate and sug­ Bernhard, information specialist, MSA, and outlets. gest that if we cut this appropriation .for Eddy van der Veen, MSA photographer. What difference does it make, particu­ foreign spending we would be turning The group will arrive in Paris today, and larly at this time, what the results have our back upon our allies. will travel about France, Belgium, Luxem­ been of the spending of these pillions burg and the Netherlands until June 10, Mr. President, as a Member of the of dollars abroad, if newspapermen can Senate I resent such an insinuation. I with several free days in Paris. On June 10 make personal inspections and investi­ they will be fl.own to Rome, where they will think the Members of this body should visit all sections of Italy and all prominent gations, so that they may supply certain recognize their responsibilities and obli­ Italian cities until June 15, when they will information to the American people? I gations to re:fiect the thinking of the go by air to Bonn, Germany. After 2 weeks know that this is not the only delega­ people of the United States, who are be­ in Germany, they will go by air to Vienna tion of publicity men and women from ing called upon to pay burdensome taxes for another 10-day visit, thence back to this country whose expenses have been to meet a budget of $80,000,000,000, or Paris. They will return about July 10. paid upon European junkets by MSA and $85,000,000,000, and the attending in­ Purpose of the trip, according to Thomas by the State Department and other D. Durrance, foreign liaison officer at MSA, :fiMionary annual deficits. Yet when is to study the betterment in European rural agencies. Members of this body, ~barged with the living as the result of Marshall plan aid and One reason, Mr. President, why I feel responsibility of authorizing appropria­ the improvement of living standards and co1.. 1pelled to mention this particular fact tions for the Executive Department, un- farm production. at this time is that -throughout the . dertake to cut by a single dollar any of That is the entire article which ap­ United States there are newspapers, and these spending programs, the represent­ peared in this morning's Washington people not connected with newspapers, atives of the Commander in Chief stand Post. who frequently criticize Members of upon this :floor to criticize those of us Naturally, Mr. President, I was so Congress when they go abroad to make who believe we are trying to serve the amazed by the import and the implica­ inspections or investigations. Critics interests of our people who pay the taxes. tions of this news article, that I imme­ immediately label such trips as junkets We must maintain a strong domestic diately began to make a check, to deter­ at public expense. I presume, Mr. Presi­ economy, so that, in exercising our mine its authenticity. I looked in the dent, it is all right for MSA to spend a leadership in U. N. and NATO and other New York newspapers and in other great deal of money, amounting prob­ organizations, we shall be able to help Washington newspapers, and I was sur­ ably to several million dollars, in order not only ourselves in resisting Red ag­ prised to find that in no other newspaper to create favorable publicity in support gression, but also be in a much stronger could I find an article along the same of the foreign-aid program, whereas if position to help the free countries with line, telling about this junket which has a Member of CongreJs in the discharge whom we are identified at this time. been arranged by the Mutual Security of his official duties were to undertake Mr. President, I think it behooves the Agency at a time when thi:; body, the a comparable trip abroad, he would be Senate to re:fiect seriously, if only for a Senate of the United States, has under subjected to the charge of being on a few moments, upon a bill of this mag­ consideration an authorization bill call­ junket-an unnecessary junket-at pub­ nitude, when it is recognized that no ing for billions of dollars to be spent lic expense. partisanship should be involved. On abroad. It may be interesting to note, Mr. past occasions, and also during the cur­ Finally, Mr. President, I called the President, that a recent official report, rent debate, we have heard many speak­ Washington Post, to ascertain whether it submitted by the United States Civil ers point out that we ought to have a had a "scoop" over other newspapers in Service Commission, indicates that cur­ bipartisan approach. Mr. President, I the United States, in the case of this rently there are about 96,350 civilian em­ ask, How can we have mutual under­ particular article. I was surprised to ployees working abroad, in addition to standing and confidence and a biparti­ learn that probably that is the fact. Of about 85,000 civilian employees working san approach at a time when Averell course, Mr. President, agencies such as in our various Territories and posses­ Harriman, Director of the Mutual Se­ the Mutual Security Agency and the sions. So 96,350 civilian employees are curity Agency, is spending all his time, other Government bureaus and agencies · working outside the United States and and probably the taxpayers' dollars, which purvey public information and outside our Territories and possessions. traveling over the United States, build­ have press agents release thousands of I suppose several thousand of them are ing himself up as a potential Presiden­ circulars or hand-outs when they wish to engaged in the promotion of MSA and tial candidate? have publicity of a certain kind reach other spending programs which cur­ If the party to which he belongs wants the American people. But, Mr. Presi­ rently are involving many billions of dol­ Harriman for its nominee, that is its dent, in this instance I ascertained that lars. business. But, Mr. President, how can the Washington Post had been invited to 1 I should like to call the attention of we, the Members of this body, have a have a representative of its editorial de- the Senators, particularly the members nonpartisan approach to the solution of 6010 CONGRESSIONAL RECORD - SENATE May 27 such problems as those involving the In addition to testimony from these the adequacy of the whole program. It spending of billions of dollars abroad, at gentlemen, we received a cabled state­ would mean endangering the security of a time when we know there is political ment from Gen. Dwight D. Eisenhower the soldiers we have already sent "over­ chicanery, political strategy, and politi­ commenting on the adequacy of the seas. cal planning int.he minds of Mr. Harri­ program. We have spent billions of dollars in man and his associates, who, I fear, are These are the men to whom we have getting a start on this program for col­ utilizing the MS program in this par­ entrusted the defense of the United lective defense. I, for one, cannot pull ticular case to advance their own politi­ States. These are the men to whom we out at this point. Those who voted cal interests? look for the safety and security of our against the program from the start can 1\1:r. President, I am calling the atten­ Nation anp for leadership in the strug­ vote without inconsistency now to aban­ tion of this body to these facts, and I gle to def end the principles of freedom don that which has so painstakingly been a!!l appealing to members of the Com­ upon which this country was founded. built. mittee on Foreign Relations, who are I believe we should consider their tes­ But I do not believe the rest of us­ sincere men, to join with me in sup­ timony careftilly. I believe we must give the majority of Congress-can consist­ porting the amendment which I have heavy weight to their conclusions and ently follow their lead. submitted, restricting the use of money their recommendations. Here is what We are. of course, compelled by the for such propaganda as is reflected in they said: realities of economies to cut somewhere th~ MS News, which it is probably The Secretary of Defense said: along the line. There are not enough planned to issue at intervals throughout If it is important that we stand firm resources. facilities, or trained men in the year, and fOi' sending delegations of against attack, it is equally important that the free world to give us everything_we newspaper editors abroad. I think it our friends are in position to stand firm be­ should like to have or even everything needs no rC\al argument to convince side us; that, as the Committee knows, ls we need at the time we need it. Members of this body that in this pro­ the basis of the Mutual Security Act. We shall not serve either ourselves or gram we can find little but partisan poli­ The Secretary of State said: the free ·world by going bankrupt. But tics, in addition to the unnecessary I should like to have an opportunity to neither shall we serve ourselves by aban­ spending of millions of dollars which say, with a great deal of conviction, to the doning the ·men and the materials we could better be· used at home, or upon Committee that I think any reduction in have committed already to the defense legitimate projects under the MS Agency the amount asked for will have very harm­ of the free world. abroad. ful results to the security of the United This is a situation which requires the Mr. President, I have hesitated to States. most careful and cold-blooded calcula­ make this speech. I have been very re­ The Chairman of the Joint Chiefs of tions. We must balance our economic luctant to make it, because I have Staff said: strength and military potential against thought that we should keep this debate The Mutual Security Program is the key­ the threat to our survival. And we must -on a much higher plane. But I submit stone of the whole collective-security effort weigh in that balance the realization that when the MSA undertakes propa­ of the free world. Without it, the time that every day in which we postpone the ganda programs, it immediately becomes when we will reach a position of relative attainment of an adequate defense is 1 the responsibility of every Member of security is too far distant and the risk is too day further from national safety. the Senate to investigate some of those great. Let us pause for a moment and see activities, and to put restraints upon precisely what we are doing when we this spending. . Furthermore, if the The Director for Mutual Security said: cut the Mutual Security appropriation. American people are to continue to sup­ Every $133,000,000 we cut from this port foreign-aid programs, involving This program is less costly than any other bill could result in the loss of one Euro­ billions of dollars, then certainly they means by which we may seek to insure our security. pean division to the North Atlantic should have absolute assurances that Treaty Or~anization. partisan politics by the MSA is not an The Secretary of the Air Force, dis­ Every $25,000,000 we cut from this bill important part of such programs. This cussing certain types of equipment, said: could result in the loss of one fighter­ is the objective of my amendment. You are buying more security by sending bomber squadron. Mr. JOHNSON of Texas. Mr. Presi­ them to NATO than by keeping them here. dent, the Senate is confronted today with Every $400,000 we cut from this bill a vitally important but essentially sim­ General Eisenhower said: could silence the artillery of one division ple proposition. My personal view is that any cut for this for a complete day. We have committed six divisions of year of much greater magnitude than $1,- To my mind, these are :figures of the ground troops to Europe. 000,000,000 would in the long run be un­ most serious magnitude. These are the We have committed 12 air wings to economic if we are to carry on to the rea­ facts which we must consider soberly sonable level of collective security that our when we approach this problem. Europe. own safety demands. We have established bases in Europe We can, if we desire, lose ourselves in for those divisions and those wings. Mr. President, the substance of this a maze of percentages. We can argue We are signatories to the North At­ testimony can be summed up in two about a 10-percent cut or a 12%-percent lantic Treaty. short sentences. cut, or a 30-percent cut. But under no The question before us now is how First, the collective defense of Europe circumstances should we forget the one much money we are going to authorize and the free world is essential to ·our overriding percentage figure. to back up the men in those divisions and survival as a free Nation. It would be the utmost of folly to be the men in those wings. We are here to Second, since we have adopted that only 10-, 50-, or even 90-percent pre­ determine the extent to which we will principle, we must support it with suffi­ pared for a 100-percent war. support the bases that we have and our cient military and economic strength to Mr. President, let me repeat. I am treaty obligations. insure that the job is done. going to support a 12%-percent cut in The Bureau of the Budget-the ad­ That is the viewpoint of our defense this bill as it came to us from the Bureau ministration's official spokesman-set leaders. That is the viewpoint to which of the Budget. I am going to vote for a the figure at $7,900,000,000. The Senate Congress committed itself when it voted slice of $1,000,000,000 from the $7,900,- Foreign Relations Committee and the originally to authorize these programs. 000,000 which was requested. Senate Armed Services Committee both That is why we have sent 6 divisions I am supporting that cut because I be­ held hearings on that proposal. and 12 air wings to Europe. lieve that the billion dollars would buy In the Senate Armed Services Com­ I believe this request can be cut. I things that are desirable but not abso­ mittee, we called the following witnesses have signified already my approval of a lutely necessary. I hope that thi.s will to explain the measure: Secretary of 12%-percent cut and I am going to vote enable our leaders to eliminate wa-:: te Defense Robert A. Lovett; Secretary of to sustain that cut. If a similar cut without endangering the program. State Dean Acheson; Chairman of the were made in the entire budget, we would These are times of staggering eco­ Joint Chiefs of Staff, Gen. Omar N. have nearly $9,000,000,000. nomic burdens. Our people are being Bradley; Director for Mutual Security But I do not believe we can go below taxed as they have never before been W. Averell Harriman; Secretary of the that figure. In my opinion, to cut fur­ taxed. Our wealth and our resources are Air Force Thomas K. Finletter. . ther would be to risk a dangerous cut in being poured into the greatest military 1952 CONGRESSIONAL. RECORD - SENATE 6011 machine we have ever built in what is We must face frankly the fact that the McFarland O'Mahoney Smith, N. C. defense of the free world today is im­ McKellar Pastore St ennis technically known as peacetime. Mllllk~n Robertson Watkins The impact of these burdens is felt by possible without our bold, whole-hearted Moody Russell Welker all of us. Throughout the country, the cooperation. We must acknowledge to Morse Schoeppel Williams Mundt Smathers Young cry is for economy. The Congress is ourselves that we and only we have the Neely Smith, Maine quite properly responding to that call. strength and the resources among the Nixon Smith, N. J. The people want us to cut out the free nations to guide our own destiny. waste and it is our duty to heed their ex­ The other free nations of the earth Mr. JOHNSON of Texas. I announce pressed desire. But we must remember are spent and exhausted from two world that the Senator from Connecticut [Mr. that there is no waste as great as a job wars which devastated their lands and BENTON], the Senators from Kentucky half done. scarred their cities. They must look to [Mr. CLEMENTS and Mr. UNDERWOOD], We do not restrict a wounded soldier us for leadership. the Senator from Delaware [Mr. FREAR], to a pint of blood when 2 pints are Their determination to resist will be the Senator from Missouri [Mr. HEN­ needed to save his life. no greater than ours. That which we NINGS], the Senators from Alabama [Mr. We do not ration a fighting plane to cut from this program they may match HILL and Mr. SPARKMAN]' the Senator gas for 500 miles when it must fty 800 with cuts of their own. And every cut from South Carolina [Mr. JOHNSTON], miles to attack the enemy. by any of us means just that much less the Senator from Oklahoma [Mr. MoN­ It would be cheaper in terms of money support for the 6 divisions and the 12 RONEYJ, and the Senator from Maryland to buy only the pint of blood. But then air wings we have committed already. [Mr. O'CoNoRJ are absent on official we would lose both the blood and the There are strong temptations bearing business. soldier. It would be cheaper in terms of upon all of us to take heavy whacks at The Senator from Louisiana [Mr. EL­ money to buy only the gas for 500 miles. this, bill with a meat cleaver. Those LENDER] is absent because of a death in But then we would lose the gas, the air­ temptations present themselves with his family. plane, and the pilot. particular force in an election year. The Senator from Tennessee [Mr. Similarly, it would be cheaper in terms But I believe there is a rule of thumb KEFAUVER], the Senator from Oklahoma of money to provide our allies, including for charting a course through the polit­ [Mr. KERR], the Senator from Washing­ our six divisions, with only half of what ical storms. ton [Mr. MAGNUSON], and the Senator they need to fight communism; But if we No political life is worth a soldier's life. from Arkansas [Mr. McCLELLAN] are make that decision, we shall do so at the I think that is axiomatic, ar.d the Amer­ absent by leave of the Senate. risk of losing our six divisions, our allies, ican people will hold us to that axiom. The Senator from Connecticut [Mr. and freedom-freedom for ourselves and Mr. President, we have 6 divisions and McMAHON] is absent because of illness. our posterity. · 12 air wings which we have committed The Senator from Montana [Mr. MUR­ The lessons of all history are clear. No to Europe. Those 6 divisions and 12 air RAY] is absent by leave of the Senate on nation stands to lose so much as the na­ wings, together with their supporting official business, having been appointed tion that is unwilling to do those things units, represent men, American men. a delegate from the United States to the which its security requires. No people Should the day come that our common International Labor Organization Con­ can survive who are fearful of the task enemy cast the die and turn the cold war ference, which is to meet in Geneva, that is before them. into a hot war, those men would bear the Switzerland. The task that is before us is obvious. brunt of the onslaught. I want none of ·Mr. BRIDGES. I announce that the It is to protect ourselves, our children, them to be able to look at me and say: Senator from Maine [Mr. BREWSTER], our free institutions, from the threat of "Why did you refuse us the support the Senator from Maryland [Mr. BUT­ tyranny. that might have saved us? Why did you LER], the Senator from Pennsylvania We can, if we wish, turn our faces abandon us to our fate?" [Mr. DuFFJ, the Senator from Massa· from the rest of the free world. We can, Mr. President, I am a strong advocate chusetts [Mr. SALTONSTALL], the Senator if we wish, decide to walk alone. We can, of real economy. My whole record as· from Nebraska [Mr. SEATON], the Sena­ if we wish, close our eyes as our neigh­ chairman of the Senate Preparedness tor from Ohio [Mr. TAFT], and the Sena .. bors, one by one, are driven from their Committee is evidence of that point. I tor from New Hampshire [Mr. TOBEY] houses by thieves. am not of the opinion that Presidential are necessarily absent. But let us not deceive ourselves as to recommendations must be accepted with­ The Senator from Washington [Mr. what we are doing. It does not require out question. CAIN], the Senator from California [Mr. all-seeing wisdom to foretell the fate of There unquestionably has been waste KNOWLANDJ, and the Senator from Min· our allies should we decide to let them in both our military and nonmilitary ex­ nesota [Mr. THYEJ are absent by leave "go it alone." The future is written al­ penditures. It is our responsibility to of the Senate. ready in the pattern of world-wide Com­ exercise close control over the Nation's The Senator from Vermont [Mr. munist aggression. They would fall, and purse and eliminate some of that waste. FLANDERS] and the Senator from Wis­ with them would go the six divisions and Therefore, I am supporting the pend­ consin [Mr. WILEY] are absent by leave 12 wings already in Europe. ing bill as it was brought to the floor of of the Senate for the purpose of attend­ It does not require divine knowledge to the Senate· by two standing commit­ ing the Conference of the International foretell the future of the United States tees of the Senate. I believe the cuts Council for Christian Leadership at The should we permit the rest of the free they have made are judicious, and afford Hague. world to fall. We would lie huddled be­ an opportunity to eliminate waste. The Senator from Indiana [Mr. CAPE­ hind two oceans, seeking frantically to I urge my colleagues to stand by those HART], the Senator from Montana [Mr. build greater and even greater defenses committees. EcToNl, and the Senator from North against what would eventually be the on­ Mr. DIRKSEN. Mr. President, I sug­ Dakota [Mr. LANGER] are absent on of­ slaught of the rest of the globe. gest the absence of a quorum. fi.cial business. Our sea frontiers would be New York The PRESIDING OFFICER. The The PRESIDING OFFICER. A quo­ Harbor and San Francisco Bay. Our clerk will call the roll. rum is present. air defenses would be based upon Chi­ The legislative clerk called the roll, and Mr. DIRKSEN. Mr. President, as I cago, Pittsburgh, Birmingham, and Dal­ the following Senators answered to their understand, the vote about to be taken las. Our front lines would be the streets names. is on the amendment offered by the and avenues of our great cities and the Alken Dworshak Ives Senator from Idaho [Mr. WELKER], for broad and fertile acres of our plains. Anderson Eastland Jenner himself and 10 other Members of the Mr. President, I know there is no Bennett Ferguson Johnson, Colo. Senate, which would reduce the amount Bricker Fulbright Johnson, Tex. serious intent here to abandon Europe Bridges George Kem in the pending bill by $1,000,000,000, and the free world entirely. I do not Butler, Nebr. Glllette Kilgore apportioned among 13 items in the bill. believe that is the temper of this Con­ Byrd Green Lehman Carlson Hayden Lodge The PRESIDING OFFICER. The gress. I know that is not the temper of Case Hendrickson Long Senator from Illinois is correct in his our people. But by temporizing, by Chavez Hickenlooper Malone understanding. The question is on the faint-hearted measures, by half steps, we Connally Hoey Martin amendment offered by the Senator from Cordon Holland Maybank can gain nothing but"a postponement of Dirksen Humphrey Mccarran Idaho [Mr. WELKER], for himself and the evil day. Douglas Hunt McCarthy other Senators. 6012 CONGRESSIONAL. RECORD- SENATE May 27 Mr. DIRKSEN ·and other Senators de:. STON] is paired with the Senator from present -and voting the Senator from manded the yeas and nays. Delaware [Mr. FREAR]. If present and Montana would vote "yea," and the Sen­ The yeas and nays were ordered. voting, the Senator from South Carolina ator from Maine would vote "nay." Mr. CONNALLY. Mr. President, as I would vote "yea," and the Senator from · The result was announced-yeas 27, understand, the vote is on the $1,000,- Delaware would vote "nay." nays 35, as follows: 000,000 amendment offered by the Sen­ I announce further that if present and YEAS-27 ator from Idaho [Mr. WELKER]? · voting, the Senator from Connecticut Bennett Hickenlooper Millikin The PRESIDING OFFICER. The vote [Mr. BENTON], the Senator from Missouri Bricker Jenner Mundt about to be taken is on the amendment [Mr. HENNINGS], the Senators from Ala­ Bridges Johnson, Colo. Schoeppel Butler, Nebr. Kem Smith, Maine offered by the Senator from Idaho .[Mr. bama [Mr. HILL and Mr. SPARKMAN] • the Byrd Long Sm1th,N.C . . WELKER], for himself and other Senators. Senator from Tennessee [Mr. KEFAUVER], Case Malone Watkins Mr. CONNALLY. I desire to advise the Senators from Oklahoma [Mr. KERR Cordon Martin Welker Dirksen McCa rthy Williams the Members of the Senate that this a~1d Mr. MoNRONE~J, the Senator from Dworshak McKellar Young would he a disastrous amendment if it Washington [Mr. MAGNUSON], and the NAYS-35 were ·adopted. All authorities, military Senator from Montana [Mr. MURRAY] Aiken Hendrickson Moody and high civilian, including the Joint would vote "nay." Anderson Hoey Morse Chiefs of Staff and General Eisenhower, I announce also that if present and Carlson Holland Neely regard the proposed cut of $1,000,000,000 voting, the Senator from Arkansas [Mr. Chavez Humphrey Nixon Connally Hunt O'Mahoney as disastrous. Such a cut would prob­ McCLELLAN J would vote "yea." Douglas Ives Pastore ably force a reconsideration of the whole Mr. BRIDGES. I announce that the Eastland Johnson, Tex. Robertson defensive set-up in Europe. I certainly Fulbright Kilgore Russell Senator from Maine [Mr. BREWSTER], · George Lehman Smathers hope that the Senate will not adopt such the Senator from Maryland [Mr. BUT­ Gillette Lodge Smith,N. J. an :.?..mendment. · LER], the Senator from Pennsylvania Green Mccarran Stennis SEVERAL SENATORS. Vote! Vote! [Mr. DUFF], the Senator from Massachu­ Hayden McFarland The PRESIDING OFFICER. The setts [Mr. SALTONSTALL], the Senator NOT VOTING-34 · question is on agreeing to the amend­ from Nebraska [Mr. oEATON], the Sen­ Benton - Hennings Muri~y ment offered by the Senator from Idaho Brewster · Hill O'Conor ator from Ohio [M;r. TAFT], and the Butler, Md. ·Johnston, S. C.. Saltonstall [Mr. WELKER] for himself and othe·r Senator from New Hampshire [Mr. Cain Kefauver Seaton .Senators. The yeas and nays have been TOBEY] are necessarily absent. Capehart Kerr Sparkman ordered. and the clerk will call the roll. Clements Knowland · Taft· The Se:&.')ator from Washington [Mr. Duff Langer Thye The Chief Clerk proceeded to call the CAIN], the Senator from California CMr. Ecton Magnuson Tobey .roll. KNOWLAND], and the Senator from Min­ Ellender Maybank · Underwood Mr. MAYBANK

Paid, abated or credited Balance Taxable year Sym­ Amount outstand: Remarks bols 1 assessed Schedule lng Date paid No. Amount

1922 •• ------OTp $l, g~: gg ::::::::::::::: ----32857 ____ --$i;285:oo_A._6_ :::::::::::: Abated. 1922 •• ------CT 1, 028. 00 ------p 257. 00 I 232.14 ::::::::::::::: ::::::::::::: :::::::::::::::: --$1;5ff14- 0 in Csubmitted Oct.13, 1927, rejected. 0 in C submittiid Mar. 1, 1929, rejected. 0 in C submitted Mar. 4, 1929, ·rejected. Suit instituted Deer 17, 1933. 0 in C sub­ mitted Nov. 19, 1942, rejected. .Amended O in C sub­ mitted Oct. 11, 1943, rejected. 0 in C submitted Jan. 27, 1949, pen~g •.· .. - \.~ _ 1923. ------OT 1, 266. 00 p 316. 50 ::::::::::::::: ·---32857·--- ··T58i50T6- :::::::::::: Abated. 1923. ------CT t: 266. 00 p 316. 50 I 209. 93 ::::::::::::::: ::::::::::::: :::::::::::::::: ··-1;792:43· Same as 192;?. 1924. ------OT 955. 00 p 238. 75 ::::::::::::::: ----32857 ____ -··1;239:94-.AJ): :::::::::::: I 217. 94 ------···· 48840 116. 88 Ab 54. 87 Do. 1924. ------CT 955. 00 p 238. 75 I 101.06 ::::::::::::::: ::::::::::::: :::::::::::::::: --T294:8i- Do. 1925. - ··------·------···--- OT 603. 75 p 150. 94 ::::::::::::::: ····32851··-- --·-·754:69-.Ab- :::::::::::: 1925 ______I 65.33 ------48840 65. 33 Ab None CT 816. 75 p 204.18 37.42 ------···-32857·-·· ----·-25:55-.A_i)" ·--1;037:80- Do. United States court case on 1922 F 9, 900.00 ~ Jan:-29;1932· ------9, 900. oo Pd ------~lne and cost by United States court. through 1925. F 100. 00 Oct. 10, 1933 ------­ ~~: gg ~~ Title 28, sec. 80, u. s. o. c 654. 90 Mar. 19, 1934 ------·----None- 1926. ------···---- DT 11, 126. 95 p 8, 345. 22 I 5, 403.89 ::::::::::::::: ::::::::::::: :::::::::::::::: -·24;816:06" Lien field, Dec. 10,1, 1936. 0 in C submitted May 28, 193!t rejected. 0 in v submitted Nov. 16, 1939, rejected. u in C submitted Nov. 19, 1942, rejected. Amended 0 in 0 Oct. 11, 1943, rejected. 1927 -- -·------DT 17, 301. 05 Form 900 in file extending statute of limitations to Dec. 31, 1952. 0 in ·c submitted Jan. 27, 1949, pending. p 12, 975. 79 I 7,364.32 ::::::::::::::: ::::::::::::: :::::::::::::::: ··37;64i:i6- Same as 1926. 1928 •• --··-·------OT 471. 71 May 9, 1929 -···-······-- . 295. 33 Pd ------I 1. 05 July 10, 1929 ------177. 43 Pd None 1928. - ·------·---·------AT 13, 239. 36 ------..; ______p 6, 619. 68 I 4, 841. 07 Do. 1929. ------OT 669.66 =~~~=ii;i~i6= ::::::::::::: =====~~~~=~~= --24:1~~!r 1930 _------OT 608.86 Mar. 16, 1931 ------608. 86 None 1931. ------OT 96. 75 Mar. 15, 1932 ------00. 75 Pd None 1932. ------OT 184.00 Mar. 1, 1933 ------184. 00 Pd None 1933. ------OT 241.02 Mar. 14, 1934 ------241. 02 Pd None 1934. ------OT 833. 47 Mar. .15, 1935 ------233. 47 Pd ------I 6.96 June 15, 1935 ------200. 00 Pd ------1934. -·------·------·-- AT 98.06 Dec. 10, 1935 ------200. 00 Pd ------I 8.97 Mar. 2, 1936 ------200. 00 Pd ------·oct.d0i2:i936- ::::::::::::: 10~: ~ ~~ ------N"oii0· 1935. ------OT 476. 02 M ar. 16, 1936 ------146. 02 Pd ----·------June 15, 1936 ------110. 00 Pd ------1935. ------AT 122. 78 Sept. 14, 1936 -----····--·- 110. 00 Pd ------I 4.21 Dec. 15, 1936 ------110. 00 Pd ----- Oct. 12, 1935 ------126. 99 Pd -Noiiii- 1936. ------OT 802. 95 Mar. 15, 1937 ------202. 95 Pd ------I 10. 73 June 16, 1937 ------200. 00 Pd ------1936. ------·-·--- AT 68. 94 Sept. 15, 1937 ------202. 49 Pd ------I 53. 17 Feb. 8, 1938 ------197. 51 Pd ------_____ do ______••••••••••••• 10. 73 Pd ------23 1950 Jan. ' ----i59i69··· ~: ~ ~~ ------None- Overassessment on other years, 1937 ------OT 1,283. 99 Mar. 15, 1938 ------323. 99 Pd ------1937 ••• ______June 15, 1938 ------320. 00 Pd ------AT 112.32 Sept. 14, 1938 ------320. 00 Pd ------I 79.89 Dec. 14, 1938 ------320. 00 Pd ------23 1950 1 Jan. ' ----··159769- ~~: ~~ ~~ ----··:r:ron.0- Do. 1938. -·------·---- OT 961.40 Mar. 15, 1939 ------250. 00 Pd ------June 15, 1939 ------230. 70 Pd ------·- tNoTE.-OT-Original tax disclosed on return filed by taxpayer. CT-Corrected tax. AT-Additional tax assessed on basis of revenue agent's report coverlng audit of return. DT-Deli.nquent tax, returns were not timely filed. P-Penalty. I-Interest. Ab-Abated. Cr-Credited. Pd-Paid. F-Fine. C-Cost. 1952 CONGRESSIONAL RECo:Rn:..:...-sENATE .6033

Paid, abated or credited Balance Sym. Amount Taxable year outstand­ Remarks bols 1 assessed Schedule ing . Date paid 1'-lo. Amount

1938 ••••••• ------AT' $267. 82 Sept. 15, 1939 ------5241. 00 Pd ------I 174. 43 Dec. 9, 1939 ------239. 70 Pd ------Jan. 23, 1950 267. 82 Pd ------Overassessment on other years. ------i59769" 141. 54 Cr ------Do. 159769 32.89 Or None Do. 1939. ------~------OT $1, 402. 87 Mar. 15, 1940 ------352.80 Pd ------June 13, 1940 352. 80 Pd ------Sept. 13, 1940 ·------350. 00 Pd D ec. 14, 1940 ------347. 27 Pd ------None- OT 1, 953. 64 ]:.1ar. 14, 1941 ------488. 41 Pd 1940. ------June 14, 1941 ------488. 50 Pd ------Sept. 15, 1941 ------488. 50 Pd ------Dec. 16, 1941 ------488. 23 Pd ------None- OT ------1941.. ------7, 477. 40 Mar. 14, 1942 ------1, 869. 35 Pd ------June 15, 1942 ------l, 872. 40 Pd ------Sept. 15, 1942 ------1, 870. 00 Pd 1942 ______Dec. 18, 1942 1, 865. 65 Pd ------None- OT 4, 176.17 Mar. 13, 1943 ------1, 044.17 Pd ...... June 15, 1943 ------1, 100. 00 Pd --:&ifffi:56ii- 2, 032. 00 Ab ------Abated under Revenue Act 1943. OT 2, 440. 42 ------1_943. ------·-···--······-··---·- Sept. 14, 1943 ES 954. 50 Pd ------Dec. 15, 1943 ES 954. 50 Pd ------·----- 1943. ------AT 767. 88 Mar. 14, 1944 531.42 Pd I 269. 76 Jan. 23, 1950 ------767. 88 Pd ------June 15, 1950 ------118. 68 Pd ------.:.-·. ----i59i69""" 151.08 Cr ------None- Overassessment on other years. 1944. ------OT 1, 604.11 .Apr. 15, 1944 ES 264. 45 Pd June 15, 1944 ES 264. 45 Pd ------Sept. 8, 1944 ES 264. 45 Pd ------· Jan. 15, 1945 ES 453. 68 Pd ------Mar. 13, 1945 357.08 Pd ------None- OT ---·-Es···-- 1945. - ·------·------646.11 Mar. 12, 1945 200.00 Pd ------,June 2, 1945 ES 200.00 Pd ------11145. ------AT 29.86 Sept. 12, 1945 ES 200.00 Pd I 6. 91 Jan. 15, 1946 46.11 Pd ------Jan. 23, 1950 ------29.86 Pd ------June 15, 1950 --·--Es------_____ 6.91 Pd ------None- OT $1, 064. 92 Mar. 15, 1946 350. 00 Pd Had an overpayment of $54.01 which was credited to 1947 1946. - • -· -•••• ------· estimated tax. June 10, 1946 ES 300.00 Pd AT 957. 77 Sept. 9, 1946 ES 150. 00 Pd ------1946. ------I 164. 08 Jan. 15, 1947 ES 264. 92 Pd ------Jan. 23, 1950 957. 77 Pd ------June 15, 1950 ·------164. 08 Pd ------ifone- OT 4, 826. 50 Mar. 15, 1947 ---·-Es···-- 325. 96 Pd Had an overpayment of $167.54 which was refunded Apr. 1947 - • ------15, 1948. June 16, 1947 ES 325. 96 Pd AT 1, 254. 78 90814 54. 01 Cr ------1947 -- --··-···-·--·····------I 139. 68 ·sei)Cis:i947- ES 351. 93 Pd ------Jan. 15, 1948 ES 3, 768. 64 Pd ------Jan. 23, 1950 1, 254. 78 Pd ------June 15, 1950 ------139. 68 Pd --·-·woiia· OT 1, 500.00 Mar. 15, 1948 / ---·-Es····· 500.00 Pd Had an overpayment of $442.06 which was refunded Feb. 1948. - • ------16, 1949. June 7, 1948 ES 500.00 Pd ------~ 1948. ------AT 1, 487. 52 Sept. 15, 1948 ES 500.00 Pd ------The years 1936 through 1948 I 79. 44 Jan. Z1, 1950 ...... 843.01 Pd ------were reexamined by revenue June 15, 1950 79.44 Pd ------agent. ----i59i69""" 104. 30 Cr Overassessment on other years. 159769 540. 21 Cr ------None- Do. 1949. - ---··········------··---- OT 4, 906.16 Mar. 15, 1949 ES 1.050.00 Pd Even return. June 15, 1949 ES 1,050. 00 Pd ------Sept. 15, 1949 ES 1,050.00 Pd ·------Jan. 15, 1950 ES 1, 756.16 Pd ------None- OT 4, 100. 00 Mar. 15, 1950 ES 900.00 Pd Had an overpayment of $420.98 which was refunded May 3, 1950. - - --·-··--·------····------1951. June 15, 1950 ES 900. 00 Pd Sept. 15, 1950 ES 900.00 Pd ------Jan. 15, 1951 ES 1, 400.00 Pd ------None-

Mr. WILLIAMS. Mr. President, dur­ filing a false statement in connection operation to the extent of $93,000, with­ ing the period 1922 to 1928, inclusive, with his offer in compromise and with out even collecting any interest; and Ralph Capone's income taxes were de­ concealing assets in connection with this today the Government is on the verge linquent. The unpaid assessments for offer. of settling the unpaid claim for an in­ those years total $92,914.38. On September 10, 1951, that case was significant fraction of its total. These assessments have been allowed dismissed. The second case is that of JGhn (Jack> to remain unpaid on the books of the On November 30, 1951, I called upon Guzik, ·Chicago, Ill. Treasury Department for the past 25 the Treasury Department for a record of John Guzik, ofttimes referred to as years; and as recently as January 1, how they had been handling this par­ "Greasy Thumb," was a former associate 1952, the taxpayer was still trying to ticular case; and while perhaps there is of Al Capone and the treasurer of the settle this obligation, through a com­ no connection between my letter and Al Capone syndicate, which gang was promise agreement with the Treasury their action, nevertheless it is noted that engaged in various illegal activities in Department, for a small fraction of the on January 16, 1952, Ralph Capone was and around Chicago, Ill. total amount due. The records also show that it was not indicted. His indictment then was for A review of his tax record shows that until after the recent exposures in the filing false statements with ·his com­ on March 18, 1942, upon the recommen­ Tax Bureau had begun that any aggres­ promise offer, and not for his failure to dation of J. P. Wenchel, Chief Counsel sive action was taken by the Department pay his taxes. of the Treasury Department, and with of Justice against this taxpayer. The net result is that for the past 25 the approval of Norman D. Cann, Acting On March 16, 1951, a complaint had years the Federal Government has ·been Commissioner of Internal Revenue, and been filed charging Ralph Capone with financing Ralph Capone's racketeering John L. Sullivan, Acting Secretary of XCVIII-380 6034 CONGRESSIONAL RECORD - SENATE May 27 Treasury, an $892,283 :79 proposed tax The PRESIDING OFFICER. Is there prominent racketeers is-that this class of liability was settled for $100,000. objection? operators do not keep books. They point At this point I ask unanimous consent There being no objection, the table out that racketeers and gamblers conduct to have incorporated in the RECORD a was ordered to be printed in the RECORD, the most of their operations in cash, breakdo~n of these assessments. as follows: thereby rendering it extremely difficult for the Government to prove their cases regarding their actual earnings. 6-per cent Interest ac- Tax Date assessed interest crued to P en alty, Treasury om.cials explain their accept­ Y ear F eb. 26, 50 percent Total. assessed 1942 ance of these compromise offers on the basis that since racketeers keep a sub­ stantial part of their assets in the form of 1924------$101, 387. 45 Apr. 19, 1935 $59, 124. 85 $86,698. 62 $50, 693. 72 $297' 904. 64 1925------30, 533. 57 _____ do ______16, 660. 87 25, 639. 00 15, 266. 79 ES, 101.13 hidden cash or invested in legitimate 1 926------~--- 7, 209. 92 ____ _do ______3, 501. 55 5, 876. 80 3, 604. 96 rn, 193. 23 business enterprises under fictitious 1927------66, 176. 42 __ __ _do ______28, 168. 49 52,310. 42 33, 088. 21 179, 743. 54 1928______47, 046. 85 --~ - -do ______17, 203. 03 36, 030. 33 23, 523. 42 123, 803. 63 names, it is hard for the Government to 1936______133, 183. 88 July 1, 1940 26, 408. 71 16, 285. 84 I 6, 659. 19 182, 537. 62 collect the taxes due. T otal ______------385, 538. 09 151, 067. 50 This explanation is dim.cult -for the 222, 841. 91 132, 836. 29 892,283. 79 average taxpayer to accept in view of the 1 manner in which the Treasury Depart­ ' 1 Fo.r the year 1936 a 5-percent negligence penalty was asserted and assessed. ment forces him to render an accurate r Mr. WILLIAMS .. Mr. President, since Mr. Daniel J. Conerty, chief field dep­ accounting of all financial transactions. the above deficiencies in income tax, uty of the Chicago, Ill., office, in a mem­ These cases are offered as further ex­ penalties, and interest for the years 1924 orandum dated March 9, 1942, trans­ amples of the manner in which the to 1928, inclusive, were assessed pursuant mitting Mr. Guzik's statement of assets New Deal administration has been en­ to an order of the United States Board of and liabilities recommended acceptance forcing the tax laws against some of the Tax Appeals which had lecome final, the of the $100,000 offer on the ground that .Nation•s.., Ihost.J prominent .racketeers as outstanding liability for those years was the amount offered was probably more compared to the treatment they have declared legally due. than could otherwise be collected by the been giving to other taxpayers. The assessment of the deficiency in Government. In making this recom­ income tax and negligence penalty for mendation he pointed out what he de­ the year 1936 was made after Mr. Guzik scribed as Mr. Guzik's "reduced earning ORDER OF BUSINES$ had permitted the statutory period for power." Mr. McFARLAND. Mr. President, I filing a petition with the United States Guzik's $100,000 offer was accepted by announced earlier that after the con­ Board of Tax Appeals to expire without the Government on March 18, 1942, and sideration of the pending bill was con­ filing a petition for a redetermination of thereby the Treasury Department wiped cluded tomorrow-if it should be con­ the deficiency in income tax and negli­ the slate clean for this racketeer during cluded-there would be a call of the gence penalty asserted in the 90-day de­ the years involved. calendar. I have been informed that the ficiency notice which had been mailed to With the compromise offer John Gu­ Senator from Nevada [Mr. McCARRAN], him on March 9, 1940. During the ye~rs zik filed a· net worth statement showing cannot be ready tomorrow. Therefore following the assessment of these taxes assets of only $41,125. the calendar will be called on some other Jack Guzik made numerous attempts to - During the 6-year period in which day. Instead of a call of the calendar compromise his $900,000 tax obligation: John Guzik was attempting to settle his tomorrow, if time permits I shall move On October 10, 1936, he submitted an of­ outstanding tax obligation for a small that the Senate proceed to the consid­ fer of $5,000. On July 26, 1937, this offer fraction of the total amount due, it is eration of Senate bill 2968, a bill to was increased to $10,000. On October noteworthy that his reported income amend section 8 of the Civil Service Re­ 23, 1937, this offer was increased to was fairly substantial; for instance: tirement Act of May 29, 1930, as amend­ $25,000. On February 19, 1938, this offer Year: Net income ed. It is Calendar No. -1408. was increased to $35,000. 1936------~ $52, 560.00 Mr. President, I now move that the These offers were rejected apparently 1937 ______, ______59,639.00 Senate now stand in recess until 12 because Mr. Guzik, on the advice of his 1938 ______,______62,842.00 o'clock noon tomorrow. then counsel, refused to file a financial 1939 ______, ______29,651.35 Mr. BRIDGES. Mr. President, one 1940 ______, ______15,01~.50 statement of his assets and liabilities. 1941 ______30, 100.00 moment. I shall have to suggest the On July 15, 1939, a fifth ofier was sub­ absence of a quorum. mitted-amount unknown. The PRESIDING OFFICER. The On March 20, 1941, Mr. Guzik offered TotaL------·------249, 807. 85 clerk will call the roll. the Government $75,000 in full settle­ Thus, we find that during the period The Chief Clerk proceeded to to call ment of his tax obligation. This offer, in which John Guzik successfully ne­ the roll. too, was rejected on August 7, 1941. gotiated a deal with the Treasury De­ Mr. BRIDGES. Mr. President, I ask On November 18, 1941, Messrs. Eugene partment whereby he settled an $892,000 unanimous consent that the order for a Bernstein and James C. Leaton, attor­ tax claim for $100,000 or about 11 cents quorum call be rescinded and that fur­ neys of Chicago, Ill., ~xecuted and filed on the dollar, his reported net income ther proceedings under the call be dis­ with the collector an $85,000 installment was approximately a quarter of a million pensed with. offer on behalf of John Guzik. This dollars. Mr. DWORSHAK. Reserving the compromise off er was rejected on Feb­ The third case is that of Al Capone, Joe right to object, I should like to inquire if ruary 3, 1942, one of the reasons given Fusco, John